LeasesThe Company has finance leases for computer equipment and operating leases for real estate. These leases have remaining lease terms of less than one year to five years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within four years. As of December 31, 2025, the weighted average remaining lease term for the Company's finance leases and operating leases was 1.5 years and 1.8 years, respectively. As of December 31, 2025, the weighted average discount rate for the Company's finance leases and operating leases was 9.4% and 10.5%, respectively.
The components of lease cost were as follows:
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| | Years Ended December 31, |
| (In thousands) | | 2025 | | 2024 | | 2023 |
| Finance lease cost | | | | | | |
| Amortization of right-of-use assets | | $ | 3,713 | | | $ | 3,651 | | | $ | 1,929 | |
| Interest on lease liabilities | | 672 | | | 712 | | | 244 | |
| Total finance lease cost | | $ | 4,385 | | | $ | 4,363 | | | $ | 2,173 | |
| | | | | | |
| Operating lease cost | | | | | | |
| Fixed lease cost | | $ | 6,935 | | | $ | 8,248 | | | $ | 9,231 | |
| Short-term lease cost | | 93 | | | 73 | | | 86 | |
| Variable lease cost | | 549 | | | 987 | | | 1,077 | |
| Sublease income | | (1,750) | | | (1,647) | | | (2,001) | |
| Total operating lease cost | | $ | 5,827 | | | $ | 7,661 | | | $ | 8,393 | |
Lease costs, net of sublease income, are reflected in the Consolidated Statements of Operations and Comprehensive Loss as follows:
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| | Years Ended December 31, |
| (In thousands) | | 2025 | | 2024 | | 2023 |
| Amortization of right-of-use assets | | | | | | |
| Cost of revenues | | $ | 3,701 | | | $ | 3,411 | | | $ | 574 | |
| Selling and marketing | | 4 | | | 98 | | | 629 | |
| Research and development | | 5 | | | 90 | | | 470 | |
| General and administrative | | 3 | | | 52 | | | 256 | |
| Total amortization of right-of-use assets | | $ | 3,713 | | | $ | 3,651 | | | $ | 1,929 | |
| | | | | | |
| Operating lease cost | | | | | | |
| Cost of revenues | | $ | 2,061 | | | $ | 2,643 | | | $ | 2,497 | |
| Selling and marketing | | 1,746 | | | 2,192 | | | 2,738 | |
| Research and development | | 1,205 | | | 1,787 | | | 2,044 | |
| General and administrative | | 815 | | | 1,039 | | | 1,114 | |
| Total operating lease cost | | $ | 5,827 | | | $ | 7,661 | | | $ | 8,393 | |
Maturities of operating and finance lease liabilities as of December 31, 2025 were as follows:
| | | | | | | | | | | |
| (In thousands) | Operating Leases | | Finance Leases |
| 2026 | $ | 9,857 | | | $ | 4,092 | |
| 2027 | 5,793 | | | 1,784 | |
| 2028 | 399 | | | 46 | |
| 2029 | 315 | | | — | |
| 2030 | 56 | | | — | |
| | | |
| Total lease payments | 16,420 | | | 5,922 | |
| Less: imputed interest | 1,399 | | | 369 | |
| | | |
| Total lease liabilities | 15,021 | | | 5,553 | |
| Less: current lease liabilities | 8,783 | | | 3,770 | |
| Total non-current lease liabilities | $ | 6,238 | | | $ | 1,783 | |
As of December 31, 2025, the Company has three subleases. The subleases are non-cancelable, have remaining lease terms of less than two years and do not contain any options to renew or terminate the sublease agreement. Future expected cash receipts from these subleases as of December 31, 2025 were as follows:
| | | | | |
| (In thousands) | Sublease Receipts |
| 2026 | $ | 2,006 | |
| 2027 | 1,058 | |
| |
2028 and thereafter | — | |
| |
| Total expected sublease receipts | $ | 3,064 | |
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.