Leases

12 Months Ended

Dec. 31, 2025

Note 14. Leases

The Company has operating and finance leases for office facilities and equipment. Certain of our leases include rental payments that will adjust periodically for inflation or certain adjustments based on step increases. An insignificant number of our leases contain residual value guarantees and none of our agreements contain material restrictive covenants. Variable rent expenses consist primarily of maintenance, property taxes, and charges based on usage.

The Company rents or subleases certain real estate to third parties. The Company’s sublease portfolio consists of operating leases.

The components of lease costs are as follows (in thousands):


	Year Ended December 31,
	2025			2024
Operating lease costs
Fixed	$	4,476		$	3,852
Short-term		1,824			1,225
Variable		2			4
Sub-leases		(1,611	)		(289	)
Total operating lease costs	$	4,691		$	4,792

Finance lease costs
Amortization of leased assets	$	13		$	5
Interest on lease liabilities		2			1
Total finance lease costs	$	15		$	6
Total lease cost	$	4,706		$	4,798

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


		December 31,
	Classification	2025			2024
Assets
Operating leases
Right of use operating lease assets	Other assets	$	9,264		$	13,659
Finance leases
Property and equipment, gross	Property and equipment, net		5,896			5,897
Accumulated depreciation	Property and equipment, net		(5,877	)		(5,864	)
Property and equipment, net	Property and equipment, net		19			33
Total lease assets		$	9,283		$	13,692

Liabilities
Operating leases
Other current	Current portion of operating lease liability	$	3,568		$	4,245
Non-current	Operating lease liability, less current portion		5,525			9,149
Total operating liabilities			9,093			13,394
Finance leases
Other current	Accrued liabilities		13			13
Non-current	Other liabilities		6			18
Total finance liabilities			19			31
Total lease liabilities		$	9,112		$	13,425

Maturities of lease liabilities are as follows (in thousands):


Years Ending December 31,	Operating Leases			Finance Leases			Total
2026	$	4,143		$	13		$	4,156
2027		3,159			7			3,166
2028		1,871			—			1,871
2029		924			—			924
2030		70			—			70
Thereafter		—			—			—
Total minimum lease payments	$	10,167		$	20		$	10,187
Less: Imputed interest		(1,074	)		(1	)		(1,075	)
Present value of minimum lease payments	$	9,093		$	19		$	9,112

Lease term and discount rates are as follows:


	Year Ended December 31,
	2025			2024
Weighted average remaining lease term
Operating leases	2.8 Years			3.4 Years
Finance leases	1.6 Years			2.6 Years

Weighted average discount rate
Operating leases		8.06	%		7.85	%
Finance leases		8.21	%		8.20	%

Supplemental cash flow information related to leases was as follows (in thousands):


	Year Ended December 31,
	2025		2024
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	5,479	$	4,373
Operating cash flows from finance leases		1	0
Financing cash flows from finance leases		17		7
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	740	$	9,956
Finance leases		—		41
Amortization:
Amortization of right-of-use operating lease assets (1)	$	4,506	$	3,346

(1)

Amortization of right of use operating lease assets during the period is reflected in operating lease liabilities on the consolidated statements of cash flows.