The Company leases facilities, and equipment under noncancelable leases that have been classified as operating leases for financial reporting purposes. These leases often include one or more options to renew and the lease term includes the renewal terms when it is reasonably certain that the Company will exercise the option. In general, for the Company’s material leases, the renewal options are not included in the calculation of its right-of-use assets and lease liabilities, as the Company does not believe that it is reasonably certain that these renewal options will be exercised. The Company’s lease agreements do not contain any material residual guarantees or material restrictive covenants.

All operating lease expenses are recognized on a straight-line basis over the lease term as a component of “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. Payments under the Company’s lease arrangements are primarily fixed. However, certain lease agreements contain variable costs, which are expensed as incurred and not included in the calculation of the Company’s right-of-use assets and related liabilities for those leases. These costs typically include real estate taxes, common area maintenance and utilities for which the Company is obligated to pay under the terms of those leases.

During the years ended December 31, 2025, 2024, and 2023, the Company expensed approximately $11.8 million, $18.0 million and $26.5 million, respectively, of total operating lease costs, which includes $2.3 million, $2.0 million and $4.8 million of variable lease costs, respectively.

Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company’s right-of-use assets and lease liabilities for operating leases as of December 31, 2025 and 2024 were as follows:


	Classification	December 31,
(in thousands)		2025		2024
Assets
Operating lease right-of-use assets	Other assets	$	22,261	$	25,932
Liabilities
Current operating lease liabilities	Other accrued expenses		11,432		13,323
Noncurrent operating lease liabilities	Other long-term liabilities		20,703		24,648
Total lease liabilities		$	32,135	$	37,971

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. In determining its incremental borrowing rate, the Company reviewed the terms of its leases, its credit facilities, and other factors.

Information related to the Company’s right-of-use assets and related lease liabilities were as follows:


	Year Ended December 31,
(amounts in thousands)		2025			2024			2023
Cash paid for operating lease liabilities		$	10,044		$	18,518		$	25,527
Right-of-use assets obtained in exchange for new operating lease obligations			6,251			855			18,187
Weighted-average remaining lease term		4.7 years			3.5 years			3.8 years
Weighted-average discount rate			10.8	%		9.9	%		9.8	%

Maturities of lease liabilities as of December 31, 2025 were as follows:


(in thousands)
2026	$	13,157
2027		8,575
2028		6,141
2029		5,194
2030		2,421
Thereafter		7,576
Total lease payments		43,064
Less: imputed interest		(10,929	)
Present value of lease liabilities	$	32,135