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Leases | 12 Months Ended
--- | ---
Dec. 31, 2025
Leases [Abstract] |
Leases | Leases We lease certain office space, warehouses, land, and equipment. Leases in the consolidated balance sheets consisted of the following at December 31:
(In thousands) | Balance Sheet Classification | 2025 |  | 2024
Assets: |  |  |  |
Operating | Operating lease assets | $ | 11,195 |  |  | $ | 11,793 |
Finance | Property, plant and equipment, net | 12,816 |  |  | 7,316 |
Total lease assets |  | $ | 24,011 |  |  | $ | 19,109 |
Liabilities: |  |  |  |
Current: |  |  |  |
Operating | Accrued liabilities | $ | 2,442 |  |  | $ | 2,162 |
Finance | Current debt | 5,170 |  |  | 2,794 |
Noncurrent: |  |  |  |
Operating | Noncurrent operating lease liabilities | 9,877 |  |  | 10,896 |
Finance | Long-term debt, less current portion | 6,392 |  |  | 4,827 |
Total lease liabilities |  | $ | 23,881 |  |  | $ | 20,679 |
Lease costs in the consolidated statements of operations were as follows:
| Year Ended December 31,
(In thousands) | 2025 |  | 2024 |  | 2023
Operating lease expenses |  |  |  |  |
Long-term operating leases expenses | $ | 2,686 |  |  | $ | 2,383 |  |  | $ | 2,568 |
Short-term operating leases expenses | 2,852 |  |  | 1,874 |  |  | 3,226 |
Total operating lease expenses | 5,538 |  |  | 4,257 |  |  | 5,794 |
Amortization of leased assets for finance leases | 3,544 |  |  | 2,818 |  |  | 1,744 |
Sublease income | (1,172) |  |  | (978) |  |  | (758) |
Total net lease cost | $ | 7,910 |  |  | $ | 6,097 |  |  | $ | 6,780 |
Total operating lease expenses approximate cash paid during each period. Interest for finance leases is not material. Operating lease expenses and amortization of leased assets for finance leases are included in either cost of revenues or selling, general and administrative expenses. Interest for finance leases is included in interest expense, net. The sublease income in the table above relates to our principal executive offices in The Woodlands, Texas. In addition, we own a facility containing approximately 108,000 square feet of office space (approximately 85,000 square feet of which is currently being leased or available to be leased to third parties) on approximately 11 acres of land in Katy, Texas, which houses certain other administrative offices. From this facility, we generated lease income of $2.9 million, $0.8 million, and $0.5 million for 2025, 2024, and 2023, respectively. Such sublease and lease income associated with our principal executive offices and other administrative offices is included in selling, general and administrative expenses, or other operating income. We also enter into certain cross-rentals as required to meet customer demand in which we rent matting systems from vendors and then re-rent them to our customers. These leases generally have initial terms of 12 months or less and therefore are not recorded in the balance sheet. For 2025, we recognized approximately $11 million of lease expense (included in cost of revenues) and re-rent revenue (included in rental revenues) associated with the cross-rentals. We had minimal cross-rentals in 2024 or 2023. For information regarding revenues from the rental of our matting systems, see Note 13. The maturity of lease liabilities as of December 31, 2025 is as follows:
(In thousands) | Operating Leases |  | Finance Leases |  | Total
2026 | $ | 3,072 |  |  | $ | 5,967 |  |  | $ | 9,039 |
2027 | 2,940 |  |  | 4,120 |  |  | 7,060 |
2028 | 2,604 |  |  | 1,909 |  |  | 4,513 |
2029 | 2,301 |  |  | 764 |  |  | 3,065 |
2030 | 1,934 |  |  | 131 |  |  | 2,065 |
Thereafter | 1,322 |  |  | — |  |  | 1,322 |
Total lease payments | 14,173 |  |  | 12,891 |  |  | 27,064 |
Less: Interest | 1,854 |  |  | 1,329 |  |  | 3,183 |
Present value of lease liabilities | $ | 12,319 |  |  | $ | 11,562 |  |  | $ | 23,881 |
During 2025, we entered into $1.7 million and $4.7 million of new operating lease liabilities and finance lease liabilities, respectively, in exchange for leased assets. In addition, the November 2025 Grassform acquisition resulted in $1.2 million and $2.9 million of new operating lease liabilities and finance lease liabilities, respectively. See Note 2 for additional information. During 2024, we entered into $1.1 million and $3.5 million of new operating lease liabilities and finance lease liabilities, respectively, in exchange for leased assets. Weighted-average remaining lease terms and the weighted average discount rates are as follows:
Lease Term and Discount Rate | December 31, 2025
Weighted-average remaining lease term (years) |
Operating leases | 5.0
Finance leases | 2.5
Weighted-average discount rate |
Operating leases | 5.1 | %
Finance leases | 8.5 | %
