Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.3
Leases
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Leases Leases
Lessee Accounting

The Company recognizes a lease liability equal to the present value of the lease payments and an operating lease right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for vehicles and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. 

The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of
lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Lease expense consisted of the following for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Operating lease expense $ 605  $ 1,019  $ 1,792  $ 3,675 
Short-term lease expense 321  —  741  — 
Finance lease expense:
Amortization of right-of-use assets 27  32  52  102 
Interest on lease liabilities 9  3  17  12 
Total lease expense $ 962  $ 1,054  $ 2,602  $ 3,789 

Right-of-use assets and liabilities related to finance leases are recorded in the following line items on the unaudited condensed consolidated balance sheets at September 30, 2026 and December 31, 2025 (in thousands):

September 30, December 31,
2026 2025
Property, plant and equipment, net $ 446  $ 102 
Accrued expenses and other current liabilities 103  49 
Other liabilities 303  26 

Other supplemental information related to leases for the three and nine months ended September 30, 2026 and 2025 and at September 30, 2026 and December 31, 2025 is as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 712  $ 1,265  $ 2,296  $ 3,935 
Operating cash flows from finance leases 9  3  17  12 
Financing cash flows from finance leases 27  65  60  203 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases $ 504  $ 452  $ 2,477  $ 2,944 
Finance leases —  —  395  — 

September 30, December 31,
2026 2025
Weighted-average remaining lease term:
Operating leases 3.2 years 3.5 years
Finance leases 2.3 years 1.5 years
Weighted-average discount rate:
Operating leases 9.2  % 9.8  %
Finance leases 8.8  % 10.1  %
Maturities of lease liabilities at September 30, 2026 are as follows (in thousands):
Operating Leases Finance Leases
Remainder of 2026 $ 856  $ 36 
2027 2,386  146 
2028 546  88 
2029 52  196 
2030 52  — 
Thereafter 537  — 
Total lease payments 4,429  466 
Less: Present value discount 631  60 
Present value of lease payments $ 3,798  $ 406 

Lessor Accounting

Certain rental and accommodation service arrangements contain lease components under ASC 842. The Company has elected the practical expedient to combine the lease and non-lease components when permitted. Revenue from these arrangements is generally recognized over time based on the contractual rental period. The Company recognized lease revenue of $4.4 million and $13.2 million during the three and nine months ended September 30, 2026, respectively, and $1.0 million and $2.2 million during the three and nine months ended September 30, 2025, respectively, which is included in “services revenue” and “services revenue - related parties” on the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Maturities of lease payments for the Company’s outstanding long-term leases at September 30, 2026 are as follows (in thousands):
Remainder of 2026 $ 3,170 
2027 8,421 
2028 6,632 
2029 2,887 
2030 1,319 
Thereafter 140 
Total lease payments $ 22,569 
Leases Leases
Lessee Accounting

The Company recognizes a lease liability equal to the present value of the lease payments and an operating lease right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for vehicles and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. 

The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of
lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Lease expense consisted of the following for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Operating lease expense $ 605  $ 1,019  $ 1,792  $ 3,675 
Short-term lease expense 321  —  741  — 
Finance lease expense:
Amortization of right-of-use assets 27  32  52  102 
Interest on lease liabilities 9  3  17  12 
Total lease expense $ 962  $ 1,054  $ 2,602  $ 3,789 

Right-of-use assets and liabilities related to finance leases are recorded in the following line items on the unaudited condensed consolidated balance sheets at September 30, 2026 and December 31, 2025 (in thousands):

September 30, December 31,
2026 2025
Property, plant and equipment, net $ 446  $ 102 
Accrued expenses and other current liabilities 103  49 
Other liabilities 303  26 

Other supplemental information related to leases for the three and nine months ended September 30, 2026 and 2025 and at September 30, 2026 and December 31, 2025 is as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 712  $ 1,265  $ 2,296  $ 3,935 
Operating cash flows from finance leases 9  3  17  12 
Financing cash flows from finance leases 27  65  60  203 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases $ 504  $ 452  $ 2,477  $ 2,944 
Finance leases —  —  395  — 

