LEASESThe Company has operating and finance leases for properties, vehicles and equipment. The Company’s operating and finance leases have remaining lease terms of less than one year to twenty-five years, some of which include options to extend the lease term, and some of which include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options.
Supplemental balance sheet information related to leases as of December 31, 2025 and 2024 were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, |
| Liabilities | | Presentation | | 2025 | | 2024 |
| Current: | | | | | | |
| Operating lease liabilities | | Other current liabilities | | $ | 10,816 | | | $ | 6,170 | |
| Finance lease liabilities | | Other current liabilities | | 317 | | | 268 | |
| Total lease liabilities, current | | | | 11,133 | | | 6,438 | |
| Non-current: | | | | | | |
| Operating lease liabilities | | Non-current operating lease liabilities | | 85,191 | | | 51,965 | |
| Finance lease liabilities | | Non-current finance lease liabilities | | 14,653 | | | 14,970 | |
| Total lease liabilities, non-current | | | | 99,844 | | | 66,935 | |
| Total lease liabilities | | | | $ | 110,977 | | | $ | 73,373 | |
The Company does not separate non-lease components for the purposes of measuring our lease liabilities and assets. The components of lease expense were as follows during the years ended December 31, 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease costs: | | | | | |
| Operating lease costs | $ | 14,158 | | | $ | 9,762 | | | $ | 7,164 | |
| Amortization of favorable lease | 610 | | | 1,220 | | | 610 | |
| Total operating lease costs: | $ | 14,768 | | | $ | 10,982 | | | $ | 7,774 | |
| Finance lease costs: | | | | | |
| Depreciation of right-of-use assets | $ | 501 | | | $ | 591 | | | $ | 627 | |
| Interest on lease liabilities | 933 | | | 949 | | | 967 | |
| Total finance lease costs | $ | 1,434 | | | $ | 1,540 | | | $ | 1,594 | |
Cash paid for amounts included in the measurement of lease liabilities:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 12,411 | | | $ | 8,672 | | | $ | 6,581 | |
| Operating cash flows from finance leases | 933 | | | 949 | | | 967 | |
| Finance cash flows from finance leases | 268 | | | 329 | | | 336 | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | |
| Operating leases | $ | 39,286 | | | $ | 2,871 | | | $ | 30,396 | |
The weighted average remaining lease term related to operating leases was 8.5 years and 9.0 years as of December 31, 2025 and 2024, respectively. The weighted average discount rate related to operating leases was 6.5% and 6.4% as of December 31, 2025 and 2024, respectively. The weighted average remaining lease term related to finance leases was 16.4 years and 17.4 years as of December 31, 2025 and 2024, respectively. The weighted average discount rate related to finance leases was 6.2% as of December 31, 2025 and 2024.
The following is a schedule of the future minimum operating and finance lease payments by year as of December 31, 2025:
| | | | | | | | | | | |
| Operating
Leases | | Finance
Leases |
| 2026 | $ | 16,712 | | | $ | 1,231 | |
| 2027 | 16,811 | | | 1,262 | |
| 2028 | 15,834 | | | 1,293 | |
| 2029 | 15,206 | | | 1,326 | |
| 2030 | 11,881 | | | 1,359 | |
| Thereafter | 49,965 | | | 18,139 | |
| Total lease payments | 126,409 | | | 24,610 | |
| Less imputed interest | (30,402) | | | (9,640) | |
| Total | $ | 96,007 | | | $ | 14,970 | |
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.