v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
Real Estate Operating Leases
The Company has real estate property leases which are classified as operating leases. As of December 31, 2025, the remaining lease terms vary from approximately three months to nine years. For certain leases, the Company has options to extend the lease term for periods varying from one month to ten years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options.
In the fourth quarter of 2024, the Company amended the lease for its San Francisco headquarters, to terminate certain suites and extend the term of other suites to 2034. As a result of terminating certain suites, a $29.6 million gain was recognized within general and administrative expenses as the right-of-use asset associated with a portion of this lease was previously impaired in prior years as part of restructuring, and the extinguishment of the remaining lease liability resulted in the recorded gain.
Flexdrive Program
The Company operates a fleet of rental vehicles through Flexdrive, a portion of which are leased from third-party vehicle leasing companies. As of December 31, 2025, the remaining lease terms vary between one month to four years.
Lease Position
The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets (in thousands, except for remaining lease terms and percentages):
Year Ended December 31,
20252024
Operating Leases
Assets
Operating lease right-of-use assets(1)
$165,579 $148,397 
Liabilities
Operating lease liabilities, current(1)
$28,068 $25,192 
Operating lease liabilities, non-current(1)
159,904 152,074 
Total operating lease liabilities$187,972 $177,266 
Finance Leases
Assets
Finance lease right-of-use assets(2)
$69,522 $79,704 
Liabilities
Finance lease liabilities, current(3)
$35,750 $31,268 
Finance lease liabilities, non-current(4)
39,572 54,351 
Total finance lease liabilities$75,322 $85,619 
Weighted-average remaining lease term (years)
Operating leases7.07.7
Finance leases2.12.6
Weighted-average discount rate
Operating leases6.5 %6.6 %
Finance leases6.0 %6.4 %
_______________
(1)In the fourth quarter of 2024, the Company recognized a $29.6 million gain in general and administrative expense as a result of a lease termination. The right-of-use asset associated with the portion of this lease was previously impaired in prior years as part of restructuring, and the extinguishment of the remaining lease liability resulted in the recorded gain.
(2)This balance is included within property and equipment, net on the consolidated balance sheets and is primarily related to Flexdrive.
(3)This balance is included within other current liabilities on the consolidated balance sheets and is primarily related to Flexdrive.
(4)This balance is included within other liabilities on the consolidated balance sheets and is primarily related to Flexdrive.
Lease Costs
The table below presents certain information related to the costs for operating leases and finance leases (in thousands):
Year Ended December 31,
20252024
2023
Operating Leases
Operating lease cost$36,266 $38,056 $40,450 
Finance Leases
Amortization of right-of-use assets31,563 29,565 19,847 
Interest on lease liabilities4,740 5,782 3,449 
Other Lease Costs
Short-term lease cost2,806 3,380 3,749 
Variable lease cost(1)
7,168 9,867 10,270 
Total lease cost$82,543 $86,650 $77,765 
_______________
(1)Consists primarily of common-area maintenance, taxes and utilities for real estate leases.
Sublease income was immaterial for the years ended December 31, 2025, 2024 and 2023. Sublease income is included within other income, net on the consolidated statement of operations. The related lease expense for these leases is included within costs and expenses on the consolidated statement of operations.
During the year ended December 31, 2023, the Company committed to a plan of termination which included restructuring charges related to a decision to exit and sublease or cease use of certain facilities to align with the Company’s anticipated operating needs and incurred charges related to real estate operating right-of-use assets of $13.0 million. There was no such charge during the years ended December 31, 2025 and 2024. Refer to Note 15 “Restructuring” to the consolidated financial statements for information regarding this transaction.
The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the consolidated statements of cash flows (in thousands):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$42,474 $60,479 $59,318 
Operating cash flows from finance leases4,184 5,312 3,558 
Financing cash flows from finance leases41,250 46,748 43,466 
Undiscounted Cash Flows
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the consolidated balance sheet as of December 31, 2025 (in thousands):
Operating LeasesFinance LeasesTotal Leases
2026$38,168 $38,799 $76,967 
202738,733 23,573 62,306 
202831,876 18,480 50,356 
202930,503 309 30,812 
203021,561 — 21,561 
Thereafter72,063 — 72,063 
Total minimum lease payments232,904 81,161 314,065 
Less: amount of lease payments representing interest(44,932)(5,839)(50,771)
Present value of future lease payments187,972 75,322 263,294 
Less: current obligations under leases(28,068)(35,750)(63,818)
Long-term lease obligations$159,904 $39,572 $199,476 
Future lease payments receivable in car rental transactions under the Flexdrive program are not material since the lease term is less than a month.
