LEASES

3 Months Ended

Mar. 31, 2025

The Company leases facilities under operating leases with various expiration dates through 2032. The Company leases office space in New York, Israel and several other locations.

The security deposits for the leases are $2.9 million and $3.3 million as of March 31, 2025 and December 31, 2024, respectively, which have been recognized as restricted cash, non-current in the unaudited condensed consolidated balance sheets.

The Company’s operating lease expense consists of rent and variable lease payments. Variable lease payments such as common area maintenance were included in operating expenses. Rent expense for the Company’s short-term leases was immaterial for the periods presented. Operating lease expense was as follows (in thousands):


	Three Months Ended March 31,
		2025		2024
Rent expense		$	2,839	$	2,909
Variable lease payments		$	135	$	94
Sublease income (1)		$	1,164	$	1,005

(1) The Company entered into sublease agreements for certain leased office space, and the amounts were included in other expense, net in the consolidated statements of income. For three months ended March 31, 2025 and 2024, the Company recognized $0 and $0.4 million of the sublease impairment loss, respectively.

Supplemental information related to the Company’s operating leases was as follows ($ in thousands):


	March 31, 2025		December 31, 2024
Weighted-average remaining lease term (in years)	5.5		5.8
Weighted-average discount rate	9.1	%	9.1	%


	Three Months Ended March 31,
		2025		2024

Operating lease right-of-use assets recognized in exchange for new operating lease obligations (1)		$	—	$	(219)

(1) During the three months ended March 31, 2025 and 2024, $0 and $0.2 million of operating lease right-of-use assets and corresponding lease liability were derecognized as a result of early termination.

Maturities of the Company’s operating lease liabilities as of March 31, 2025 were as follows (in thousands):


2025	$	7,021
2026	9,244
2027	7,788
2028	5,082
2029	5,167
Thereafter	9,904
Total	44,206
Less: imputed interest	(9,058)
Total operating lease liabilities	$	35,148