Leases
We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term leases). Our leases have remaining lease terms of one year to seven years, some of which may include options to extend the leases for up to an additional five years.
As of December 31, 2025, assets recorded under finance and operating leases were approximately $0.6 million and $19.2 million respectively, and accumulated amortization associated with finance leases was $0.3 million. As of December 31, 2024, assets recorded under finance and operating leases were approximately $0.8 million and $21.7 million respectively, and accumulated depreciation associated with finance leases was $0.1 million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is not readily determinable, we utilized our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.
There was no impairment of leases during the years ended December 31, 2025 and 2024.
The following tables present supplemental balance sheet information related to our financing and operating leases:
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| | As of December 31, 2025 | | As of December 31, 2024 |
| In thousands | | Operating Leases | | Finance Leases | | Total | | Operating Leases | | Finance Leases | | Total |
| Right-of-use Assets | | $ | 19,247 | | | $ | 607 | | | $ | 19,854 | | | $ | 21,678 | | | $ | 782 | | | $ | 22,460 | |
| | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | |
| Short-term lease liabilities | | 3,376 | | | 167 | | | 3,543 | | | 3,578 | | | 158 | | | 3,736 | |
| Long-term lease liabilities | | 18,400 | | | 461 | | | 18,861 | | | 20,235 | | | 625 | | | 20,860 | |
| Total Lease Liabilities | | $ | 21,776 | | | $ | 628 | | | $ | 22,404 | | | $ | 23,813 | | | $ | 783 | | | $ | 24,596 | |
For the years ended December 31, 2025 and 2024, the components of lease expense were as follows:
| | | | | | | | | | | | | | |
| In thousands | | Year Ended December 31, 2025 | | Year Ended December 31, 2024 |
| Operating lease cost | | $ | 5,108 | | | $ | 5,315 | |
| Finance lease cost | | | | |
| Amortization of right-of-use assets | | 174 | | | 102 | |
| Interest on lease liabilities | | 55 | | | 31 | |
| Total Finance lease cost | | 229 | | | 133 | |
| Variable lease cost | | 1,484 | | | 1,875 | |
| Sublease income | | — | | | (368) | |
| Total lease cost, net | | $ | 6,821 | | | $ | 6,955 | |
Other information related to leases was as follows:
| | | | | | | | | | | | | | |
| In thousands | | Year Ended December 31, 2025 | | Year Ended December 31, 2024 |
| Supplemental Cash Flows Information | | | | |
| | | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | |
| Operating cash flows from operating leases | | $ | 8,742 | | | $ | 11,170 | |
| Operating cash flows from finance leases | | 51 | | | 28 | |
| Financing cash flows from finance leases | | 159 | | | 124 | |
| | | | |
Weighted Average Remaining Lease term (in years) | | | | |
| | | | |
| Operating leases | | 5.55 | | 6.38 |
| Finance leases | | 3.55 | | 4.53 |
| | | | |
| Weighted Average Discount Rate | | | | |
| Operating leases | | 5.89% | | 5.74% |
| Finance leases | | 7.77% | | 7.77% |
The maturities of the Company’s finance and operating lease liabilities as of December 31, 2025 are as follows:
| | | | | | | | | | | | | | |
| In thousands | | Operating Leases | | Finance Leases |
| Year Ending December 31, | | | | |
| 2026 | | $ | 4,492 | | | $ | 207 | |
| 2027 | | 4,524 | | | 206 | |
| 2028 | | 4,525 | | | 206 | |
| 2029 | | 4,568 | | | 98 | |
| 2030 | | 4,485 | | | — | |
| 2031 & Beyond | | 3,116 | | | — | |
| Total future minimum lease payments | | 25,710 | | | 717 | |
| Less: Imputed interest | | 3,934 | | | 89 | |
| Total lease liabilities | | $ | 21,776 | | | $ | 628 | |
As of December 31, 2025, we have no new operating leases that have not yet commenced.