Lease

3 Months Ended

Mar. 31, 2026

The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under ASC 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset.

The Company leases office facilities and equipment from unrelated parties under operating lease agreements that have initial terms ranging from 1 to 12 years. Some leases include one or more options to renew, generally at the Company’s sole discretion, with renewal terms that can extend the lease term up to 10 years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants.

Operating lease cost is recognized on a straight-line basis over the lease term. The components of lease expense are as follows (in thousands):


	Three months ended March 31,
	2026		2025
Operating lease cost	$	948	$	1,008
Short-term lease cost	18		11
Total lease cost	$	966	$	1,019

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


	Three months ended March 31,
	2026		2025
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	873	$	1,022

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	—	$	599

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


	March 31, 2026		December 31, 2025
Operating lease right-of-use assets, net of amortization	$	10,643	$	11,315
Included in other current liabilities:
Operating lease liabilities, current	$	2,944	$	2,880
Operating lease liabilities, noncurrent	13,441		14,042
Total operating lease liabilities	$	16,385	$	16,922

Weighted-average remaining lease term - operating leases:	5.27		5.36

Weighted-average discount rate - operating leases:	4.5%		4.5%

Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the balance sheet as of March 31, 2026 is as follows (in thousands):


Remainder of 2026	$	2,691
2027	3,961
2028	3,495
2029	1,830
2030	1,391
Thereafter	7,135
Total lease payments	$	20,503
Less imputed interest	(4,118)
Total present value of lease liabilities	$	16,385