Leases

3 Months Ended

Mar. 31, 2025

Leases

The Company enters into lease agreements that are primarily for office space. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the term of the lease. The Company occasionally assumes equipment lease agreements through business acquisitions. These leases are accounted for as finance leases.

Included in a portion of the Company's current leases is an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The lease liability recorded in the unaudited Consolidated Balance Sheets includes lease payments related to options to extend or cancel the lease term if the Company determined at the inception date that the lease was expected to be renewed or extended. The Company, in determining the present value of lease payments, utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields, as explicit rates of interest were not readily determinable in the lease contracts. The Company does not carry debt; thus no incremental borrowing rate was available to the Company.

Lease expense is included in office and technology expenses in the unaudited Consolidated Statements of Operations. Information regarding the Company’s leases follows:


	Three Months Ended March 31,
(in thousands)	2025		2024
Operating leases	$	667	$	658
Finance leases:
Amortization of lease assets	62		71
Lease expense	$	729	$	729
Sub-lease income	(43)		(52)
Lease cost	$	686	$	677

Components of the lease liability presented on the unaudited Consolidated Balance Sheets are as follows:


(in thousands)	As of March 31, 2025		As of December 31, 2024
Current:
Operating lease liabilities	$	2,834	$	2,026
Finance lease liabilities	231		226
Non-current:
Operating lease liabilities	5,000		3,728
Finance lease liabilities	309		376
Total lease liabilities	$	8,374	$	6,356

The future minimum lease payments for leases that have initial or remaining noncancelable lease terms in excess of one year as of March 31, 2025, are summarized as follows:


Year Ended (in thousands)	Operating Leases		Finance Leases		Total
2025	$	1,825	$	244	$	2,069
2026	1,975		159		2,134
2027	1,183		111		1,294
2028	738		55		793
2029	714		—		714
Thereafter	2,304		—		2,304
Total undiscounted payments	$	8,739	$	569	$	9,308
Less: present value adjustment	(905)		(29)		(934)
Lease liabilities	$	7,834	$	540	$	8,374

Supplemental lease information is as follows:


	As of March 31, 2025		As of December 31, 2024
Weighted average remaining lease term (years)
Operating leases	5.19		3.88
Finance leases	2.24		2.84
Weighted average discount rate
Operating leases	4.0	%	4.0	%
Finance leases	4.6	%	4.4	%

The Company does not have any material pending operating or financing lease agreements that become effective in future periods.