Leases
The Company has operating leases for office facilities and data centers. The lease terms of the Company’s operating leases generally range from 1.0 year to 10.0 years. The Company's lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The weighted average remaining lease term of leases included in lease liabilities is 4.2 years and 4.6 years as of December 31, 2025 and December 31, 2024, respectively. As of December 31, 2025 and December 31, 2024, a weighted average discount rate of 6.03% and 6.12%, respectively, has been applied to the remaining lease payments to calculate the lease liabilities included within the consolidated balance sheets.
Operating lease expense was $22.9 million, $21.2 million and $24.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. Included in operating lease expense for the year ended December 31, 2024 was a gain of $1.8 million related to the early termination of an office facility lease. The Company recognized variable lease expense of $4.4 million, $1.6 million, and $3.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. For the year ended December 31, 2024, variable lease expense included $1.4 million of negative variable lease expense related to rent concessions for an office lease.
The maturity of the Company's lease liabilities associated with leases included in the lease liabilities and ROU assets were as follows as of December 31, 2025 (in thousands):
| | | | | | | | |
| Fiscal Year | | |
| 2026 | | $ | 23,385 | |
| 2027 | | 18,216 | |
| 2028 | | 13,891 | |
| 2029 | | 13,835 | |
| 2030 | | 6,222 | |
| Thereafter | | 3,718 | |
| Total lease payments (undiscounted) | | 79,267 | |
| Less: imputed interest | | (9,019) | |
| Lease liabilities—total (discounted) | | $ | 70,248 | |
Cash paid for amounts included in lease liabilities was $23.0 million, $24.1 million, and $26.6 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The Company also received rental income of $1.1 million, $5.0 million, and $5.3 million for real estate leases for which it subleased the property to a third party during the years ended December 31, 2025, 2024, and 2023, respectively. Rental income is included in other income in the consolidated statements of operations.
In addition to the lease liabilities included in these consolidated financial statements, the Company entered into agreements for office space and data centers that had not commenced as of December 31, 2025; therefore, the leases were not included in the lease liabilities and ROU assets balance as of December 31, 2025. The Company has future commitments totaling $46.3 million over a weighted average term of 7.3 years related to these agreements, of which $32.8 million relate to one lease that will commence in 2030 over 8.2 years.
The Company's operating lease right-of-use assets by geographical region were as follows:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| (in thousands) |
United States | $ | 59,634 | | | $ | 45,178 | |
International | 6,977 | | | 5,151 | |
Total | $ | 66,611 | | | $ | 50,329 | |