6 – Leases
The Company leases office facilities from unrelated parties under operating lease agreements that have initial terms ranging from two to seven years. Included in an office lease the Company also leases furniture and fixtures under a finance lease with a seven year term with a purchase option at the end of the term.
The components of operating and finance lease costs were as follows (in thousands):
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Operating lease cost | $ | 10,027 | | | $ | 8,536 | |
Finance lease cost | 183 | | | 186 | |
| Total lease cost | $ | 10,210 | | | $ | 8,722 | |
Supplemental cash flow information related to leases was as follows (in thousands):
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Cash paid for amounts included in measurement of lease liabilities: | | | |
| Operating cash outflows - payments on operating leases | $ | 2,616 | | | $ | 6,531 | |
| Right-of-use assets obtained in exchange for new lease obligations: | | | |
| Operating leases | $ | 2,922 | | | $ | 29,909 | |
| | | |
In July 2024, the Company entered into an agreement to continue to lease approximately 30,000 square feet of office space located in New York City, New York (“July 2024 Lease”), which was previously subleased. The original sublease agreement for the space was set to expire in January 2025. The July 2024 Lease extends the lease term through January 2036 and grants the Company the right to use an additional floor in the building, also comprised of approximately 30,000 square feet, which has yet to commence. The Company will use the aggregate space to support its general and administrative functions, sales and marketing, technology and development, engineering and customer support. The Company has the option to exercise an early termination at either of two different points during the lease term, neither of which has been reflected in the lease term. The Company has provided an irrevocable letter of credit in the amount of approximately $1.5 million, pursuant to the terms of the July 2024 Lease.
Supplemental balance sheet information related to leases was as follows (in thousands):
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Operating leases | | | |
| Operating lease right-of-use assets | $ | 38,149 | | | $ | 44,402 | |
| Operating lease liabilities, current | $ | 6,953 | | | $ | 5,843 | |
| Operating lease liabilities, non-current | 36,910 | | | 39,538 | |
| Total operating lease liabilities | $ | 43,863 | | | $ | 45,381 | |
| Finance leases | | | |
| Furniture and fixtures | $ | 869 | | | $ | 869 | |
| Accumulated depreciation | (710) | | | (536) | |
| Furniture and fixtures, net | $ | 159 | | | $ | 333 | |
| Accrued liabilities | $ | 148 | | | $ | 139 | |
| Other liabilities, non-current | 196 | | | 344 | |
| Total finance lease liabilities | $ | 344 | | | $ | 483 | |
Other information related to leases was as follows:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term: | | | |
| Operating leases | 7.4 years | | 7.8 years |
| Finance leases | 2.3 years | | 3.3 years |
| Weighted-average discount rate: | | | |
| Operating leases | 5.30 | % | | 4.90 | % |
| Finance leases | 2.24 | % | | 2.24 | % |
As of December 31, 2025, the maturities of lease liabilities under operating and finance leases were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Operating Leases | | Finance Leases | | Total |
| Year ending December 31, | | | | | |
| 2026 | $ | 9,019 | | | $ | 153 | | | $ | 9,172 | |
| 2027 | 9,949 | | | 158 | | | 10,107 | |
| 2028 | 6,517 | | | 41 | | | 6,558 | |
| 2029 | 4,907 | | | — | | | 4,907 | |
| 2030 | 4,083 | | | — | | | 4,083 | |
| Thereafter | 20,408 | | | — | | | 20,408 | |
| Total minimum lease payments | 54,883 | | | 352 | | | 55,235 | |
| Less: imputed interest | (11,020) | | | (8) | | | (11,028) | |
| Total present value of lease liabilities | $ | 43,863 | | | $ | 344 | | | $ | 44,207 | |
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.