Lessee Leases
The Company has operating leases for office buildings, data centers, office equipment, and vehicles. The Company’s leases have initial terms of one to twelve years. As of December 31, 2025, the Company did not have any additional material operating leases that were entered into, but not yet commenced.
The maturity schedule of future minimum lease payments under operating leases and the reconciliation to the operating lease liabilities reported on the Consolidated Balance Sheets was as follows:
| | | | | |
| December 31, 2025 |
| |
| (In thousands) |
| 2026 | $ | 13,645 | |
| 2027 | 11,665 | |
| 2028 | 9,956 | |
| 2029 | 3,154 | |
| 2030 | 618 | |
| Thereafter | 1,276 | |
| Total operating lease payments | 40,314 | |
| Present value adjustment | (3,565) | |
Total operating lease liabilities (1) | $ | 36,749 | |
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(1) Amount consists of a current and long-term portion of operating lease liabilities of $12.0 million and $24.8 million, respectively. The current portion of the operating lease liabilities is included in accrued liabilities in the Consolidated Balance Sheets.
Operating lease costs were $10.1 million, $10.3 million, and $10.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. Short-term lease costs and variable lease costs were not material for the years ended December 31, 2025, 2024, and 2023. During the year ended December 31, 2023, the Company recorded impairment and abandonment charges to operating lease right-of-use assets of $10.0 million, in connection with restructuring activities to reduce its real estate footprint and for optimization of certain leased facilities. The impairment and abandonment charges were recorded to selling, general, and administrative expenses on the Company’s Consolidated Statements of Operations. Refer to Note 18, Restructuring Expenses, for additional information regarding the Company’s restructuring activities.
The following table summarizes supplemental cash flow information related to the Company’s operating leases:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| (In thousands) |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 13,954 | | | $ | 13,193 | | | $ | 13,469 | |
| Right-of-use assets obtained in exchange for new lease liabilities | $ | 6,353 | | | $ | 9,002 | | | $ | 6,431 | |
The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term, years | 3.4 | | 4.1 |
| Weighted-average discount rate, % | 5.5 | % | | 5.8 | % |