Leases
Lessee
At December 31, 2025 and 2024, the operating and financing components of the Company’s right-of-use assets and lease liabilities on the consolidated balance sheet are as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Balance Sheet Location | | December 31, |
| | | | 2025 | | 2024 |
| Right-of-use assets | | | | | | |
| Operating | | Operating right-of-use assets | | $ | 23,471 | | | $ | 23,153 | |
| Financing | | Property, plant and equipment, net | | 298 | | | 582 | |
| Total right-of use assets | | | | $ | 23,769 | | | $ | 23,735 | |
| | | | | | |
| Lease liabilities | | | | | | |
| Operating | | Operating lease liabilities, current and long-term portions | | $ | 23,157 | | | $ | 24,539 | |
| Financing | | Long-term debt, current and long-term portions | | 313 | | | 545 | |
| Total lease liabilities | | | | $ | 23,470 | | | $ | 25,084 | |
Operating lease costs are recorded in a single expense on the statements of operations and allocated to the right-of-use assets and the related lease liabilities as depreciation expense and interest expense, respectively. Lease cost recognized in the consolidated statements of operations for the years ended December 31, 2025 and 2024 is as follows: | | | | | | | | | | | | | | |
| | |
| | 2025 | | 2024 |
| Finance lease cost | | | | |
| Amortization of right-of-use assets | | $ | 232 | | | $ | 232 | |
| Interest on lease liabilities | | 41 | | | 62 | |
| Operating lease cost | | 13,370 | | | 13,597 | |
| Short-term lease cost | | — | | | 22 | |
| | | | |
| | | | |
| Total lease cost | | $ | 13,643 | | | $ | 13,913 | |
Other information related to the Company’s leasing activity for year ended December 31, 2025 and 2024 is as follows: | | | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | |
| Operating cash flows used for finance leases | | $ | 42 | | | $ | 63 | |
| Operating cash flows used for operating leases | | $ | 15,170 | | | $ | 13,523 | |
| Financing cash flows used for finance leases | | $ | 230 | | | $ | 221 | |
| | | | |
| Right-of-use assets obtained in exchange for new finance lease liabilities | | $ | — | | | $ | 62 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | | $ | 12,035 | | | $ | 12,380 | |
| | | | |
| Weighted average remaining lease term - finance leases | | 1.3 years | | 2.3 years |
| Weighted average discount rate - finance leases | | 9.42 | % | | 9.53 | % |
| Weighted average remaining lease term - operating leases | | 2.9 years | | 2.9 years |
| Weighted average discount rate - operating leases | | 7.67 | % | | 7.27 | % |
Maturities of the Company’s lease liabilities as of December 31, 2025 are as follows: | | | | | | | | | | | | | | | | | | | | |
| Year | | Operating Leases | | Finance Leases | | Total |
| 2026 | | $ | 10,196 | | | $ | 262 | | | $ | 10,458 | |
| 2027 | | 7,559 | | | 65 | | | 7,624 | |
| 2028 | | 4,898 | | | 7 | | | 4,905 | |
| 2029 | | 2,649 | | | — | | | 2,649 | |
| 2030 | | 631 | | | — | | | 631 | |
| Thereafter | | 7 | | | — | | | 7 | |
| Total cash lease payments | | 25,940 | | | 334 | | | 26,274 | |
| Less: amounts representing interest | | (2,783) | | | (21) | | | (2,804) | |
| Total lease liabilities | | $ | 23,157 | | | $ | 313 | | | $ | 23,470 | |
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.