Leases
Lessee Arrangements
The Company has operating leases for its office space, which have remaining lease terms of up to five years. The Company does not have finance leases.
Some of these leases include renewal options to extend the leases for up to five years and/or termination options to terminate the leases within one year. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease.
As of December 31, 2025, the Company's operating leases had a weighted-average remaining lease term of approximately five years and a weighted-average incremental borrowing rate of 4.1%. As of December 31, 2024, the Company's operating leases had a weighted-average remaining lease term of approximately six years and a weighted-average incremental borrowing rate of 4.1%.
Cash paid for amounts included in operating lease liabilities was $5.2 million and $4.6 million for the years ended December 31, 2025 and 2024, respectively.
The components of lease cost were as follows:
Year Ended December 31,
20252024
Operating lease cost$5,265 $4,590 
Short-term lease cost870 975 
Variable lease cost327 — 
Total lease cost$6,462 $5,565 
As of December 31, 2025, the Company had a remaining contractual obligation of $1.2 million related to a short-term lease to be paid through 2027. The effective term of this lease is based on the cumulative days available for use throughout the contractual term, which is less than one year. The cost for this lease is included in the disclosure of short-term lease cost. This lease and other of
our short-term leases are not recorded on the Company's consolidated balance sheet due to our accounting policy election for short-term leases.
Future minimum lease payments were as follows:
As of December 31,
Year2025
2026$5,833 
20275,500 
20284,117 
20293,563 
20303,249 
Thereafter1,370 
Total undiscounted future lease payments23,632 
Less: Imputed interest(1,884)
Present value of operating lease liabilities21,748 
Less: Operating lease liabilities, current(5,080)
Operating lease liabilities, noncurrent$16,668 

Historical Timeline

Fiscal YearFiled
2025Mar 11, 2026Showing above
2024Mar 3, 2025
2023Mar 4, 2024
2022Mar 2, 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.