EverQuote, Inc. Leases Disclosure
10. Leases
The Company leases office space under various non-cancelable operating leases. The Company's lease for office space for its former headquarters expired in September 2024. In April 2024, the Company entered into two agreements to lease office space in Cambridge, Massachusetts through December 2027 for fixed payments totaling $3.2 million through 2027, resulting in an increase to right-of-use assets and operating lease liabilities of $2.7 million.
In August 2024, the Company entered into an agreement to sublease office space in Belfast, Northern Ireland through July 2027 for fixed payments totaling approximately $1.6 million through 2027, resulting in an increase to right-of-use assets and operating lease liabilities of $1.3 million.
As of December 31, 2025 and 2024, the Company maintained security deposits of $0.3 million with the landlords of its leases, which amounts were included in prepaid expenses and other current assets and other assets on the Company’s consolidated balance sheet.
The components of lease cost under ASC 842 were as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost |
|
$ |
1,403 |
|
|
$ |
2,188 |
|
|
$ |
2,682 |
|
Short-term lease cost |
|
|
— |
|
|
|
— |
|
|
|
318 |
|
Variable lease cost |
|
|
120 |
|
|
|
470 |
|
|
|
546 |
|
|
|
$ |
1,523 |
|
|
$ |
2,658 |
|
|
$ |
3,546 |
|
Supplemental disclosure of cash flow information related to leases was as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash paid for amounts included in the measurement |
|
$ |
1,413 |
|
|
$ |
2,499 |
|
|
$ |
3,190 |
|
Operating lease liabilities arising from obtaining |
|
$ |
— |
|
|
$ |
4,026 |
|
|
$ |
— |
|
The weighted-average remaining lease term and discount rate were as follows:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
|
|
|
|
|
||
Weighted-average remaining lease term - operating leases (in years) |
|
|
1.9 |
|
|
|
2.9 |
|
Weighted-average discount rate - operating leases |
|
|
8.50 |
% |
|
|
8.50 |
% |
Because the interest rate implicit in the lease was not readily determinable, the Company's incremental borrowing rate was used to calculate the present value of the leases. In determining its incremental borrowing rate, the Company considered its credit quality and assessed interest rates available in the market for similar borrowings, adjusted for the impact of collateral over the term of the lease.
Future annual lease payments under the Company’s leases as of December 31, 2025 were as follows (in thousands):
Years ending December 31, |
|
|
|
|
|
|
2026 |
|
|
|
$ |
1,363 |
|
2027 |
|
|
|
|
1,432 |
|
Total future minimum lease payments |
|
|
|
|
2,795 |
|
Less: imputed interest |
|
|
|
|
(228 |
) |
Total operating lease liabilities |
|
|
|
$ |
2,567 |
|
Total operating lease liabilities in the table above are classified on the consolidated balance sheet as follows (in thousands):
|
|
|
|
December 31, 2025 |
|
|
Current operating lease liabilities |
|
|
|
$ |
1,197 |
|
Operating lease liabilities, net of current portion |
|
|
|
|
1,370 |
|
Total operating lease liabilities |
|
|
|
$ |
2,567 |
|
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.