Leases
The Company's operating lease portfolio is comprised mainly of corporate offices and call centers with remaining lease terms ranging from one to seven years. Some of the leases include extension and/or termination options in accordance with specified notice periods. The longest period recognized by the Company under a renewal option was five years. The components of lease expense for the years ended December 31, 2025 and 2024, were as follows (in thousands):
| | | | | | | | | | | |
| 2025 | | 2024 |
| Operating lease expense | $ | 8,359 | | | $ | 10,126 | |
| Short-term lease expense | 2,215 | | | 2,318 | |
| Sublease income | — | | | (7) | |
| Total lease expense | $ | 10,574 | | | $ | 12,437 | |
Supplemental cash flow information and non-cash activity related to leases for the years ended December 31, 2025 and 2024, were as follows (in thousands):
| | | | | | | | | | | |
| 2025 | | 2024 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 9,771 | | | $ | 10,533 | |
| | | |
ROU assets obtained in exchange for operating lease obligations (1) | 3,176 | | | (5,132) | |
(1)Includes the impact of new leases as well as remeasurements and modifications of existing leases.
Lease term and discount rate information related to operating leases were as follows:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining lease term (years) | 5.5 | | 6.6 |
| | | |
| Weighted-average discount rate | 4.8 | % | | 4.7 | % |
Maturities of lease liabilities as of December 31, 2025, were as follows for the years ending December 31, (in thousands):
| | | | | |
| Operating Lease Payments |
| 2026 | $ | 7,703 | |
| 2027 | 6,318 | |
| 2028 | 6,223 | |
| 2029 | 5,861 | |
| 2030 | 4,902 | |
| Thereafter | 5,541 | |
Total lease payments | 36,548 | |
| Imputed interest | (4,388) | |
| Present value of lease liabilities | $ | 32,160 | |
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.