VSE Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

Leases

12 Months Ended

Dec. 31, 2025

The Company's operating lease cost was as follows for the years ended December 31, (in thousands):


	2025		2024		2023
Operating lease cost (a)	$	8,169	$	6,627	$	3,781
(a) Excludes short-term lease expense, which is not material.

The table below summarizes future minimum lease payments under operating leases as of December 31, 2025 (in thousands):


Year ending December 31,
2026	$	9,229
2027	10,173
2028	8,676
2029	6,830
2030	5,609
Thereafter	25,109
Total future minimum lease payments	65,626
Less: imputed interest	(15,627)
Present value of minimum lease payments	49,999
Less: current portion of lease liabilities (a)	(6,306)
Long-term lease liabilities	$	43,693

(a) The current portion of lease liabilities are presented within accrued expenses and other current liabilities on the Company's consolidated balance sheets. Refer to Note (9) "Accrued Expenses and Other Current Liabilities."

Other supplemental operating lease information for the year ended December 31, was as follows (in thousands):


	2025		2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,608	$	7,171	$	2,719
Right-of-use assets obtained in exchange for new operating lease liabilities	$	9,484	$	30,314	$	11,812

The weighted-average discount rate was 6.3% and 6.5% and the weighted-average remaining lease term was 8.2 years and 9.5 years as of December 31, 2025, and 2024, respectively.

Lease Abandonment and Termination

In connection with the FDS sale as described in Note (3) "Discontinued Operations," the Company implemented post-sale changes, including the abandonment and termination of its former headquarters office space. The Company ceased use of the office space and formally terminated the related lease in 2024. These actions resulted in net lease abandonment and termination charges of $12.2 million during the year ended December 31, 2024. As of December 31, 2025, the Company had a remaining lease termination obligation of $6.0 million, due in January 2026, which is included within accrued expenses and other current liabilities on the consolidated balance sheets.