LEASES

12 Months Ended

Dec. 31, 2025

8. LEASES

The right-of-use assets and corresponding liabilities related to the Company's operating leases were as follows:


	December 31,
	2025		2024
Operating lease right-of-use assets, net	$	27,050	$	34,453

Current maturities of operating lease liabilities	6,455		7,398
Operating lease liabilities, net of current maturities	23,022		29,633
Total lease liabilities	$	29,477	$	37,031

The weighted-average remaining lease terms and weighted-average discount rates for operating leases were as follows:


	December 31,
	2025		2024
Weighted average remaining lease term	4.9 years		5.5 years
Weighted average discount rate	6.1	%	6.2	%

The components of lease costs were as follows:


	Year Ended December 31,
	2025		2024		2023
Operating lease costs	$	8,971	$	9,880	$	11,248
Variable lease costs	1,959		2,126		2,559
Short-term lease costs	341		373		268
Sublease income	(1,777)		(1,420)		(1,148)
Total operating lease costs	$	9,494	$	10,959	$	12,927

In conjunction with the Company's restructuring activities as discussed in Note 17, Restructuring, the Company assessed and impaired the right-of-use assets of certain closed retail locations, which resulted in an impairment loss of $0.2 million in the year ended December 31, 2024. Refer to Note 17, Restructuring, for additional information on the restructuring activities. The Company also identified a $0.1 million impairment related to its operating lease right-of-use assets for the year ended December 31, 2023, which is included in Impairment loss on the Consolidated Statements of Operations.

Future maturities of the Company's operating lease liabilities and receipts from subleases as of December 31, 2025 were as follows:


	Lease Payments		Sublease Receipts
2026	$	8,017	$	(2,175)
2027	6,476		(2,332)
2028	6,032		(2,533)
2029	5,402		(2,619)
2030	4,911		(2,309)
Thereafter	3,259		(1,383)
Total lease payments (receipts)	34,097		$	(13,351)
Less: imputed interest	(4,620)
Operating lease liabilities as of December 31, 2025	$	29,477

Supplemental and other information related to leases was as follows:


	Year Ended December 31,
	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	9,138	$	10,024	$	11,139

GrowGeneration Corp. 10-K