Leases
The Company’s costs as a lessee for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 5,341 | | | $ | 4,470 | | | $ | 4,219 | |
| Variable lease cost | 334 | | | 216 | | | 253 | |
| Total lease costs | $ | 5,675 | | | $ | 4,686 | | | $ | 4,472 | |
Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Total cash outflow for leases | $ | 4,364 | | | $ | 3,794 | | | $ | 4,633 | |
| Supplemental non-cash information: | | | | | |
| Right-of-use assets obtained in exchange for new lease obligations | $ | 1,212 | | | $ | 6,482 | | | $ | 2,783 | |
The weighted average remaining lease term and weighted average discount rate of operating leases at December 31, 2025 and 2024 were as follows:
| | | | | | | | | | | |
| 2025 | | 2024 |
| Weighted average lease term remaining | 12.7 years | | 13.8 years |
| Weighted average discount rate | 7.3 | % | | 7.4 | % |
The maturities of operating lease liabilities as of December 31, 2025 are as follows (in thousands):
| | | | | |
| 2025 |
| 2026 | $ | 5,884 | |
| 2027 | 5,794 | |
| 2028 | 5,484 | |
| 2029 | 5,213 | |
| 2030 | 5,213 | |
2031 and thereafter | 43,596 | |
| Total lease payments | 71,184 | |
| Less imputed interest | (27,623) | |
| Present value of operating lease liabilities | $ | 43,561 | |
Future lease commitments - leases not yet commenced | $ | 2,973 | |
Future lease commitments - leases not yet commenced
The Company has entered into a non-cancellable lease agreement for premises that will commence in 2028 and end in 2031, with total future minimum lease payments of approximately $3.0 million. This amount is not included in the maturities of operating lease liabilities above as the lease had not commenced as of December 31, 2025.
Lease commencement during the period
During the year ended December 31, 2025, the Company commenced a new operating lease and recognized a non‑cash right‑of‑use asset of $1.2 million and a corresponding operating lease liability of $1.4 million. The difference between the right‑of‑use asset and the lease liability primarily reflects a lease incentive, which reduces the initial carrying amount of the related right‑of‑use asset.
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.