Leases

9 Months Ended

Sep. 30, 2025

Leases

The Company enters into lease agreements that are primarily used 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 are options to extend or cancel the lease term. The exercise of such options 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 is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2025		2024		2025		2024
Operating leases	$	475	$	650	$	1,633	$	2,015
Finance leases:
Amortization of lease assets	45		64		155		196
Interest on lease liabilities	5		—		16		—
Lease expense	$	525	$	714	$	1,804	$	2,211
Sub-lease income	(22)		(51)		(87)		(172)
Lease cost	$	503	$	663	$	1,717	$	2,039

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


(in thousands)	As of September 30, 2025		As of December 31, 2024
Current:
Operating lease liabilities	$	1,424	$	2,026
Finance lease liabilities	172		226
Non-current:
Operating lease liabilities	5,774		3,728
Finance lease liabilities	254		376
Total lease liabilities	$	7,624	$	6,356

The future minimum lease payments for leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2025, are summarized as follows:


Year Ended (in thousands)	Operating Leases		Finance Leases		Total
2025	$	274	$	49	$	323
2026	1,790		176		1,966
2027	1,296		129		1,425
2028	964		73		1,037
2029	947		17		964
Thereafter	2,933		9		2,942
Total undiscounted payments	$	8,204	$	453	$	8,657
Less: present value adjustment	(1,006)		(27)		(1,033)
Lease liabilities	$	7,198	$	426	$	7,624

Supplemental lease information is as follows:


	As of September 30, 2025		As of December 31, 2024
Weighted average remaining lease term (years)
Operating leases	6.37		3.88
Finance leases	2.80		2.84
Weighted average discount rate
Operating leases	4.1	%	4.0	%
Finance leases	4.5	%	4.4	%

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