Leases (Tables)

12 Months Ended

Dec. 31, 2025

Components of lease expense, included in either cost of revenues or general and administrative expense based on the use of the underlying asset, are as follows (inclusive of lease expense for leases not included on our consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less):


	Year Ended December 31,
	2025		2024		2023
	(In Thousands)
Operating lease expense	$	14,275	$	13,030	$	13,053
Short-term lease expense	40,988		50,521		46,566
Finance lease cost:
Amortization of right-of-use assets	4,024		2,062		232
Interest on finance leases	439		385		112
Total lease expense	$	59,726	$	65,998	$	59,963

Supplemental cash flow information:


	Year Ended December 31,
	2025		2024		2023
	(In Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	14,950	$	13,292	$	13,293
Operating cash flows - finance leases	$	477	$	373	$	112
Financing cash flows - finance leases	$	4,736	$	1,438	$	1,695

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	18,815	$	7,422	$	10,058
Finance leases	$	1,989	$	6,575	$	2,555

Supplemental balance sheet information:


	December 31, 2025		December 31, 2024
	(In Thousands)
Operating leases:
Operating lease right-of-use assets	$	36,999	$	29,797

Operating lease liabilities, current portion	11,326		8,861
Operating lease liabilities	32,664		25,041
Total operating lease liabilities	$	43,990	$	33,902

Finance leases:
Finance lease right-of-use assets	$	4,421	$	6,495

Finance lease liabilities, current portion	4,306		4,582
Finance lease liabilities	806		3,211
Total finance lease liabilities	$	5,112	$	7,793

Additional operating lease information:


	December 31, 2025		December 31, 2024
Weighted average remaining lease term:
Operating leases	6.1 years		4.6 years
Finance leases	1.2 years		1.9 years

Weighted average discount rate:
Operating leases	9.8	%	9.8	%
Finance leases	7.0	%	6.4	%

Future Minimum Operating Lease Payments Table

Future minimum lease payments by year and in the aggregate, under non-cancelable operating and finance leases with terms in excess of one year consist of the following at December 31, 2025:


	Operating Leases		Finance Leases
	(In Thousands)
2026	$	15,081	$	4,508
2027	10,505		719
2028	6,689		105
2029	5,003		15
2030	3,835		—
Thereafter	21,292		—
Total lease payments	62,405		5,347
Less imputed interest	(18,415)		(235)
Total lease liabilities	$	43,990	$	5,112

Future Minimum Finance Lease Payments Table

Future minimum lease payments by year and in the aggregate, under non-cancelable operating and finance leases with terms in excess of one year consist of the following at December 31, 2025:


	Operating Leases		Finance Leases
	(In Thousands)
2026	$	15,081	$	4,508
2027	10,505		719
2028	6,689		105
2029	5,003		15
2030	3,835		—
Thereafter	21,292		—
Total lease payments	62,405		5,347
Less imputed interest	(18,415)		(235)
Total lease liabilities	$	43,990	$	5,112

Future Minimum Payments Under Sales Leases and Subleases

Future minimum payments under the embedded sales lease and non-cancelable facility subleases were as follows at December 31, 2025:


	Sales Lease		Sublease Payments
	(In Thousands)
2026	$	2,187	$	1,519
2027	—		1,476
2028	—		976
2029	—		976
2030	—		976
Thereafter	—		2,443
Total payments	$	2,187	$	8,366

TETRA TECHNOLOGIES INC 10-K