Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Leases

The Company primarily leases manufacturing facilities, distribution centers, and office spaces with lease terms expiring through 2031. The following table summarizes the Company's lease costs in the accompanying consolidated statement of income:

	Year Ended December 31,
	2025		2024
	(in thousands)
Operating lease expense	$	13,624	$	9,708
Short-term lease expense	1,880		1,367
Variable lease expense	1,497		1,520
Total lease expense	$	17,001	$	12,595

For the year ended December 31, 2025 and 2024, total lease expense included in operating expenses was $14,019,000 and $10,337,000, respectively, and total lease expense included in cost of goods sold was $2,982,000 and $2,258,000, respectively.

The following table presents supplemental information related to operating leases:

	December 31, 2025			December 31, 2024
	(in thousands, except lease term and discount rate)
Weighted average remaining lease term	3.47 years			4.33 years
Weighted average discount rate	6.9		%	7.0		%
Right-of-use assets obtained in exchange for operating lease liabilities	$	10,457		$	29,504
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases	$	13,591		$	8,805

As of December 31, 2025, future lease payments under operating lease were as follows:

	(in thousands)
2026	$	14,594
2027	13,767
2028	12,915
2029	7,567
2030	715
Thereafter	53
Total future lease payments	49,611
Less: imputed interest	(5,555)
Total lease liability balance	$	44,056

During the year ended December 31, 2024, the Company recorded a non-cash impairment of a ROU asset of $1,993,000 resulting from the sublease of its City of Industry warehouse in California.

Sublease income for the year ended December 31, 2025 and 2024 was $1,407,000 and $1,038,000, respectively. Sublease income is included in rental income in the accompanying consolidated statements of income.

Global Wells has been the landlord under an operating lease agreement with an unrelated party since September 2020. On February 28, 2025, the lease agreement between Global Wells and the tenant was terminated and effective March 1, 2025, Global Wells entered into a new six-year operating lease agreement ending on February 28, 2031 with a different unrelated party that generates monthly rental payments from $87,000 to $101,000. During the year ended December 31, 2025, and 2024, Global Wells recognized rental income of $1,064,000 and $739,000, respectively, and expected rental income of $1,128,000 per annum over the next five years.