Operating Leases

12 Months Ended

Dec. 31, 2025

10. Operating Leases:

The Company primarily leases property under operating leases for its medical and business offices, storage space and temporary housing for medical staff. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payment using a discount rate that reflects the Company’s estimated incremental borrowing rate. Certain of the Company’s leases include rental escalation clauses and renewal options that are factored into the determination of lease payments when appropriate. Operating leases for office equipment are not material, and therefore are excluded from the Company’s Consolidated Balance Sheets.

The table below presents the operating lease-related right-of-use assets and related liabilities recorded on the Company’s balance sheets and the weighted average remaining lease term and discount rate as of December 31, 2025 and 2024 (dollars in thousands):


	December 31,
	2025			2024
Assets:
Operating lease right-of-use assets	$	31,132		$	34,089
Liabilities:
Current portion of operating lease liabilities		11,591			12,704
Long-term portion of operating lease liabilities		25,686			31,945
Other Information:
Weighted-average remaining lease term	3.8 years			4.2 years
Weighted average discount rate		5.9	%		5.9	%

The table below presents certain information related to the lease costs for operating leases during the years ended December 31, 2025 and 2024 (in thousands):


	December 31,
	2025		2024
Operating lease costs	$	11,737	$	20,194
Variable lease costs		4,323		6,999
Other operating lease costs		1,621		3,329
Total operating lease costs	$	17,681	$	30,522

The table below presents supplemental cash flow information related to operating leases during the years ended December 31, 2025 and 2024 (in thousands):


	December 31, 2025		December 31, 2024
Operating cash flows for operating leases	$	20,625	$	34,532

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the balance sheet as of December 31, 2025 (in thousands):


	December 31, 2025
2026	$	12,433
2027		11,199
2028		7,849
2029		4,710
2030		2,900
Thereafter		1,940
Total minimum lease payments		41,031
Less: Amount of payments representing interest		(3,754	)
Present value of future minimum lease payments		37,277
Less: Current obligations		(11,591	)
Long-term portion of operating leases	$	25,686