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PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET
‘Property and equipment, net’ consists of the following:
 December 31,
 20252024
 (in thousands)
Machinery and equipment$204,034 $190,134 
Leasehold improvements190,436 156,091 
Furniture, fixtures, and other50,433 40,702 
Construction-in-progress3,161 10,863 
Property and equipment448,064 397,790 
Less: Accumulated depreciation and amortization(209,873)(153,455)
Property and equipment, net$238,191 $244,335 

Asset Retirement Obligations

We are contractually obligated, under certain of our lease agreements, to restore certain retail and office facilities back to their original condition. At lease inception, the estimated fair value of these liabilities is recorded along with a related asset. Asset retirement obligations were not significant to the consolidated balance sheets in the years ended December 31, 2025, or 2024.
Depreciation and Amortization Expense

Depreciation and amortization expense related to property and equipment, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was:
Year Ended December 31,
202520242023
(in thousands)
Cost of sales$21,866 $20,673 $18,809 
Selling, general and administrative expenses33,845 26,233 12,876 
Total depreciation and amortization expense$55,711 $46,906 $31,685 

Disposals of Property and Equipment and Intangible Assets

During the years ended December 31, 2025, 2024, and 2023, we recognized net losses on disposals of property and equipment and intangible assets of $1.1 million, $1.0 million, and $0.4 million, respectively. Gains and losses on disposals of property and equipment and intangible assets are included in ‘Selling, general and administrative expenses’ and ‘Cost of sales’ in the consolidated statements of operations.

Additionally, we impaired our leasehold improvement assets for our former corporate headquarters in the year ended December 31, 2023, as described in Note 8 — Fair Value Measurements.