Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

9. Leases

The Company leases numerous facilities worldwide with larger concentrations of space in Texas, Michigan, Connecticut, California, India, Mexico and the Philippines. The Company’s facilities house general offices, sales offices, service locations, and production facilities. Substantially all of the Company’s operations facilities are leased under long-term leases with varying expiration dates, except for the few owned locations. The Company regularly obtains various machinery, equipment, vehicles and furniture on leases. The machinery and equipment leases mainly include leasing of computers, servers, other IT equipment, mailing system, production equipment, generators, office equipment, printers, copiers and miscellaneous warehouse equipment.

The Company’s ROU assets and lease liabilities as of December 31, 2025 (Successor) and 2024 (Predecessor) recorded on the consolidated and combined balance sheets are as follows:

	Successor		Predecessor
	Consolidated		Combined and Consolidated
	December 31,		December 31,
	2025		2024
Balance sheet location:
Operating Lease
Operating lease right-of-use assets, net	$	30,339	$	30,543
Current portion of operating lease liabilities		9,814		9,210
Operating lease liabilities, net of current portion		22,530		23,907
Finance Lease
Finance lease right-of-use assets, net (included in property, plant and equipment, net)		16,043		15,778
Current portion of finance lease liabilities		4,390		5,441
Finance lease liabilities, net of current portion		6,857		6,381

Supplemental balance sheet information related to leases is as follows:

	Successor		Predecessor
	Consolidated		Combined and Consolidated
	December 31,		December 31,
	2025		2024
Weighted-average remaining lease term
Operating leases		3.4 Years		3.6 Years
Finance leases		3.3 Years		2.4 Years
Weighted-average discount rate
Operating leases		16.9%		16.8%
Finance leases		20.2%		18.4%

The interest on financing lease liabilities was $1.0 million, $1.3 million and $1.8 million for the periods August 1, 2025 to December 31, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and for the year ended December 31, 2024 (Predecessor), respectively. The amortization expense on finance lease ROU assets was $3.1 million, $2.5 million and $4.7 million for the periods August 1, 2025 to December 31, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and for the year ended December 31, 2024 (Predecessor), respectively.

Maturities of finance and operating lease liabilities based on lease term for the next five years are as follows:

	Finance		Operating
	Leases		Leases
2026	$	6,373	$	14,287
2027		3,666		12,391
2028		2,655		7,871
2029		1,644		4,709
2030		659		1,678
2031 and thereafter		584		981
Total lease payments		15,581		41,917
Less: Imputed interest		(4,334)		(9,573)
Present value of lease liabilities	$	11,247	$	32,344

Consolidated rental expense for all operating leases was $15.5 million, $21.2 million and $30.1 million for the periods August 1, 2025 to December 31, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and for the year ended December 31, 2024 (Predecessor), respectively.

The following table summarizes the cash paid and related ROU operating finance or operating lease recognized for the periods August 1, 2025 to December 31, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and for the year ended December 31, 2024 (Predecessor).

	Successor		Predecessor
	Consolidated		Combined and Consolidated
	Period from August 1, 2025 through December 31, 2025		Period from January 1, 2025 through July 31, 2025		Year Ended December 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6,971	$	8,791	$	15,137
Financing cash flows for finance leases		2,700		2,947		6,573
Right-of-use lease assets obtained in the exchange for lease liabilities:
Operating leases		1,353		7,870		10,740
Finance leases		2,020		3,574		12,028