Leases

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2025 and 2024:


		Three Months Ended September 30,				Nine Months Ended September 30,
Lease cost:	Classification	2025		2024		2025		2024
		(In thousands)
Operating lease cost - office space	Occupancy	$	2,868	$	2,774	$	8,445	$	8,278
Operating lease cost - equipment	Technology and communications		97		98		293		293
Variable lease costs	Occupancy		908		975		2,540		2,444
Total operating lease cost		$	3,873	$	3,847	$	11,278	$	11,015

Finance lease expense was $0.1 million for each of the three and nine months ended September 30, 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	September 30, 2025			December 31, 2024
Weighted average remaining lease term (in years) - operating leases		8.2			8.8
Weighted average discount rate - operating leases		6.1	%		6.1	%
Weighted average remaining lease term (in years) - finance leases		—			0.8
Weighted average discount rate - finance leases		—			7.2	%

The following table presents the maturity of lease liabilities as of September 30, 2025:


	Operating Leases
	(In thousands)
Remainder of 2025	$	3,269
2026		12,489
2027		9,448
2028		8,731
2029		9,006
2030 and thereafter		42,154
Total lease payments		85,097
Less: imputed interest		18,225
Present value of lease liabilities	$	66,872