Property and Equipment

9 Months Ended

Sep. 30, 2025

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 7—Property and Equipment

Property and equipment are recorded at cost. Depreciation is recorded over the estimated useful life of each class of depreciable asset and is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated asset life or term of the lease. Repairs and maintenance costs are charged to expense as incurred.

The following table sets forth the amounts of property and equipment by each class of depreciable asset as of September 30, 2025 and December 31, 2024:

	September 30, 2025		December 31, 2024
	(in thousands)
Housekeeping and dietary equipment	$	18,530	$	17,052
Computer hardware and software	9,212		8,196
Operating lease — right-of-use assets	29,560		29,669
Other1	1,145		904
Total property and equipment, at cost	58,447		55,821
Less accumulated depreciation2	31,520		27,623
Total property and equipment, net	$	26,927	$	28,198

1.Includes furniture and fixtures, leasehold improvements and vehicles.

2.Includes $16.3 million and $13.2 million related to accumulated depreciation on Operating lease – right-of-use assets as of September 30, 2025 and December 31, 2024, respectively.

Depreciation expense for the three and nine months ended September 30, 2025 was $3.4 million and $9.8 million, respectively. Depreciation expense for the three and nine months ended September 30, 2024 was $3.1 million and $9.0 million, respectively. Of the depreciation expense recorded for the three and nine months ended September 30, 2025, $2.1 million and $6.3 million, respectively, was related to the depreciation of the Company’s operating lease - right-of-use assets (“ROU Assets”). Of the depreciation expense recorded for the three and nine months ended September 30, 2024, $2.0 million and $5.8 million, respectively, was related to the depreciation of the Company’s ROU Assets.

At September 30, 2025 and 2024, accrued purchases of property and equipment were $0.4 million in each period.