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Leases | 12 Months Ended
--- | ---
Dec. 31, 2025
Leases [Abstract] |
Leases | Leases The Company’s leases are primarily for corporate office space, datacenters, and technology equipment. The leases have remaining terms of one to ten years, some of which include options to extend the initial term at the Company’s discretion. The lease terms used in calculating ROU assets and lease liabilities include the options to extend the initial term when the Company is reasonably certain of exercising the options. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. In addition to the base rental costs, the Company’s lease agreements for corporate office space generally provide for rent escalations resulting from increased assessments for operating expenses, real estate taxes and other charges. Payments for such reimbursable expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments was incurred. The Company also subleases certain office space and facilities to third parties. The subleases have remaining terms of one to six years. The Company recognizes amounts received from subleases on a straight-line basis over the term of the sublease within Operations and administrative expense on the Consolidated Statements of Comprehensive Income. As the implied discount rate for most of the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate on its secured borrowings in determining the present value of lease payments. Lease assets and liabilities are summarized as follows:
(in thousands) |  | Financial Statement Location |  | December 31, 2025 |  | December 31, 2024
Operating leases |  |  |  |  |  |
Operating lease right-of-use assets |  | Operating lease right-of-use assets |  | $ | 213,707 |  |  | $ | 175,046 |
Operating lease liabilities |  | Operating lease liabilities |  | 261,169 |  |  | 229,825 |
Finance leases |  |  |  |  |  |
Property and equipment, at cost |  | Property, equipment, and capitalized software, net |  | 36,611 |  |  | 42,915 |
Accumulated depreciation |  | Property, equipment, and capitalized software, net |  | (17,703) |  |  | (20,755) |
Finance lease liabilities |  | Accounts payable, accrued expenses, and other liabilities |  | 19,984 |  |  | 23,095 |
Weighted average remaining lease term and discount rate are as follows:
|  | December 31, 2025 |  | December 31, 2024
Weighted average remaining lease term |  |  |  |
Operating leases |  | 4.40 years |  | 4.60 years
Finance leases |  | 2.58 years |  | 3.53 years
Weighted average discount rate |  |  |  |
Operating leases |  | 5.95 | % |  | 6.36 | %
Finance leases |  | 5.83 | % |  | 5.97 | %
The components of lease expense are as follows:
|  |  |  | Years Ended December 31,
(in thousands) |  |  |  |  |  | 2025 |  | 2024 |  | 2023
Operating lease cost: |  |  |  |  |  |  |  |  |  |
Fixed |  |  |  |  |  | $ | 70,553 |  |  | $ | 73,046 |  |  | $ | 76,424 |
Variable |  |  |  |  |  | 6,745 |  |  | 5,856 |  |  | 6,151 |
Impairment of ROU Asset |  |  |  |  |  | 465 |  |  | 10,031 |  |  | — |
Total Operating lease cost |  |  |  |  |  | $ | 77,763 |  |  | $ | 88,933 |  |  | $ | 82,575 |
Sublease income |  |  |  |  |  | 13,077 |  |  | 16,896 |  |  | 19,506 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of ROU Asset |  |  |  |  |  | $ | 7,751 |  |  | $ | 10,512 |  |  | $ | 9,079 |
Interest on lease liabilities |  |  |  |  |  | 1,224 |  |  | 1,559 |  |  | 1,156 |
Total Finance lease cost |  |  |  |  |  | $ | 8,975 |  |  | $ | 12,071 |  |  | $ | 10,235 |
See Note 2 “Summary of Significant Accounting Policies” in Part II Item 8 “Financial Statements and Supplementary Data” of this Form 10-K for details on the classification of these expenses in the Consolidated Statements of Comprehensive Income. For the year ended December 31, 2024, the Company recognized $16.2 million in Termination of office leases on the Consolidated Statements of Comprehensive Income, primarily comprising of $10.0 million of impairments of ROU assets and $6.5 million of cost related to asset retirement obligations associated with certain leased office spaces. In September 2025, in connection with the finalization of an agreement related to the restoration requirements for such leased office spaces, the Company recorded a reduction of $6.5 million in its asset retirement obligations and the related cost within Termination of office leases. Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of December 31, 2025, are as follows:
(in thousands) |  | Operating Leases |  | Finance Leases
2026 |  | $ | 80,092 |  |  | $ | 9,041 |
2027 |  | 75,738 |  |  | 7,871 |
2028 |  | 68,010 |  |  | 3,982 |
2029 |  | 24,378 |  |  | 662 |
2030 |  | 21,519 |  |  | — |
2031 and thereafter |  | 28,375 |  |  | — |
Total lease payments |  | $ | 298,112 |  |  | $ | 21,556 |
Less imputed interest |  | (36,943) |  |  | (1,572) |
Total lease liability |  | $ | 261,169 |  |  | $ | 19,984 |
