Leases

We conduct operations from certain leased facilities in various locations. At December 31, 2025, we had various non-cancelable operating leases for office space and equipment, which expire between June 2026 and June 2033, and which represent the non-cancelable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. We often receive customary incentives from our landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases.

Operating lease liabilities on our consolidated balance sheets represent the present value of our remaining lease payments over the remaining lease terms. We do not allocate lease payments to non-lease components. We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable.

Leases consist of the following (in thousands):


		As of December 31,
Assets	Classification	2025		2024
Operating	Operating lease right-of-use assets	$	13,414	$	7,189
Finance	Property and equipment, net	—		2
Total leases		$	13,414	$	7,191
Liabilities
Current
Operating	Operating lease liabilities	$	4,338	$	1,861
Finance	Accrued expenses and other current liabilities	1		3
Non Current
Operating	Operating lease liabilities, non-current	10,025		6,018

Total lease liabilities		$	14,364	$	7,882

At December 31, 2025, the maturities of our remaining operating lease were as follows (in thousands, except years and percentages):



	Operating leases
2026	$	4,456
2027	4,382
2028	3,247
2029	2,252
2030	847
Thereafter	1,077
Total minimum lease payments	16,261
Less: Effects of discounting	1,898
Present value of lease liabilities	$	14,363
Less: current portion	$	4,338
Long-term lease liabilities	$	10,025
Weighted-average remaining lease term as of December 31, 2025 (in years)	4.1
Weighted-average incremental borrowing rate as of December 31, 2025	6.18		%
Weighted-average remaining lease term as of December 31, 2024 (in years)	4.7
Weighted-average incremental borrowing rate as of December 31, 2024	4.82		%

The component of our lease costs included in our consolidated statements of operations were as follows (in thousands):


	Year Ended December 31,
	2025		2024		2023
Lease cost
Operating lease cost	$	4,077	$	2,696	3,127
Other variable cost	1,009		318		276
Finance lease cost	2		26		38
Net lease cost	$	5,088	$	3,040	3,441

Historical Timeline

Fiscal Year	Filed
2025	Feb 23, 2026	Showing above
2024	Feb 26, 2025

2023	Feb 29, 2024

2022	Mar 1, 2023

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.

LEGALZOOM.COM, INC. Leases Disclosure

Historical Timeline

About Leases Disclosures

Other Available Disclosures