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Leases
9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases
7. Leases
The Company applies the guidance under Topic 842 for leases of real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2029.
As a result of new leasing activity during fiscal year 2024, the Company was entitled to receive $2.1 million in tenant incentives for leasehold improvements constructed by the Company. The total amount of tenant incentives was received during the three months ended September 30, 2025.
The Company recognized the following amounts related to its operating leases in its condensed consolidated statements of operations and cash flows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2025202420252024
Operating lease costs$1,283 $1,123 $3,482 $3,928 
Variable lease costs$287 $187 $779 $740 
Short-term lease costs
$67 $155 $475 $390 
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives
$1,592 $5,024 
Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year as of September 30, 2025, were as follows (in thousands):

2025$1,430 
20265,287 
20273,179 
20282,298 
20291,166 
Gross lease payments13,360 
Less imputed interest(1,392)
Present value of operating lease liabilities$11,968