Leases

12 Months Ended

Dec. 31, 2024

The Company leases its operating locations and office facilities under noncancelable lease agreements which expire at various dates through May 2038. Some of these lease agreements include an option to renew at the end of the term. The Company also leases certain office facilities on a month-to-month basis. In some instances, the Company is also required to pay its pro rata share of real estate taxes and utility costs in connection with the premises. Some of the leases contain fixed annual increases of minimum rent.

The Company’s leases frequently allow for lease payments that could vary based on factors such as inflation and the incurrence of contractual charges such as those for common area maintenance or utilities.

Renewal and/or early termination options are common in the lease arrangements, particularly with respect to real estate leases. The Company’s right-of-use ("ROU") assets and lease liabilities generally include periods covered by renewal options and exclude periods covered by early termination options (based on the conclusion that it is reasonably certain that the Company will exercise such renewal options and not exercise such early termination options).

The Company is also party to certain sublease arrangements related to real estate leases, where the Company acts as the lessee and intermediate lessor.

The Company leases certain of its vehicles through finance leases. The finance lease obligations represent the present value of minimum lease payments under the respective agreement, payable monthly at various interest rates.

The following table presents information about lease costs and expenses and sublease income for the years ended December 31, 2024 and 2023 (in thousands). The amounts below, with the exception of interest on lease liabilities, are included in cost of net revenue in the accompanying consolidated statements of operations for the periods presented. The interest on lease liabilities is included in interest expense, net in the accompanying consolidated statements of operations for the periods presented.


	Year Ended December 31,
	2024		2023		2022
Operating lease costs	$	44,667	$	38,365	$	37,822
Finance lease costs:
Amortization of ROU assets	$	11,100	$	5,761	$	8,246
Interest on lease liabilities	$	2,361	$	1,058	$	—
Other lease costs and income:
Variable leases costs (1)	$	24,127	$	20,769	$	17,758
Sublease income	$	730	$	1,427	$	1,380

(1)Amounts represent variable costs incurred that were not included in the initial measurement of the lease liability such as common area maintenance and utilities costs associated with leased real estate.

The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company’s leases as of December 31, 2024 and 2023:


	December 31,
	2024		2023
Weighted average remaining lease term, weighted based on lease liability balances:
Operating leases	5.2 years		5.6 years
Finance leases	3.1 years		3.6 years
Weighted average discount rate, weighted based on remaining balance of lease payments:
Operating leases	4.9	%	4.4	%
Finance leases	6.9	%	6.7	%

The following table provides the undiscounted amount of future cash flows related to the Company's operating and finance leases, as well as a reconciliation of such undiscounted cash flows to the amounts included in the Company’s lease liabilities as of December 31, 2024 (in thousands):


	Operating Leases		Finance Leases
2025	$	33,978	$	16,509
2026	27,411		13,715
2027	19,277		10,015
2028	15,035		2,765
2029	9,809		30
Thereafter	20,728		—
Total future undiscounted leases payments	$	126,238	$	43,034
Less: amount representing interest	(16,018)		(4,089)
Present value of future lease payments (lease liability)	$	110,220	$	38,945

The following table provides certain cash flow and supplemental non-cash information related to the Company's lease liabilities for the years ended December 31, 2024 and 2023 (in thousands):


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash payments for operating leases	$	40,392	$	38,328	$	37,486
Financing cash payments for finance leases	$	9,865	$	6,769	$	16,176
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	35,871	$	22,000	$	22,543
Finance leases	$	17,871	$	32,101	$	5,423