Leases
The following table presents operating lease costs recorded to cost of service:
| | | | | | | | | | | | | | | | | | | |
| Year ended December 31, |
| (in thousands) | 2025 | | 2024 | | 2023 | | |
| Operating lease costs - Cost of services | $ | 25,306 | | | $ | 19,177 | | | $ | 17,314 | | | |
Operating lease costs recorded to selling, general, and administrative expense were immaterial during the years ended December 31, 2025, 2024, and 2023.
The following table presents the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as of December 31, 2025 and December 31, 2024:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted average remaining lease term | 3.3 years | | 3.5 years |
| Weighted average discount rate | 7.0 | % | | 6.6 | % |
The following table presents supplemental cash flow information related to the Company's operating leases:
| | | | | | | | | | | | | | | | | |
| (in thousands) | December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 23,289 | | | $ | 19,733 | | | $ | 16,825 | |
| ROU assets obtained in exchange for operating lease liabilities | 24,806 | | | 24,023 | | | 18,938 | |
The future lease payments on the Company’s operating lease liabilities as of December 31, 2025 were as follows:
| | | | | | | | |
| (in thousands) | | |
| 2026 | | $ | 22,418 | |
| 2027 | | 17,196 | |
| 2028 | | 12,405 | |
| 2029 | | 9,241 | |
| 2030 | | 1,741 | |
| Thereafter | | 97 | |
| Total lease payments | | 63,098 | |
| Less: interest | | (6,728) | |
| Total lease liabilities | | $ | 56,370 | |
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.