LEASES

3 Months Ended

Mar. 31, 2025

The Company has primarily entered into lease arrangements for office space, in addition to other miscellaneous equipment. The Company’s leases have initial non-cancelable lease terms ranging from one to 10 years. Some of the Company’s leases include an option for it to extend the term of the lease for up to 14 years.

During the three months ended March 31, 2025, the Company modified one of its office leases in Carpinteria, California to reduce the leased premises and waive the intent to exercise a 10-year renewal option, resulting in a reclassification from a financing lease to an operating lease. In addition, the Company modified its office leases in Austin, Texas to adjust the rent obligations, expand the leased premises, and extend the lease terms, which resulted in an increase of $22.0 million in future rent commitments, net of tenant improvement reimbursement, from 2025 through 2038. In April 2025, the Company further modified its office leases in Austin, Texas to expand the leased premises on favorable terms, which resulted in an additional $17.4 million in future rent commitments, net of tenant improvement reimbursement, from April 2025 through 2038. Total operating lease commencements and modifications during the period resulted in net increases to right of use assets–operating leases and corresponding operating lease liabilities on the accompanying condensed consolidated balance sheets of $4.5 million and $6.4 million, respectively, which primarily relate to the modified leases in Texas.

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


	March 31, 2025		December 31, 2024
Operating Leases
Operating right of use assets	$	31,758	$	28,790
Amount included within other current liabilities	5,479		3,746
Operating lease liabilities, non-current	36,599		32,697
Total operating lease liabilities	$	42,078	$	36,443
Finance Leases
Finance right of use assets	$	20,972	$	31,727
Amount included within other current liabilities	1,671		2,228
Finance lease liabilities, non-current	27,903		41,352
Total finance lease liabilities	$	29,574	$	43,580


	March 31, 2025		December 31, 2024
Weighted-average remaining lease term (in years)
Finance leases	12.0		12.2
Operating leases	10.1		8.9
Weighted-average discount rate
Finance leases	3.81	%	4.21	%
Operating leases	6.02	%	6.10	%

Maturities of lease payments, net of tenant improvement reimbursement, for leases where the lease commencement date commenced on or prior to March 31, 2025 are as follows (in thousands):


Period Ended December 31,	Operating		Finance		Total
2025(1)	$	(2,749)	$	2,076	$	(673)
2026	5,312		2,817		8,129
2027	3,507		2,804		6,311
2028	6,419		2,869		9,288
2029	4,768		2,956		7,724
2030	4,866		3,045		7,911
Thereafter	43,810		20,697		64,507
Total lease payments, net of tenant improvement reimbursement	$	65,933	$	37,264	$	103,197
Less imputed interest	(23,855)		(7,690)		(31,545)
Total	$	42,078	$	29,574	$	71,652

(1) For the nine months from April 1, 2025 through December 31, 2025.