Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Note 7 – Leases

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The components of lease cost were as follows (in thousands):

		Year Ended December 31,
Lease Type	Classification	2024		2023		2022
Operating lease expense(1)	Operating expenses	$	23,958	$	21,131	$	15,151
Financing lease amortization	Operating expenses	612		546		466
Financing lease interest	Interest expense	108		93		41
Financing lease expense		720		639		507
Sublease income(2)		(425)		—		—
Net lease cost		$	24,253	$	21,770	$	15,658

(1)    Includes short-term lease expense, which is immaterial.

(2)    The Company subleases one of its leased properties with a remaining lease term of approximately 1.5 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense.

The value of net assets and liabilities related to our operating and finance leases as of December 31, 2024 and December 31, 2023 was as follows (in thousands):

	December 31,
Lease Type	2024		2023
Total right of use operating lease assets	$	91,962	$	76,340
Total right of use financing lease assets	1,702		1,560
Total lease assets	$	93,664	$	77,900
Total current operating lease obligation	$	18,413	$	13,010
Total current financing lease obligation	538		539
Total current lease obligation	$	18,951	$	13,549
Total long-term operating lease obligation	$	76,759	$	66,234
Total long-term financing lease obligation	999		831
Total long-term lease obligation	$	77,758	$	67,065

The value of lease liabilities related to our operating and finance leases and sublease income as of December 31, 2024 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
2025	$	24,854	$	628	$	25,482	$	640
2026	20,775		533		21,308		326
2027	17,859		310		18,169		—
2028	15,130		182		15,312		—
2029	11,313		45		11,358		—
Thereafter	32,998		20		33,018		—
Total lease payments	122,929		1,718		124,647		966
Less: Interest	(27,757)		(181)		(27,938)		—
Present value of lease liabilities	$	95,172	$	1,537	$	96,709	$	966

The weighted average lease terms and interest rates of leases held as of December 31, 2024 and 2023 were as follows:

	Year Ended December 31,
	2024		2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.3 years	3.7 years	6.6 years	2.8 years
Weighted average interest rate	7.6%	7.3%	7.8%	7.1%

The cash outflows of leasing activity for the years ended December 31, 2024, 2023 and 2022 were as follows (in thousands):

		Year Ended December 31,
Cash Flow Source	Classification	2024		2023		2022
Operating cash flows from operating leases	Operating activities	$	(21,980)	$	(15,516)	$	(12,149)
Operating cash flows from financing leases	Operating activities	$	(111)	$	(242)	$	(184)
Financing cash flows from financing leases	Financing activities	$	(653)	$	(515)	$	(429)

Refer to Note 4 – Revenue Recognition for a discussion on the Company’s activities as lessor.

Leases

Note 7 – Leases

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The components of lease cost were as follows (in thousands):

		Year Ended December 31,
Lease Type	Classification	2024		2023		2022
Operating lease expense(1)	Operating expenses	$	23,958	$	21,131	$	15,151
Financing lease amortization	Operating expenses	612		546		466
Financing lease interest	Interest expense	108		93		41
Financing lease expense		720		639		507
Sublease income(2)		(425)		—		—
Net lease cost		$	24,253	$	21,770	$	15,658

(1)    Includes short-term lease expense, which is immaterial.

(2)    The Company subleases one of its leased properties with a remaining lease term of approximately 1.5 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense.

The value of net assets and liabilities related to our operating and finance leases as of December 31, 2024 and December 31, 2023 was as follows (in thousands):

	December 31,
Lease Type	2024		2023
Total right of use operating lease assets	$	91,962	$	76,340
Total right of use financing lease assets	1,702		1,560
Total lease assets	$	93,664	$	77,900
Total current operating lease obligation	$	18,413	$	13,010
Total current financing lease obligation	538		539
Total current lease obligation	$	18,951	$	13,549
Total long-term operating lease obligation	$	76,759	$	66,234
Total long-term financing lease obligation	999		831
Total long-term lease obligation	$	77,758	$	67,065

