Leases
Our leases consist of operating lease agreements principally related to our corporate and subsidiary office locations. Currently, we do not enter into any financing lease agreements. Our leases have remaining lease terms of less than 1 year to approximately 7 years, some of which generally include renewal options of varying terms.
Our total lease expense amounted to approximately $2.6 million, $3.7 million, and $3.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Our lease expense is generally based on fixed payments stated within the agreements. Any variable payments for non-lease components and other short term lease expenses are not considered material.
In line with our plan to exit our operational activities in China, we provided notice of early termination for our office facility lease to the lessor during the third quarter of 2025. Consequently, both the operating lease right-of-use asset and the corresponding lease liability were remeasured based on the modified lease term and early termination conditions, and were subsequently terminated as of December 31, 2025. Refer to Note 23—Restructuring and Other Charges for further information regarding our China subsidiary.
Additional Information
Additional information related to our right of use assets and related lease liabilities is as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | | |
| Cash paid for operating lease liabilities (in thousands) | $ | 3,293 | | | $ | 3,736 | | | $ | 2,884 | |
| Weighted average remaining lease term (years) | 6.3 | | 4.3 | | 3.9 |
| Weighted average discount rate | 5.3 | % | | 3.9 | % | | 5.1 | % |
Note 20—Leases (continued)
Maturities of our operating lease liabilities as of December 31, 2025 is as follows:
| | | | | |
| Operating Leases |
| (In thousands) |
| 2026 | $ | 441 | |
| 2027 | 412 | |
| 2028 | 276 | |
| 2029 | 271 | |
| 2030 | 278 | |
| Thereafter | 626 | |
| Total | 2,304 | |
| Less: imputed interest | (380) | |
| Total lease liabilities | $ | 1,924 | |
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.