Quarterly report [Sections 13 or 15(d)]

LEASES

v3.25.3
LEASES
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2025 December 31, 2024
Operating Leases:
Right-of-use (“ROU”) assets $ 76,371  $ 80,149 
Current portions of operating lease liabilities $ 8,062  $ 10,536 
Long-term portions of operating lease liabilities 56,032  59,479 
Total operating lease liabilities $ 64,094  $ 70,015 
Weighted-average remaining lease term 18 years 19 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 23,581  $ 25,158 
Current portions of financing lease liabilities $ 810  $ 637 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 11,845  12,267 
Total financing lease liabilities $ 12,655  $ 12,904 
Weighted-average remaining lease term 11 years 12 years
Weighted-average discount rate 12.0  % 12.0  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Operating Leases:
Operating lease costs $ 3,046  $ 3,358  $ 9,558  $ 9,590 
Financing Leases:
Amortization expense 525  526  1,577  1,578 
Interest on lease liabilities 448  495  1,225  1,276 
Total lease costs $ 4,019  $ 4,379  $ 12,360  $ 12,444 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2025 2024
Cash paid for amounts included in the measurement of operating lease liabilities $ 11,579  $ 13,530 
ROU assets obtained in exchange for new operating lease liabilities (1)
$ 2,973  $ 24,810 
(1) Includes non-monetary lease transactions of $0 and $10,378 in 2025 and 2024, respectively. See disclosure below for additional information.
The table below sets forth our future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2025 $ 2,990  $ 919 
2026 11,304  2,054 
2027 9,920  1,922 
2028 8,067  1,955 
2029 5,700  1,892 
Thereafter 70,459  14,044 
Total lease payments 108,440  22,786 
Less: interest 44,346  10,131 
Present value of lease liabilities $ 64,094  $ 12,655 
We have a future lease commitment for a project lease with the United States Navy (“Navy”) which has not yet met the criteria for recording a right-of-use (“ROU”) asset or lease liability. The estimated net present value of this commitment totals $40,335 as of September 30, 2025. We will provide IKCPs over a thirty-six-year period, which the Navy will credit as consideration towards our lease obligation upon the Navy’s final acceptance of the IKCPs. Once the lease commences, the ROU asset and lease liability will be recorded, which we estimate to be in late 2025 or early 2026.
We have a future lease commitment for a new office and warehouse in Mesa, AZ. The estimated net present value of this commitment totals $1,136 as of September 30, 2025. This new lease agreement was executed September 23, 2025 and the lease will commence March 1, 2026 and will continue for 65 months.
Non-monetary Lease Transactions
We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration are based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments.
Financing Leases
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $172 for the three and nine months ended September 30, 2025 and 2024, respectively.
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2025 December 31, 2024
Operating Leases:
Right-of-use (“ROU”) assets $ 76,371  $ 80,149 
Current portions of operating lease liabilities $ 8,062  $ 10,536 
Long-term portions of operating lease liabilities 56,032  59,479 
Total operating lease liabilities $ 64,094  $ 70,015 
Weighted-average remaining lease term 18 years 19 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 23,581  $ 25,158 
Current portions of financing lease liabilities $ 810  $ 637 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 11,845  12,267 
Total financing lease liabilities $ 12,655  $ 12,904 
Weighted-average remaining lease term 11 years 12 years
Weighted-average discount rate 12.0  % 12.0  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Operating Leases:
Operating lease costs $ 3,046  $ 3,358  $ 9,558  $ 9,590 
Financing Leases:
Amortization expense 525  526  1,577  1,578 
Interest on lease liabilities 448  495  1,225  1,276 
Total lease costs $ 4,019  $ 4,379  $ 12,360  $ 12,444 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2025 2024
Cash paid for amounts included in the measurement of operating lease liabilities $ 11,579  $ 13,530 
ROU assets obtained in exchange for new operating lease liabilities (1)
$ 2,973  $ 24,810 
(1) Includes non-monetary lease transactions of $0 and $10,378 in 2025 and 2024, respectively. See disclosure below for additional information.
