Leases

9 Months Ended

Sep. 30, 2025

Note 6 — Leases

All of the Company’s leases are operating leases, the majority of which are for office space. Operating lease right-of-use (“ROU”) assets and non-current operating lease liabilities are included as individual line items in the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Leases with an initial term of twelve months or less are not recorded in the Consolidated Balance Sheets and are not material.

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


	For the Three Months Ended September 30,
	2025		2024
Operating lease cost	$	1,776	$	2,902
Short-term lease cost		444		291
Variable lease cost		880		1,311
Sublease income		—		(133	)
Total lease cost	$	3,100	$	4,371


	For the Nine Months Ended September 30,
	2025		2024
Operating lease cost	$	6,096	$	8,893
Short-term lease cost		1,259		737
Variable lease cost		3,203		3,579
Sublease income		—		(394	)
Total lease cost	$	10,558	$	12,815

Additional lease information is summarized in the following table (in thousands, except lease term and discount rate):


	For the Nine Months Ended September 30,
	2025			2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	8,534		$	10,948
Operating lease ROU assets obtained in exchange for lease obligations	$	9,899		$	408
Weighted-average remaining lease term - operating leases (years)		9.0			3.8
Weighted-average discount rate - operating leases		5.1	%		4.2	%

Future minimum lease payments under non-cancelable leases as of September 30, 2025 are as follows (in thousands):


	Operating Lease		Tenant Improvement			Net Undiscounted
	Payments		Allowance			Cash Flows
2025 (remainder)	$	2,844	$	(342	)	$	2,502
2026		7,590		(16,809	)		(9,219	)
2027		8,273		—			8,273
2028		6,547		—			6,547
2029		6,623		—			6,623
Thereafter		44,223		—			44,223
Total		76,100		(17,151	)		58,949
Less imputed interest							(19,661	)
Present value of lease liabilities						$	39,288

Lease balances as of September 30, 2025 are as follows (in thousands):


Operating lease ROU assets	$	31,885

Short-term operating lease liabilities (1)	$	7,496
Non-current operating lease liabilities		31,792
Total operating lease liabilities	$	39,288

(1)

Included in accrued expenses and other current liabilities in the Consolidated Balance Sheets.

The Company’s leases do not contain residual value guarantees, material restrictions, or covenants.

On April 11, 2025, the Company entered into a third amendment of its lease, and a new lease, for its principal headquarters located in Cambridge, Massachusetts. The effect of these agreements was to early terminate the original lease with respect to the first, second and third floors of the facility on or before May 31, 2026, while also extending the lease term with respect to the fourth, fifth and six floors of the facility through June 30, 2039. Variable lease costs in the new lease consist of operating costs, taxes and parking. The Company has the right to extend the new lease term for two terms of ten years each. The new lease does not contain residual value guarantees, material restrictions or covenants.

During the nine months ended September 30, 2024, the Company recorded $3.6 million of ROU asset impairments and $1.0 million of leasehold improvements impairments related to closing the 10th and 11th floors of its offices located in San Francisco, California. The impairments are included in restructuring costs in the Consolidated Statements of Operations. As a result of the impairments, the ROU assets were required to be recorded at their estimated fair values as Level 3 non-financial assets. The fair values of the asset groups were determined using a discounted cash flow model, which required the use of estimates, including projected cash flows for the related assets, the selection of a discount rate used in the model, and regional real estate industry data.