18. LEASES

The Company has operating leases for its various facilities. As of December 31, 2025 and 2024, the Company’s weighted-average remaining lease term was 4.5 years and 5.2 years, respectively, and the weighted-average discount rate was 7.6% and 8.2%, respectively.

The components of lease cost were as follows (in thousands):

 

 

Year Ended
December 31,

 

 

2025

 

 

2024

 

 

2023

 

Operating lease cost(1)

 

 

 

 

 

 

 

 

 

Fixed lease cost

 

$

5,512

 

 

$

2,522

 

 

$

1,458

 

Short-term cost

 

 

2,023

 

 

 

221

 

 

 

145

 

Total operating lease cost

 

$

7,535

 

 

$

2,743

 

 

$

1,603

 

 

(1)
The lease costs are reflected in the consolidated statements of operations as follows (in thousands):

 

 

Year Ended
December 31,

 

 

2025

 

 

2024

 

 

2023

 

Cost of revenue

 

$

2,159

 

 

$

254

 

 

$

145

 

Research and development

 

 

3,849

 

 

 

1,670

 

 

 

722

 

Sales and marketing

 

 

531

 

 

 

175

 

 

 

84

 

General and administrative

 

 

996

 

 

 

644

 

 

 

652

 

Total operating lease cost

 

$

7,535

 

 

$

2,743

 

 

$

1,603

 

 

Supplemental cash flow and other information related to operating leases was as follows (in thousands):

 

 

 

Year Ended
December 31,

 

 

2025

 

 

2024

 

 

2023

 

Cash payments (receipts) included in the measurement of
   operating lease liabilities, net

 

$

6,031

 

 

$

(2,251

)

 

$

(1,790

)

 

As of December 31, 2025, maturities of operating lease liabilities are as follows (in thousands):

 

 

Amount

 

Year Ending December 31,

 

 

 

2026

 

$

9,572

 

2027

 

 

8,796

 

2028

 

 

7,121

 

2029

 

 

5,120

 

2030

 

 

2,309

 

Thereafter

 

 

2,598

 

Total lease payments

 

$

35,516

 

Less: imputed interest

 

 

(5,495

)

Present value of operating lease liabilities

 

$

30,021

 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Mar 30, 2023
2021Mar 28, 2022

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.