September 30, December 31,
2026 2025
Weighted-average remaining lease term:
Operating leases 3.2 years 3.5 years
Finance leases 2.3 years 1.5 years
Weighted-average discount rate:
Operating leases 9.2  % 9.8  %
Finance leases 8.8  % 10.1  %
Maturities of lease liabilities at September 30, 2026 are as follows (in thousands):
Operating Leases Finance Leases
Remainder of 2026 $ 856  $ 36 
2027 2,386  146 
2028 546  88 
2029 52  196 
2030 52  — 
Thereafter 537  — 
Total lease payments 4,429  466 
Less: Present value discount 631  60 
Present value of lease payments $ 3,798  $ 406 

Lessor Accounting

Certain rental and accommodation service arrangements contain lease components under ASC 842. The Company has elected the practical expedient to combine the lease and non-lease components when permitted. Revenue from these arrangements is generally recognized over time based on the contractual rental period. The Company recognized lease revenue of $4.4 million and $13.2 million during the three and nine months ended September 30, 2026, respectively, and $1.0 million and $2.2 million during the three and nine months ended September 30, 2025, respectively, which is included in “services revenue” and “services revenue - related parties” on the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Maturities of lease payments for the Company’s outstanding long-term leases at September 30, 2026 are as follows (in thousands):
Remainder of 2026 $ 3,170 
2027 8,421 
2028 6,632 
2029 2,887 
2030 1,319 
Thereafter 140 
Total lease payments $ 22,569 
Leases Leases
Lessee Accounting

The Company recognizes a lease liability equal to the present value of the lease payments and an operating lease right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for vehicles and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. 

The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of
lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Lease expense consisted of the following for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Operating lease expense $ 605  $ 1,019  $ 1,792  $ 3,675 
Short-term lease expense 321  —  741  — 
Finance lease expense:
Amortization of right-of-use assets 27  32  52  102 
Interest on lease liabilities 9  3  17  12 
Total lease expense $ 962  $ 1,054  $ 2,602  $ 3,789 

Right-of-use assets and liabilities related to finance leases are recorded in the following line items on the unaudited condensed consolidated balance sheets at September 30, 2026 and December 31, 2025 (in thousands):

September 30, December 31,
2026 2025
Property, plant and equipment, net $ 446  $ 102 
Accrued expenses and other current liabilities 103  49 
Other liabilities 303  26 

Other supplemental information related to leases for the three and nine months ended September 30, 2026 and 2025 and at September 30, 2026 and December 31, 2025 is as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 712  $ 1,265  $ 2,296  $ 3,935 
Operating cash flows from finance leases 9  3  17  12 
Financing cash flows from finance leases 27  65  60  203 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases $ 504  $ 452  $ 2,477  $ 2,944 
Finance leases —  —  395  — 

September 30, December 31,
2026 2025
Weighted-average remaining lease term:
Operating leases 3.2 years 3.5 years
Finance leases 2.3 years 1.5 years
Weighted-average discount rate:
Operating leases 9.2  % 9.8  %
Finance leases 8.8  % 10.1  %
Maturities of lease liabilities at September 30, 2026 are as follows (in thousands):
Operating Leases Finance Leases
Remainder of 2026 $ 856  $ 36 
2027 2,386  146 
2028 546  88 
2029 52  196 
2030 52  — 
Thereafter 537  — 
Total lease payments 4,429  466 
Less: Present value discount 631  60 
Present value of lease payments $ 3,798  $ 406 

Lessor Accounting

Certain rental and accommodation service arrangements contain lease components under ASC 842. The Company has elected the practical expedient to combine the lease and non-lease components when permitted. Revenue from these arrangements is generally recognized over time based on the contractual rental period. The Company recognized lease revenue of $4.4 million and $13.2 million during the three and nine months ended September 30, 2026, respectively, and $1.0 million and $2.2 million during the three and nine months ended September 30, 2025, respectively, which is included in “services revenue” and “services revenue - related parties” on the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Maturities of lease payments for the Company’s outstanding long-term leases at September 30, 2026 are as follows (in thousands):
Remainder of 2026 $ 3,170 
2027 8,421 
2028 6,632 
2029 2,887 
2030 1,319 
Thereafter 140 
Total lease payments $ 22,569