Leases

9 Months Ended

Sep. 30, 2025

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):

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Type	Classification	2025		2024		2025		2024
Operating lease expense(1)	Operating expenses	$	7,160	$	5,528	$	20,978	$	17,344
Financing lease amortization	Operating expenses	142		171		441		436
Financing lease interest	Interest expense	27		29		79		78
Financing lease expense		169		200		520		514
Sublease income(2)		(190)		(160)		(509)		(266)
Net lease cost		$	7,139	$	5,568	$	20,989	$	17,592

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

(2)    The Company subleases excess property to third-party tenants. 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 September 30, 2025 and December 31, 2024 was as follows (in thousands):

Lease Type	September 30, 2025		December 31, 2024
Total right of use operating lease assets	$	105,312	$	91,962
Total right of use financing lease assets	1,590		1,702
Total lease assets	$	106,902	$	93,664
Total current operating lease obligation	$	19,677	$	18,413
Total current financing lease obligation	579		538
Total current lease obligation	$	20,256	$	18,951
Total long-term operating lease obligation	$	92,138	$	76,759
Total long-term financing lease obligation	855		999
Total long-term lease obligation	$	92,993	$	77,758

The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2025 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2025	$	7,139	$	173	$	7,312	$	173
2026	26,125		632		26,757		368
2027	24,356		384		24,740		42
2028	21,657		251		21,908		43
2029	17,933		107		18,040		44
Thereafter	45,787		37		45,824		30
Total lease payments	142,997		1,584		144,581		700
Less: Interest	(31,182)		(150)		(31,332)		—
Present value of lease liabilities	$	111,815	$	1,434	$	113,249	$	700

The weighted average lease terms and interest rates of leases held as of September 30, 2025 and December 31, 2024 were as follows:

	September 30, 2025		December 31, 2024
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.4 years	3.3 years	6.3 years	3.7 years
Weighted average interest rate	7.4%	7.1%	7.6%	7.3%

The cash outflows of leasing activity for the nine months ended September 30, 2025 and 2024 were as follows (in thousands):

		Nine Months Ended September 30,
Cash Flow Source	Classification	2025		2024
Operating cash flows from operating leases	Operating activities	$	(19,506)	$	(15,516)
Operating cash flows from financing leases	Operating activities	$	(79)	$	(77)
Financing cash flows from financing leases	Financing activities	$	(445)	$	(462)

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):

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Type	Classification	2025		2024		2025		2024
Operating lease expense(1)	Operating expenses	$	7,160	$	5,528	$	20,978	$	17,344
Financing lease amortization	Operating expenses	142		171		441		436
Financing lease interest	Interest expense	27		29		79		78
Financing lease expense		169		200		520		514
Sublease income(2)		(190)		(160)		(509)		(266)
Net lease cost		$	7,139	$	5,568	$	20,989	$	17,592

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

(2)    The Company subleases excess property to third-party tenants. 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 September 30, 2025 and December 31, 2024 was as follows (in thousands):

Lease Type	September 30, 2025		December 31, 2024
Total right of use operating lease assets	$	105,312	$	91,962
Total right of use financing lease assets	1,590		1,702
Total lease assets	$	106,902	$	93,664
Total current operating lease obligation	$	19,677	$	18,413
Total current financing lease obligation	579		538
Total current lease obligation	$	20,256	$	18,951
Total long-term operating lease obligation	$	92,138	$	76,759
Total long-term financing lease obligation	855		999
Total long-term lease obligation	$	92,993	$	77,758

The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2025 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2025	$	7,139	$	173	$	7,312	$	173
2026	26,125		632		26,757		368
2027	24,356		384		24,740		42
2028	21,657		251		21,908		43
2029	17,933		107		18,040		44
Thereafter	45,787		37		45,824		30
Total lease payments	142,997		1,584		144,581		700
Less: Interest	(31,182)		(150)		(31,332)		—
Present value of lease liabilities	$	111,815	$	1,434	$	113,249	$	700

The weighted average lease terms and interest rates of leases held as of September 30, 2025 and December 31, 2024 were as follows:

	September 30, 2025		December 31, 2024
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.4 years	3.3 years	6.3 years	3.7 years
Weighted average interest rate	7.4%	7.1%	7.6%	7.3%

The cash outflows of leasing activity for the nine months ended September 30, 2025 and 2024 were as follows (in thousands):

		Nine Months Ended September 30,
Cash Flow Source	Classification	2025		2024
Operating cash flows from operating leases	Operating activities	$	(19,506)	$	(15,516)
Operating cash flows from financing leases	Operating activities	$	(79)	$	(77)
Financing cash flows from financing leases	Financing activities	$	(445)	$	(462)

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):

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Type	Classification	2025		2024		2025		2024
Operating lease expense(1)	Operating expenses	$	7,160	$	5,528	$	20,978	$	17,344
Financing lease amortization	Operating expenses	142		171		441		436
Financing lease interest	Interest expense	27		29		79		78
Financing lease expense		169		200		520		514
Sublease income(2)		(190)		(160)		(509)		(266)
Net lease cost		$	7,139	$	5,568	$	20,989	$	17,592

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

(2)    The Company subleases excess property to third-party tenants. 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 September 30, 2025 and December 31, 2024 was as follows (in thousands):

Lease Type	September 30, 2025		December 31, 2024
Total right of use operating lease assets	$	105,312	$	91,962
Total right of use financing lease assets	1,590		1,702
Total lease assets	$	106,902	$	93,664
Total current operating lease obligation	$	19,677	$	18,413
Total current financing lease obligation	579		538
Total current lease obligation	$	20,256	$	18,951
Total long-term operating lease obligation	$	92,138	$	76,759
Total long-term financing lease obligation	855		999
Total long-term lease obligation	$	92,993	$	77,758

The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2025 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2025	$	7,139	$	173	$	7,312	$	173
2026	26,125		632		26,757		368
2027	24,356		384		24,740		42
2028	21,657		251		21,908		43
2029	17,933		107		18,040		44
Thereafter	45,787		37		45,824		30
Total lease payments	142,997		1,584		144,581		700
Less: Interest	(31,182)		(150)		(31,332)		—
Present value of lease liabilities	$	111,815	$	1,434	$	113,249	$	700

The weighted average lease terms and interest rates of leases held as of September 30, 2025 and December 31, 2024 were as follows:

	September 30, 2025		December 31, 2024
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.4 years	3.3 years	6.3 years	3.7 years
Weighted average interest rate	7.4%	7.1%	7.6%	7.3%

The cash outflows of leasing activity for the nine months ended September 30, 2025 and 2024 were as follows (in thousands):

		Nine Months Ended September 30,
Cash Flow Source	Classification	2025		2024
Operating cash flows from operating leases	Operating activities	$	(19,506)	$	(15,516)
Operating cash flows from financing leases	Operating activities	$	(79)	$	(77)
Financing cash flows from financing leases	Financing activities	$	(445)	$	(462)

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