Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

v3.26.1
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
The Company leases real estate, computer hardware, and vehicles for use in its operations under operating leases. The Company’s leases have remaining lease terms ranging from a few months to five years. Most of these leases are non-cancelable and typically have a defined initial lease term, and some provide options to renew at the Company’s election for specified periods of time. Some leases require the Company to pay taxes, insurance, and maintenance expenses associated with the leased assets. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company did not have any finance leases as of December 31, 2025.
Supplemental disclosure related to operating and finance leases included on our consolidated balance sheets is set forth as follows:

December 31,
(in thousands) Classification on Consolidated Balance Sheets 2025 2024
Noncurrent assets:
Operating lease right-of-use assets Operating lease right-of-use assets $ 1,513  $ 8,412 
Finance lease right-of-use assets Property and equipment, net —  23
Total $ 1,513  $ 8,435 
Current liabilities:
Operating lease liabilities Current portion of operating lease liabilities $ 585  $ 1,431 
Finance lease liabilities Accrued liabilities —  23 
Noncurrent liabilities:
Operating lease liabilities Noncurrent portion of operating lease liabilities 1,279  8,278 
Total $ 1,864  $ 9,732 

The following table sets forth operating lease cost, finance lease cost, and variable lease cost for the years ended December 31, 2025 and 2024:

For the Year Ended December 31,
(in thousands) Classification on Statement of Operations 2025 2024
Operating lease cost Selling, general, and administrative expenses $ 3,187  $ 2,432 
Cost of services 301  932 
Total operating lease cost $ 3,488  $ 3,364 
Finance lease cost:
Amortization of leased assets Depreciation and amortization $ 27  $ 125 
Interest on lease liabilities Interest expense 1  6 
Total finance lease cost $ 28  $ 131 
Variable lease cost Selling, general, and administrative expenses $ 605  $ 639 

The following table sets forth cash paid for amounts included in the measurement of operating and finance lease liabilities for the years ended December 31, 2025 and 2024:
For the Year Ended December 31,
(in thousands) 2025 2024
Operating leases $ 1,349  $ 1,491 
Finance leases 24  101 

The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows:

December 31,
2025 2024
Weighted average remaining lease term:
Operating leases 3.4 years 6.5 years
Finance leases 0.0 years 0.3 years
Weighted average discount rate:
Operating leases 9.8  % 8.0  %
Finance leases —  % 5.1  %
The following table sets forth the future minimum lease payments under operating and finance leases subsequent to December 31, 2025:

(in thousands) Operating Leases
2026 $ 736 
2027 621 
2028 464 
2029 219 
2030 153 
Thereafter 13 
Total minimum lease payments $ 2,206 
Interest (342)
Total $ 1,864 
LEASES LEASES
The Company leases real estate, computer hardware, and vehicles for use in its operations under operating leases. The Company’s leases have remaining lease terms ranging from a few months to five years. Most of these leases are non-cancelable and typically have a defined initial lease term, and some provide options to renew at the Company’s election for specified periods of time. Some leases require the Company to pay taxes, insurance, and maintenance expenses associated with the leased assets. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company did not have any finance leases as of December 31, 2025.
Supplemental disclosure related to operating and finance leases included on our consolidated balance sheets is set forth as follows:

December 31,
(in thousands) Classification on Consolidated Balance Sheets 2025 2024
Noncurrent assets:
Operating lease right-of-use assets Operating lease right-of-use assets $ 1,513  $ 8,412 
Finance lease right-of-use assets Property and equipment, net —  23
Total $ 1,513  $ 8,435 
Current liabilities:
Operating lease liabilities Current portion of operating lease liabilities $ 585  $ 1,431 
Finance lease liabilities Accrued liabilities —  23 
Noncurrent liabilities:
Operating lease liabilities Noncurrent portion of operating lease liabilities 1,279  8,278 
Total $ 1,864  $ 9,732 

The following table sets forth operating lease cost, finance lease cost, and variable lease cost for the years ended December 31, 2025 and 2024:

For the Year Ended December 31,
(in thousands) Classification on Statement of Operations 2025 2024
Operating lease cost Selling, general, and administrative expenses $ 3,187  $ 2,432 
Cost of services 301  932 
Total operating lease cost $ 3,488  $ 3,364 
Finance lease cost:
Amortization of leased assets Depreciation and amortization $ 27  $ 125 
Interest on lease liabilities Interest expense 1  6 
Total finance lease cost $ 28  $ 131 
Variable lease cost Selling, general, and administrative expenses $ 605  $ 639 

The following table sets forth cash paid for amounts included in the measurement of operating and finance lease liabilities for the years ended December 31, 2025 and 2024:
For the Year Ended December 31,
(in thousands) 2025 2024
Operating leases $ 1,349  $ 1,491 
Finance leases 24  101 

The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows:

December 31,
2025 2024
Weighted average remaining lease term:
Operating leases 3.4 years 6.5 years
Finance leases 0.0 years 0.3 years
Weighted average discount rate:
Operating leases 9.8  % 8.0  %
Finance leases —  % 5.1  %
The following table sets forth the future minimum lease payments under operating and finance leases subsequent to December 31, 2025:

(in thousands) Operating Leases
2026 $ 736 
2027 621 
2028 464 
2029 219 
2030 153 
Thereafter 13 
Total minimum lease payments $ 2,206 
Interest (342)
Total $ 1,864