7. Leases

The Company enters into operating and finance leases, primarily related to rental of office space, equipment and data centers. Operating leases have remaining lease terms which range from less than one year to five years, and often include one or more renewal or termination options. These options are not included in the determination of the lease term at commencement unless it is reasonably certain that the Company will exercise the option.

The components of lease cost were as follows (in thousands):

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

 

Lease costs:

 

 

 

 

 

 

Finance lease costs:

 

 

 

 

 

 

Amortization of right-of-use-assets

 

 

 

 

 

66

 

Total finance lease costs

 

 

 

 

 

66

 

Operating lease costs

$

2,354

 

$

2,389

 

$

2,150

 

Short-term lease costs

 

489

 

 

631

 

 

707

 

Total lease costs

$

2,843

 

$

3,020

 

$

2,923

 

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

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

Operating cash flows for operating leases

$

2,494

 

$

2,361

 

$

2,152

 

Financing cash flows for finance leases

 

 

 

 

 

102

 

Right-of-use assets obtained in exchange of operating lease obligations

$

510

 

$

467

 

$

2,132

 

The total remaining lease payments under non-cancelable operating leases as of December 31, 2025 were as follows (in thousands):

Year Ending December 31,

 

 

2026

 

2,571

 

2027

 

1,621

 

2028

 

1,179

 

2029

 

913

 

2030

 

861

 

Thereafter

 

141

 

Total minimum lease payments including interest

$

7,286

 

Less imputed interest

 

(432

)

Total lease liabilities

$

6,854

 

As of December 31, 2025, and 2024, the weighted-average remaining lease term and discount rate for the Company’s operating leases were 5.0 years and 3.8%, and 4.6 years and 3.8%, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Mar 11, 2025
2023Mar 5, 2024
2022Mar 3, 2023
2021Mar 3, 2022

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.