(8)
Operating Leases

The components of lease expense were as follows (in thousands, except years and rate):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Operating lease cost

 

$

4,395

 

 

$

3,985

 

Short-term lease cost

 

 

116

 

 

 

959

 

Total lease cost

 

$

4,511

 

 

$

4,944

 

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Weighted average remaining term (years)

 

 

2.76

 

 

 

1.73

 

Weighted average discount rate

 

 

5.57

%

 

 

4.08

%

 

 

Supplemental cash flow information related to operating leases was as follows (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

7,869

 

 

$

2,209

 

Cash paid for operating lease liabilities

 

$

4,650

 

 

$

4,888

 

 

Future minimum lease payments under non-cancellable operating leases with initial lease terms in excess of one year included in the Company’s lease liabilities as of December 31, 2025 were as follows (in thousands):

 

Year ending December 31:

 

 

 

2026

 

$

2,744

 

2027

 

 

4,073

 

2028

 

 

3,133

 

2029

 

 

492

 

Total undiscounted operating lease payments

 

$

10,442

 

Less: imputed interest

 

 

(875

)

Total operating lease liabilities

 

$

9,568

 

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 20, 2024
2022Feb 16, 2023

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.