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v3.26.1

LEASES | 6 Months Ended
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Jun. 30, 2026
Leases [Abstract] |
LEASES | LEASES The Company has entered into various non-cancellable operating and finance lease agreements for certain of the Company’s offices, manufacturing and warehouse facilities, retail and service locations, equipment and vehicles, worldwide. In August 2022, the Company entered into a four-year agreement (“Lease Agreement”) to lease land in Casa Grande, Arizona adjacent to our manufacturing facility. The Company classified this lease as a finance lease because the Lease Agreement contained a purchase option which the Company was reasonably certain to exercise. As of December 31, 2025, assets and liabilities associated with the finance lease were $79.3 million and $79.4 million, respectively. During the six months ended June 30, 2026, the Company elected not to exercise the purchase option. As a result, the Company remeasured the lease‑related assets and liabilities, and the remaining balances were immaterial as of June 30, 2026. Contemporaneously with the execution of the Lease Agreement, the Company entered into a sale agreement, pursuant to which the Company sold certain parcels of land for $31.7 million to the lessor and leased back these parcels of land under the Lease Agreement. The sale of the land and subsequent lease did not result in change in the transfer of control of the land; therefore, the sale-leaseback transaction is accounted for as a failed sale and leaseback financing obligation. The Company recorded $31.7 million of sales proceeds received as a financial liability within other current liabilities in the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025. The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s condensed consolidated balance sheets (in thousands):
| June 30, 2026 |  | December 31, 2025
Operating leases: |  |  |
Right-of-use assets | $ | 249,019 |  |  | $ | 241,974 |
Other current liabilities | $ | 67,198 |  |  | $ | 64,171 |
Other long-term liabilities | 228,041 |  |  | 225,434 |
Total operating lease liabilities | $ | 295,239 |  |  | $ | 289,605 |
Finance leases: |  |  |
Property, plant and equipment, net(1) | $ | 102,161 |  |  | $ | 185,721 |
Total finance lease assets | $ | 102,161 |  |  | $ | 185,721 |
Finance lease liabilities, current portion | $ | 5,045 |  |  | $ | 84,222 |
Finance lease liabilities, net of current portion | 102,685 |  |  | 104,559 |
Total finance lease liabilities(1) | $ | 107,730 |  |  | $ | 188,781 |
(1) As of June 30, 2026 and December 31, 2025, the Company recorded finance lease assets of $92.7 million and $95.3 million, respectively, and finance lease liabilities of $98.8 million and $98.9 million, respectively, related to certain facility leases assumed in connection with the asset acquisition from Nikola Corporation. The components of lease expense were as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Operating lease expense: |  |  |  |  |  |  |
Operating lease expense(1) | $ | 26,669 |  |  | $ | 19,217 |  |  | $ | 49,989 |  |  | $ | 35,698 |
Variable lease expense | $ | 588 |  |  | $ | 607 |  |  | $ | 1,181 |  |  | $ | 1,177 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of leased assets | $ | 2,423 |  |  | $ | 1,745 |  |  | $ | 4,837 |  |  | $ | 2,294 |
Interest on lease liabilities | 3,278 |  |  | 2,746 |  |  | 6,569 |  |  | 3,935 |
Total finance lease expense | $ | 5,701 |  |  | $ | 4,491 |  |  | $ | 11,406 |  |  | $ | 6,229 |
Total lease expense | $ | 32,958 |  |  | $ | 24,315 |  |  | $ | 62,576 |  |  | $ | 43,104 |
(1) Excluded short-term leases, which were not material. Other information related to leases where the Company is the lessee was as follows:
| June 30, 2026 |  | December 31, 2025
Weighted-average remaining lease term (in years): |  |  |
Operating leases | 5.2 |  | 5.2
Finance leases | 16.4 |  | 9.9
Weighted-average discount rate: |  |  |
Operating leases | 11.77 | % |  | 11.50 | %
Finance leases | 8.03 | % |  | 7.33 | %
As of June 30, 2026, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands):
| Operating Leases |  | Finance Leases
2026 (remainder of the year) | $ | 48,733 |  |  | $ | 6,592 |
2027 | 86,930 |  |  | 12,855 |
2028 | 71,888 |  |  | 10,972 |
2029 | 60,086 |  |  | 8,621 |
2030 | 47,379 |  |  | 8,752 |
2031 | 25,437 |  |  | 8,915 |
Thereafter | 62,071 |  |  | 170,750 |
Total minimum lease payments | 402,524 |  |  | 227,457 |
Less: Interest | (107,285) |  |  | (119,727) |
Present value of lease obligations | 295,239 |  |  | 107,730 |
Less: Current portion | (67,198) |  |  | (5,045) |
Long-term portion of lease obligations | $ | 228,041 |  |  | $ | 102,685 |
As of June 30, 2026, the Company entered into additional leases for facilities that have not yet commenced with undiscounted future lease payments of $25.4 million. The leases are expected to commence over the next twelve months.
