LEASES
The main operating lease expenses include leases of office locations, data centers and vehicles. The lease terms of the Company’s operating leases, with various expiration dates through 2033.
The following table presents supplemental information related to the operating leases:
| | | | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| Weighted average remaining operating lease term in years | | 3.8 | | 3.6 |
| Weighted average discount rate of operating leases | | 5.23 | % | | 5.52 | % |
The Company lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
The components of lease expense related to leases for the years ended December 31, 2025, 2024 and 2023, were as follows:
| | | | | | | | | | | | | | | | | |
| Year ended |
| December 31, |
| 2025 | | 2024 | | 2023 |
| Components of lease expense: | | | | |
| Operating lease cost | $ | 30,575 | | | $ | 23,499 | | | $ | 20,286 | |
| Short-term lease cost and variable lease cost | 2,054 | | | 1,190 | | | 2,462 | |
| Sublease income | $ | — | | | $ | — | | | $ | (167) | |
Maturities of lease liabilities as of December 31, 2025, were as follows:
| | | | | | | | |
| Year Ending December 31, | | | | Amount |
| 2026 | | | | $ | 33,569 | |
| 2027 | | | | 28,070 | |
| 2028 | | | | 15,922 | |
| 2029 | | | | 8,972 | |
| 2030 | | | | 5,646 | |
| Thereafter | | | | 9,814 | |
| Total undiscounted lease payments | | | | $ | 101,993 | |
| Less: imputed interest | | | | (10,203) | |
| Present value of lease liabilities | | | | $ | 91,790 | |
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.