LEASES

3 Months Ended

Mar. 31, 2026

10. LEASES

The Company has entered into operating leases primarily for office real estate. The leases have remaining terms ranging from less than one year to eight years and may include options to extend or terminate the lease. The depreciable life of operating lease right-of-use assets is limited by the expected lease term.

The components of lease expense are as follows (in thousands):


	Three Months Ended
	March 31, 2026		March 31, 2025
Operating lease expense	$	17,907	$	17,797
Variable lease expense	6,088		6,086
Sublease income	(6,037)		(5,114)
Total operating lease expense	$	17,958	$	18,769

Supplemental cash flow information related to leases is as follows (in thousands):


	Three Months Ended
	March 31, 2026		March 31, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	26,961	$	24,688
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	963	$	2,260
Decrease in operating lease right-of-use assets due to impairment	$	4,920	$	2,870

The Company recorded operating lease right-of-use asset impairment charges of $4.9 million and $2.9 million related to the ceased use of certain of its corporate facilities during the three months ended March 31, 2026 and 2025, respectively. These impairment charges are included within operating expense on the condensed consolidated statements of operations and comprehensive income (loss).

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):


	As of
	March 31, 2026			December 31, 2025
Operating lease right-of-use assets	$	243,701		$	260,341

Operating lease liability, current (included in Accrued liabilities)	88,412			87,425
Operating lease liability, non-current	412,705			435,899
Total operating lease liability	$	501,117		$	523,324

Weighted-average remaining term for operating leases (in years)	5.90			6.11
Weighted-average discount rate for operating leases	3.99		%	3.99		%

Future lease payments under operating leases as of March 31, 2026 are as follows (in thousands):


Year Ending December 31,	Operating Leases (1)
2026 (remaining 9 months)	$	79,896
2027	103,437
2028	100,231
2029	96,615
2030	76,217
Thereafter	109,876
Total future lease payments	566,272
Less: imputed interest	(61,896)
Less: expected tenant improvement allowance	(3,259)
Total	$	501,117

(1) Non-cancelable sublease proceeds for the fiscal years ending December 31, 2026 (remaining 9 months), 2027, 2028, and 2029 of $14.0 million, $18.8 million, $18.8 million, and $12.0 million, respectively, are not included in the table above.