Leases (Tables)

9 Months Ended

Sep. 30, 2025

The Company recognized the following lease costs in the accompanying condensed consolidated statement of income:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Operating lease expense	$	3,470	$	2,752	$	10,056	$	6,694
Short-term lease expense	442		370		1,585		795
Variable lease expense	384		357		1,134		1,125
Total lease expense	$	4,296	$	3,479	$	12,775	$	8,614

The following table presents supplemental information related to operating leases:


	September 30, 2025		December 31, 2024
Weighted average remaining lease term	3.70 years		4.33 years
Weighted average discount rate	6.9	%	7.0	%


	Nine Months Ended September 30,
	2025		2024
	(in thousands)
Right-of-use assets obtained in exchange for operating lease liabilities	$	10,457	$	28,118
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases	$	9,960	$	5,721

As of September 30, 2025, future lease payments under operating leases were as follows:


	(in thousands)
2025 (remainder)	$	3,631
2026	14,594
2027	13,767
2028	12,915
2029	7,567
Thereafter	769
Total lease payments	53,243
Less: imputed interest	(6,344)
Total lease liability balance	$	46,899

Karat Packaging Inc. 10-Q