Leases

    The Company has operating leases for office facilities with remaining terms of less than a year to 9 years. Many leases include one or more options to renew, but renewals are not assumed in the determination of the lease term as the Company is not reasonably certain to exercise the renewals. These leases primarily relate to office space in the United States and the United Kingdom and generally require fixed monthly payments, some of which include rent-free periods and contractual rent escalations.

At lease commencement, the Company records a right-of-use asset and a corresponding lease liability based on the present value of lease payments over the lease term, using an incremental borrowing rate determined at lease commencement. All of the Company’s leases are classified as operating leases under FASB ASC Topic 842, Leases (“ASC 842”).

The Company recognizes lease expense in General and administrative on the consolidated statements of operations and comprehensive loss. The components of lease expense were as follows (in thousands):

Year Ended December 31,
202520242023
Operating lease expense$4,966 $4,140 $4,598 
Short-term lease expense398 2851,005 
Total lease expense$5,364 $4,425 $5,603 

Other information related to the Company's operating leases was as follows:
December 31,
20252024
Weighted-average remaining lease term (in years)4.15.0
Weighted-average discount rate 6.2 %6.0 %

Maturities of operating lease liabilities as of December 31, 2025 were as follows:

2026$8,277 
20278,339 
20287,735 
20293,657 
20301,216 
Thereafter1,760 
Total undiscounted lease payments 30,984 
Less: imputed interest(3,607)
Total lease liabilities$27,377 

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.