LEASES
The Company has various operating leases for office space and vehicles that expire through 2035. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Below is a summary of the Company's operating right-of-use assets and operating lease liabilities (in thousands):
| | | | | |
| December 31, 2025 |
| Operating lease right-of-use assets | $ | 57,677 | |
| |
| Operating lease liabilities, current | $ | 9,739 | |
| Operating lease liabilities, long-term | 59,749 | |
| Total operating lease liabilities | $ | 69,488 | |
| |
Operating lease liabilities, current are included within accrued expenses and other short-term liabilities in the consolidated balance sheets.
Some leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company's right-of-use assets and lease liabilities, as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. Lease modifications result in remeasurement of the right-of-use assets and lease liabilities.
Some of the real estate leases contain variable lease payments, including payments based on a CPI. Variable lease payments based on a CPI are initially measured using the index in effect at lease commencement. Additional payments based on the change in a CPI are recorded as a period expense when incurred.
The Company has deposit guarantees issued by a financial institution to secure various operating lease agreements in connection with its office space.
Minimum lease payments for the Company's right-of-use assets over the remaining lease periods as of December 31, 2025, are as follows (in thousands):
| | | | | |
| December 31, 2025 |
| 2026 | $ | 12,588 | |
| 2027 | 13,020 | |
| 2028 | 9,842 | |
| 2029 | 11,414 | |
| 2030 | 10,277 | |
| Thereafter | 24,808 | |
| Total undiscounted lease payments | $ | 81,949 | |
| |
| Less: Imputed interest | $ | (12,461) | |
| |
| Present value of lease liabilities | $ | 69,488 | |
As of December 31, 2025, the Company has an additional operating lease that has not yet commenced of $9,040. This operating lease is expected to commence in the first quarter of 2026 with a lease term of five years.
The weighted average remaining lease term and discount rate for all operating leases were as follows, as of December 31, 2025 and 2024:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted average remaining lease term (years) | 7.61 | | 5.39 |
| | | |
| Weighted average discount rate | 4.27 | % | | 2.89 | % |
Total operating lease cost for the years ended December 31, 2025, 2024 and 2023 was $9,868, $9,812 and $9,803, inclusive of sublease income of $1,635, $1,154 and $1,772, respectively and short-term lease cost of $908, $1,091 and $400, respectively.
Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2025, 2024 and 2023 was $8,578, $8,242 and $11,044, respectively.