The value of lease liabilities related to our operating and finance leases and sublease income as of December 31, 2024 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
2025	$	24,854	$	628	$	25,482	$	640
2026	20,775		533		21,308		326
2027	17,859		310		18,169		—
2028	15,130		182		15,312		—
2029	11,313		45		11,358		—
Thereafter	32,998		20		33,018		—
Total lease payments	122,929		1,718		124,647		966
Less: Interest	(27,757)		(181)		(27,938)		—
Present value of lease liabilities	$	95,172	$	1,537	$	96,709	$	966

The weighted average lease terms and interest rates of leases held as of December 31, 2024 and 2023 were as follows:

	Year Ended December 31,
	2024		2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.3 years	3.7 years	6.6 years	2.8 years
Weighted average interest rate	7.6%	7.3%	7.8%	7.1%

The cash outflows of leasing activity for the years ended December 31, 2024, 2023 and 2022 were as follows (in thousands):

		Year Ended December 31,
Cash Flow Source	Classification	2024		2023		2022
Operating cash flows from operating leases	Operating activities	$	(21,980)	$	(15,516)	$	(12,149)
Operating cash flows from financing leases	Operating activities	$	(111)	$	(242)	$	(184)
Financing cash flows from financing leases	Financing activities	$	(653)	$	(515)	$	(429)

Refer to Note 4 – Revenue Recognition for a discussion on the Company’s activities as lessor.

Leases

Note 7 – Leases

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The components of lease cost were as follows (in thousands):

		Year Ended December 31,
Lease Type	Classification	2024		2023		2022
Operating lease expense(1)	Operating expenses	$	23,958	$	21,131	$	15,151
Financing lease amortization	Operating expenses	612		546		466
Financing lease interest	Interest expense	108		93		41
Financing lease expense		720		639		507
Sublease income(2)		(425)		—		—
Net lease cost		$	24,253	$	21,770	$	15,658

(1)    Includes short-term lease expense, which is immaterial.

(2)    The Company subleases one of its leased properties with a remaining lease term of approximately 1.5 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense.

The value of net assets and liabilities related to our operating and finance leases as of December 31, 2024 and December 31, 2023 was as follows (in thousands):

	December 31,
Lease Type	2024		2023
Total right of use operating lease assets	$	91,962	$	76,340
Total right of use financing lease assets	1,702		1,560
Total lease assets	$	93,664	$	77,900
Total current operating lease obligation	$	18,413	$	13,010
Total current financing lease obligation	538		539
Total current lease obligation	$	18,951	$	13,549
Total long-term operating lease obligation	$	76,759	$	66,234
Total long-term financing lease obligation	999		831
Total long-term lease obligation	$	77,758	$	67,065

The value of lease liabilities related to our operating and finance leases and sublease income as of December 31, 2024 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
2025	$	24,854	$	628	$	25,482	$	640
2026	20,775		533		21,308		326
2027	17,859		310		18,169		—
2028	15,130		182		15,312		—
2029	11,313		45		11,358		—
Thereafter	32,998		20		33,018		—
Total lease payments	122,929		1,718		124,647		966
Less: Interest	(27,757)		(181)		(27,938)		—
Present value of lease liabilities	$	95,172	$	1,537	$	96,709	$	966

The weighted average lease terms and interest rates of leases held as of December 31, 2024 and 2023 were as follows:

	Year Ended December 31,
	2024		2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.3 years	3.7 years	6.6 years	2.8 years
Weighted average interest rate	7.6%	7.3%	7.8%	7.1%

The cash outflows of leasing activity for the years ended December 31, 2024, 2023 and 2022 were as follows (in thousands):

		Year Ended December 31,
Cash Flow Source	Classification	2024		2023		2022
Operating cash flows from operating leases	Operating activities	$	(21,980)	$	(15,516)	$	(12,149)
Operating cash flows from financing leases	Operating activities	$	(111)	$	(242)	$	(184)
Financing cash flows from financing leases	Financing activities	$	(653)	$	(515)	$	(429)

Refer to Note 4 – Revenue Recognition for a discussion on the Company’s activities as lessor.