The Company is obligated under various non-cancelable operating leases primarily for office space. The initial terms of the leases expire on various dates through 2032. We determine if an arrangement is a lease at inception.

The components of the Company’s operating lease expenses are reflected in the condensed consolidated statements of income as follows:

⁽¹⁾ Short-term lease expenses include rent expenses from leases of 12 months or less on the transition date or lease commencement.

⁽²⁾ Variable lease cost includes common area maintenance, property taxes, and fluctuations in rent due to a change in an index or rate.

Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We elected to combine fixed payments for non-lease components, for all classes of underlying assets, with our lease payments and account for them together as a single lease component, which increases the amount of our lease assets and liabilities.

During the three months ended March 31, 2026 and 2025, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $7.2 million and $3.6 million, respectively.

Other information related to operating leases is as follows:

	*Three Months Ended March 31,*
	*2026*		*2025*
	(in thousands)
Cash paid for amounts included in the measurement of the lease liability:
Operating cash flows from operating leases	$	2,830	$	2,462

As of March 31, 2026, our operating leases had a weighted average remaining lease term of 3.4 years and a weighted average discount rate of 5.5%.

As of December 31, 2025, our operating leases had a weighted average remaining lease term of 3.1 years and a weighted average discount rate of 5.4%.

The maturity schedule of the operating lease liabilities as of March 31, 2026 is as follows:

Year Ending December 31:
	(in thousands)
2026 (nine months)	$	7,042
2027		7,868
2028		3,859
2029		2,755
2030		1,956
Thereafter		756
Total future lease payments		24,236
Less: Present value adjustment		(2,229	)
Present value of future lease payments ⁽¹⁾	$	22,007

⁽¹⁾ Includes the current portion of operating lease liabilities of $8.7 million, which is reflected in accrued expenses and other current liabilities in the condensed consolidated balance sheets.

As of March 31, 2026, letters of credit have been issued in the amount of $1.0 million as security for operating leases. The letters of credit are secured by a sublimit of our line of credit (refer to “Note 7 - Line of Credit” for further details).