Leases
The Company has operating leases for corporate offices and data centers with initial lease terms ranging from one to 16 years.
In June 2024, the Company entered into a non-cancellable operating lease for its new corporate headquarters in New York City. The lease commenced in September 2025, with an initial lease term through May 2041 and either a five or a ten-year extension option available. The Company is not reasonably certain to exercise these options, and they are excluded from the lease term and measurement. Upon lease commencement, the Company recognized an operating lease right-of-use asset and corresponding lease liability of $92.9 million and $103.5 million, respectively, measured using an incremental borrowing rate of 5.3% determined based on a collateralized rate with a term commensurate with the lease term at the commencement date and recorded $11.4 million in leasehold improvements. The Company’s prior New York City office lease expired on September 30, 2025.
The following is a summary of lease right-of-use assets and lease liabilities related to operating leases as of December 31, 2025 and 2024:
| | | | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| | | | |
| | (dollars in thousands) |
| Operating lease right-of-use assets | | $ | 123,065 | | | $ | 33,550 | |
| Operating lease liabilities | | $ | 139,168 | | | $ | 35,748 | |
Activity related to the Company’s leases for the years ended December 31, 2025, 2024 and 2023 is as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| | December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | | | |
| | (dollars in thousands) |
| Operating lease expense included as a component of occupancy expense on the accompanying consolidated statements of income | | $ | 17,411 | | | $ | 13,941 | | | $ | 11,768 | |
| Cash paid for amounts included in the measurement of operating lease liability | | $ | 14,211 | | | $ | 14,145 | | | $ | 12,548 | |
At December 31, 2025 and 2024, the weighted average borrowing rate and weighted average remaining lease term are as follows:
| | | | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| | | | |
| Weighted average borrowing rate | | 5.3 | % | | 4.9 | % |
| Weighted average remaining lease term (years) | | 12.4 | | 3.5 |
The following table presents the future minimum lease payments and the maturity of lease liabilities as of December 31, 2025:
| | | | | | | | |
| | Amount |
| | (dollars in thousands) |
| 2026 | | $ | 18,274 | |
| 2027 | | 22,349 | |
| 2028 | | 16,037 | |
| 2029 | | 14,160 | |
| 2030 | | 10,087 | |
| Thereafter | | 114,053 | |
| Total future lease payments | | 194,960 | |
| Less imputed interest | | (55,792) | |
| Lease liability | | $ | 139,168 | |
As of both December 31, 2025 and 2024, one U.S. lease was secured by a $0.5 million letter of credit issued under the Company’s 2023 Revolving Credit Facility (as defined in Note 17 – Commitments and Contingencies).