The table below sets forth our future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2025 $ 2,990  $ 919 
2026 11,304  2,054 
2027 9,920  1,922 
2028 8,067  1,955 
2029 5,700  1,892 
Thereafter 70,459  14,044 
Total lease payments 108,440  22,786 
Less: interest 44,346  10,131 
Present value of lease liabilities $ 64,094  $ 12,655 
We have a future lease commitment for a project lease with the United States Navy (“Navy”) which has not yet met the criteria for recording a right-of-use (“ROU”) asset or lease liability. The estimated net present value of this commitment totals $40,335 as of September 30, 2025. We will provide IKCPs over a thirty-six-year period, which the Navy will credit as consideration towards our lease obligation upon the Navy’s final acceptance of the IKCPs. Once the lease commences, the ROU asset and lease liability will be recorded, which we estimate to be in late 2025 or early 2026.
We have a future lease commitment for a new office and warehouse in Mesa, AZ. The estimated net present value of this commitment totals $1,136 as of September 30, 2025. This new lease agreement was executed September 23, 2025 and the lease will commence March 1, 2026 and will continue for 65 months.
Non-monetary Lease Transactions
We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration are based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments.
Financing Leases
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $172 for the three and nine months ended September 30, 2025 and 2024, respectively.
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2025 December 31, 2024
Operating Leases:
Right-of-use (“ROU”) assets $ 76,371  $ 80,149 
Current portions of operating lease liabilities $ 8,062  $ 10,536 
Long-term portions of operating lease liabilities 56,032  59,479 
Total operating lease liabilities $ 64,094  $ 70,015 
Weighted-average remaining lease term 18 years 19 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 23,581  $ 25,158 
Current portions of financing lease liabilities $ 810  $ 637 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 11,845  12,267 
Total financing lease liabilities $ 12,655  $ 12,904 
Weighted-average remaining lease term 11 years 12 years
Weighted-average discount rate 12.0  % 12.0  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Operating Leases:
Operating lease costs $ 3,046  $ 3,358  $ 9,558  $ 9,590 
Financing Leases:
Amortization expense 525  526  1,577  1,578 
Interest on lease liabilities 448  495  1,225  1,276 
Total lease costs $ 4,019  $ 4,379  $ 12,360  $ 12,444 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2025 2024
Cash paid for amounts included in the measurement of operating lease liabilities $ 11,579  $ 13,530 
ROU assets obtained in exchange for new operating lease liabilities (1)
$ 2,973  $ 24,810 
(1) Includes non-monetary lease transactions of $0 and $10,378 in 2025 and 2024, respectively. See disclosure below for additional information.
The table below sets forth our future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2025 $ 2,990  $ 919 
2026 11,304  2,054 
2027 9,920  1,922 
2028 8,067  1,955 
2029 5,700  1,892 
Thereafter 70,459  14,044 
Total lease payments 108,440  22,786 
Less: interest 44,346  10,131 
Present value of lease liabilities $ 64,094  $ 12,655 
We have a future lease commitment for a project lease with the United States Navy (“Navy”) which has not yet met the criteria for recording a right-of-use (“ROU”) asset or lease liability. The estimated net present value of this commitment totals $40,335 as of September 30, 2025. We will provide IKCPs over a thirty-six-year period, which the Navy will credit as consideration towards our lease obligation upon the Navy’s final acceptance of the IKCPs. Once the lease commences, the ROU asset and lease liability will be recorded, which we estimate to be in late 2025 or early 2026.
We have a future lease commitment for a new office and warehouse in Mesa, AZ. The estimated net present value of this commitment totals $1,136 as of September 30, 2025. This new lease agreement was executed September 23, 2025 and the lease will commence March 1, 2026 and will continue for 65 months.
Non-monetary Lease Transactions
We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration are based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments.
Financing Leases
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $172 for the three and nine months ended September 30, 2025 and 2024, respectively.