Leases

9 Months Ended

Sep. 30, 2025

10.

LEASES

The Company leases manufacturing and training facilities, storage warehouses, office space, and certain plant equipment under various operating leases. The Company’s operating leases have remaining lease terms of up to 10 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

For the nine months ended September 30, 2025 and September 30, 2024, total operating lease expense was $9.0 million and $7.3 million, respectively. The weighted average remaining lease term at September 30, 2025 and December 31, 2024 was 5.8 years and 6.3 years, respectively. The weighted average discount rate at September 30, 2025 and December 31, 2024 was 4.66% and 4.57%, respectively.

The following table includes supplemental cash flow information for the nine months ended September 30, 2025 and September 30, 2024, and supplemental balance sheet information at September 30, 2025 and December 31, 2024 related to operating leases (in thousands):


	Nine Months Ended September 30,
Supplemental cash flow information	2025		2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	8,410	$	7,346
Operating ROU assets obtained in exchange for lease liabilities	$	1,419	$	16,379


Supplemental balance sheet information	September 30, 2025		December 31, 2024
Operating lease ROU assets	$	45,871	$	52,195
Operating lease liabilities:
Accrued expenses and other current liabilities	$	11,298	$	10,800
Operating lease liabilities		35,706		41,979
Total operating lease liabilities	$	47,004	$	52,779

The following table summarizes maturities of operating lease liabilities at September 30, 2025 (in thousands):


Maturities of operating lease liabilities
2025	$	2,912
2026		11,476
2027		10,858
2028		9,779
2029		4,448
Thereafter		15,562
Total lease payments		55,035
Less imputed interest		(8,031	)
Total operating lease liabilities	$	47,004