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Leases

3 Months Ended

Mar. 31, 2026

We lease certain office space, equipment and vehicles. These leases are either non-cancelable, cancellable only by the payment of penalties or cancellable upon notice provided. All lease payments are based on the lapse of time and certain leases are subject to annual escalations for increases in base rents. The Company's lease terms include options to extend or terminate the lease when it is reasonably certain that the option will be exercised.

The Company recognizes a right-of-use asset and lease liability for its operating leases at the commencement date equal to the present value of the contractual minimum lease payments over the lease term. The present value is calculated using the rate implicit in the lease, if known, or the Company's incremental borrowing rate. The discount rate used for operating leases is primarily determined based on an analysis of the Company's borrowing rate, while the discount rate used for finance leases is primarily determined by the rate specified in the lease.

Operating and Finance Leases

The Company's operating leases primarily include material leases of buildings (consisting primarily of office lease commitments) and equipment. These leases are classified as operating leases and are recognized as right-of-use assets and operating lease liabilities on the condensed consolidated balance sheets.

The Company's finance leases primarily include equipment and vehicles in certain contracts with payment terms on the lease agreements that range between 30 and 50 months.

The following tables present our balance sheet information related to leases:


		As of		As of
(Amounts in thousands)	Balance Sheet Classification	March 31, 2026		December 31, 2025
Assets:
Operating lease assets	Operating lease, right-of-use assets	$	46,072	$	45,822
Finance lease assets	Property and equipment, net	$	36,492	$	34,259
Total lease assets		$	82,564	$	80,081
Liabilities:
Current:
Operating lease liabilities	Operating lease obligation, current portion	$	(12,130)	$	(11,951)
Finance lease liabilities	Finance lease obligation, current portion	$	(13,979)	$	(13,735)
Total current lease liabilities		$	(26,109)	$	(25,686)
Non-current:
Operating lease liabilities	Operating lease obligation, less current portion	$	(40,486)	$	(40,430)
Finance lease liabilities	Finance lease obligation, less current portion	$	(25,850)	$	(23,718)
Total non-current lease liabilities		$	(66,336)	$	(64,148)

The following tables present selected financial information:


	Three Months Ended
(Amounts in thousands)	March 31, 2026		March 31, 2025
Operating lease cost
Lease expense of right-of-use assets	$	3,816	$	3,560
Finance lease cost:
Amortization of right-of-use assets	4,325		2,996
Interest on lease liabilities	588		448
Sublease income	(7)		(27)
Total lease cost	$	8,722	$	6,977


	Three Months Ended
(Amounts in thousands)	March 31, 2026		March 31, 2025
Cash paid for amounts included in the measurements of lease liabilities
Operating cash flows from operating leases	$	3,844	$	3,574
Operating cash flows from finance leases	588		448
Financing cash flows from finance leases	4,193		2,702
Right-of-use assets obtained in exchange for new operating leases	4,231		3,913
Right-of-use assets obtained in exchange for new finance leases	4,074		2,024


	As of		As of
	March 31, 2026		December 31, 2025
Weighted average remaining lease term (in years):
Operating leases	4.60		4.59
Finance leases	2.68		2.72
Weighted average discount rates:
Operating leases	6.7	%	6.8	%
Finance leases	6.3	%	6.4	%

Future minimum commitments under leases for the remainder of 2026 and succeeding years are as follows (in thousands):


(Amounts in thousands)
	Operating Lease		Finance Lease
2026	$	11,522	$	10,876
2027	14,007		10,974
2028	12,764		8,187
2029	9,944		4,940
2030	6,310		228
Thereafter	6,803		–
Total lease payments	$	61,350	$	35,205
Less: Amounts representing interest	$	(8,751)	$	(3,980)
Total lease liabilities	$	52,599	$	31,225

The above table is exclusive of $0.2 million sub-lease income associated with the $52.6 million total liability of operating leases as presented on the condensed consolidated balance sheet.

The above table is exclusive of the $8.6 million purchase price associated with the $39.8 million total liability of finance leases as presented on the condensed consolidated balance sheet.

Leases