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Leases | 6 Months Ended
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Jun. 30, 2025
Leases [Abstract] |
Leases | 4. Leases As of June 30, 2025, our lease portfolio consists entirely of operating leases for corporate offices. Our operating leases have remaining lease terms with various expiration dates through 2031, and some leases include options to extend the term for up to an additional 10 years. Lease Costs Expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. We have lease agreements which require payments for lease and non-lease components (i.e., common area maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as maintenance costs, utilities, and service charges, are not included in right-of-use (“ROU”) assets for operating leases or operating lease liabilities but rather are expensed as incurred and recorded as variable lease expense. We often receive customary incentives from our landlords such as tenant improvement allowances (“TIAs”) and rent abatement periods, which effectively reduce total lease payments owed for the leases. The following table sets forth the components of lease expense for the three and six months ended June 30, 2025 and 2024 (in thousands, exclusive of sublease income):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost | $ | 2,615 |  |  | $ | 2,410 |  |  | $ | 5,008 |  |  | $ | 4,821 |
Short-term lease cost | 282 |  |  | 433 |  |  | 532 |  |  | 765 |
Variable lease cost | 1,244 |  |  | 1,335 |  |  | 2,616 |  |  | 2,648 |
Total | $ | 4,141 |  |  | $ | 4,178 |  |  | $ | 8,156 |  |  | $ | 8,234 |
Sublease income totaled $0.3 million and $0.7 million for the three and six months ended June 30, 2025, respectively. Sublease income totaled $0.3 million and $0.6 million for the three and six months ended June 30, 2024, respectively. Lease Impairment Charges There were no lease impairment charges during the three and six months ended June 30, 2025. During the second quarter of 2024, we initiated actions to reduce the footprint of our leased office spaces. During the three months ended June 30, 2024, we recorded non-cash lease impairment charges of $5.5 million within general and administrative expenses in our consolidated statements of operations related to the two ROU assets. The non-cash lease impairment charges represent the amount the carrying value of the two asset groups exceeded their estimated fair values. The asset groups represented two separate floors within our corporate headquarters facility. The fair values of the two asset groups were measured using discounted cash flow models based on market rents and sublease incomes projected over the remaining lease terms. Supplemental Lease Information Supplemental balance sheet information related to operating leases as of June 30, 2025 and December 31, 2024 is presented in the following table (in thousands, except for lease term and discount rate):
| As of
| June 30, 2025 |  | December 31, 2024
Right-of-use assets for operating leases | $ | 30,951 |  | $ | 31,081
Operating lease liabilities, current | $ | 13,052 |  | $ | 12,378
Operating lease liabilities, net of current portion | 49,810 |  | 52,189
Total operating lease liabilities | $ | 62,862 |  | $ | 64,567
Weighted average remaining lease term (in years) | 6.0 |  | 6.5
Weighted average discount rate | 9.4 | % |  | 9.4 | %
Supplemental cash flow and expense information related to operating leases for the three and six months ended June 30, 2025 and 2024 is shown below (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Operating cash outflows for operating leases | $ | 3,248 |  |  | $ | 3,130 |  |  | $ | 6,441 |  |  | $ | 5,773 |
Amortization of operating lease right-of-use assets | 947 |  |  | 815 |  |  | 1,857 |  |  | 1,598 |
Interest expense on operating lease liabilities | 1,466 |  |  | 1,595 |  |  | 2,949 |  |  | 3,224 |
There were no TIA reimbursements for the three and six months ended June 30, 2025 or 2024. A summary of our future minimum lease commitments under non-cancellable leases as of June 30, 2025 is shown below (in thousands):
| Operating Leases
2025 (excluding the six months ended June 30, 2025) | $ | 6,820 |
2026 | 13,829 |
2027 | 14,015 |
2028 | 12,881 |
2029 | 12,411 |
Thereafter | 22,908 |
Total lease payments | 82,864 |
Less: imputed interest | (20,002) |
Total | $ | 62,862 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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