Leases

3 Months Ended

Mar. 31, 2026

11.

Leases

As a lessee, the Company currently leases office space and vehicles in the United States, Italy, Israel, China, Philippines and Thailand. All of the Company’s leases are classified as operating leases. The Company has no leases classified as finance or sales-type leases. For leases with terms greater than 12 months, the Company records the related assets and obligations at the present value of lease payments over the term. Many of the Company’s leases include rental escalation clauses, renewal options and/or termination options that are factored into the Company’s determination of lease payments.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one to five years, some of which include options to extend the leases for up to eight years, and some of which include options to terminate the leases within one year.

The components of lease expense are as follows:


	Three Months Ended March 31,
(in thousands)	2026		2025
Operating lease costs	$	261	$	317
Variable lease costs		48		123
Total lease cost	$	309	$	440

Other information related to leases was as follows:


	Three Months Ended March 31,
Supplemental Cash Flows Information (in thousands)	2026		2025
Operating lease right of use assets obtained in exchange for operating lease liabilities	$	24	$	—
Cash paid for amounts included in the measurement of lease liabilities	$	263	$	337


	March 31, 2026			December 31, 2025
Weighted-average remaining lease term (years)		2.8			3.0
Weighted-average discount rate		6.7	%		6.6	%

Future maturities of lease liabilities were as follows as of March 31, 2026:


(in thousands)	Operating Leases
Remainder of 2026	$	772
2027		931
2028		667
2029		388
2030		—
Thereafter		—
Total future minimum lease payments	$	2,758
Less: imputed interest		280
Present value of lease liabilities	$	2,478

TIGO ENERGY, INC. 10-Q