Leases

6 Months Ended

Jun. 30, 2025

10.

LEASES

The Company leases manufacturing and training facilities, storage warehouses, office space, and certain plant equipment under various operating leases. The Company’s operating leases have remaining lease terms of up to 10 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

For the six months ended June 30, 2025 and June 30, 2024, total operating lease expense was $6.0 million and $4.5 million, respectively. The weighted average remaining lease term at June 30, 2025 and December 31, 2024 was 5.9 years and 6.3 years, respectively. The weighted average discount rate at June 30, 2025 and December 31, 2024 was 4.63% and 4.57%, respectively.

The following table includes supplemental cash flow information for the six months ended June 30, 2025 and June 30, 2024, and supplemental balance sheet information at June 30, 2025 and December 31, 2024 related to operating leases (in thousands):


	Six Months Ended June 30,
Supplemental cash flow information	2025		2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	5,486	$	4,653
Operating ROU assets obtained in exchange for lease liabilities	$	1,074	$	15,882


Supplemental balance sheet information	June 30, 2025		December 31, 2024
Operating lease ROU assets	$	47,947	$	52,195
Operating lease liabilities:
Accrued expenses and other current liabilities	$	11,274	$	10,800
Operating lease liabilities		37,747		41,979
Total operating lease liabilities	$	49,021	$	52,779

The following table summarizes maturities of operating lease liabilities at June 30, 2025 (in thousands):


Maturities of operating lease liabilities
2025	$	5,792
2026		11,374
2027		10,756
2028		9,690
2029		4,404
Thereafter		15,562
Total lease payments		57,578
Less imputed interest		(8,557	)
Total operating lease liabilities	$	49,021