LEASES

12 Months Ended

Dec. 31, 2024

The Company has primarily entered into lease arrangements for office space, in addition to other miscellaneous equipment. The Company’s leases have initial non-cancelable lease terms ranging from one to 10 years. Some of the Company’s lease arrangements include options to extend the term of the leases for up to 10 years. However, the lessor does not have the option to cancel any of the Company’s leases prior to the end of the remaining contractual term. Judgment is required when determining the minimum non-cancelable term of the lease. The Company includes options to extend or terminate the lease term that are reasonably certain of exercise. If facts and circumstances regarding those judgments change in future periods, the Company reassesses its initial estimate of the term. The Company’s corporate headquarters offices have initial lease terms expiring in 2027, and 10-year renewal options that the Company was reasonably certain it would exercise at lease commencement. The Company reassesses lease terms when there is a significant event or a significant change that is within its control that directly affects whether the Company is reasonably certain to exercise or not to exercise an option. The Company determined that the present value of lease payments represents substantially all of the fair value of the underlying leased asset and therefore recognizes its corporate headquarters as a finance lease. The components of lease expense were as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Finance lease cost:
Amortization of right of use assets	$	2,645	$	2,672	$	2,705
Interest on lease liabilities	1,874		1,953		2,017
Operating lease cost	13,264		14,620		11,526
Short-term lease cost	742		1,344		674
Variable lease cost	5,038		4,821		5,667
Total lease cost	$	23,563	$	25,410	$	22,589

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


	December 31,
	2024		2023
Operating Leases
Operating right of use assets	$	28,790	$	44,141
Amount included within other current liabilities	3,746		10,399
Operating lease liabilities, non-current	32,697		37,923
Total operating lease liabilities	$	36,443	$	48,322
Finance Leases
Finance right of use assets	$	31,727	$	34,375
Amount included within other current liabilities	2,228		2,019
Finance lease liabilities, non-current	41,352		43,581
Total finance lease liabilities	$	43,580	$	45,600


	December 31,
	2024		2023		2022
Weighted-average remaining lease term (in years)
Finance leases	12.2		13.2		14.2
Operating leases	8.9		5.5		6.6
Weighted-average discount rate
Finance leases	4.21	%	4.21	%	4.20	%
Operating leases	6.10	%	3.58	%	2.89	%

Maturities of lease payments, net of tenant improvement reimbursement, for leases where the lease commencement date commenced on or prior to December 31, 2024 are as follows (in thousands):


Years Ending December 31,	Operating		Finance		Total
2025	$	(3,157)	$	4,013	$	856
2026	3,156		4,126		7,282
2027	5,291		4,288		9,579
2028	6,738		4,424		11,162
2029	5,398		4,512		9,910
Thereafter	37,258		35,021		72,279
Total lease payments, net of tenant improvement reimbursement	$	54,684	$	56,384	$	111,068
Less imputed interest	(18,241)		(12,804)		(31,045)
Total	$	36,443	$	43,580	$	80,023

During the year ended December 31, 2024, the Company modified its office leases in Austin, Texas to extend the lease terms and adjust the rent obligations, which resulted in an increase of $10.7 million in future rent commitments from the modification date through 2036. In February 2025, the Company further modified its office leases in Austin, Texas to expand the leased premises and extend the lease terms, which resulted in an additional $22.0 million in future rent commitments, net of tenant improvement reimbursement, starting in 2025. Total operating lease commencements and modifications during the period resulted in net decreases to right of use assets–operating leases and corresponding operating lease liabilities on the accompanying consolidated balance sheets of $4.0 million and $4.3 million, respectively, which primarily relate to the modified lease in

Texas. These decreases to the asset and liability were primarily due to higher discount rates in 2024 as compared to the original lease commencement periods, and tenant improvement allowances.

As of December 31, 2024, operating lease payments for leases greater than one month, but less than 12 months in duration were not significant. As of December 31, 2024, the Company had outstanding letters of credit totaling approximately $4.3 million on an unsecured basis to secure various leased office facilities in the U.S. and Australia.