8. Leases
The components of lease expense are as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 | |
| Operating lease cost | $ | 24,754 | | $ | 12,682 | | $ | 12,618 | |
| Short-term lease cost | 1,650 | | 178 | | 630 | |
| Financing lease cost | — | | 19 | | 21 | |
| Total lease cost | $ | 26,404 | | $ | 12,879 | | $ | 13,269 | |
Supplemental balance sheet information related to the Company’s operating leases is as follows (in thousands):
| | | | | | | | | | | |
| As of, |
| December 31, 2025 | | December 31, 2024 |
| Operating lease ROU assets | $ | 101,126 | | $ | 42,917 |
| Operating lease liabilities, current | 24,757 | | 20,989 |
| Operating lease liabilities, non-current | 95,991 | | 32,449 |
| Total lease liabilities | $ | 120,748 | | $ | 53,438 |
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for operating lease liabilities, net of tenant incentives received | $ | 15,653 | | $ | 16,722 | | $ | 15,197 |
| ROU assets recognized for new leases and amendments (non-cash) | $ | 74,936 | | $ | 17,039 | | $ | 1,299 |
Other information related to leases is as follows:
| | | | | | | | | | | |
| As of, |
| December 31, 2025 | | December 31, 2024 |
| Weighted average remaining lease term | 6.6 years | | 2.8 years |
| Weighted average discount rate | 6.71 | % | | 5.13 | % |
Future undiscounted annual cash flows for the Company’s operating leases as of December 31, 2025 are as follows (in thousands): | | | | | |
Year Ending December 31, | Operating Leases |
| 2026 | $ | 25,508 |
| 2027 | 19,860 |
| 2028 | 20,863 |
| 2029 | 20,769 |
| 2030 | 21,054 |
| Thereafter | 42,720 |
| Total future undiscounted lease payments | 150,774 |
| Less imputed interest | (30,026) |
| Total lease liabilities | $ | 120,748 |
The table above does not include options to extend lease terms that are not reasonably certain of being exercised or leases signed but not yet commenced as of December 31, 2025.
On January 31, 2025, the Company amended the lease agreement for its Boston corporate headquarters. The amendment (i) modified the lease term and payment terms for the existing leased premises and (ii) expanded the leased premises under the lease. The newly leased premises had phased lease commencement dates ranging from February 2025 to December 2025. The lease term for the existing and newly leased premises ends in March 2033.
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.