Note 11. Leases

The following table presents the components of lease expense in our consolidated statements of operations for the periods presented (in thousands):

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Operating lease costs(1)

 

 

 

 

 

 

 

 

Single lease costs

$

3,520

 

 

$

3,394

 

 

$

3,486

 

Variable lease costs

 

1,431

 

 

 

1,367

 

 

 

1,280

 

Sublease income

 

 

 

 

 

 

 

(165

)

Total operating lease costs

$

4,951

 

 

$

4,761

 

 

$

4,601

 

(1) Includes short-term lease costs, which are immaterial.

 

 

The following table presents supplemental cash flow information related to operating leases for the periods presented (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flows used

$

3,652

 

 

$

4,060

 

 

$

4,233

 

 

The following table presents weighted-average remaining lease term and weighted-average discount rate related to operating leases as of:

 

2025

 

 

2024

 

Weighted-average remaining lease term (years)

 

11.0

 

 

 

2.8

 

Weighted-average discount rate

 

7.5

%

 

 

6.9

%

 

The following table presents future lease payments under operating leases as of December 31, 2025 (in thousands):

 

Operating Leases

 

 

 

Lease Payments

 

2026

 

$

2,878

 

2027

 

 

3,894

 

2028

 

 

3,828

 

2029

 

 

3,786

 

2030

 

 

3,279

 

Thereafter

 

 

25,611

 

Total lease payments

 

$

43,276

 

Less: Imputed interest

 

 

(15,272

)

Less: Tenant improvement receivable

 

 

(4,692

)

Present value of lease liabilities

 

 

23,312

 

Less: Current portion of lease liabilities

 

 

776

 

Lease liabilities, net of current portion

 

$

22,536

 

 

As of December 31, 2025, we have excluded from the table above an additional operating lease that has not yet commenced with aggregate rent payments of $2.2 million. This operating lease will commence in 2026 with a lease term of approximately 12 years.

Historical Timeline

Fiscal YearFiled
2025Feb 9, 2026Showing above
2024Feb 10, 2025
2023Feb 12, 2024
2022Feb 13, 2023
2021Feb 14, 2022
2020Feb 17, 2021
2019Mar 2, 2020

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.