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Leases
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases
4. Leases

As of September 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 nine months ended September 30, 2025 and 2024 (in thousands, exclusive of sublease income):

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Operating lease cost$3,407 $2,356 $8,415 $7,177 
Short-term lease cost259 481 791 1,246 
Variable lease cost1,300 1,324 3,916 3,972 
Total$4,966 $4,161 $13,122 $12,395 
Sublease income totaled $0.3 million and $1.0 million for each of the three and nine months ended September 30, 2025 and 2024.

Lease Impairment Charges

During the second quarter of 2024, we initiated actions to reduce the footprint of our leased office spaces. During the three months ended September 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.

During the third quarter of 2025, we recognized an incremental $0.8 million lease impairment charge related to one of the floors within our corporate headquarters that we ceased use of during the second quarter of 2024. The impairment charge represents the amount the carrying value of the underlying asset exceeded its estimated fair value, which was determined by utilizing a discounted cash flow approach that incorporated lower than previously expected sublease income assumptions based on current market conditions.

Supplemental Lease Information

Supplemental balance sheet information related to operating leases as of September 30, 2025 and December 31, 2024 is presented in the following table (in thousands, except for lease term and discount rate):

As of
September 30, 2025December 31, 2024
Right-of-use assets for operating leases$29,110$31,081
Operating lease liabilities, current$13,110$12,378
Operating lease liabilities, net of current portion47,76952,189
Total operating lease liabilities$60,879$64,567
Weighted average remaining lease term (in years)5.76.5
Weighted average discount rate9.4 %9.4 %

Supplemental cash flow and expense information related to operating leases for the three and nine months ended September 30, 2025 and 2024 is shown below (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Operating cash outflows for operating leases$3,328 $3,190 $9,769 $8,963 
Amortization of operating lease right-of-use assets969 777 2,826 2,375 
Interest expense on operating lease liabilities1,440 1,579 4,389 4,803 
A summary of our future minimum lease commitments under non-cancellable leases as of September 30, 2025 is shown below (in thousands):

Operating Leases
2025 (excluding the nine months ended September 30, 2025)
$3,421 
202613,806 
202713,994 
202812,873 
202912,412 
Thereafter22,908 
Total lease payments79,414 
Less: imputed interest(18,535)
Total$60,879