LEASES | LEASES The Company has entered into various non-cancellable operating and finance lease agreements for certain of the Company’s offices, manufacturing and warehouse facilities, retail and service locations, equipment and vehicles, worldwide. In August 2022, the Company entered into a four-year agreement (“Lease Agreement”) to lease land in Casa Grande, Arizona adjacent to our manufacturing facility. The Company classified this lease as a finance lease because the Lease Agreement contained a purchase option which the Company was reasonably certain to exercise. As of December 31, 2025, assets and liabilities associated with the finance lease were $79.3 million and $79.4 million, respectively. During the six months ended June 30, 2026, the Company elected not to exercise the purchase option. As a result, the Company remeasured the lease‑related assets and liabilities, and the remaining balances were immaterial as of June 30, 2026. Contemporaneously with the execution of the Lease Agreement, the Company entered into a sale agreement, pursuant to which the Company sold certain parcels of land for $31.7 million to the lessor and leased back these parcels of land under the Lease Agreement. The sale of the land and subsequent lease did not result in change in the transfer of control of the land; therefore, the sale-leaseback transaction is accounted for as a failed sale and leaseback financing obligation. The Company recorded $31.7 million of sales proceeds received as a financial liability within other current liabilities in the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025. The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s condensed consolidated balance sheets (in thousands):
| June 30, 2026 |  | December 31, 2025
Operating leases: |  |  |
Right-of-use assets | $ | 249,019 |  |  | $ | 241,974 |
Other current liabilities | $ | 67,198 |  |  | $ | 64,171 |
Other long-term liabilities | 228,041 |  |  | 225,434 |
Total operating lease liabilities | $ | 295,239 |  |  | $ | 289,605 |
Finance leases: |  |  |
Property, plant and equipment, net(1) | $ | 102,161 |  |  | $ | 185,721 |
Total finance lease assets | $ | 102,161 |  |  | $ | 185,721 |
Finance lease liabilities, current portion | $ | 5,045 |  |  | $ | 84,222 |
Finance lease liabilities, net of current portion | 102,685 |  |  | 104,559 |
Total finance lease liabilities(1) | $ | 107,730 |  |  | $ | 188,781 |
(1) As of June 30, 2026 and December 31, 2025, the Company recorded finance lease assets of $92.7 million and $95.3 million, respectively, and finance lease liabilities of $98.8 million and $98.9 million, respectively, related to certain facility leases assumed in connection with the asset acquisition from Nikola Corporation. The components of lease expense were as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Operating lease expense: |  |  |  |  |  |  |
Operating lease expense(1) | $ | 26,669 |  |  | $ | 19,217 |  |  | $ | 49,989 |  |  | $ | 35,698 |
Variable lease expense | $ | 588 |  |  | $ | 607 |  |  | $ | 1,181 |  |  | $ | 1,177 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of leased assets | $ | 2,423 |  |  | $ | 1,745 |  |  | $ | 4,837 |  |  | $ | 2,294 |
Interest on lease liabilities | 3,278 |  |  | 2,746 |  |  | 6,569 |  |  | 3,935 |
Total finance lease expense | $ | 5,701 |  |  | $ | 4,491 |  |  | $ | 11,406 |  |  | $ | 6,229 |
Total lease expense | $ | 32,958 |  |  | $ | 24,315 |  |  | $ | 62,576 |  |  | $ | 43,104 |
(1) Excluded short-term leases, which were not material. Other information related to leases where the Company is the lessee was as follows:
| June 30, 2026 |  | December 31, 2025
Weighted-average remaining lease term (in years): |  |  |
Operating leases | 5.2 |  | 5.2
Finance leases | 16.4 |  | 9.9
Weighted-average discount rate: |  |  |
Operating leases | 11.77 | % |  | 11.50 | %
Finance leases | 8.03 | % |  | 7.33 | %
As of June 30, 2026, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands):
| Operating Leases |  | Finance Leases
2026 (remainder of the year) | $ | 48,733 |  |  | $ | 6,592 |
2027 | 86,930 |  |  | 12,855 |
2028 | 71,888 |  |  | 10,972 |
2029 | 60,086 |  |  | 8,621 |
2030 | 47,379 |  |  | 8,752 |
2031 | 25,437 |  |  | 8,915 |
Thereafter | 62,071 |  |  | 170,750 |
Total minimum lease payments | 402,524 |  |  | 227,457 |
Less: Interest | (107,285) |  |  | (119,727) |
Present value of lease obligations | 295,239 |  |  | 107,730 |
Less: Current portion | (67,198) |  |  | (5,045) |
Long-term portion of lease obligations | $ | 228,041 |  |  | $ | 102,685 |
As of June 30, 2026, the Company entered into additional leases for facilities that have not yet commenced with undiscounted future lease payments of $25.4 million. The leases are expected to commence over the next twelve months.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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