Leases
We have operating leases for offices which have remaining lease terms of up to seven years, some of which include options to extend the lease with renewal terms from one to five years. Some leases include an option to terminate the lease for up to five years from the lease commencement date.
Components of lease expense were as follows (in thousands):
| | | | | | | | | | | |
| Year Ended |
| December 31, 2025 | | December 31,
2024 |
| Operating lease expense | $ | 31,375 | | | $ | 41,691 | |
| | | |
| Variable lease expense | 4,700 | | | 6,011 | |
| Sublease income | (4,219) | | | (2,162) | |
| Total lease expense | $ | 31,856 | | | $ | 45,540 | |
Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures):
| | | | | | | | | | | | | | | | | |
| | | As of |
| Classification | | December 31, 2025 | | December 31, 2024 |
| Operating lease assets | Other assets | | $ | 62,207 | | | $ | 78,562 | |
| | | | | |
| Current operating lease liabilities | Accrued expenses and other | | $ | 28,421 | | | $ | 33,703 | |
| Long-term operating lease liabilities | Other long-term liabilities | | 60,961 | | | 81,093 | |
| Total operating lease liabilities | | | $ | 89,382 | | | $ | 114,796 | |
As of December 31, 2025 and December 31, 2024, our operating leases had a weighted-average remaining lease term of 3.8 years and 4.3 years, respectively, and a weighted-average discount rate of 5.0% and 5.4%, respectively.
As of December 31, 2025, our lease liabilities were as follows (in thousands):
| | | | | | | |
| Operating Leases | | |
| Gross lease liabilities | $ | 97,951 | | | |
| Less: imputed interest | 8,569 | | | |
| Present value of lease liabilities | $ | 89,382 | | | |
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.