The Company accounts for leases in accordance with ASC 842: Leases. The Company determines if an arrangement is or contains a lease at contract inception. The Company’s leases consist of operating leases for office space and certain equipment. The Company does not have any financing leases. For arrangements where the Company is the lessee, a right-of-use lease asset, representing the underlying asset during the lease term, and a right-of-use lease liability, representing the payment obligation arising from the lease, are reported on the balance sheet at lease commencement based on the present value of the payment obligation. Right-of-use lease assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. The Company’s leases have a remaining contractual term of 1 years to 5 years, some of which include options to extend the lease term for up to five years and options to terminate. The options to extend certain lease terms or terminate certain leases are at the sole discretion of the Company. As the Company is not reasonably certain that it will exercise these options, none of the options to modify the lease terms are included in the Company’s right-of-use lease assets and right-of-use lease liabilities as of December 31, 2024. The Company’s weighted-average remaining lease term was 2.6 years and 3.5 years as of December 31, 2024 and 2023, respectively.

Short-term operating leases with a contractual term of 12 months or less are not reported on the balance sheet, but instead are expensed as incurred and included as selling, general and administrative expense on the consolidated statements of (loss) income and comprehensive (loss) income and are considered rent expense. Short-term operating lease costs were not material for the years ended December 31, 2024, 2023 and 2022, respectively. Leases with a duration of less than one month are not included in rent expense. Operating lease cost is recognized on a straight-line basis over the related lease term. Rent expense was $3.3 million, $4.2 million and $7.5 million for the years ended December 31, 2024, 2023 and 2022, respectively. The Company reported $1.2 million in rent expense on the consolidated statements of (loss) income and comprehensive (loss) income as cost of revenues for the years ended December 31, 2024, 2023 and 2022, and $2.1 million, $3.0 million and $6.3 million in rent expense on the consolidated statements of (loss) income and comprehensive (loss) income as selling, general and administrative expense for the years ended December 31, 2024, 2023 and 2022, respectively. During the years ended December 31, 2024, 2023 and 2022, the Company recorded $0.1 million, $0.9 million and $3.0 million, respectively, of loss on lease abandonment for operating lease ROU assets related to offices closed in 2024, 2023 and 2022, respectively, which are reported on the consolidated statements of (loss) income and comprehensive (loss) income as selling, general and administrative expense.

Certain of the Company’s lease agreements include variable lease payments. Variable lease costs were $0.1 million, $0.2 million and $0.2 million for the each of the years ended December 31, 2024, 2023 and 2022, respectively.

Maturities of right-of-use lease liabilities for the remaining five years and thereafter as of December 31, 2024 were as follows:


(in millions)	December 31, 2024
2025	$	4.0
2026		4.0
2027		1.7
2028		0.5
2029		0.1
Thereafter		—
Minimum lease payments	$	10.3
Less: Imputed interest		(0.8	)
Present value of minimum lease payments	$	9.5

Supplemental cash flow and other information related to leases were as follows:


	December 31,
(in millions)	2024		2023		2022
Cash paid for amounts included in the measurement of right-of-use lease liabilities:
Cash paid reported as operating activities on the consolidated statements of cash flows	$	3.9	$	4.6	$	5.4
Right-of-use lease assets obtained in exchange for new right-of-use lease liabilities	$	0.2	$	1.9	$	1.9

The discount rate implicit within the Company’s leases is generally not determinable; therefore, the Company determined the discount rate based on its incremental collateralized borrowing rate using the portfolio approach. The Company’s weighted-average discount rate used to measure right-of-use lease liabilities was 5.2% and 5.1% as of December 31, 2024 and 2023, respectively.