Leases
The Company has operating leases for real estate and certain equipment. The Company leases office space in Canada, Germany, Spain, the U.K. and the U.S. under operating leases. Our leases have remaining lease terms ranging from less than one year to up to five years. Certain leases include one or more options to renew. In addition, we sublease certain real estate to a third party. All of our leases qualify as operating leases.
The following table summarizes the components of lease expense for the years ended December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Operating lease cost | $ | 2,266 | | | $ | 2,133 | |
| Short-term lease cost | 617 | | | 544 | |
| Variable lease cost | 428 | | | 496 | |
| | | |
| Total lease cost | $ | 3,311 | | | $ | 3,173 | |
Cash payments against the operating lease liabilities totaled $3.5 million and $3.4 million for the years ended December 31, 2025 and 2024. ROU assets obtained in exchange for lease obligations was and $321,000 and $1.3 million for the year ended December 31, 2025 and 2024, respectively.
The following table summarizes the presentation in our consolidated balance sheets of our operating leases (in thousands): | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 |
| Assets: | | | |
| Operating lease right-of-use assets | $ | 4,047 | | | $ | 5,655 | |
| | | | |
| Liabilities: | | | |
| Operating lease liabilities | $ | 1,811 | | | $ | 2,472 | |
| Long-term operating lease liabilities | 4,184 | | | 5,646 | |
| Total operating lease liabilities | $ | 5,995 | | | $ | 8,118 | |
| | | | |
| Weighted average remaining lease term (years) | 3.84 | | 4.43 |
| Weighted average discount rate | 4.1 | % | | 4.8 | % |
| | | | |
Maturities of remaining lease liabilities at December 31, 2025 were as follows (in thousands): | | | | | |
| Years ending December 31, | |
| 2026 | $ | 2,984 | |
| 2027 | 1,509 | |
| 2028 | 1,464 | |
| 2029 | 1,454 | |
| 2030 | 225 | |
| Total lease payments | 7,636 | |
| Less interest | (1,641) | |
| Present value of operating lease liabilities | $ | 5,995 | |
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.