LEASESThe Company has operating leases related to office space and data centers under non-cancellable operating leases that expire at various times through December 2034, some of which include options to renew or extend the lease for an additional 10 years. As of December 31, 2025, there are no leases with residual value guarantees or leases not yet commenced to which the Company is committed. The Company combines the lease and non-lease components of lease payments in determining right of use assets and related lease liabilities.
Leases with an initial term of twelve-months or less that do not include an option to purchase the underlying asset are not recorded on the consolidated balance sheets and are expensed on a straight-line basis over the lease term. The lease expenses related to the short term leases was $0.4 million and $0.2 million for the year ended December 31, 2025 and 2024, respectively. The short term lease expense was immaterial during the year ended December 31, 2023. Lease expense related to office space amounted to $8.3 million, $6.4 million and $4.4 million for the years ended December 31, 2025, 2024 and 2023, respectively, and are recorded within occupancy costs in the consolidated statements of operations. Lease expense related to the data center amounted to $10.4 million, $9.6 million and $7.0 million for the year ended December 31, 2025, 2024 and 2023, respectively, and are recorded within information technology and communication costs in the consolidated statements of operations.
The components of operating lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost: | | | | | |
| Fixed lease cost | $ | 10,329 | | | $ | 9,063 | | | $ | 5,939 | |
| Short-term lease cost | 374 | | | 184 | | | — | |
| Variable lease cost | 8,369 | | | 6,763 | | | 5,498 | |
| Total operating lease cost | $ | 19,072 | | | $ | 16,010 | | | $ | 11,437 | |
Supplemental cash flow information related to the operating leases for the years ended December 31, 2025, 2024 and 2023 is as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
Operating cash flows from operating leases | $ | 9,350 | | | $ | 7,795 | | | $ | 7,016 | |
The following table presents the supplemental balance sheet information related to operating leases for the year ended December 31, 2025 and 2024 (in thousands):
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Operating lease right of use assets | $ | 15,143 | | | $ | 15,478 | |
| Total right of use asset | $ | 15,143 | | | $ | 15,478 | |
| | | |
| Current portion of operating lease liability | $ | 6,518 | | | $ | 6,622 | |
| Non-current operating lease liabilities | 16,761 | | | 15,438 | |
| Less: Tenant improvement allowance receivable | (573) | | | (2,426) | |
| Total leased liabilities | $ | 22,706 | | | $ | 19,634 | |
The Company records the operating lease right of use assets within other assets, net, the current portion of the operating lease liability within accounts payable and other liabilities and the non-current operating lease liabilities within other non-current liabilities in the consolidated balance sheets.
The weighted-average remaining lease term and the weighted-average discount rate for the operating and finance leases were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Operating | | Finance | | Operating | | Finance |
| Weighted average remaining lease term (years) | 5.1 | | 3.4 | | 5.6 | | 3.8 |
| Weighted average discount rate | 17.8% | | 8.0% | | 17.6% | | 7.9% |
The Company uses its incremental borrowing rate as the discount rate, which is based on the implied cost of debt. The undiscounted cash flow for future maturities of the Company's lease liabilities as of December 31, 2025 are as follows (in thousands):
| | | | | | | | | | | |
| Operating Lease | | Finance Lease |
| 2026 | $ | 10,714 | | | $ | 199 | |
| 2027 | 7,513 | | | 174 | |
| 2028 | 2,711 | | | 105 | |
| 2029 | 2,688 | | | 105 | |
| 2030 | 2,751 | | | 16 | |
| Thereafter | 10,928 | | | — | |
| Total lease payments | 37,305 | | | 599 | |
| Less: imputed interest | (14,026) | | | (59) | |
| Total lease liabilities | 23,279 | | | 540 | |
| Less: current lease liabilities | (6,518) | | | (173) | |
| Total non-current lease liabilities | $ | 16,761 | | | $ | 367 | |
Company as a lessor
The Company leases office space obtained as part of the acquisition of MIAX Futures. The Company has classified the lease relationship as an operating lease.
The following table sets out a maturity analysis of lease receivables, showing the undiscounted lease payments to be received after the reporting date (in thousands):
| | | | | |
| 2026 | $ | 1,271 | |
| 2027 | 645 | |
| 2028 | 373 | |
| 2029 | 337 | |
| 2030 | 80 | |
| Thereafter | — | |
| Total lease receivable | $ | 2,706 | |