LEASES

Lessor

Deferred lease revenue represents payments received in advance of the Company’s performance obligation under the lease agreements in its Data Centers segment. Deferred lease revenue is recognized as income on a straight-line basis over the term of the lease agreement. The following table summarizes the Company’s deferred lease revenue activity for the years ended December 31, 2025, 2024 and 2023:


(in thousands)	December 31, 2025		December 31, 2024		December 31, 2023
Beginning balance	$	—	$	—	$	—
Lease billings in advance of performance obligation satisfaction	150,000		—		—
Revenue recognized during the period	—		—		—
Ending Balance	$	150,000	$	—	$	—

For the year ended December 31, 2023, the Company recognized $0.5 million of revenue related to third-party leases of mining equipment. These lease agreements expired in June 2023.

Lessee

The Company enters into leases primarily for real estate, substantially all of which are used in connection with its operations.

Operating lease costs were $5.9 million, $5.8 million and $7.8 million for the years ended December 31, 2025, 2024 and 2023 respectively. Variable lease costs, which are included in operating lease costs, were not material for the year ended December 31, 2025, 2024 and 2023.

Supplemental disclosures for the Company’s consolidated statements of cash flows:


(in thousands)	December 31, 2025		December 31, 2024		December 31, 2023
Net cash provided by / (used in) operating activities
Cash paid in the measurement of operating lease liabilities	$	5,625	$	5,973	$	7,838

Supplemental statement of financial position and other disclosures related to operating lease right-of-use assets:


(in thousands, except lease term and discount rate)	December 31, 2025			December 31, 2024
Operating lease right-of-use assets	$	10,337		$	8,223
Operating lease liabilities	12,479			10,229
Weighted average remaining lease term	3.0 years			3.6 years
Weighted average discount rate(1)	9		%	10		%

__________________

(1)The weighted average discount rate represents the Company’s incremental borrowing rate.

The following table represents future minimum lease payments of the Company’s operating lease liabilities as of December 31, 2025:


(in thousands)	Lease liability
Year ending December 31,



2026	4,822
2027	4,837
2028	4,182
2029	429
Total future minimum lease payments	14,270
Less: Interest	1,791
Total lease liability	$	12,479

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.

Galaxy Digital Inc. Leases Disclosure

About Leases Disclosures

Other Available Disclosures