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Property and Equipment, Net
 3 Months Ended
Mar. 31, 2026
Property and Equipment, Net [Abstract]  
Property and Equipment, Net

7. Property and Equipment, Net

 

Property and equipment, net consisted of the following (in thousands):

 

   March 31,   December 31, 
   2026   2025 
Equipment  $86,764   $80,999 
Equipment in progress   3,146    7,218 
Leasehold improvements   58,867    58,862 
Furniture and fixtures   30,422    30,744 
Office equipment   1,624    1,624 
Total property and equipment   180,823    179,447 
Accumulated depreciation   (104,990)   (101,486)
Property and equipment, net  $75,833   $77,961 

 

Equipment in progress reflects equipment, primarily related to mattress manufacturing, which is being constructed and was not in service at March 31, 2026 or December 31, 2025. Interest capitalized on borrowings during the active construction period of major capital projects totaled $0.1 million and $0.2 million during the three months ended March 31, 2026 and 2025, respectively. Depreciation expense was $3.8 million and $4.2 million during the three months ended March 31, 2026 and 2025, respectively. Included in depreciation expense for the three months ended March 31, 2025 was $0.2 million related to accelerated depreciation associated with the Restructuring Plan. See Note 3— Restructuring and Impairment Charges for further discussion.