Leases
Operating leases primarily consist of property leases related to the Company’s warehouse, which also serves as its production, manufacturing, and distribution facility, corporate offices, experience centers, and sales and marketing offices.
Operating right-of-use assets and lease liabilities as of December 31, 2025 and December 31, 2024 comprises the following:
| | | | | | | | | | | | | | |
| (in thousands) | | December 31, 2025 | | December 31, 2024 |
| Right-of-use assets, net | | $ | 11,570 | | | $ | 13,590 | |
| | | | |
| Lease liabilities, current | | $ | 5,128 | | | $ | 5,147 | |
| Lease liabilities, non-current | | 9,238 | | | 10,813 | |
| Total lease liabilities | | $ | 14,366 | | | $ | 15,960 | |
Operating lease costs for the years ended December 31, 2025, 2024, and 2023 were $5.4 million, $5.9 million, and $5.2 million, respectively. Short-term lease costs and variable lease costs were immaterial for the years ended December 31, 2025, 2024, and 2023.
The following table summarizes future operating lease payments as of December 31, 2025:
| | | | | | | |
| (in thousands) | Future Minimum Payments | | |
| 2026 | $ | 5,736 | | | |
| 2027 | 4,549 | | | |
| 2028 | 1,182 | | | |
| 2029 | 1,105 | | | |
| 2030 | 1,091 | | | |
| Thereafter | 1,962 | | | |
| Total | 15,625 | | | |
| Less: Imputed Interest | (1,259) | | | |
| Present value of net lease payments | $ | 14,366 | | | |
The following table includes supplemental operating lease information (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | $ | 5,881 | | $ | 5,123 | | $ | 5,419 |
| Right-of-use assets obtained in exchange for new and modified lease liabilities | | $ | 2,355 | | $ | 6,593 | | $ | 1,181 |
| Weighted average remaining lease term (in years) | | 4.0 | | 5.0 | | 6.1 |
| Weighted average discount rate | | 5.4 | % | | 4.6 | % | | 3.2 | % |
Subsequent to December 31, 2025, the Company amended the terms its principal executive office lease agreement to expire in November 2032, which will result in an increase to its future operating lease payments by approximately $14 million.