Leases

3 Months Ended

Mar. 31, 2025

12. Leases

The Company has operating leases for corporate offices with initial lease terms ranging from one year to 15 years. Certain leases contain options to extend the initial term at the Company’s discretion. The Company accounts for the option to extend when it is reasonably certain of being exercised. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The Company also has operating and finance leases for equipment with initial lease terms ranging from one-year to 5 years.

The following table presents the components of operating lease expense for the three months ended March 31, 2025 and 2024:


		Three Months Ended March 31,
Lease cost:	Classification	2025		2024
		(In thousands)
Operating lease cost - office space	Occupancy	$	2,751	$	2,753
Operating lease cost - equipment	Technology and communications		98		98
Variable lease costs	Occupancy		785		587
Total operating lease cost		$	3,634	$	3,438

Finance lease expense was $0.1 million for each of the three months ended March 31, 2025 and 2024.

The Company determines whether an arrangement is, or includes, a lease at contract inception. Operating lease right-of-use assets and liabilities are recognized at commencement date and are initially measured based on the present value of lease payments over the defined lease term. As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments.

The weighted average remaining lease term and weighted average discount rate are as follows:


	As of
Lease Term and Discount Rate	March 31, 2025			December 31, 2024
Weighted average remaining lease term (in years) - operating leases		8.6			8.8
Weighted average discount rate - operating leases		6.1	%		6.1	%
Weighted average remaining lease term (in years) - finance leases		0.5			0.8
Weighted average discount rate - finance leases		7.2	%		7.2	%

The following table presents the maturity of lease liabilities as of March 31, 2025:


	Operating Leases		Finance Leases
	(In thousands)
Remainder of 2025	$	9,611		59
2026		12,233		—
2027		9,321		—
2028		8,692		—
2029		8,994		—
2030 and thereafter		42,199		—
Total lease payments		91,050		59
Less: imputed interest		20,247		1
Present value of lease liabilities	$	70,803	$	58