Leases
The Company has operating leases primarily for corporate office space. Certain lease agreements contain renewal options, rent abatement, and escalation clauses that are factored into our determination of lease payments when appropriate. The Company's leases have remaining terms up to March 2035, some of which include one or more options to extend. Additionally, some lease contracts include termination options.
Supplemental balance sheet information related to lease liabilities at December 31, 2025 and 2024 was as follows (in thousands):
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| | | | As of December 31, |
| Lease-Related Assets and Liabilities | | Financial Statement Line Items | | 2025 | | 2024 |
| Right-of-use assets: | | | | | | |
| Operating leases | | Operating lease right-of-use assets | | $ | 200,105 | | | $ | 200,740 | |
| Total right-of-use assets | | | | $ | 200,105 | | | $ | 200,740 | |
| Lease liabilities: | | | | | | |
| Operating leases | | Operating lease liabilities | | $ | 45,864 | | | $ | 43,993 | |
| | Operating lease liabilities, noncurrent | | 183,474 | | | 195,226 | |
| Total lease liabilities | | | | $ | 229,338 | | | $ | 239,219 | |
The components of lease expense included in the Company's consolidated statements of operations include (in thousands):
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease expense | $ | 57,164 | | | $ | 57,655 | | | $ | 61,972 | |
| Short-term lease expense | 4,461 | | | 3,445 | | | 4,949 | |
| Variable lease expense | 5,636 | | | 5,585 | | | 4,772 | |
| Sublease income | (15,966) | | | (17,205) | | | (18,905) | |
| Total lease expense, net | $ | 51,295 | | | $ | 49,480 | | | $ | 52,788 | |
Variable lease costs are primarily related to payments made to lessors for common area maintenance, property taxes, insurance, and other operating expenses. Short-term lease costs primarily represent temporary employee housing.
Maturities of operating lease liabilities as of December 31, 2025 were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| As of December 31, 2025 |
| Operating Lease Commitments | | Less: Sublease Income | | Net Lease Commitments |
| Year ended December 31, | | | | | |
| 2026 | $ | 62,079 | | | $ | 13,786 | | | $ | 48,293 | |
| 2027 | 50,428 | | | 14,423 | | | 36,005 | |
| 2028 | 29,555 | | | 12,470 | | | 17,085 | |
| 2029 | 24,943 | | | 10,254 | | | 14,689 | |
| 2030 | 33,319 | | | 10,254 | | | 23,065 | |
| Thereafter | 92,215 | | | 10,254 | | | 81,961 | |
| Total undiscounted liabilities | 292,539 | | | 71,441 | | | 221,098 | |
| | | | | |
| Less: Imputed interest | (63,201) | | | — | | | (63,201) | |
| Total operating lease liabilities | $ | 229,338 | | | $ | 71,441 | | | $ | 157,897 | |
The weighted-average remaining lease term related to the Company’s operating lease liabilities as of December 31, 2025 and 2024 was six and seven years, respectively. The weighted-average discount rate related to the Company’s operating lease liabilities as of December 31, 2025 and 2024 was 7%.
The following table sets forth the supplemental information related to the Company's operating leases for the years ended December 31, 2025 and 2024 (in thousands):
| | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 |
| Cash paid for operating lease liabilities | $ | 63,818 | | | $ | 65,402 | |
Lease liabilities arising from obtaining right-of-use assets | $ | 37,784 | | | $ | 58,320 | |