Leases
Operating Leases
The Company leases office space under non-cancelable operating leases. The Company recognizes ROU assets within Other assets, non-current and lease liabilities within Other liabilities, current, and Other liabilities, non-current in the Consolidated Balance Sheets. The Company subleases certain of its leases to third parties for which it receives rental income. These subleases are classified as operating leases. Certain leases include options to renew, with renewal terms that can extend the lease term. The exercise of lease renewal options is at the Company's sole discretion and such options are not recognized as part of the ROU asset and lease liability unless reasonably certain of exercise.
Summary of Lease Costs Recognized Under ASC 842:
The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company's operating leases for the years ended December 31, 2025, 2024, and 2023, respectively:
| | | | | | | | | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | (in thousands) |
| Operating lease cost | | $ | 1,356 | | | $ | 1,295 | | | $ | 1,346 | |
| Variable lease cost | | — | | | 51 | | | 51 | |
| | | | | | |
| Sublease income | | (869) | | | (775) | | | (256) | |
| Total lease cost | | $ | 487 | | | $ | 571 | | | $ | 1,141 | |
| | | | | | |
| Other information | | | | | | |
| Cash paid for amounts included in the measurement of lease liabilities | | $ | 1,544 | | | $ | 1,567 | | | $ | 1,907 | |
| Weighted-average remaining lease term | | 2.4 years | | 3.3 years | | 4.5 years |
| Weighted-average discount rate | | 10.87 | % | | 10.64 | % | | 10.31 | % |
The following table summarizes the Company's future lease payments for non-cancelable operating lease liabilities at December 31, 2025:
| | | | | | | | |
| | (in thousands) |
| 2026 | | $ | 1,575 | |
| 2027 | | 1,602 | |
| 2028 | | 425 | |
| 2029 | | 106 | |
| Thereafter | | 36 | |
| Total lease payments | | 3,744 | |
| Less: imputed interest | | (448) | |
| Total | | $ | 3,296 | |
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.