Leasing
The Company’s leases relate primarily to office facilities that expire on various dates from 2026 through 2029, some of which include one or more options to renew. All of the Company’s leases are classified as operating leases. Operating lease costs, including insignificant costs related to short-term leases, were $7.7 million, $8.0 million and $6.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company made cash payments for operating leases of $10.2 million, $10.0 million and $10.9 million for the years ended December 31, 2025, 2024 and 2023, respectively, which were included in cash flows from operating activities within the Consolidated Statements of Cash Flows. In addition, for the years ended December 31, 2025 and 2024, the Company recorded right-of-use assets of $0.8 million and $2.9 million, respectively, which were obtained in exchange for lease obligations. For the years ended December 31, 2025 and 2024, the Company’s operating leases have a weighted average remaining lease term of 3.3 years and 4.1 years, respectively, and a weighted average discount rate of 6.5%.
Balance sheet information for the Company’s leases as of December 31, 2025, is as follows: | | | | | | | | | | | | | | |
| | December 31, |
| (in thousands) | | 2025 | | 2024 |
| | | | |
| Right-of-use assets | | $ | 9,770 | | | $ | 13,956 | |
| | | | |
| Lease liabilities, current | | $ | 8,335 | | | $ | 9,717 | |
| Lease liabilities, non-current | | 17,247 | | | 23,365 | |
| Total lease liabilities | | $ | 25,582 | | | $ | 33,082 | |
| | | | |
Lease Commitments
Future undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its lease liabilities at December 31, 2025 are as follows (in thousands): | | | | | | | | |
| Reconciliation of future undiscounted lease payments to lease liabilities | | Lease Commitments |
| Year ending December 31, | | |
| | |
| 2026 | | 8,560 | |
| 2027 | | 8,651 | |
| 2028 | | 8,395 | |
| 2029 | | 2,660 | |
| | |
| | |
| Total undiscounted lease payments | | 28,266 | |
| Less: imputed interest | | (2,684) | |
| Total lease liabilities | | $ | 25,582 | |
The Company’s most significant lease is for its headquarters in New York City, which was entered into in March 2013 and was amended in January 2016 (“ESB Lease”). As amended, the ESB Lease will expire in 2029, and the undiscounted remaining future minimum lease payments are approximately $25.4 million. The Company is also party to a letter of credit as a security deposit for this leased facility, in the amount of $1.3 million.
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.