Leases
The Company leases certain office facilities, data centers, and equipment under various operating leases. The Company’s short-term leases (with initial lease terms of 12 months or less) are primarily related to housing arrangements for healthcare professionals on assignment. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 10 years. Additionally, certain leases also include options to terminate the leases within 2 years.
In the first quarter of 2022, the Company entered into a lease agreement for an office building located in Dallas, Texas, with future undiscounted lease payments of approximately $29,514, excluding lease incentives. The lease commenced upon substantial completion of the construction of the office building in June 2023. The initial term of the lease is approximately eleven years with options to renew during the lease term. The Company recognized a right-of-use asset and operating lease liability of $15,782 and $22,713, respectively, at lease commencement, which reflects the utilization of a tenant improvement allowance of $6,931 accounted for as a lease incentive.
The components of lease expense were as follows: | | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 8,709 | | | $ | 9,204 | | | $ | 9,610 | |
| Short-term lease cost | 2,184 | | | 2,437 | | | 3,738 | |
| Variable and other lease cost | 1,923 | | | 2,469 | | | 2,789 | |
| Net lease cost | $ | 12,816 | | | $ | 14,110 | | | $ | 16,137 | |
The maturities of lease liabilities as of December 31, 2025 were as follows:
| | | | | |
| Operating Leases |
| Year ending December 31, 2026 | $ | 8,376 | |
| Year ending December 31, 2027 | 7,672 | |
| Year ending December 31, 2028 | 7,866 | |
| Year ending December 31, 2029 | 5,861 | |
| Year ending December 31, 2030 | 3,295 | |
| Thereafter | 9,191 | |
| Total lease payments | 42,261 | |
| Less imputed interest | (6,112) | |
| Present value of lease liabilities | $ | 36,149 | |
The weighted average remaining lease term and discount rate as of December 31, 2025 and 2024 were as follows: | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted average remaining lease term | 6 years | | 7 years |
| Weighted average discount rate | 5.6 | % | | 5.6 | % |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.