Leases

3 Months Ended

Mar. 31, 2025

5. Leases

The Company primarily leases facilities for office space under non-cancelable operating leases for its U.S. and international locations. As of March 31, 2025, non-cancelable leases expire on various dates between 2025 and 2043, some of which include options to extend the leases for up to 20 years.

On January 1, 2025, the Company commenced a sublease of a portion of its corporate headquarters to Relay, Inc., a Delaware corporation (f/k/a Republic Wireless, Inc.) (“Relay”), a related party. See Note 15, “Related Parties” to these condensed consolidated financial statements, for additional details. The sublease expires on December 31, 2029 and does not include any option to renew or purchase, nor does it include any residual value guarantees. During the three months ended March 31, 2025, the Company received approximately $0.2 million in rental payments from Relay under the sublease. Total future minimum rent payments to the Company under this sublease were $10.7 million as of March 31, 2025. Sublease income was $0.5 million for the three months ended March 31, 2025 and is recorded as an offset to operating lease expense in the Company’s condensed consolidated financial statements.

The components of operating lease expense recorded in the condensed consolidated statements of operations were as follows:


	Three months ended March 31,
		2025		2024

		(In thousands)
Operating lease cost		$	5,660	$	6,030





Sublease income		(545)		—
Total net lease cost		$	5,115	$	6,030

Other supplemental information related to operating leases were as follows:


	Three months ended March 31,
		2025		2024









Weighted average remaining lease term (in years)		18.04		19.12



Weighted average discount rate		8.76	%	8.76	%

Maturities of operating lease liabilities were as follows:


	As of March 31,
	2025


	(In thousands)

2025 (remaining)	$	17,063
2026	22,637
2027	23,048
2028	23,398
2029	23,818

Thereafter	357,115
Total lease payments	467,079
Less: imputed interest	(241,387)
Less: accrued lease incentive	(860)
Total lease obligations	224,832
Less: current obligations	(3,255)
Long-term lease obligations	$	221,577