Leases
The Company leases certain offices, computer equipment and its shared cloud platform facilities under non-cancelable operating leases for varying periods through 2034. While under the Company's lease agreements the Company has options to extend its certain leases, the Company has not included renewal options in determining the lease terms for calculating its lease liabilities, as these options are not reasonably certain of being exercised. Lease expense was $14.8 million, $16.6 million and $16.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Supplemental cash flow information related to operating leases was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| (in thousands) |
| Cash payments included in the measurement of lease liabilities | $ | 12,336 | | | $ | 14,720 | | | $ | 14,984 | |
| Lease liabilities arising from obtaining right-of-use assets | $ | 14,559 | | | $ | 30,639 | | | $ | 121 | |
The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted average remaining lease term (years) | 5.8 | | 4.2 |
| Weighted average discount rate | 8.0 | % | | 7.4 | % |
Maturities of the Company's operating lease liabilities as of December 31, 2025 are as follows:
| | | | | |
| (in thousands) |
| 2026 | $ | 11,043 | |
| 2027 | 12,698 | |
| 2028 | 12,529 | |
| 2029 | 10,719 | |
| 2030 | 5,507 | |
| 2031 and thereafter | 13,306 | |
| Total minimum lease payments | 65,802 | |
| Less: interest | (13,528) | |
| Present value of net minimum lease payments | 52,274 | |
| Less: lease liabilities, current | (7,315) | |
| Lease liabilities, noncurrent | $ | 44,959 | |
The operating lease payments in the table above exclude approximately $3.2 million of legally binding minimum lease payments for a lease signed during the year ended December 31, 2025 that has yet to commence.
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.