8. Leases

The Company leases certain office facilities, managed data center facilities and vehicles under non-cancelable operating lease arrangements for its U.S. and international locations that expire on various dates through 2034.

Upon completing the Acquisition, the Company classified the acquired leases as operating leases under U.S. GAAP and performed a measurement of the lease liabilities as of the Acquisition date. The right-of-use asset was measured at the same amount, adjusted to reflect any favorable and unfavorable market adjustments. The Company elected to apply the short-term lease measurement and recognition exemption to acquired leases that had a remaining lease term of 12 months or less as of the Acquisition date, as well as its existing election not to separate the lease and non-lease components for its real estate leases.

The following table summarizes assets and liabilities related to the Company’s operating leases:


	Consolidated Balance Sheet Location	December 31, 2025		December 31, 2024
		(In thousands)

Operating lease assets	Operating lease right-of-use assets, net	$	28,810	$	15,047





Current liabilities	Accrued and other current liabilities	$	9,108	$	4,033



Non-current liabilities	Operating lease liabilities, non-current	21,674		11,783

The following table presents the components of the Company’s total lease expense:


		Twelve Months Ended December 31,
	Consolidated Statements of Operations Location	2025		2024		2023
		(In thousands)
Operating lease cost:
Fixed lease costs	Cost of revenue and operating expenses	$	11,242	$	5,130	$	4,453
Variable lease costs	Operating expenses	1,385		328		207
Short-term lease costs	Operating expenses	1,485		552		578
Lease impairment cost (1)	Impairment charges of intangible assets	99		—		—
Sublease income	Operating expenses	(907)		(159)		—
Finance lease cost:
Depreciation	Cost of revenue	—		226		1,632
Interest	Interest expense	—		3		83
Total lease cost		$	13,304	$	6,080	$	6,953

(1)During the twelve months ended December 31, 2025, the Company exited one of its office locations, resulting in a non-cash charge of $0.1 million to impair the associated right-of-use asset, recorded within impairment charges of intangible assets.

As of December 31, 2025, the maturities of the Company’s lease liabilities under operating leases were as follows:


Year	Operating Leases
	(In thousands)
2026	$	11,565
2027	9,964
2028	7,749
2029	5,231
2030	1,424
Thereafter	557
Total minimum payments required	$	36,490
Less: imputed interest	5,708
Total present value of lease liabilities	$	30,782

The following table summarizes weighted-average lease terms and discount rates for the Company’s operating leases:

December 31, 2025

December 31, 2024

Weighted-average remaining lease term (in years)

3.53 years

4.40 years

Weighted-average discount rate

9.85%

9.68%

Supplemental cash flow information related to the Company’s leases is as follows:


	Year Ended December 31, 2025		Year Ended December 31, 2024		Year Ended December 31, 2023
	(In thousands)
Cash paid for amounts included in measurement of operating lease liabilities:
Operating cash outflows from operating leases	$	11,694	$	5,092	$	4,297
Cash flows from finance leases	$	—	$	263	$	1,830
Right-of-use assets obtained in exchange for new lease obligations	$	19,977	$	6,917	$	5,061

Historical Timeline

Fiscal Year	Filed
2025	Mar 16, 2026	Showing above
2024	Mar 7, 2025

2023	Mar 8, 2024

2022	Mar 15, 2023

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.

Teads Holding Co. Leases Disclosure

Historical Timeline

About Leases Disclosures

Other Available Disclosures