Leases

9 Months Ended

Sep. 30, 2025

LEASES

The Company has various operating leases for office space, vehicles and office equipment 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):


	September 30, 2025
	(unaudited)
Operating lease right-of-use assets	$	59,159

Operating lease liabilities, current	$	8,991
Operating lease liabilities, long-term	59,921
Total operating lease liabilities	$	68,912

Operating lease liabilities, current are included within accrued expenses and other short-term liabilities in the condensed 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 Consumer Price Index ("CPI"). Variable lease payments based on a CPI are initially measured using the index in effect at lease adoption. 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 September 30, 2025, are as follows (in thousands):


	September 30, 2025
	(unaudited)
2025	$	2,141
2026	12,803
2027	11,774
2028	9,113
2029	10,888
Thereafter	34,360
Total undiscounted lease payments	$	81,079

Less: Imputed interest	$	(12,167)
Present value of lease liabilities	$	68,912

As of September 30, 2025, the Company has additional operating leases that have not yet commenced of $12,250. These operating leases are expected to commence in 2025 and 2026, with lease terms ranging from approximately three to five years.

The weighted average remaining lease term and discount rate for all operating leases were as follows, as of September 30, 2025:


Remaining lease term and discount rate:
Weighted average remaining lease term (years)	7.80

Weighted average discount rate	3.98	%

Total operating lease cost for the three and nine months ended September 30, 2025 was $2,026 and $7,141, respectively, inclusive of sublease income of $446 and $1,173, respectively. Total operating lease cost for the three and nine months ended September 30, 2024 was $2,432 and $7,333, respectively, inclusive of sublease income of $170 and $981, respectively.