Leases
We lease office space for our corporate headquarters under a non-cancelable operating lease. The prior corporate office leases were amended in May 2023 to increase the total space leased to approximately 106,000 square feet and to extend the noncancellable lease term through May 2035. In October 2024, we entered into an amendment on this lease which provides approximately 10,000 square feet of additional space.
We entered into a warehouse and office space lease for our corporate headquarters under a non-cancelable operating lease in August 2023. This space includes approximately 22,000 square feet and a noncancellable lease term through May 2035. In March 2024, we entered into an amendment on this lease which commenced in January 2025 which provides for approximately 18,000 square feet of additional space.
Each lease described above includes options to renew for up to two additional periods of five years each at the then-prevailing market rates. The exercises of the lease renewal options are at our sole discretion and were not included in the lease term for the calculation of the ROU assets and lease liabilities as of the lease modification date as they were not reasonably certain of exercise.
In addition to base rent in these leases, we also pay our proportionate share of the operating expenses, as defined in the leases. These payments are made monthly and adjusted annually to reflect actual charges incurred for operating expenses, such as common area maintenance, taxes, and insurance.
The following table presents the lease balances within the consolidated balance sheets:
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, |
| | | | 2025 | | 2024 |
| Right-of-use assets: | | | | |
| | Operating lease right-of-use assets | | $ | 23,532 | | | $ | 23,314 | |
| Operating lease liabilities: | | | | |
| | Accrued liabilities | | 2,157 | | | 1,754 | |
| | Operating lease liabilities, non-current portion | | 29,998 | | | 30,039 | |
| | Total operating lease liabilities | | $ | 32,155 | | | $ | 31,793 | |
The cost components of our operating leases were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Operating lease cost | | $ | 3,430 | | | $ | 2,954 | | | $ | 2,166 | |
| Short-term lease cost | | 323 | | | 274 | | | 250 | |
| Variable lease cost | | 2,521 | | | 2,211 | | | 1,667 | |
| Total lease cost | | $ | 6,274 | | | $ | 5,439 | | | $ | 4,083 | |
Variable lease costs consist primarily of taxes, insurance, and common area maintenance costs.
Maturities of our lease liability for our operating lease are as follows as of December 31, 2025:
| | | | | | | | |
| 2026 | | $ | 3,196 | |
| 2027 | | 3,603 | |
| 2028 | | 4,152 | |
| 2029 | | 4,285 | |
| 2030 | | 4,422 | |
| Thereafter | | 21,264 | |
| Total undiscounted lease payments | | 40,922 | |
| Less: imputed interest | | (8,767) | |
| Present value of lease liability | | $ | 32,155 | |
As of December 31, 2025, the remaining lease terms were 9.4 years and the weighted average discount rate was 4.9%. The operating cash outflows (inflows) from our operating leases were $3.3 million, $(3.3) million, and $2.2 million for the years ended December 31, 2025, 2024, and 2023, respectively.