1stdibs.com, Inc.DIBS
1stdibs.com, Inc. Leases Disclosure
Leases
The Company’s operating lease arrangements are principally for office spaces in New York City. As of December 31, 2025, the Company had $16.7 million of operating lease right-of-use assets, $4.4 million and $14.1 million of current and non-current operating lease liabilities, respectively, and no finance leases on its consolidated balance sheet. As of December 31, 2024, the Company had $19.7 million of operating lease right-of-use assets, $4.2 million and $18.0 million of current and non-current operating lease liabilities, respectively, and no finance leases on its consolidated balance sheet. These operating lease arrangements included in the measurement of lease liabilities had a weighted-average remaining lease term of 3.9 years, a weighted-average discount rate of 6.3%, and do not reflect options to extend or terminate its leases, as management does not consider the exercise of these options to be reasonably certain. The Company paid $5.5 million and $4.7 million for amounts included in the measurement of lease liabilities during the years ended December 31, 2025 and 2024.
In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its former New York City headquarters (the “Sublease”). The Sublease commenced on October 1, 2023 and ends on December 31, 2029, the expiration date of the Company’s former New York City headquarter’s lease. It also contains an option for the lessee to terminate on the third anniversary of the commencement date. Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s consolidated statement of operations. The Company recognized $3.6 million, $3.6 million, and $0.9 million of sublease income during the years ended December 31, 2025, 2024, and 2023, respectively. During the year ended December 31, 2023, the Company capitalized its $1.1 million broker fee paid which is included in other assets on the consolidated balance sheet, and is being amortized over the life of the Sublease in general and administrative expenses in the consolidated statement of operations.
In November 2023, the Company entered into a lease agreement, as the lessee, for approximately 13,000 square feet for the Company’s new corporate headquarters in New York City (the “Lease Agreement”) which commenced in January 2024 with a five year term and an initial seven month rent abatement period. The Lease Agreement includes an option for the Company to extend the lease for an additional five years. In April 2025, the Company entered into a new lease agreement for office space in Lithuania with a five year term that resulted in a right-of-use asset and lease liabilities of $0.7 million. The Company did not enter into any new lease arrangements during the year ended December 31, 2024.
The following table summarizes total lease expense, net for the years ended December 31, 2025 and 2024:
| December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating lease expense | $ | 5,075 | $ | 4,748 | $ | 3,970 | |||||||||||
| Short-term lease expense | 2 | 121 | 120 | ||||||||||||||
| Variable lease expense | 1,324 | 1,362 | 1,124 | ||||||||||||||
| Total lease expense | $ | 6,401 | $ | 6,231 | $ | 5,214 | |||||||||||
| Sublease income | (3,586) | (3,629) | (912) | ||||||||||||||
| Total lease expense, net | $ | 2,815 | $ | 2,602 | $ | 4,302 | |||||||||||
Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than 12 months and therefore are recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. As of December 31, 2025, the total remaining operating lease payments included in the measurement of lease liabilities, and undiscounted remaining cash receipts from the Company’s Sublease was as follows (in thousands):
| Fiscal Year Ending December 31, | Operating Lease Payments | Sublease Cash Receipts | |||||||||
| 2026 | $ | (5,429) | $ | 3,504 | |||||||
| 2027 | (5,429) | 3,574 | |||||||||
| 2028 | (5,429) | 3,645 | |||||||||
| 2029 | (4,458) | 3,718 | |||||||||
| 2030 | (41) | — | |||||||||
| Total (payments) cash receipts | $ | (20,786) | $ | 14,441 | |||||||
| Less: imputed interest | 2,198 | ||||||||||
| Total lease liabilities | $ | (18,588) | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 3, 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.