LEASES
We lease space under non-cancelable operating leases for office space, warehouse facilities, and installation locations. We also lease vehicles and equipment to support our global operations. We have not elected the practical expedient to combine lease and non-lease components.
Some of our leases contain options to renew. The exercise of lease renewals is at our sole discretion; therefore, the renewals to extend the lease terms are not included in our right-of-use assets as it is not reasonably certain that they will be exercised. We regularly evaluate the renewal options and, when they are reasonably certain of exercise, we include the renewal period in our lease term.
We use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. In determining our incremental borrowing rate for each lease, we use a rate for collateralized borrowings with a term similar to the life of the lease. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate.
Balance sheet information related to operating leases is as follows (in thousands):
| | | | | | | | |
| December 31, 2025 | December 31, 2024 |
| Operating lease right-of-use assets | $ | 21,561 | | $ | 19,490 | |
| | |
| Current portion of operating lease liabilities | 6,094 | | 4,666 | |
| Noncurrent portion of operating lease liabilities | 16,710 | | 16,126 | |
| Total operating lease liabilities | $ | 22,804 | | $ | 20,792 | |
We had operating lease expense of $6.9 million, $6.1 million, and $5.0 million, respectively, for the years ended December 31, 2025, 2024, and 2023. For the year ended December 31, 2025, we had $0.2 million in short-term lease expenses while cash payments on leases, and variable expenses were $7.7 million, and $2.1 million, respectively. For the year ended December 31, 2024, short-term lease expenses were $0.4 million while cash payments on leases and variable lease expenses were $5.8 million, and $1.9 million, respectively. We have elected not to apply balance sheet recognition to short-term leases.
Weighted-average information associated with the measurement of our remaining operating lease obligations is as follows:
| | | | | | | | |
| December 31, 2025 | December 31, 2024 |
| Weighted-average remaining lease term (in years) | 4.27 | 4.90 |
| Weighted-average discount rate | 7.0 | % | 6.9 | % |
The following table summarizes the maturity of our operating lease liabilities as of December 31, 2025:
| | | | | |
| 2026 | $ | 7,935 | |
| 2027 | 6,715 | |
| 2028 | 5,080 | |
| 2029 | 3,173 | |
| 2030 | 1,838 | |
| Thereafter | 2,435 | |
| Total operating lease payments | 27,176 | |
| Less: interest | (4,372) | |
| Total operating lease liabilities | $ | 22,804 | |