Leases

6 Months Ended

Jun. 30, 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 June 30, 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 and six months ended June 30, 2025, the Company received approximately $0.3 million and $0.5 million, respectively, in rental payments from Relay under the sublease. As of June 30, 2025, total future minimum rent payments to the Company under this sublease were $10.4 million. For the three and six months ended June 30, 2025, sublease income was $0.5 million and $1.1 million, respectively, and was 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 June 30,				Six months ended June 30,
	2025		2024		2025		2024

	(In thousands)
Operating lease cost	$	5,788	$	5,739	$	11,448	$	11,769





Sublease income	(545)		—		(1,090)		—
Total net lease cost	$	5,243	$	5,739	$	10,358	$	11,769

Other supplemental information related to operating leases were as follows:


	Six months ended June 30,
		2025		2024









Weighted average remaining lease term (in years)		17.75		18.92



Weighted average discount rate		8.75	%	8.77	%

Maturities of operating lease liabilities were as follows:


	As of June 30,
	2025


	(In thousands)

2025 (remaining)	$	11,546
2026	23,132
2027	23,222
2028	23,399
2029	23,818

Thereafter	357,115
Total lease payments	462,232
Less: imputed interest	(236,544)
Less: accrued lease incentive	(190)
Total lease obligations	225,498
Less: current obligations	(3,628)
Long-term lease obligations	$	221,870