LEASES
The Company is a lessee to leases of corporate offices and certain office equipment. The majority of leases for corporate offices include one or more options to renew, with renewal terms ranging from two to five years. These renewal options have not been included in the calculation of right-of-use assets and lease liabilities, as the Company is not reasonably certain of the exercise of these renewal options. The Company used its incremental borrowing rate to calculate the right-of-use asset and lease liability for each lease.
As of December 31, 2025, right-of-use assets totaled $31.7 million and lease liabilities, the current portion of which is included in accrued expenses and other current liabilities in the accompanying balance sheet, totaled $48.0 million. At December 31, 2024, right-of-use assets totaled $52.6 million and lease liabilities totaled $75.0 million.
Lease expense, which is included in general and administrative expense on the accompanying consolidated statements of operations and comprehensive income (loss), consists of the following (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 7,954 | | | $ | 8,515 | | | $ | 9,506 | |
| Short-term lease cost | 69 | | | 41 | | | 26 | |
| | | | | |
| Total lease cost | $ | 8,023 | | | $ | 8,556 | | | $ | 9,532 | |
Weighted average remaining lease term and discount rate for operating leases are as follows: | | | | | | | | | | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 | | December 31, 2023 | | |
| Weighted average remaining lease term | 10.2 years | | 11.1 years | | 11.6 years | | |
| Weighted average discount rate | 8.2 | % | | 5.1 | % | | 5.0 | % | | |
Supplemental cash flow information related to leases is as follows (in thousands): | | | | | | | | | | | | | | | | | | | |
| Year Ended December 31, | | |
| 2025 | | 2024 | | 2023 | | |
| Net cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
| Operating cash flows from operating leases | $ | 9,879 | | | $ | 11,355 | | | $ | 13,705 | | | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 84 | | | $ | 17 | | | $ | 861 | | | |
Maturities of lease liabilities as of December 31, 2025 are as follows (in thousands): | | | | | |
| | Operating Leases |
| Year ending December 31, 2026 | $ | 8,186 | |
| Year ending December 31, 2027 | 6,448 | |
| Year ending December 31, 2028 | 6,017 | |
| Year ending December 31, 2029 | 6,176 | |
| Year ending December 31, 2030 | 6,339 | |
| Thereafter | 39,856 | |
| Total lease payments | 73,022 | |
| Less: Interest | 25,031 | |
| |
| Present value of lease liabilities | $ | 47,991 | |
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.