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Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of June 30, 2025 and December 31, 2024 consisted of the following items:
As of
(in thousands)June 30, 2025December 31, 2024
Operating Leases
Operating lease right-of-use assets, net of accumulated amortization (1)
$9,516 $9,312 
Operating lease obligations, current$2,560 $2,081 
Long-term operating lease obligations7,186 7,460 
Total operating lease obligation$9,746 $9,541 
Finance Leases
Finance lease right-of-use assets, net of accumulated amortization (2)
$455 $824 
Finance lease obligations, current$635 $855 
Long-term finance lease obligations191 414 
Total finance lease obligations$826 $1,269 
(1) Operating lease ROU assets are reported net of accumulated amortization of $5.6 million and $4.5 million as of June 30, 2025 and December 31, 2024, respectively.
(2) Finance lease ROU assets are reported net of accumulated amortization of $2.6 million and $3.2 million as of June 30, 2025 and December 31, 2024, respectively.
Operating leases
ROU assets under operating leases are included in the "Other long-term assets" line item, and operating lease liabilities are included in "Other current liabilities" and "Other long-term liabilities" line items, respectively, in the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024.
Lease expense for operating leases for the three and six months ended June 30, 2025 was $1.3 million and $2.4 million, respectively, of which $1.0 million and $2.0 million, respectively, is included in the "Cost of revenue, exclusive of depreciation and amortization" line item, and $0.3 million and $0.4 million, respectively, is included in the "Selling, general and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
Lease expense for operating leases for the three and six months ended June 30, 2024 was $1.3 million and $2.7 million, respectively, of which $1.0 million and $2.0 million, respectively, is included in the "Cost of revenue, exclusive of depreciation and amortization" line item, and $0.3 million and $0.7 million, respectively, is included in the "Selling, general and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
Finance leases
ROU assets under finance leases are included in the "Property, plant and equipment" line item, and finance lease liabilities are included in the "Current portion of long-term debt" and "Long-term debt, net of current portion" line items, respectively, in the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024.
Interest expense related to finance lease obligations and amortization of ROU assets under finance leases are included in the "Interest expense" and "Depreciation, amortization, depletion and accretion" line items, respectively, in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024.
Lease financial information as of and for the three and six months ended June 30, 2025 and 2024 is provided in the following table:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Finance lease cost:
Amortization of right-of-use assets$101 $210 $217 $420 
Interest on lease liabilities33 48 71 99 
Operating lease cost924 764 1,761 1,675 
Short-term lease cost259 447 533 783 
Variable lease cost (1)
77 101 86 209 
Total lease cost$1,394 $1,570 $2,668 $3,186 
Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$71 $99 
Operating cash flows from operating leases$1,162 $1,043 
Financing cash flows from finance leases$264 $565 
Right-of-use assets obtained in exchange for new operating lease liabilities$1,366 $257 
Weighted-average remaining lease term - finance leases1.0 years1.3 years
Weighted-average remaining lease term - operating leases6.7 years7.5 years
Weighted-average discount rate - finance leases7.0 %5.9 %
Weighted-average discount rate - operating leases11.7 %11.8 %
(1) Primarily includes common area maintenance, property taxes and insurance payable to lessors.
Leases Leases
The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of June 30, 2025 and December 31, 2024 consisted of the following items:
As of
(in thousands)June 30, 2025December 31, 2024
Operating Leases
Operating lease right-of-use assets, net of accumulated amortization (1)
$9,516 $9,312 
Operating lease obligations, current$2,560 $2,081 
Long-term operating lease obligations7,186 7,460 
Total operating lease obligation$9,746 $9,541 
Finance Leases
Finance lease right-of-use assets, net of accumulated amortization (2)
$455 $824 
Finance lease obligations, current$635 $855 
Long-term finance lease obligations191 414 
Total finance lease obligations$826 $1,269 
(1) Operating lease ROU assets are reported net of accumulated amortization of $5.6 million and $4.5 million as of June 30, 2025 and December 31, 2024, respectively.
(2) Finance lease ROU assets are reported net of accumulated amortization of $2.6 million and $3.2 million as of June 30, 2025 and December 31, 2024, respectively.
Operating leases
ROU assets under operating leases are included in the "Other long-term assets" line item, and operating lease liabilities are included in "Other current liabilities" and "Other long-term liabilities" line items, respectively, in the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024.
Lease expense for operating leases for the three and six months ended June 30, 2025 was $1.3 million and $2.4 million, respectively, of which $1.0 million and $2.0 million, respectively, is included in the "Cost of revenue, exclusive of depreciation and amortization" line item, and $0.3 million and $0.4 million, respectively, is included in the "Selling, general and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
Lease expense for operating leases for the three and six months ended June 30, 2024 was $1.3 million and $2.7 million, respectively, of which $1.0 million and $2.0 million, respectively, is included in the "Cost of revenue, exclusive of depreciation and amortization" line item, and $0.3 million and $0.7 million, respectively, is included in the "Selling, general and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
Finance leases
ROU assets under finance leases are included in the "Property, plant and equipment" line item, and finance lease liabilities are included in the "Current portion of long-term debt" and "Long-term debt, net of current portion" line items, respectively, in the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024.
Interest expense related to finance lease obligations and amortization of ROU assets under finance leases are included in the "Interest expense" and "Depreciation, amortization, depletion and accretion" line items, respectively, in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024.
Lease financial information as of and for the three and six months ended June 30, 2025 and 2024 is provided in the following table:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Finance lease cost:
Amortization of right-of-use assets$101 $210 $217 $420 
Interest on lease liabilities33 48 71 99 
Operating lease cost924 764 1,761 1,675 
Short-term lease cost259 447 533 783 
Variable lease cost (1)
77 101 86 209 
Total lease cost$1,394 $1,570 $2,668 $3,186 
Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$71 $99 
Operating cash flows from operating leases$1,162 $1,043 
Financing cash flows from finance leases$264 $565 
Right-of-use assets obtained in exchange for new operating lease liabilities$1,366 $257 
Weighted-average remaining lease term - finance leases1.0 years1.3 years
Weighted-average remaining lease term - operating leases6.7 years7.5 years
Weighted-average discount rate - finance leases7.0 %5.9 %
Weighted-average discount rate - operating leases11.7 %11.8 %
(1) Primarily includes common area maintenance, property taxes and insurance payable to lessors.