Leases

12 Months Ended

Dec. 31, 2024

The Company’s operating lease arrangements are principally for office spaces in New York City. As of December 31, 2024, the Company had $19.7 million of operating lease right-of-use assets, $4.2 million and $18.0 million of current and non-current operating lease liabilities, respectively, and no finance leases on its consolidated balance sheet. As of December 31, 2023, the Company had $19.7 million of operating lease right-of-use assets, $3.1 million and $18.8 million of current and non-current operating lease liabilities, respectively, and no finance leases on its consolidated balance sheet. These operating lease arrangements included in the measurement of lease liabilities had a weighted-average remaining lease term of 4.8 years, a weighted-average discount rate of 6.1%, and do not reflect options to extend or terminate its leases, as management does not

consider the exercise of these options to be reasonably certain. The Company paid $4.7 million and $4.1 million for amounts included in the measurement of lease liabilities during the years ended December 31, 2024 and 2023.

In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its former New York City headquarters (the “Sublease”). The Sublease commenced on October 1, 2023 and ends on December 31, 2029, the expiration date of the Company’s former New York City headquarter’s lease. It also contains an option for the lessee to terminate on the third anniversary of the commencement date. Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s consolidated statement of operations. The Company recognized $3.6 million of sublease income during the year ended December 31, 2024, and $0.9 million of sublease income during the year ended December 31, 2023. There was no sublease income recognized in the year ended December 31, 2022. During the year ended December 31, 2023, the Company capitalized its $1.1 million broker fee paid which is included in other assets on the consolidated balance sheet, and is being amortized over the life of the Sublease in general and administrative expenses in the consolidated statement of operations.

In November 2023, the Company entered into a lease agreement, as the lessee, for approximately 13,000 square feet for the Company’s new corporate headquarters in New York City (the “Lease Agreement”) which commenced in January 2024 with a five year term and an initial seven month rent abatement period. The Lease Agreement includes an option for the Company to extend the lease for an additional five years. The Company did not enter into any new lease arrangements during the year ended December 31, 2024.

The following table summarizes total lease expense, net for the years ended December 31, 2024 and 2023:


	December 31,
(in thousands)	2024		2023		2022
Operating lease expense	$	4,748	$	3,970	$	3,988
Short-term lease expense	121		120		111
Variable lease expense	1,362		1,124		1,058
Total lease expense	$	6,231	$	5,214	$	5,157
Sublease income	(3,629)		(912)		—
Total lease expense, net	$	2,602	$	4,302	$	5,157

Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than 12 months and therefore are recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. As of December 31, 2024, the total remaining operating lease payments included in the measurement of lease liabilities, and undiscounted remaining cash receipts from the Company’s Sublease was as follows (in thousands):


Fiscal Year Ending December 31,	Operating Lease Payments		Sublease Cash Receipts
2025	$	(5,379)	$	3,435
2026	(5,263)		3,504
2027	(5,263)		3,574
2028	(5,263)		3,645
2029	(4,292)		3,718

Total (payments) cash receipts	$	(25,460)	$	17,876
Less: imputed interest	3,304
Total lease liabilities	$	(22,156)