Leases

9 Months Ended

Sep. 30, 2025

(18) Leases

Floorspace leases

The Company has obligations as a lessee for floorspace. Generally, these lease arrangements meet the short-term lease criteria when the floorspace leases are cancellable by the Company upon notice of 30 days or less. Accordingly, for the leases that are cancellable, the Company has elected and applied the practical expedient that allows the Company to recognize short-term lease payments on a straight-line basis over the lease term on the Consolidated Statements of Income. For those floorspace leases that have a noncancellable term greater than 12 months, the Company records ROU assets and lease liabilities and presents them as operating leases. The Company recognized right of use assets and a lease liability of $0.0 million for the three and nine months ended September 30, 2025, and $2.2 million for the year ended December 31, 2024 as a result of the non-cash transaction related to floorspace operating leases.

Office space leases

The Company has obligations as a lessee for office space under a noncancellable lease arrangement that expires in May 2025, with options to renew up to five years. Payments due under the lease contracts include mainly fixed payments. The lease for the office space is classified as an operating lease in accordance with Topic 842.

BTM Kiosk leases

The Company has obligations as a lessee for BTM kiosks. The leases for the BTM kiosks are classified as finance leases in accordance with Topic 842 that expire on various dates through August 31, 2027. The BTM kiosk lease agreements are for two or three year terms and include various options to either renew the lease, purchase the kiosks or exercise a bargain option to purchase the kiosk at the end of the term. Certain finance leases are personally guaranteed by the CEO and contain guarantees for return of equipment by the CEO.

During the year ended December 31, 2024, the Company entered into lease agreements for the lease of 1,186 new BTMs. The leases have noncancellable lease terms ranging from 24 months to 36 months. The Company will acquire the assets for a bargain purchase price of $1 at the end of their terms. Due to the bargain purchase option, the Company classified the new leases as a finance lease. The Company recognized right of use assets and a lease liability of $3.4 million for the year ended December 31, 2024 as a result of the non-cash transaction related to the finance leases. No new BTM kiosk lease agreements have been entered into during the nine months ended September 30, 2025.

The components of the lease expense are as follows (in thousands, except lease term and discount rate figures):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Finance lease expense:
Amortization of right-of-use-assets	$	351	$	884	$	1,076	$	3,469
Interest on lease liabilities		143		310		543		1,049
Total finance lease expense		494		1,194		1,619		4,518
Operating lease expense		292		299		888		660
Short-term lease expense		9,577		9,730		28,213		27,125
Total lease expense	$	10,363	$	11,223	$	30,720	$	32,303


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Other information:
Operating cash flows used for finance leases	$	(156	)	$	(320	)	$	(582	)	$	(1,088	)
Operating cash flows used for operating leases	$	(284	)	$	(340	)	$	(935	)	$	(749	)
Financing cash flows used for finance leases	$	(866	)	$	(2,049	)	$	(2,539	)	$	(6,242	)



	September 30, 2025	December 31, 2024
Weighted-average remaining lease term - finance leases	1.1 years	1.7 years
Weighted-average remaining lease term - operating leases	2.9 years	3.0 years
Weighted-average discount rate - finance leases	18.2%	18.2%
Weighted-average discount rate - operating leases	16.9%	16.9%

Maturities of the lease liability under the noncancellable operating leases as of September 30, 2025 are as follows (in thousands):


	Operating Leases
Remainder of 2025	$	269
2026		1,079
2027		632
2028		425
2029		164
Thereafter		84
Total undiscounted lease payments		2,653
Less: imputed interest		(544	)
Total operating lease liability		2,109
Less: operating lease liabilities, current		(796	)
Operating lease liabilities, net of current portion	$	1,313

Maturities of the lease liability under the noncancellable finance leases as of September 30, 2025 are as follows (in thousands):


	Finance Leases
Remainder of 2025	$	1,033
2026		1,754
2027		384
2028		—
Total undiscounted lease payments		3,171
Less: imputed interest		(304	)
Total finance lease liability		2,867
Less: current installments of obligations under finance leases		(2,375	)
Obligations under finance leases, excluding current installments	$	492