Leases
We have entered into various non-cancelable office space operating leases with original lease periods expiring between 2026 and 2036. These do not contain material variable rent payments, residual value guarantees, covenants or other restrictions. Operating lease costs for the years ended December 31, 2025, 2024 and 2023, are as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | | | 2025 | | 2024 | | 2023 |
| Lease cost: | | | | | | | | | |
| Operating lease cost | | | | $ | 40,892 | | | $ | 41,031 | | | $ | 51,044 | |
| Short-term lease cost | | | | 2,316 | | | 1,532 | | | 759 | |
| | | | | | | | |
| Total | | | | | $ | 43,208 | | | $ | 42,563 | | | $ | 51,803 | |
| | | | | | | | | |
In April 2024, we entered into a sublease agreement with a term of May 2024 through December 2032. Sublease income for the year ended December 31, 2025 was not material.
The weighted-average remaining term of our operating leases was 7.4 years and 6.6 years, and the weighted-average discount rate used to measure the present value of our operating lease liabilities was 5.3% and 5.4% as of December 31, 2025 and 2024, respectively.
Maturities of our operating lease liabilities, which do not include short-term leases, as of December 31, 2025, are as follows (in thousands): | | | | | |
| Operating Leases |
| 2026 | $ | 49,969 | |
| 2027 | 46,958 | |
| 2028 | 41,077 | |
| 2029 | 36,232 | |
| 2030 | 32,453 | |
| Thereafter | 116,811 | |
| Total lease payments | 323,500 | |
| Less imputed interest | (61,482) | |
| Total operating lease liabilities | $ | 262,018 | |
Cash payments included in the measurement of our operating lease liabilities were $44.1 million, $50.4 million and $61.8 million for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025, operating leases that have not yet commenced were not material and are excluded from the table above.
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.