Leases Leases
Real Estate Operating Leases
The Company has real estate property leases which are classified as operating leases. As of December 31, 2025, the remaining lease terms vary from approximately three months to nine years. For certain leases, the Company has options to extend the lease term for periods varying from one month to ten years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options.
In the fourth quarter of 2024, the Company amended the lease for its San Francisco headquarters, to terminate certain suites and extend the term of other suites to 2034. As a result of terminating certain suites, a $29.6 million gain was recognized within general and administrative expenses as the right-of-use asset associated with a portion of this lease was previously impaired in prior years as part of restructuring, and the extinguishment of the remaining lease liability resulted in the recorded gain.
Flexdrive Program
The Company operates a fleet of rental vehicles through Flexdrive, a portion of which are leased from third-party vehicle leasing companies. As of December 31, 2025, the remaining lease terms vary between one month to four years.
Lease Position
The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets (in thousands, except for remaining lease terms and percentages):
Year Ended December 31,
20252024
Operating Leases
Assets
Operating lease right-of-use assets(1)
$165,579 $148,397 
Liabilities
Operating lease liabilities, current(1)
$28,068 $25,192 
Operating lease liabilities, non-current(1)
159,904 152,074 
Total operating lease liabilities$187,972 $177,266 
Finance Leases
Assets
Finance lease right-of-use assets(2)
$69,522 $79,704 
Liabilities
Finance lease liabilities, current(3)
$35,750 $31,268 
Finance lease liabilities, non-current(4)
39,572 54,351 
Total finance lease liabilities$75,322 $85,619 
Weighted-average remaining lease term (years)
Operating leases7.07.7
Finance leases2.12.6
Weighted-average discount rate
Operating leases6.5 %6.6 %
Finance leases6.0 %6.4 %
_______________
(1)In the fourth quarter of 2024, the Company recognized a $29.6 million gain in general and administrative expense as a result of a lease termination. The right-of-use asset associated with the portion of this lease was previously impaired in prior years as part of restructuring, and the extinguishment of the remaining lease liability resulted in the recorded gain.
(2)This balance is included within property and equipment, net on the consolidated balance sheets and is primarily related to Flexdrive.
(3)This balance is included within other current liabilities on the consolidated balance sheets and is primarily related to Flexdrive.
(4)This balance is included within other liabilities on the consolidated balance sheets and is primarily related to Flexdrive.
Lease Costs
The table below presents certain information related to the costs for operating leases and finance leases (in thousands):
Year Ended December 31,
20252024
2023
Operating Leases
Operating lease cost$36,266 $38,056 $40,450 
Finance Leases
Amortization of right-of-use assets31,563 29,565 19,847 
Interest on lease liabilities4,740 5,782 3,449 
Other Lease Costs
Short-term lease cost2,806 3,380 3,749 
Variable lease cost(1)
7,168 9,867 10,270 
Total lease cost$82,543 $86,650 $77,765 
_______________
(1)Consists primarily of common-area maintenance, taxes and utilities for real estate leases.
Sublease income was immaterial for the years ended December 31, 2025, 2024 and 2023. Sublease income is included within other income, net on the consolidated statement of operations. The related lease expense for these leases is included within costs and expenses on the consolidated statement of operations.
During the year ended December 31, 2023, the Company committed to a plan of termination which included restructuring charges related to a decision to exit and sublease or cease use of certain facilities to align with the Company’s anticipated operating needs and incurred charges related to real estate operating right-of-use assets of $13.0 million. There was no such charge during the years ended December 31, 2025 and 2024. Refer to Note 15 “Restructuring” to the consolidated financial statements for information regarding this transaction.
The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the consolidated statements of cash flows (in thousands):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$42,474 $60,479 $59,318 
Operating cash flows from finance leases4,184 5,312 3,558 
Financing cash flows from finance leases41,250 46,748 43,466 
Undiscounted Cash Flows
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the consolidated balance sheet as of December 31, 2025 (in thousands):
Operating LeasesFinance LeasesTotal Leases
2026$38,168 $38,799 $76,967 
202738,733 23,573 62,306 
202831,876 18,480 50,356 
202930,503 309 30,812 
203021,561 — 21,561 
Thereafter72,063 — 72,063 
Total minimum lease payments232,904 81,161 314,065 
Less: amount of lease payments representing interest(44,932)(5,839)(50,771)
Present value of future lease payments187,972 75,322 263,294 
Less: current obligations under leases(28,068)(35,750)(63,818)
Long-term lease obligations$159,904 $39,572 $199,476 
Future lease payments receivable in car rental transactions under the Flexdrive program are not material since the lease term is less than a month.