Leases
Our operating leases primarily consist of office and data center space expiring at various dates through October 2034. Certain leases include options to renew or terminate at our discretion. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2025, operating leases have a remaining weighted-average lease term of 6.0 years and our operating lease liabilities were measured using a weighted-average discount rate of 5.3%.
The components of operating lease expense were as follows: | | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease costs | $ | 24.3 | | | $ | 27.0 | | | $ | 36.8 | |
| | | | | |
| | | | | | |
| | | | | | |
| Variable lease costs | 9.9 | | | 14.7 | | | 14.7 | |
| Sublease income | (8.0) | | | (9.7) | | | (14.2) | |
| Total net lease cost | $ | 26.2 | | | $ | 32.0 | | | $ | 37.3 | |
Maturities of operating lease liabilities as of December 31, 2025 were as follows: | | | | | |
| Year Ending December 31: | |
| 2026 | $ | 24.1 | |
| 2027 | 17.3 | |
| 2028 | 11.4 | |
| 2029 | 10.0 | |
| 2030 | 8.0 | |
| Thereafter | 25.0 | |
| Total lease payments | 95.8 | |
| Less: imputed interest | (13.5) | |
| Total operating lease liabilities | $ | 82.3 | |
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.