LEASES
The Company leases facilities under operating leases with various expiration dates through 2032. The Company leases office space in New York and Israel.
The security deposits for the leases are $1.9 million and $3.3 million as of December 31, 2025 and December 31, 2024, respectively, which have been recognized as restricted cash and cash equivalents in the consolidated balance sheets.
The Company’s operating lease expense consists of rent and variable lease payments. Variable lease payments such as common area maintenance were included in operating expenses. Rent expense for the Company’s short-term leases was immaterial for the periods presented. Operating lease expense was as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | | | | | 2025 | | 2024 | | 2023 | | |
| Rent expense | | | | | | | $ | 11,191 | | $ | 11,993 | | $ | 13,016 | | |
| Variable lease payments | | | | | | | $ | 448 | | $ | 365 | | $ | 280 | | |
Sublease income (1) | | | | | | | $ | 5,233 | | $ | 4,023 | | $ | 4,053 | | |
(1) The Company entered into sublease agreements for certain leased office space, and the amounts were included in other expenses, net in the consolidated statement of operations.
Supplemental information related to the Company’s operating leases was as follows ($ in thousands):
| | | | | | | | | | | |
| As of December 31, 2025 | | As of December 31, 2024 |
| Weighted-average remaining lease term (in years) | 5.1 | | 5.8 |
| Weighted-average discount rate | 9.0 | % | | 9.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | | | | | 2025 | | 2024 | | 2023 | | |
| | | | | | | | | | | | | |
Operating lease right-of-use assets recognized in exchange for new operating lease obligations (1) | | | | | | | $ | (113) | | | $ | (17,737) | | | $ | (1,839) | | | |
(1) During the year ended December 31, 2025 and 2024, $0.1 million and $17.7 million of operating lease right-of-use assets and corresponding lease liability were derecognized as a result of early termination which was accounted for as a lease modification.
Maturities of the Company’s operating lease liabilities as of December 31, 2025 were as follows (in thousands):
| | | | | |
| 2026 | $ | 10,085 | |
| 2027 | 8,629 | |
| 2028 | 5,924 | |
| 2029 | 6,022 | |
| 2030 | 6,022 | |
| Thereafter | 5,521 | |
| Total | 42,203 | |
| Less: imputed interest | (7,991) | |
| Total operating lease liabilities | $ | 34,212 | |
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.