Leases
The Company has entered into various operating and finance lease agreements for office space and data centers. At December 31, 2025, the Company had 19 leased properties with remaining lease terms of less than one year to approximately nine years, some of which include options to extend or terminate the leases.
The components of the lease expense recorded in the consolidated statements of operations were as follows (in thousands): | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Finance lease cost: | | | | | |
| Amortization of assets | $ | 66 | | | $ | 1,007 | | | $ | 1,020 | |
| Interest on lease liabilities | 3 | | | 19 | | | 45 | |
| Operating lease cost | 7,467 | | | 7,519 | | | 6,663 | |
| Short-term lease cost | 864 | | | 532 | | | 378 | |
| Variable cost | 1,344 | | | 1,343 | | | 1,237 | |
| Total lease cost | $ | 9,744 | | | $ | 10,420 | | | $ | 9,343 | |
Cash flow and other information related to leases was as follows (in thousands, except percentages):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | |
| Financing cash flows from finance leases | $ | 66 | | | $ | 1,046 | | | $ | 1,036 | |
| | | | | |
| Operating cash flows from operating lease liabilities | $ | 7,673 | | | $ | 7,899 | | | $ | 7,467 | |
| | | | | |
| Weighted average remaining lease term at end of period (in years): | | | | | |
| Finance leases | 3.8 | | 2.6 | | 0.8 |
| Operating leases | 6.3 | | 6.2 | | 4.2 |
| | | | | |
| Weighted average discount rate: | | | | | |
| Finance leases | 8.1 | % | | 7.8 | % | | 3.5 | % |
| Operating leases | 7.7 | % | | 7.4 | % | | 5.7 | % |
Maturities of lease liabilities at December 31, 2025, for each of the five succeeding fiscal years and thereafter, were (in thousands):
| | | | | | | | | | | |
| |
| Finance Leases | | Operating Leases |
| 2026 | $ | 16 | | | $ | 5,434 | |
| 2027 | 16 | | | 6,567 | |
| 2028 | 16 | | | 5,105 | |
| 2029 | 12 | | | 2,693 | |
| 2030 | — | | | 1,748 | |
| Thereafter | — | | | 9,613 | |
| Total lease payments | 60 | | | 31,160 | |
| Less imputed interest | (8) | | | (6,874) | |
| Total lease obligations | $ | 52 | | | $ | 24,286 | |
Refer to “Note 9 - Property and Equipment” for additional information on finance leases.
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.