Leases | Leases We lease certain office space, warehouses, land, and equipment. Leases in the consolidated balance sheets consisted of the following at December 31:
(In thousands) | Balance Sheet Classification | 2025 |  | 2024
Assets: |  |  |  |
Operating | Operating lease assets | $ | 11,195 |  |  | $ | 11,793 |
Finance | Property, plant and equipment, net | 12,816 |  |  | 7,316 |
Total lease assets |  | $ | 24,011 |  |  | $ | 19,109 |
Liabilities: |  |  |  |
Current: |  |  |  |
Operating | Accrued liabilities | $ | 2,442 |  |  | $ | 2,162 |
Finance | Current debt | 5,170 |  |  | 2,794 |
Noncurrent: |  |  |  |
Operating | Noncurrent operating lease liabilities | 9,877 |  |  | 10,896 |
Finance | Long-term debt, less current portion | 6,392 |  |  | 4,827 |
Total lease liabilities |  | $ | 23,881 |  |  | $ | 20,679 |
Lease costs in the consolidated statements of operations were as follows:
| Year Ended December 31,
(In thousands) | 2025 |  | 2024 |  | 2023
Operating lease expenses |  |  |  |  |
Long-term operating leases expenses | $ | 2,686 |  |  | $ | 2,383 |  |  | $ | 2,568 |
Short-term operating leases expenses | 2,852 |  |  | 1,874 |  |  | 3,226 |
Total operating lease expenses | 5,538 |  |  | 4,257 |  |  | 5,794 |
Amortization of leased assets for finance leases | 3,544 |  |  | 2,818 |  |  | 1,744 |
Sublease income | (1,172) |  |  | (978) |  |  | (758) |
Total net lease cost | $ | 7,910 |  |  | $ | 6,097 |  |  | $ | 6,780 |
Total operating lease expenses approximate cash paid during each period. Interest for finance leases is not material. Operating lease expenses and amortization of leased assets for finance leases are included in either cost of revenues or selling, general and administrative expenses. Interest for finance leases is included in interest expense, net. The sublease income in the table above relates to our principal executive offices in The Woodlands, Texas. In addition, we own a facility containing approximately 108,000 square feet of office space (approximately 85,000 square feet of which is currently being leased or available to be leased to third parties) on approximately 11 acres of land in Katy, Texas, which houses certain other administrative offices. From this facility, we generated lease income of $2.9 million, $0.8 million, and $0.5 million for 2025, 2024, and 2023, respectively. Such sublease and lease income associated with our principal executive offices and other administrative offices is included in selling, general and administrative expenses, or other operating income. We also enter into certain cross-rentals as required to meet customer demand in which we rent matting systems from vendors and then re-rent them to our customers. These leases generally have initial terms of 12 months or less and therefore are not recorded in the balance sheet. For 2025, we recognized approximately $11 million of lease expense (included in cost of revenues) and re-rent revenue (included in rental revenues) associated with the cross-rentals. We had minimal cross-rentals in 2024 or 2023. For information regarding revenues from the rental of our matting systems, see Note 13. The maturity of lease liabilities as of December 31, 2025 is as follows:
(In thousands) | Operating Leases |  | Finance Leases |  | Total
2026 | $ | 3,072 |  |  | $ | 5,967 |  |  | $ | 9,039 |
2027 | 2,940 |  |  | 4,120 |  |  | 7,060 |
2028 | 2,604 |  |  | 1,909 |  |  | 4,513 |
2029 | 2,301 |  |  | 764 |  |  | 3,065 |
2030 | 1,934 |  |  | 131 |  |  | 2,065 |
Thereafter | 1,322 |  |  | — |  |  | 1,322 |
Total lease payments | 14,173 |  |  | 12,891 |  |  | 27,064 |
Less: Interest | 1,854 |  |  | 1,329 |  |  | 3,183 |
Present value of lease liabilities | $ | 12,319 |  |  | $ | 11,562 |  |  | $ | 23,881 |
During 2025, we entered into $1.7 million and $4.7 million of new operating lease liabilities and finance lease liabilities, respectively, in exchange for leased assets. In addition, the November 2025 Grassform acquisition resulted in $1.2 million and $2.9 million of new operating lease liabilities and finance lease liabilities, respectively. See Note 2 for additional information. During 2024, we entered into $1.1 million and $3.5 million of new operating lease liabilities and finance lease liabilities, respectively, in exchange for leased assets. Weighted-average remaining lease terms and the weighted average discount rates are as follows:
Lease Term and Discount Rate | December 31, 2025
Weighted-average remaining lease term (years) |
Operating leases | 5.0
Finance leases | 2.5
Weighted-average discount rate |
Operating leases | 5.1 | %
Finance leases | 8.5 | %

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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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