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Lease Agreements
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Lease Agreements Lease Agreements
As Lessee
The Company has operating leases primarily for office and warehouse space. Most leases are not cancellable prior to their expiration. The Company accounts for leases in accordance with ASC 842 by recording right-of-use assets and lease liabilities. The right-of-use assets represent the Company’s right to use underlying assets for the lease term and the lease liability represents the Company's obligation to make lease payments under the leases. The Company determines if an agreement is or contains a lease at contract inception and exercises judgment and applies certain assumptions when determining the discount rate and lease term. ASC 842 requires a lessee to record a lease liability based on the discounted unpaid lease payments using the interest rate implicit in the lease or, if the rate cannot be readily determined, the incremental borrowing rate. Generally, the Company does not have knowledge of the rate implicit in the lease and, therefore, uses its incremental borrowing rate for a lease. The lease term includes the non-cancelable period of the lease plus any additional periods covered by an option to extend that the Company is reasonably certain to exercise.
The expected future payments related to leases with initial non-cancellable lease terms in excess of one year at December 31, 2024 are as follows:
2025$12.3 
202610.8 
20278.6 
20285.6 
20293.1 
Thereafter4.2 
Total lease payments44.6 
Less: Interest(4.3)
Present value of minimum payments$40.3 
Total operating lease expense, which is included in “General and administrative expenses” in the Company’s Consolidated Statements of Operations, was $14.0 million, $10.1 million, and $6.6 million for the years ended December 31, 2024, 2023 and 2022, respectively. Included in total operating lease expense for the years ended December 31, 2024 and 2023 is $2.5 million and $0.9 million, respectively, of expense recognized on short-term leases which were not capitalized under ASC 842. Included in total operating lease expense for the years ended December 31, 2024 and 2023 is $2.5 million and $2.0 million, respectively, of variable expense.
Supplemental balance sheet information related to leases was as follows:
December 31, 2024December 31, 2023
Weighted average remaining in lease term (in years):4.54.0
Weighted average discount rate5.1 %5.1 %
Operating lease payments included in operating cash flows were $10.3 million, $7.2 million and $5.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Non-cash additions to operating lease assets were $11.4 million, $6.2 million and $6.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.
As Lessor
The Company provides hardware, including terminals and point-of-sale equipment, to its merchants under operating leases as the lessor. The Company’s operating leases generally include options to extend the contract for successive one-year periods. Extension options are not included in the determination of lease income unless, at lease inception, it is reasonably certain that the option will be exercised. The Company’s operating leases generally do not include purchase options.
Lease payments received are recognized as income on a straight-line basis over the term of the agreement in accordance with ASC 606 and classified as gross revenue on the Company’s Consolidated Statements of Operations.
Lease Agreements Lease Agreements
As Lessee
The Company has operating leases primarily for office and warehouse space. Most leases are not cancellable prior to their expiration. The Company accounts for leases in accordance with ASC 842 by recording right-of-use assets and lease liabilities. The right-of-use assets represent the Company’s right to use underlying assets for the lease term and the lease liability represents the Company's obligation to make lease payments under the leases. The Company determines if an agreement is or contains a lease at contract inception and exercises judgment and applies certain assumptions when determining the discount rate and lease term. ASC 842 requires a lessee to record a lease liability based on the discounted unpaid lease payments using the interest rate implicit in the lease or, if the rate cannot be readily determined, the incremental borrowing rate. Generally, the Company does not have knowledge of the rate implicit in the lease and, therefore, uses its incremental borrowing rate for a lease. The lease term includes the non-cancelable period of the lease plus any additional periods covered by an option to extend that the Company is reasonably certain to exercise.
The expected future payments related to leases with initial non-cancellable lease terms in excess of one year at December 31, 2024 are as follows:
2025$12.3 
202610.8 
20278.6 
20285.6 
20293.1 
Thereafter4.2 
Total lease payments44.6 
Less: Interest(4.3)
Present value of minimum payments$40.3 
Total operating lease expense, which is included in “General and administrative expenses” in the Company’s Consolidated Statements of Operations, was $14.0 million, $10.1 million, and $6.6 million for the years ended December 31, 2024, 2023 and 2022, respectively. Included in total operating lease expense for the years ended December 31, 2024 and 2023 is $2.5 million and $0.9 million, respectively, of expense recognized on short-term leases which were not capitalized under ASC 842. Included in total operating lease expense for the years ended December 31, 2024 and 2023 is $2.5 million and $2.0 million, respectively, of variable expense.
Supplemental balance sheet information related to leases was as follows:
December 31, 2024December 31, 2023
Weighted average remaining in lease term (in years):4.54.0
Weighted average discount rate5.1 %5.1 %
Operating lease payments included in operating cash flows were $10.3 million, $7.2 million and $5.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Non-cash additions to operating lease assets were $11.4 million, $6.2 million and $6.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.
As Lessor
The Company provides hardware, including terminals and point-of-sale equipment, to its merchants under operating leases as the lessor. The Company’s operating leases generally include options to extend the contract for successive one-year periods. Extension options are not included in the determination of lease income unless, at lease inception, it is reasonably certain that the option will be exercised. The Company’s operating leases generally do not include purchase options.
Lease payments received are recognized as income on a straight-line basis over the term of the agreement in accordance with ASC 606 and classified as gross revenue on the Company’s Consolidated Statements of Operations.