Leases
The Company’s operating leases expire between 2026 and 2029 and are primarily for its corporate headquarters in San Mateo, California, as well as additional office space in Columbus, Ohio and Austin, Texas. Certain leases have rent abatement, escalating rent payment provisions, lease renewal options, and tenant allowances. Rent expense is recognized on a straight-line basis over the non-cancelable lease term, except when it is reasonably certain that the renewal option will be exercised.
During the year ended December 31, 2025, the Company amended its operating lease for its San Mateo office space, which revised the remaining lease term and future lease payments. The amendment resulted in a remeasurement of the related operating lease liability and a corresponding adjustment to the right-of-use asset, reducing both balances by $15.4 million.
Future minimum lease payments are as follows:
| | | | | | | | |
| | December 31, 2025 |
| | |
| 2026 | | $ | 10,607 | |
| 2027 | | 5,558 | |
| 2028 | | 4,441 | |
| 2029 | | 2,990 | |
| | |
| Total undiscounted lease payments | | 23,596 | |
| | |
| Less: Present value adjustment | | (2,447) | |
| Operating lease liabilities | | $ | 21,149 | |
As of December 31, 2025, the Company has entered into leases that have not yet commenced with estimated total future lease payments of $66.2 million. These leases are expected to commence during the fiscal year of 2026, with initial lease terms ranging from 8 to 11 years.
The Company had immaterial finance lease expense during the year ended December 31, 2023 and no finance lease expense during the year ended December 31, 2024 and 2025. The Company’s operating lease expense consists of rent and variable lease payments. Variable lease payments such as common area maintenance and parking fees, were included in operating expenses. Rent expense for the Company’s short-term leases was immaterial during the periods presented. The Company had immaterial sublease income during the years ended December 31, 2023, 2024 and 2025. Operating lease expense was as follows:
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| | | | Year Ended December 31, |
| | | | | | 2023 | | 2024 | | 2025 |
| Rent expense | | | | | | $ | 15,766 | | | $ | 14,198 | | | $ | 14,031 | |
| Variable lease payments | | | | | | $ | 4,067 | | | $ | 3,776 | | | $ | 4,030 | |
Supplemental cash flow and non-cash information related to the Company’s operating leases was as follows:
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| | | | Year Ended December 31, |
| | | | | | 2023 | | 2024 | | 2025 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | | $ | 22,014 | | | $ | 14,396 | | | $ | 15,902 | |
| | | | | | | | | | |
| Adjustments to operating lease right-of-use assets due to modification and other reassessment events | | | | | | $ | (19,865) | | | $ | — | | | $ | (15,397) | |
Supplemental balance sheet information related to the Company’s operating leases was as follows:
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| | |
| | December 31, 2024 | | December 31, 2025 | | |
| Weighted-average remaining lease term (in years) | | 3.60 | | 2.70 | | |
| Weighted-average discount rate | | 5.22% | | 7.13% | | |