Leases
The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its business. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. As of December 31, 2025, there were no options to terminate and nineteen options to extend that were accounted for in the determination of the lease term for the Company's outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for the outstanding leases as of December 31, 2025. The Company did not have any leases that had not yet commenced but that created significant rights and/or obligations as of December 31, 2025.
The components of lease expense were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| Operating lease expense | | $ | 14,002 | | | $ | 14,131 | | | $ | 11,598 | |
Short-term lease expense (1) | | 1,008 | | | $ | 407 | | | 427 | |
(1) Leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability |
Supplemental balance sheet information related to leases was as follows:
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| | December 31, 2025 | | December 31, 2024 |
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| Weighted average remaining lease term | | 7.2 years | | 9.9 years |
| Weighted average discount rate | | 5.9 | % | | 5.9 | % |
Supplemental cash flow information related to leases was as follows (in thousands): | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| Cash paid for amounts included in the measurement of operating lease liabilities | | $ | 14,000 | | | $ | 13,683 | | | $ | 10,148 | |
Future operating lease cash payments are as follows (in thousands):
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| Year Ended December 31, | | Amount |
| 2026 | | $ | 15,863 | |
| 2027 | | 14,506 | |
| 2028 | | 12,966 | |
| 2029 | | 11,158 | |
| 2030 | | 10,038 | |
| Thereafter | | 28,887 | |
| Total undiscounted lease payments | | $ | 93,418 | |
| Less: imputed interest | | $ | 16,832 | |
| Total operating lease liabilities | | $ | 76,586 | |
The Company leases a building in Singapore that serves as a distribution center for customers in Asia. The lease contains two components: an 88,000 square-foot premises that commenced in June of 2023 and a second 27,000 square-foot premises that commenced in December of 2025. The second component of the lease was recorded on the Consolidated Balance Sheets in 2025 upon commencement. Undiscounted lease payment obligations associated with the second lease component, which has an original term of eight years, is included in the lease liability maturity table above and total $8,329,000, $936,000 of which is payable in 2026. Additionally, in December 2025, the Company entered into a sublease agreement for this second lease component for a term of eight years. The sublease also contains two components: a 15,000 square-foot premises that commenced in December of 2025 and a second 12,000 square-foot premises that has a commencement date in December of 2026. The Company recognized income of $33,000 related to this sublease agreement in 2025.
Future operating sublease receipts for both sublease components are as follows (in thousands): | | | | | | | | |
| Year Ended December 31, | | Amount |
| 2026 | | $ | 541 | |
| 2027 | | 1,023 | |
| 2028 | | 1,046 | |
| 2029 | | 1,048 | |
| 2030 | | 1,072 | |
| Thereafter | | 3,204 | |
| Total undiscounted sublease receipts | | $ | 7,934 | |
In 2025, the Company also entered into a lease for a 6,500 square-foot building in Aachen, Germany for a term of ten years. The lease was recorded on the Consolidated Balance Sheet upon commencement in June of 2025. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original term. Undiscounted lease payment obligations associated with this lease are included in the lease liability maturity table above and total $8,969,000, $897,000 of which is payable in 2026.