Note 10—Leases
The elements of lease expense were as follows for the periods presented (in thousands):
| | | | | | | | | | | | | |
| Year Ended
December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 6,219 | | | $ | 6,774 | | | $ | 6,832 | |
| Finance lease cost: | | | | | |
| Amortization of right-of-use assets | 6,107 | | | 6,332 | | | 6,809 | |
| Interest on lease liabilities | 4,629 | | | 4,927 | | | 5,190 | |
| Total finance lease cost | 10,736 | | | 11,259 | | | 11,999 | |
| Other lease cost, net (1) | 1,079 | | | 1,490 | | | 1,385 | |
| Total lease cost | $ | 18,034 | | | $ | 19,523 | | | $ | 20,216 | |
(1)Other lease cost, net includes variable lease costs, short-term lease costs, and, beginning in 2024, sublease income.
The following table presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheets (in thousands):
| | | | | | | | | |
| As of December 31, |
| 2025 | | 2024 |
| Operating leases: | | | |
| Other assets | $ | 36,116 | | | $ | 42,146 | |
| Other current liabilities | $ | 1,652 | | | $ | 5,110 | |
| Other liabilities | 37,752 | | | 41,339 | |
| Total operating lease liabilities | $ | 39,404 | | | $ | 46,449 | |
| | | |
| Finance leases: | | | |
| | | |
| | | |
| Property and equipment, net | $ | 82,937 | | | $ | 89,045 | |
| Other current liabilities | $ | 10 | | | $ | 6,148 | |
| Finance lease obligations—net of current portion | 93,482 | | | 93,482 | |
| Total finance lease liabilities | $ | 93,492 | | | $ | 99,630 | |
The following table summarizes the weighted average remaining lease term and weighted average discount rate as of December 31, 2025 and 2024:
| | | | | | | | | |
| As of December 31, |
| 2025 | | 2024 |
| Weighted average remaining lease term: | | | |
| Operating leases | 11.61 years | | 12.41 years |
| Finance leases | 12.99 years | | 14.59 years |
| Weighted average discount rate: | | | |
| Operating leases | 4.47 | % | | 4.69 | % |
| Finance leases | 4.53 | % | | 4.74 | % |
Supplemental cash flow information related to leases was as follows (in thousands):
| | | | | | | | | | | | | |
| Year Ended
December 31, |
| 2025 | | 2024 | | 2023 |
| Cash (paid) received for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows used in operating leases (1) | $ | (6,925) | | | $ | (4,888) | | | $ | (6,482) | |
| Operating cash flows (used in) provided by finance leases (1) | (4,605) | | | 448 | | | (5,174) | |
| Finance cash flows used in finance leases | (6,162) | | | (6,091) | | | (6,278) | |
(1)2024 includes cash received for tenant allowances related to the lease for the Company’s corporate headquarters in Brooklyn, New York.
Future minimum lease payments under non-cancelable leases as of December 31, 2025 were as follows (in thousands):
| | | | | | | | | |
| Operating Leases | | Finance Leases |
| 2026 | $ | 3,726 | | | $ | 5,394 | |
| 2027 | 1,971 | | | 882 | |
| 2028 | 4,984 | | | 10,593 | |
| 2029 | 5,033 | | | 10,672 | |
| 2030 | 5,084 | | | 10,752 | |
| Thereafter | 34,852 | | | 102,979 | |
| Total future minimum lease payments (1) | 55,650 | | | 141,272 | |
| Less: | | | |
| Imputed interest | 14,343 | | | 41,599 | |
| Tenant improvement allowances | 1,903 | | | 6,181 | |
| Total | $ | 39,404 | | | $ | 93,492 | |
(1)The lease related to the Company’s corporate headquarters in Brooklyn, New York includes rent concessions that are available in 2026 and 2027, and escalating commitments each contract year between 2028 and 2038, which are reflected in the future minimum lease payments.
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.