LEASESThe Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the right-of-use assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 6.1 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were not material for the years ended December 31, 2025, 2024 and 2023.
During the years ended December 31, 2025, 2024 and 2023, the components of lease expense were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Income Statement Classification | | Year Ended December 31, 2025 | | Year Ended December 31, 2024 | | Year Ended December 31, 2023 |
| Operating lease cost | | Selling, general and administrative expenses | | $ | 47,806 | | | $ | 43,524 | | | $ | 47,824 | |
| Variable lease cost | | Selling, general and administrative expenses | | 12,624 | | | 10,912 | | | 13,156 | |
| Short-term lease cost | | Selling, general and administrative expenses | | 4,453 | | | 3,785 | | | 5,602 | |
| Total lease cost | | | | $ | 64,883 | | | $ | 58,221 | | | $ | 66,582 | |
Supplemental cash flow information related to leases for the years ended December 31, 2025 and 2024 were as follows: | | | | | | | | | | | |
| | Year Ended December 31, 2025 | | Year Ended December 31, 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows used for operating leases | $ | 52,167 | | | $ | 45,640 | |
| Right-of-use assets obtained in exchange for lease obligations: | | | |
| Operating leases | $ | 10,309 | | | $ | 23,771 | |
| Non-cash net increase due to lease modifications: | | | |
| Operating lease right-of-use assets | $ | 7,417 | | | $ | 13,522 | |
| Operating lease liabilities | $ | 8,087 | | | $ | 13,557 | |
Weighted average remaining lease terms and discount rates as of December 31, 2025 and 2024, were as follows: | | | | | | | | | | | | | | |
| | | As of December 31, 2025 | | As of December 31, 2024 |
| Weighted average remaining lease term, in years: | | | | |
| Operating leases | | 3.8 | | 4.3 |
| Weighted average discount rate: | | | | |
| Operating leases | | 4.8 | % | | 4.3 | % |
As of December 31, 2025, operating lease liabilities will mature as follows: | | | | | | | | |
| Year ending December 31, | | Lease Payments |
| 2026 | | $ | 41,655 | |
| 2027 | | 32,381 | |
| 2028 | | 26,011 | |
| 2029 | | 15,223 | |
| 2030 | | 10,278 | |
| Thereafter | | 3,328 | |
| Total lease payments | | 128,876 | |
| Less: imputed interest | | (10,206) | |
| Total | | $ | 118,670 | |
There were no lease agreements that contained material restrictive covenants or material residual value guarantees as of December 31, 2025. There were no material lease agreements signed with related parties as of December 31, 2025.
As of December 31, 2025, the Company had committed to payments of $5.6 million related to operating lease agreements that had not yet commenced as of December 31, 2025. These operating leases will commence on various dates during 2026 with lease terms ranging from 1 to 7 years. The Company does not have any material finance lease agreements that had not yet commenced.
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.