Leases

12 Months Ended

Dec. 31, 2025

Note 7. Leases

Leases. The Company is obligated as a lessee under certain non-cancelable operating leases for office space, and is also obligated to pay insurance, maintenance and other executory costs associated with these leases. In May 2016, the Company entered into a lease of office space in Chicago, Illinois. In November 2024, the Company amended this lease, which resulted in a reduction of its office space by 67%, extension of the lease term from June 2031 to June 2036 for the remaining office space, and paid a termination penalty of $10.5 million. This was accounted for as a lease modification. Monthly rental payments under the lease escalate by 2.5% each year through June 2031, then by 1.5% each year through the remainder of the lease. As a result of this lease modification, and the commencement of a separate lease, the Company recognized $4.7 million of right of use assets obtained in exchange for lease obligations during the year ended December 31, 2024.

As of December 31, 2025, the Company’s scheduled future minimum lease payments under operating leases having initial noncancelable lease terms of more than one year, is as follows (in thousands):


2026	$	3,919
2027		2,040
2028		2,093
2029		2,001
2030		1,925
Thereafter		10,442
Total minimum lease payments		22,420
Less: Imputed interest (1)		(5,463	)
Present value of the minimum lease payments		16,957
Less: Current maturities of lease obligations		(2,973	)
Long-term lease obligations	$	13,984

(1)

The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available from the Company’s lessors. Therefore, in order to discount lease payments to present value, the Company has estimated its incremental borrowing rate based on information available at the lease commencement, modification or acquisition date.

As of December 31, 2025 and 2024, the Company's operating lease balance sheet information is as follows (in thousands):


	December 31,
Balance sheet information:	2025		2024
Investments and other assets, net	$	15,854	$	16,810
Other accrued liabilities		2,973		4,085
Other noncurrent liabilities		13,984		16,545

The difference between the operating lease assets and the operating lease liabilities is primarily due to a lease incentive received related to the lease in Chicago, Illinois.

Other information related to the Company’s operating leases for the years ended December 31, 2025, 2024 and 2023 is as follows (in thousands, except months and percentages):


	Year Ended December 31,
Income statement information:	2025			2024			2023
Operating lease cost	$	2,149		$	2,986		$	3,035
Short-term lease cost		72			66			79
Variable lease cost		213			4,443			3,461
Total lease cost	$	2,434		$	7,495		$	6,575

Other information:
Cash paid for amounts included in the measurement of operating lease liabilities (1)	$	4,986		$	14,790		$	3,672
Weighted-average remaining lease term (in months)		120			130			89
Weighted-average discount rate		6.4	%		6.4	%		7.5	%

(1)

The year ended December 31, 2024 includes a termination penalty of $10.5 million related to the lease amendment.