Leases

9 Months Ended

Sep. 30, 2025

In September 2019, the Company’s sublease agreement for the 25,212 square foot office in its corporate headquarters commenced in New York, NY and is scheduled to expire in May 2029. Pursuant to the sublease, the Company is obligated to pay the base rent of approximately $1.3 million per annum through the end of the fifth lease year and approximately $1.4 million per annum thereafter through the expiration date.

In February 2023, the Company's lease agreement for the additional 24,099 square foot office in its corporate offices (entered into in February 2022) commenced in New York, NY and expires in April 2036. Pursuant to the lease, the Company is obligated to pay the base rent of approximately $1.4 million per annum through the end of the fifth lease year and approximately $1.5 million per annum thereafter through the expiration date.

In March 2025, the Company's lease agreement for the additional 21,262 square foot office in its corporate offices (entered into in February 2022) commenced in New York, NY and expires in April 2036. In accordance with ASC 842, the Company recorded a right-of-use asset and a lease liability of $10.1 million and $10.0 million, respectively. Pursuant to the lease, the Company is obligated to pay the base rent of approximately $1.3 million per annum through the end of the fifth lease year and approximately $1.4 million per annum thereafter through the expiration date.

The Company recognizes lease expense on a straight-line basis over the lease term. Lease expense for the three months ended September 30, 2025 and 2024 was $1.1 million and $0.7 million, respectively. For the nine months ended September 30, 2025 and 2024, lease expense was $2.9 million and $2.0 million, respectively.

Cash outflows from operating activities attributable to the operating leases for the nine months ended September 30, 2025 and 2024 was $2.3 million and $1.6 million, respectively.

Information related to the Company's leases is as follows (in thousands):


	Balance Sheet Location	September 30, 2025		December 31, 2024
Operating Leases
Right-of-use asset	Operating lease right-of-use assets	$	25,680	$	17,251
Short-term lease liabilities	Accrued expenses and other current liabilities	$	3,420	$	2,859
Long-term lease liabilities	Operating lease noncurrent liabilities	$	24,730	$	16,413

Other Information
Weighted-average remaining lease term, operating lease		9.2 years		8.9 years
Weighted-average discount rate, operating lease		4.88%		4.61%

Future minimum facility lease payments related to the Company's operating lease liabilities as of September 30, 2025 were as follows (in thousands):


Year Ending December 31:	Operating Lease Payments as of September 30, 2025
2025	$	764
2026	3,909
2027	4,348
2028	4,353
2029	3,565
Thereafter	18,428
Total undiscounted lease payments	$	35,367
Less: imputed interest	7,217
Present value of lease liabilities	$	28,150
Less: current portion of operating lease liabilities	3,420
Operating lease noncurrent liabilities	$	24,730

February 2022 Lease Agreement

As noted above, the Company commenced its leases for the additional 24,099 square foot and 21,262 square foot offices in its corporate offices in New York, NY in February 2023 and March 2025, respectively, pursuant to a lease agreement entered into by the Company in February 2022. The lease agreement also provides for continued occupancy of the 25,212 square foot office after the expiration of the current sublease. For the current 25,212 square foot office, the Company is obligated to pay the base rent of approximately $1.6 million per year beginning in June 2029, which is the lease commencement, through April 2036, the expiration date.