Leases

6 Months Ended

Jun. 30, 2025

The Company’s operating lease arrangements are principally for office spaces in New York City. In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its former New York City headquarters (the “Sublease”). Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s condensed consolidated statement of operations. The sublease ends on December 31, 2029, the expiration date of the Company’s former New York City headquarter’s lease. In November 2023, the Company entered into a lease agreement, as the lessee, for the Company’s new corporate headquarters in New York City (the “Lease Agreement”) which commenced in January 2024 with a five year term and an option to extend the lease for an additional five years.

As of June 30, 2025, the Company had $18.6 million of operating lease right-of-use assets, $4.4 million and $16.4 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet. These operating lease arrangements, included in the measurement of lease liabilities, had a weighted-average remaining lease term of 4.4 years, a weighted-average discount rate of 6.2%, and do not reflect options to extend or terminate its leases, as management does not consider the exercise of these options to be reasonably certain. As of December 31, 2024, the Company had $19.7 million of operating lease right-of-use assets, $4.2 million and $18.0 million of current and non-current operating lease liabilities, respectively, and no finance leases on its consolidated balance sheet.

During the three and six months ended June 30, 2025, the Company paid $1.4 million and $2.7 million for amounts included in the measurement of lease liabilities, respectively, and $1.1 million and $2.1 million during the three and six months ended June 30, 2024, respectively. In April 2025, the Company entered into a new lease agreement for office space in Lithuania with a five year term that resulted in a right-of-use asset and lease liabilities of $0.7 million. The Company did not enter into any new lease arrangements during the three and six months ended June 30, 2024.

The following table summarizes total lease expense, net for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Operating lease expense	$	1,244	$	1,224	$	2,470	$	2,305
Short-term lease expense	8		12		61		12
Variable lease expense	315		328		618		608
Total lease expense	1,567		1,564		3,149		2,925
Sublease income	(886)		(1,054)		(1,775)		(1,753)
Total lease expense, net	$	681	$	510	$	1,374	$	1,172

Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than 12 months and therefore are recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. As of June 30, 2025, the total remaining operating lease payments included in the measurement of lease liabilities, and undiscounted remaining cash receipts from the Company’s Sublease was as follows (in thousands):


Fiscal Year Ending December 31,	Operating Lease Payments		Sublease Cash Receipts
2025 (remaining)	$	(2,806)	$	1,723
2026	(5,429)		3,504
2027	(5,429)		3,574
2028	(5,429)		3,645
2029	(4,458)		3,718
2030	(41)		—
Total (payments) cash receipts	$	(23,592)	$	16,164
Less: imputed interest	2,830
Total lease liabilities	$	(20,762)