Leases | Leases The Company’s leases are primarily for corporate office space, datacenters, and technology equipment. The leases have remaining terms of one to ten years, some of which include options to extend the initial term at the Company’s discretion. The lease terms used in calculating ROU assets and lease liabilities include the options to extend the initial term when the Company is reasonably certain of exercising the options. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. In addition to the base rental costs, the Company’s lease agreements for corporate office space generally provide for rent escalations resulting from increased assessments for operating expenses, real estate taxes and other charges. Payments for such reimbursable expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments was incurred. The Company also subleases certain office space and facilities to third parties. The subleases have remaining terms of one to six years. The Company recognizes amounts received from subleases on a straight-line basis over the term of the sublease within Operations and administrative expense on the Consolidated Statements of Comprehensive Income. As the implied discount rate for most of the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate on its secured borrowings in determining the present value of lease payments. Lease assets and liabilities are summarized as follows:
(in thousands) |  | Financial Statement Location |  | December 31, 2025 |  | December 31, 2024
Operating leases |  |  |  |  |  |
Operating lease right-of-use assets |  | Operating lease right-of-use assets |  | $ | 213,707 |  |  | $ | 175,046 |
Operating lease liabilities |  | Operating lease liabilities |  | 261,169 |  |  | 229,825 |
Finance leases |  |  |  |  |  |
Property and equipment, at cost |  | Property, equipment, and capitalized software, net |  | 36,611 |  |  | 42,915 |
Accumulated depreciation |  | Property, equipment, and capitalized software, net |  | (17,703) |  |  | (20,755) |
Finance lease liabilities |  | Accounts payable, accrued expenses, and other liabilities |  | 19,984 |  |  | 23,095 |
Weighted average remaining lease term and discount rate are as follows:
|  | December 31, 2025 |  | December 31, 2024
Weighted average remaining lease term |  |  |  |
Operating leases |  | 4.40 years |  | 4.60 years
Finance leases |  | 2.58 years |  | 3.53 years
Weighted average discount rate |  |  |  |
Operating leases |  | 5.95 | % |  | 6.36 | %
Finance leases |  | 5.83 | % |  | 5.97 | %
The components of lease expense are as follows:
|  |  |  | Years Ended December 31,
(in thousands) |  |  |  |  |  | 2025 |  | 2024 |  | 2023
Operating lease cost: |  |  |  |  |  |  |  |  |  |
Fixed |  |  |  |  |  | $ | 70,553 |  |  | $ | 73,046 |  |  | $ | 76,424 |
Variable |  |  |  |  |  | 6,745 |  |  | 5,856 |  |  | 6,151 |
Impairment of ROU Asset |  |  |  |  |  | 465 |  |  | 10,031 |  |  | — |
Total Operating lease cost |  |  |  |  |  | $ | 77,763 |  |  | $ | 88,933 |  |  | $ | 82,575 |
Sublease income |  |  |  |  |  | 13,077 |  |  | 16,896 |  |  | 19,506 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of ROU Asset |  |  |  |  |  | $ | 7,751 |  |  | $ | 10,512 |  |  | $ | 9,079 |
Interest on lease liabilities |  |  |  |  |  | 1,224 |  |  | 1,559 |  |  | 1,156 |
Total Finance lease cost |  |  |  |  |  | $ | 8,975 |  |  | $ | 12,071 |  |  | $ | 10,235 |
See Note 2 “Summary of Significant Accounting Policies” in Part II Item 8 “Financial Statements and Supplementary Data” of this Form 10-K for details on the classification of these expenses in the Consolidated Statements of Comprehensive Income. For the year ended December 31, 2024, the Company recognized $16.2 million in Termination of office leases on the Consolidated Statements of Comprehensive Income, primarily comprising of $10.0 million of impairments of ROU assets and $6.5 million of cost related to asset retirement obligations associated with certain leased office spaces. In September 2025, in connection with the finalization of an agreement related to the restoration requirements for such leased office spaces, the Company recorded a reduction of $6.5 million in its asset retirement obligations and the related cost within Termination of office leases. Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of December 31, 2025, are as follows:
(in thousands) |  | Operating Leases |  | Finance Leases
2026 |  | $ | 80,092 |  |  | $ | 9,041 |
2027 |  | 75,738 |  |  | 7,871 |
2028 |  | 68,010 |  |  | 3,982 |
2029 |  | 24,378 |  |  | 662 |
2030 |  | 21,519 |  |  | — |
2031 and thereafter |  | 28,375 |  |  | — |
Total lease payments |  | $ | 298,112 |  |  | $ | 21,556 |
Less imputed interest |  | (36,943) |  |  | (1,572) |
Total lease liability |  | $ | 261,169 |  |  | $ | 19,984 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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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