Leases
Operating Lease Arrangements
The Company's operating lease arrangements primarily consist of leases for office space, including the lease for its corporate headquarters in Stoughton, Massachusetts (the “Stoughton Lease”).
The Stoughton Lease was entered into in March 2018 and commenced in August 2018. This lease encompasses approximately 50,678 square feet and is for an initial 10-year term, with options for two additional five-year extensions. The initial annual base rent is $1,214, subject to annual increases between 2.5% to 3.1%. As of December 31, 2025, the operating lease asset related to the Stoughton Lease was $4,166 and operating lease liability related to the Stoughton Lease was $5,011.
In connection with the Ironshore Acquisition, the Company acquired an operating lease for the former U.S. headquarters of Ironshore pursuant to which the Company leases 8,817 of rentable square feet of space in Durham, North Carolina (the “Ironshore Lease”). The Ironshore Lease continues through February 2028. In the year ended December 31, 2025, the Company concluded that the right-of-use asset associated with the Ironshore Lease was impaired, and the Company recognized an impairment expense of $575 within selling, operating and administrative expense.
As of December 31, 2025 and 2024, the Company's operating lease assets totaled $4,187 and $5,822, respectively, and operating lease liabilities totaled $5,539 and $6,810, respectively. This primarily relates to the Company’s corporate headquarters lease in Stoughton, Massachusetts and the Ironshore Lease.
Short-Term Lease Arrangements
In December 2018, the Company began entering into 12-month, non-cancelable vehicle leases for its field-based employees. Each vehicle lease is executed separately and expires at varying times with automatic renewal options that are cancelable at any time. The rent expense for these leases is recognized on a straight-line basis over the lease term in the period in which it is incurred.
Variable Lease Costs
Variable lease costs primarily include utilities, property taxes, and other operating costs that are passed on from the lessor.
The components of lease cost for the years ended December 31, 2025, 2024, and 2023 are as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 1,447 | | | $ | 1,444 | | | $ | 1,306 | |
| Short-term lease cost | 2,753 | | | 1,474 | | | 1,446 | |
| Variable lease cost | 1,761 | | | 913 | | | 565 | |
| Total lease cost | $ | 5,961 | | | $ | 3,831 | | | $ | 3,317 | |
The lease term and discount rate for operating leases for the years ended December 31, 2025 and 2024 are as follows:
| | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term — operating leases (years) | 3.6 | | 4.6 |
| Weighted-average discount rate — operating leases | 6.6 | % | | 6.6 | % |
Other information related to operating leases for the years ended December 31, 2025, 2024, and 2023 is as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of operating leases liabilities | $ | 1,683 | | | $ | 1,538 | | | $ | 1,585 | |
| Leased assets obtained in exchange for new operating lease liabilities | — | | | — | | | — | |
The Company’s aggregate future minimum lease payments for its operating leases, including embedded operating lease arrangements, as of December 31, 2025, are as follows:
| | | | | |
| Years ended December 31, | Lease Payments |
| 2026 | $ | 1,728 | |
| 2027 | 1,750 | |
| 2028 | 1,572 | |
| 2029 | 1,167 | |
| Total minimum lease payments | $ | 6,217 | |
| Less: Present value discount | 678 | |
| Present value of lease liabilities | $ | 5,539 | |