Leases

9 Months Ended

Sep. 30, 2025

Leases [Abstract]

Leases

Leases

The Company’s lease portfolio includes both real estate and non-real estate type leases, which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than three years.

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

	For the three months ended September 30,				For the nine months ended September 30,
	2025		2024		2025		2024
Finance lease expense:
Amortization	$	—	$	—	$	—	$	8
Operating lease expense:
Operating lease expense(1)	1,792		1,792		5,376		5,376
Sublease income	(501)		(501)		(1,504)		(1,504)
Total lease expense, net	$	1,291	$	1,291	$	3,872	$	3,880

______________________

(1)     Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities.

Based on the nature of the Right-Of-Use (“ROU”) assets, amortization of finance leases and amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the condensed consolidated statements of comprehensive income (loss).

The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands):

Assets	Financial Statement Line Item	September 30, 2025
Operating lease assets	Operating lease right-of-use asset	$	12,281
Total lease assets		$	12,281
Liabilities
Current
Operating lease liabilities	Accrued expenses	8,878
Non-current
Operating lease liabilities	Operating lease liabilities, net of current portion	6,481
Total lease liabilities		$	15,359

Supplemental information related to the Company’s leases for the nine months ended September 30, 2025 was as follows:

Weighted-average remaining lease term (in years)
Finance leases	—
Operating leases	1.8
Weighted-average discount rate
Finance leases	—		%
Operating leases	2.29		%
Cash paid for amounts included in the measurement of lease liabilities (in thousands)
Operating cash flows used in operating leases	$	6,378
Financing cash flows used in finance leases	$	1

The Company did not have any non-cash ROU assets obtained in exchange for lease liabilities during the nine months ended September 30, 2025 for either finance or operating leases.

Leases

Leases

The Company’s lease portfolio includes both real estate and non-real estate type leases, which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than three years.

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

	For the three months ended September 30,				For the nine months ended September 30,
	2025		2024		2025		2024
Finance lease expense:
Amortization	$	—	$	—	$	—	$	8
Operating lease expense:
Operating lease expense(1)	1,792		1,792		5,376		5,376
Sublease income	(501)		(501)		(1,504)		(1,504)
Total lease expense, net	$	1,291	$	1,291	$	3,872	$	3,880

______________________

(1)     Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities.

Based on the nature of the Right-Of-Use (“ROU”) assets, amortization of finance leases and amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the condensed consolidated statements of comprehensive income (loss).

The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands):

Assets	Financial Statement Line Item	September 30, 2025
Operating lease assets	Operating lease right-of-use asset	$	12,281
Total lease assets		$	12,281
Liabilities
Current
Operating lease liabilities	Accrued expenses	8,878
Non-current
Operating lease liabilities	Operating lease liabilities, net of current portion	6,481
Total lease liabilities		$	15,359

Supplemental information related to the Company’s leases for the nine months ended September 30, 2025 was as follows:

Weighted-average remaining lease term (in years)
Finance leases	—
Operating leases	1.8
Weighted-average discount rate
Finance leases	—		%
Operating leases	2.29		%
Cash paid for amounts included in the measurement of lease liabilities (in thousands)
Operating cash flows used in operating leases	$	6,378
Financing cash flows used in finance leases	$	1

The Company did not have any non-cash ROU assets obtained in exchange for lease liabilities during the nine months ended September 30, 2025 for either finance or operating leases.