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Leases

12 Months Ended

Dec. 31, 2024

Note 13—Leases

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. The Company has operating leases for corporate offices, warehouses, and certain equipment. The Company’s leases have remaining terms of 1 to 5 years, some of which include options to extend the lease for up to 10 years, and some of which include options to terminate the lease within 1 year. As of December 31, 2024, the Company’s weighted average remaining lease term is approximately 4 years and the weighted average discount rate used to calculate the Company’s lease liability is approximately 6.79%. As of December 31, 2023, the Company’s weighted average remaining lease term is approximately 4 years and the weighted average discount rate used to calculate the Company’s lease liability is approximately 7.31%.

Under ASC 842, total operating lease costs for the years ended December 31, 2024, 2023 and 2022 were $12.5 million, $12.4 million, and $19.1 million, respectively. Of the $12.5 million for the year ended December 31, 2024, $2.1 million was related to short-term and variable lease costs, including common area maintenance charges, management fees, taxes and storage fees. Sublease rental income was $1.6 million in 2024. Of the $12.4 million for the year ended December 31, 2023, $3.3 million was related to short-term and variable lease costs, including common area maintenance charges, management fees, taxes and storage fees. Sublease rental income was $1.5 million in 2023. Of the $19.1 million for the year ended December 31, 2022, $10.7 million was related to short-term and variable lease costs, including common area maintenance charges, management fees, taxes and storage fees. Sublease rental income was $2.2 million in 2022.

The Company had a cash outflow of $9.1 million, $10.7 million and $11.5 million related to operating leases for the years ended December 31, 2024, 2023 and 2022, respectively.

The following table represents a reconciliation of the Company’s undiscounted future minimum lease payments under operating leases to the lease liability excluding minimum lease payments for executed and legally enforceable leases that have not yet commenced as of December 31, 2024 (in thousands):

Year ending December 31,
2025	$	11,702
2026		15,935
2027		15,832
2028		15,823
2029		6,715
Thereafter		36
Total lease payments		66,043
Imputed interest		(9,519	)
Total	$	56,524

As of December 31, 2024 and 2023, the minimum lease payments for executed and legally enforceable leases that have not yet commenced were nil.