Leases

9 Months Ended

Sep. 30, 2025

The Company leases office space and computer and other equipment under operating lease agreements expiring at various dates. Under the lease agreements, in addition to base rent, the Company is generally responsible for operating and maintenance costs and related fees. Several of these agreements include tenant improvement allowances, rent holidays or rent escalation clauses. When such items are included in a lease agreement, we record such items in right-of-use assets and operating lease liabilities on our consolidated balance sheets equal to the difference between rent expense and future minimum lease payments due. The rent expense related to these items is recognized on a straight-line basis over the terms of the leases. Effective January 1, 2024, the Company’s primary office location is in Arlington, Virginia with a lease that expires in January 2031.

In connection with various lease agreements, the Company is required to maintain $0.2 million and $1.9 million in letters of credit as of September 30, 2025 and December 31, 2024, respectively. As of September 30, 2025 and December 31, 2024, the Company held $0.2 million and $1.9 million in restricted cash on the consolidated balance sheet as collateral for the letters of credit, respectively.

The following table summarizes our primary office leases as of September 30, 2025 (in thousands, other than term):


Location	Lease Termination Term (in years)	Future Minimum Lease Commitments		Letter of Credit Amount Required
Arlington, VA	5.3	$	2,846	$	—
Edison, NJ	0.6	349		222
Makati City, Philippines	2.7	1,815		—

Pune, India	2.5	1,416		—
Brea, CA	1.6	1,649		—

Gain on Lease Termination

During the year ended December 31, 2024, the Company terminated its Chicago, IL lease effective October 31, 2024. We recorded an additional $1.2 million gain on lease termination related to negotiated termination payments and real estate commissions three months ended September 30, 2025.

The following table summarizes the components of our lease expense (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Operating lease cost, net of sublease income	$	1,033	$	1,131	$	883	$	2,590


Variable lease cost	777		1,314		2,699		4,387
Total lease cost	$	1,810	$	2,445	$	3,582	$	6,977

Maturity of lease liabilities including future lease termination payments (in thousands) is as follows:


	Operating lease expense
2025	$	3,323
2026	15,802
2027	2,204
2028	977
2029	548
Thereafter	609
Total lease payments	23,463
Less:
Interest	1,088
Present value of lease liabilities	$	22,375

Our weighted-average discount rate and our weighted remaining lease terms (in years) are as follows:


	September 30, 2025		December 31, 2024


Weighted average discount rate	8.17	%	9.09	%
Weighted average remaining lease term	2.3		4.3