Leases

6 Months Ended

Jun. 30, 2025

NOTE 12 – LEASES

The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates through 2032. Certain leases offer the option to renew for up to ten years and to terminate before the expiration date. Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and right-of-use assets calculation.

The Company subleases certain real estate to third parties. The sublease portfolio consists of operating leases for previously exited office space. Certain subleases include variable payments for operating costs. The subleases are generally co-terminus with the head lease, or shorter. Subleases generally do not include any residual value guarantees or restrictions or covenants imposed by the leases. Income from subleases is recognized as a reduction to selling, general and administrative expenses.

The components of operating lease costs were as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Fixed lease cost (1)	$	4,126		$	4,250		$	8,296		$	8,536
Variable lease cost		1,244			896			2,416			1,949
Less: sublease income		(2,216	)		(2,147	)		(4,336	)		(4,078	)
Total operating lease cost	$	3,154		$	2,999		$	6,376		$	6,407

(1) Includes short-term leases expensed on a straight-line basis.

The following table presents supplemental cash flow information arising from lease transactions (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Cash payments included in the measurement of operating lease liabilities	$	4,102	$	4,428	$	8,521	$	8,924
Operating ROU assets obtained in exchange for lease obligations	$	2,357	$	2,024	$	9,181	$	2,024

The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:


	June 30, 2025			December 31, 2024
Weighted-average remaining lease term (in years)		4.5			2.9
Weighted-average discount rate		6.7	%		5.5	%

Future minimum lease payments and related lease liabilities as of June 30, 2025 were as follows (in thousands):


Year Ending December 31:	Operating Lease Payments (1)			Sublease Income			Net Operating Lease Payments
2025 (remaining 6 months)	$	6,570		$	(3,183	)	$	3,387
2026		10,124			(1,563	)		8,561
2027		7,810			(368	)		7,442
2028		5,501			(379	)		5,122
2029		3,906			(291	)		3,615
Thereafter		6,283			—			6,283
Total lease payments		40,194		$	(5,784	)	$	34,410
Less: imputed interest		(5,982	)
Present value of operating lease liabilities	$	34,212

Less: operating lease liabilities, current portion		(9,956	)
Noncurrent operating lease liabilities	$	24,256

(1) Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance, and real estate taxes.