Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.3
Leases
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases Leases
As Lessee
The Company’s operating leases are primarily for office space, service facility centers and equipment under operating lease arrangements that expire at various dates over the next six years. The Company’s leases do not contain any restrictive covenants. The Company’s office leases generally contain renewal options for periods ranging from one to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and payments associated with the option years are excluded from lease payments. The Company’s office leases do not contain any material residual value guarantees. The Company’s equipment leases generally do not contain renewal options.
Payments due under the Company’s operating leases include fixed payments as well as variable payments. For the Company’s office leases, variable payments include amounts for the Company’s proportionate share of operating expenses, utilities, property taxes, insurance, common area maintenance and other facility-related expenses. For the Company’s equipment leases, variable payments may consist of sales taxes, property taxes and other fees.
The components of lease costs for the three and nine months ended September 30, 2025 and 2024 are as follows (in thousands):
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2025 2024 2025 2024
Operating lease cost $ 488  $ 478  $ 1,504  $ 1,423 
Variable lease cost 123  94  383  266 
Total lease cost $ 611  $ 572  $ 1,887  $ 1,689 
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):
  Nine Months Ended
September 30,
2025 2024
Cash paid for amounts included in the measurement of lease liabilities and right of use assets:    
Operating cash flow from operating leases $ 1,553  $ 1,400 
 
Right of use assets obtained in exchange for lease obligations:
Operating leases $ 37  $ 250 
Increases to right of use assets resulting from lease modifications:
Operating leases $ 344  $ — 
Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:
  As of September 30,
  2025 2024
 
 
Years
Years
Weighted average remaining lease term: 4.7 5.6
  Rate Rate
Weighted average discount rate: 7.6% 7.8%
Future maturities of lease liabilities as of September 30, 2025 are as follows (in thousands):
 
Operating
Leases
2025 $ 474 
2026 1,903 
2027 1,627 
2028 1,504 
2029 1,396 
2030 and thereafter
 1,091 
Total undiscounted lease payments 7,995 
Less: Imputed interest (2,819)
Total lease liabilities $ 5,176 
The long-term portion of the lease liabilities included in the amounts above is $3.8 million with the remainder included in other current liabilities in the condensed consolidated balance sheets.
As Lessor:
We lease medical equipment to customers, often in conjunction with arrangements to provide consumable medical products. Certain of our equipment leases are classified as sales-type leases and the remainder are operating leases. The terms of the related contracts, including the proportion of fixed versus variable payments and any options, varies by customer. The Company elected the “combining lease and non-lease components” practical expedient for all qualifying non-lease components.
The components of the Company’s lease revenues consisted of the following (in thousands ) for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
Nine Months Ended September 30,
2025 2024 2025 2024
Net operating lease revenue $ 7,443  $ 7,242  $ 22,825  $ 20,225 
Sales-type lease revenue 83  129  270  530 
Total lease revenue $ 7,526  $ 7,371  $ 23,095  $ 20,755 

The components of our net investment in sales-type leases as of September 30, 2025 and December 31, 2024 were (in thousands):
September 30,
2025		 December 31,
2024
Lease receivable $ 1,146  $ 1,934 
Net investment in leases $ 1,146  $ 1,934 
Our net investment in sales-type leases is classified as follows in the accompanying condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 were (in thousands):
September 30,
2025		 December 31,
2024
Accounts receivable, net $ 964  $ 1,207 
Other assets 182  727 
Total $ 1,146  $ 1,934 
Future maturities of sales-type leases as of September 30, 2025 are as follows (in thousands):
Sales-Type Leases
2025 $ 356 
2026 747 
2027 120 
2028 16 
2029 — 
Thereafter — 
Total undiscounted lease payments 1,239 
Less: Imputed interest (93)
Total lease receivables $ 1,146 
Leases Leases
As Lessee
The Company’s operating leases are primarily for office space, service facility centers and equipment under operating lease arrangements that expire at various dates over the next six years. The Company’s leases do not contain any restrictive covenants. The Company’s office leases generally contain renewal options for periods ranging from one to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and payments associated with the option years are excluded from lease payments. The Company’s office leases do not contain any material residual value guarantees. The Company’s equipment leases generally do not contain renewal options.
Payments due under the Company’s operating leases include fixed payments as well as variable payments. For the Company’s office leases, variable payments include amounts for the Company’s proportionate share of operating expenses, utilities, property taxes, insurance, common area maintenance and other facility-related expenses. For the Company’s equipment leases, variable payments may consist of sales taxes, property taxes and other fees.
The components of lease costs for the three and nine months ended September 30, 2025 and 2024 are as follows (in thousands):
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2025 2024 2025 2024
Operating lease cost $ 488  $ 478  $ 1,504  $ 1,423 
Variable lease cost 123  94  383  266 
Total lease cost $ 611  $ 572  $ 1,887  $ 1,689 
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):
  Nine Months Ended
September 30,
2025 2024
Cash paid for amounts included in the measurement of lease liabilities and right of use assets:    
Operating cash flow from operating leases $ 1,553  $ 1,400 
 
Right of use assets obtained in exchange for lease obligations:
Operating leases $ 37  $ 250 
Increases to right of use assets resulting from lease modifications:
Operating leases $ 344  $ — 
Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:
  As of September 30,
  2025 2024
 
 
Years
Years
Weighted average remaining lease term: 4.7 5.6
  Rate Rate
Weighted average discount rate: 7.6% 7.8%
Future maturities of lease liabilities as of September 30, 2025 are as follows (in thousands):
 
Operating
Leases
2025 $ 474 
2026 1,903 
2027 1,627 
2028 1,504 
2029 1,396 
2030 and thereafter
 1,091 
Total undiscounted lease payments 7,995 
Less: Imputed interest (2,819)
Total lease liabilities $ 5,176 
The long-term portion of the lease liabilities included in the amounts above is $3.8 million with the remainder included in other current liabilities in the condensed consolidated balance sheets.
As Lessor:
We lease medical equipment to customers, often in conjunction with arrangements to provide consumable medical products. Certain of our equipment leases are classified as sales-type leases and the remainder are operating leases. The terms of the related contracts, including the proportion of fixed versus variable payments and any options, varies by customer. The Company elected the “combining lease and non-lease components” practical expedient for all qualifying non-lease components.
The components of the Company’s lease revenues consisted of the following (in thousands ) for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
Nine Months Ended September 30,
2025 2024 2025 2024
Net operating lease revenue $ 7,443  $ 7,242  $ 22,825  $ 20,225 
Sales-type lease revenue 83  129  270  530 
Total lease revenue $ 7,526  $ 7,371  $ 23,095  $ 20,755 

The components of our net investment in sales-type leases as of September 30, 2025 and December 31, 2024 were (in thousands):
September 30,
2025		 December 31,
2024
Lease receivable $ 1,146  $ 1,934 
Net investment in leases $ 1,146  $ 1,934 
Our net investment in sales-type leases is classified as follows in the accompanying condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 were (in thousands):
September 30,
2025		 December 31,
2024
Accounts receivable, net $ 964  $ 1,207 
Other assets 182  727 
Total $ 1,146  $ 1,934 
Future maturities of sales-type leases as of September 30, 2025 are as follows (in thousands):
Sales-Type Leases
2025 $ 356 
2026 747 
2027 120 
2028 16 
2029 — 
Thereafter — 
Total undiscounted lease payments 1,239 
Less: Imputed interest (93)
Total lease receivables $ 1,146