Leases
The Company leases office spaces under non-cancelable operating lease agreements. These leases have remaining lease terms of approximately one to five years, which represent the non-cancellable periods of the leases. Lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as variable payments for common area maintenance and administrative services. Variable lease costs were immaterial for the years ended December 31, 2025, 2024, and 2023. The Company has also received certain incentives from landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. The Company’s leases are classified as operating leases. The Company entered into an operating lease for 10,287 square feet in Montreal, Canada which commenced on April 1, 2025. This lease terminates in October 2030.
For the years ended December 31, 2025, 2024, and 2023 the Company’s operating lease costs consisted of the following (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Operating lease costs | | $ | 4,705 | | | $ | 4,890 | | | $ | 4,635 | |
| Short-term lease costs | | 167 | | | 137 | | | 187 | |
| Less sublease income | | — | | | (133) | | | (132) | |
| Total lease costs | | $ | 4,872 | | | $ | 4,894 | | | $ | 4,690 | |
The cash payments made for operating leases, the weighted-average remaining operating lease term and weighted-average discount rate used in the calculation for the Company’s lease assets and lease liabilities as of December 31, 2025, 2024, and 2023 were as follows (in thousands, except years and percentages):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash flows from operating leases | | $ | 4,614 | | | $ | 5,722 | | | $ | 5,491 | |
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Weighted-average remaining lease term (in years) | | 2.10 | | 2.19 | | 3.37 |
| Weighted-average discount rate (in percentages) | | 9.75 | % | | 8.47 | % | | 8.55 | % |
As of December 31, 2025, remaining future minimum lease payment obligations under the Company’s noncancellable operating leases were as follows (in thousands):
| | | | | | | | |
| Year Ended December 31, | | |
| 2026 | | $ | 4,802 | |
| 2027 | | 3,546 | |
| 2028 | | 310 | |
| 2029 | | 317 | |
| 2030 | | 269 | |
| Thereafter | | — | |
| Total lease payments | | 9,244 | |
| Less: imputed interest | | (1,205) | |
| Present value of lease liabilities | | $ | 8,039 | |
| Classified as: | | |
| Lease liabilities - current | | $ | 4,223 | |
| Lease liabilities - non current | | 3,816 | |
| Total lease liabilities | | $ | 8,039 | |
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.