5. Leases 

 

All leases were classified as operating leases as of December 31, 2025 and 2024.

 

Components of operating lease expense were as follows (in thousands): 

 

 

Year Ended

 

December 31,

 

2025

 

2024

Operating lease cost

$

4,915

 

$

5,133

Variable lease cost

$

302

 

$

209

Short-term lease cost

$

130

 

$

311

 

Supplemental information related to operating leases was as follows (in thousands): 

 

 

Year Ended

 

December 31,

 

2025

 

2024

Operating cash flows from operating leases

$

4,658

 

$

4,574

Right-of-use assets obtained in exchange for new operating lease liabilities

$

1,047

 

$

2,068

 

As of December 31, 2025, the Company's operating leases had a weighted average remaining lease term of 6.0 years and a weighted average discount rate of 8.0%. 

 

Future lease payments under operating leases as of December 31, 2025 were as follows (in thousands):

 

2026

$

3,928

2027

 

3,104

2028

 

2,813

2029

 

2,547

2030

 

2,154

Thereafter

 

4,720

Total undiscounted future lease payments

$

19,266

Less: imputed interest

 

(4,256)

Total lease liability balance

$

15,010

  

As of December 31, 2025, and 2024, the Company did not enter into leases that have not yet commenced.

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Mar 12, 2025
2023Mar 13, 2024
2022Mar 30, 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.