8. Leases

Our leases are primarily related to office space and certain equipment. The leases are classified as operating leases, for which we recorded a right of use asset. Our primary leases include:

•

Former primary headquarters in The Colony, Texas. We recorded a right of use asset associated with this lease, which was modified in 2022, of approximately $1.6 million. We used an effective interest rate of 4.56%, which was our incremental borrowing rate in effect at the date of the lease amendment as the lease does not provide a readily determinable implicit rate. In January 2026, we entered into a sublease agreement for this office space. The sublease agreement is effective through December 31, 2027, at which time our lease for the space will terminate.

•

Chadds Ford, PA office. We recorded a right of use asset associated with this lease, which was modified in 2022, of approximately $749 thousand. The lease expires in October 2026. We used an effective interest rate of 7.5%, which was our incremental borrowing rate in effect at the acquisition date of RWS as the lease does not provide a readily determinable implicit rate. This lease may be terminated under certain conditions as defined in the lease agreement.

•

Equipment leases. During the year ended December 31, 2025, we entered into sale-leaseback agreements with a third party for certain compactors and related equipment owned by us. The equipment leases are classified as operating leases, with lease terms of 5 years. We recorded right of use assets associated with these equipment leases of $1.3 million. We used effective interest rates ranging from 6.72% to 7.32%, using the incremental borrowing rate at the inception of each lease agreement as the agreements do not provide a readily determinable implicit rate.

The weighted average remaining life of our operating leases is 3.6 years and 2.8 years as of December 31, 2025 and 2024, respectively. The weighted average discount rate for our operating leases is 6.2% and 5.1% at December 31, 2025 and 2024, respectively.

The future minimum lease payments required under our operating leases as of December 31, 2025 are as follows (in thousands):


Year Ending December 31,	Amount
2026	$	809
2027		712
2028		325
2029		325
2030		245
Total lease payments		2,416
Less: Interest		(282	)
Present value of lease payments	$	2,134

Balance Sheet Classification

The table below presents the lease related assets and liabilities recorded on the balance sheet (in thousands).


	As of December 31,
	2025		2024
Operating Leases
Right-of-use operating lease assets:
Property and equipment, net and other assets	$	2,112	$	1,305

Lease liabilities:
Accounts payable and accrued liabilities	$	621	$	434
Other long-term liabilities		1,513		833
Total operating lease liabilities	$	2,134	$	1,267

Lease Costs

For the years ended December 31, 2025 and 2024, we recorded $689 thousand and $811 thousand, respectively, of fixed cost operating lease expense.

Cash paid for operating leases approximated operating lease expense and non-cash right of use asset amortization for the years ended December 31, 2025 and 2024.

Historical Timeline

Fiscal Year	Filed
2025	Mar 13, 2026	Showing above
2024	Mar 12, 2025

2023	Mar 12, 2024

2022	Mar 23, 2023

2021	Mar 17, 2022

2020	Mar 11, 2021

2019	Mar 12, 2020

2018	Mar 14, 2019

2017	Apr 2, 2018

2016	Mar 31, 2017

2015	Mar 16, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Quest Resource Holding Corp Leases Disclosure

Historical Timeline

About Leases Disclosures

Other Available Disclosures