LEASES
The Company entered into operating leases related to its corporate headquarters and support, sales, and processing offices which expire at various dates through 2033. The Company’s operating lease agreements have remaining terms ranging from less than one year to seven years. Certain of these operating lease agreements include options to extend the original term. The Company’s operating lease agreements do not require the Company to make variable lease payments.
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| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Lease expense: | | | | | | |
| Operating leases | | $ | 13,050 | | | $ | 14,535 | | | $ | 16,864 | |
| Short-term leases | | 1,745 | | | 1,475 | | | 1,739 | |
| Sublease income | | (2,936) | | | (2,530) | | | (1,774) | |
| Lease expense, net included in occupancy expense | | $ | 11,859 | | | $ | 13,480 | | | $ | 16,829 | |
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| | Year Ended December 31, |
| | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | |
| Cash paid for operating leases | | $ | 15,911 | | | $ | 21,964 | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | |
| New leases entered into during the year | | 13,834 | | | 3,300 | |
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| | December 31,
2025 | | December 31, 2024 |
| Period-end: | | | | |
| Operating leases: | | | | |
| Weighted average remaining lease term (years) | | 3.1 | | 2.8 |
| Weighted average discount rate | | 8.0 | % | | 6.9 | % |
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The following is a schedule of future minimum lease payments for operating leases with initial terms in excess of one year as of December 31, 2025:
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| Year ending December 31, | | |
| 2026 | | $ | 15,098 | |
| 2027 | | 13,238 | |
| 2028 | | 5,215 | |
| 2029 | | 2,464 | |
| 2030 | | 2,037 | |
| Thereafter | | 1,841 | |
| Total operating lease payments | | 39,893 | |
| Less: Imputed interest | | (5,263) | |
| Operating lease liability | | $ | 34,630 | |
During the year ended December 31, 2025, no impairment charges were recorded for leases exited during the year. The impairment charges are included in general and administrative expense on the consolidated statements of operations. As of December 31, 2025, the Company had four operating leases that had not yet commenced with aggregate undiscounted required payments of $1.1 million.
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.