Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Note 11 — Leases

The Company leases real estate used for dispensaries, cultivation facilities, production plants and corporate offices.

The Company's lease agreements contain various extension and termination options. Extension options range from one to 20 years, with a typical extension period of five years, while certain termination options are contingent upon the Company securing regulatory permits.

ROU assets and lease liabilities as of December 31, 2025 and 2024 consisted of the following:

	As of
	December 31, 2025				December 31, 2024
	Operating leases		Finance leases		Operating leases		Finance leases
ROU assets:
ROU assets, gross	$	178,904	$	186,943	$	166,004	$	183,968
Accumulated amortization	(65,630)		(89,344)		(50,175)		(78,800)
Total ROU assets, net	$	113,274	$	97,599	$	115,829	$	105,168
Lease liabilities:
Lease liabilities - current	$	19,837	$	11,684	$	17,333	$	10,995
Lease liabilities - net of current	102,346		144,446		106,192		150,683
Total lease liabilities	$	122,183	$	156,130	$	123,525	$	161,678

The components of the Company’s lease expenses for the years ended December 31, 2025 and 2024 were as follows:

	Years Ended
	December 31, 2025		December 31, 2024
Finance lease expense:
Amortization of ROU assets
Cost of goods sold	$	6,686	$	10,257
Operating expenses	5,599		28,787
Total amortization of ROU assets	12,285		39,044
Interest on finance lease liabilities	17,626		17,537
Total finance lease expense	29,911		56,581
Operating lease expense(1)	32,092		30,446
Short-term lease expense	2,467		2,589
Total lease expense	$	64,470	$	89,616
(1) Includes $0.1 million of sublease income as a net reduction of rent expense for the years ended December 31, 2025 and 2024.

During 2025 and 2024, as part of strategic cost-optimization initiatives, the Company elected to abandon, in whole or in part, certain leases in its Northeast and West regions, and the estimated economic lives of the associated ROU assets were shortened. Consequently, the Company recognized accelerated amortization of $1.7 million and $23.5 million during the years ended December 31, 2025 and 2024, respectively, to fully amortize the ROU assets over their revised remaining economic lives.

Cash flows associated with the Company’s leasing arrangements for the years ended December 31, 2025 and 2024 were as follows:

	Years Ended
	December 31, 2025		December 31, 2024
Cash flows from operating activities:
Operating cash flows from operating leases	$	(31,083)	$	(29,920)
Operating cash flows from finance leases	(17,626)		(17,537)
Cash flows from financing activities:
Financing cash flows from finance leases	(10,230)		(9,445)
Net cash flows from leasing arrangements	$	(58,939)	$	(56,902)

As of December 31, 2025 and 2024, the weighted average remaining lease terms and weighted average discount rates of the Company’s leasing arrangements were as follows:

	As of
	December 31, 2025		December 31, 2024
Weighted average remaining lease term (in years) - finance leases	10.0		9.2
Weighted average remaining lease term (in years) - operating leases	6.3		6.2
Weighted average discount rate - finance leases	11.2	%	11.2	%
Weighted average discount rate - operating leases	10.9	%	11.0	%

As of December 31, 2025, maturities of the Company’s lease liabilities, under its non-cancelable leases were as follows:

Fiscal Year	Operating Leases		Finance Leases
2026	$	31,834	$	28,446
2027	30,269		28,967
2028	26,839		28,309
2029	22,768		28,181
2030	18,574		27,819
2031 and thereafter	40,445		145,127
Total undiscounted remaining minimum lease payments	170,729		286,849
Less: imputed interest	(48,546)		(130,719)
Total discounted remaining minimum lease payments	$	122,183	$	156,130

Leases

Note 11 — Leases

The Company leases real estate used for dispensaries, cultivation facilities, production plants and corporate offices.

The Company's lease agreements contain various extension and termination options. Extension options range from one to 20 years, with a typical extension period of five years, while certain termination options are contingent upon the Company securing regulatory permits.

ROU assets and lease liabilities as of December 31, 2025 and 2024 consisted of the following:

	As of
	December 31, 2025				December 31, 2024
	Operating leases		Finance leases		Operating leases		Finance leases
ROU assets:
ROU assets, gross	$	178,904	$	186,943	$	166,004	$	183,968
Accumulated amortization	(65,630)		(89,344)		(50,175)		(78,800)
Total ROU assets, net	$	113,274	$	97,599	$	115,829	$	105,168
Lease liabilities:
Lease liabilities - current	$	19,837	$	11,684	$	17,333	$	10,995
Lease liabilities - net of current	102,346		144,446		106,192		150,683
Total lease liabilities	$	122,183	$	156,130	$	123,525	$	161,678

The components of the Company’s lease expenses for the years ended December 31, 2025 and 2024 were as follows:

	Years Ended
	December 31, 2025		December 31, 2024
Finance lease expense:
Amortization of ROU assets
Cost of goods sold	$	6,686	$	10,257
Operating expenses	5,599		28,787
Total amortization of ROU assets	12,285		39,044
Interest on finance lease liabilities	17,626		17,537
Total finance lease expense	29,911		56,581
Operating lease expense(1)	32,092		30,446
Short-term lease expense	2,467		2,589
Total lease expense	$	64,470	$	89,616
(1) Includes $0.1 million of sublease income as a net reduction of rent expense for the years ended December 31, 2025 and 2024.

During 2025 and 2024, as part of strategic cost-optimization initiatives, the Company elected to abandon, in whole or in part, certain leases in its Northeast and West regions, and the estimated economic lives of the associated ROU assets were shortened. Consequently, the Company recognized accelerated amortization of $1.7 million and $23.5 million during the years ended December 31, 2025 and 2024, respectively, to fully amortize the ROU assets over their revised remaining economic lives.

Cash flows associated with the Company’s leasing arrangements for the years ended December 31, 2025 and 2024 were as follows:

	Years Ended
	December 31, 2025		December 31, 2024
Cash flows from operating activities:
Operating cash flows from operating leases	$	(31,083)	$	(29,920)
Operating cash flows from finance leases	(17,626)		(17,537)
Cash flows from financing activities:
Financing cash flows from finance leases	(10,230)		(9,445)
Net cash flows from leasing arrangements	$	(58,939)	$	(56,902)

As of December 31, 2025 and 2024, the weighted average remaining lease terms and weighted average discount rates of the Company’s leasing arrangements were as follows:

	As of
	December 31, 2025		December 31, 2024
Weighted average remaining lease term (in years) - finance leases	10.0		9.2
Weighted average remaining lease term (in years) - operating leases	6.3		6.2
Weighted average discount rate - finance leases	11.2	%	11.2	%
Weighted average discount rate - operating leases	10.9	%	11.0	%

As of December 31, 2025, maturities of the Company’s lease liabilities, under its non-cancelable leases were as follows:

Fiscal Year	Operating Leases		Finance Leases
2026	$	31,834	$	28,446
2027	30,269		28,967
2028	26,839		28,309
2029	22,768		28,181
2030	18,574		27,819
2031 and thereafter	40,445		145,127
Total undiscounted remaining minimum lease payments	170,729		286,849
Less: imputed interest	(48,546)		(130,719)
Total discounted remaining minimum lease payments	$	122,183	$	156,130