The Company leases facilities under non-cancelable operating lease agreements with varying terms that range from 1 to 13 years. In addition, some of these leases have renewal options for up to five years. The Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities on the Company's condensed consolidated balance sheets. The Company does not have any finance leases.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Optional periods to extend a lease under renewal options are included in the lease term when it is reasonably certain that the option will be exercised. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs).

Operating lease cost was $4.6 million and $7.0 million for the three and six months ended June 30, 2025. Variable lease cost and short-term lease costs were immaterial during the three and six months ended June 30, 2025. Future minimum lease payments at June 30, 2025 under the Company’s non-cancelable leases were as follows (in thousands):


	June 30,
	2025
2025 (remaining six months)	$	8,917
2026	16,668
2027	12,274
2028	6,820
2029	5,611
Thereafter	2,040
Total future minimum lease payments	52,330
Less: Imputed interest	(5,556)
Present value of future minimum lease payments	46,774
Less: Current portion of operating lease liability	(15,463)
Operating lease liabilities - noncurrent	$	31,311


	Six Months Ended June 30,
	2025			2024
Weighted average remaining lease term	3.41			3.84
Weighted average discount rate	6.01		%	5.69		%
Cash paid for amounts included in the measurement of lease liabilities	$	4,723		$	4,459
Leased assets obtained in exchange for new lease liabilities	$	4,479		$	9,159