Enova International, Inc. Leases Disclosure
8. Leases
The Company has operating leases primarily for its corporate headquarters, other offices located in the U.S. and certain equipment. The Company’s leases have remaining lease terms of less than one year to nine years. Certain leases include options to extend the leases for up to five years, while others include options to terminate the lease under certain conditions. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. All other operating leases are recorded on the consolidated balance sheet with right-of-use assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The right-of-use assets represent the lease liability, plus any lease payments made at or before the commencement date, less any lease incentives received. If a lease does not provide an implicit rate, the Company uses its incremental secured borrowing rate, adjusted for the maturity date, based on information available at the commencement date in determining the present value of lease payments. Lease agreements with lease and non-lease components are accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in general and administrative expense.
During the fourth quarter of 2024, the Company entered into amendments related to its leases for office space in Denver and New York. The amendments, among other changes, resulted in extensions of the lease terms from April 2026 to October 2029 in Denver and from December 2026 to June 2032 in New York. As a result, the Company recognized an adjustment to increase its operating lease liability and operating lease right of use asset balance by $5.5 million.
Lease expenses for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost |
|
$ |
5,261 |
|
|
$ |
4,814 |
|
|
$ |
4,983 |
|
Variable lease cost |
|
|
492 |
|
|
|
746 |
|
|
|
1,252 |
|
Short-term lease cost |
|
|
311 |
|
|
|
493 |
|
|
|
1,208 |
|
Sublease income |
|
|
(271 |
) |
|
|
(281 |
) |
|
|
(1,175 |
) |
Total lease cost |
|
$ |
5,793 |
|
|
$ |
5,772 |
|
|
$ |
6,268 |
|
Future minimum lease payments as of December 31, 2025 are as follows (in thousands):
Year |
|
Amount |
|
|
2026 |
|
$ |
4,548 |
|
2027 |
|
|
6,912 |
|
2028 |
|
|
6,312 |
|
2029 |
|
|
5,518 |
|
2030 |
|
|
4,544 |
|
Thereafter |
|
|
17,860 |
|
Total lease payments |
|
$ |
45,694 |
|
Less: interest |
|
|
13,653 |
|
Present value of lease liabilities |
|
$ |
32,041 |
|
The weighted average remaining lease term and discount rate as of December 31, 2025 and 2024 were as follows:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Weighted average remaining lease term (years) |
|
|
|
|
|
|
||
Operating leases |
|
|
7.4 |
|
|
|
8.1 |
|
Weighted average discount rate |
|
|
|
|
|
|
||
Operating leases |
|
|
8.81 |
% |
|
|
8.81 |
% |
Supplemental cash flow disclosures related to leases for the years ended December 31, 2025 and 2024 were as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash paid for amounts included in the measurement of lease liabilities |
|
|
|
|
|
|
||
Operating cash flows from operating leases |
|
$ |
3,734 |
|
|
$ |
3,790 |
|
Noncash transactions related to adjustments to lease liability and right-of-use asset |
|
|
|
|
|
|
||
Operating leases |
|
|
777 |
|
|
|
6,186 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 28, 2022 | |
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.