Prosper has operating leases for corporate offices and, prior to December 2024, had operating leases for datacenters. These leases have remaining lease terms of one year to approximately four years. Some of the lease agreements include options to extend the lease term for up to an additional five years. Rental expense under operating lease arrangements was $3.5 million, $3.9 million and $4.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. Additionally, Prosper subleases certain leased office space to third parties when it determines there is excess leased capacity. Sublease revenue from operating lease arrangements was $0.5 million, $0.4 million and $0.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The following table summarizes the operating lease ROU assets as of December 31, 2025, which are included in Property and Equipment, Net on the Consolidated Balance Sheets.

The Company identified certain impairment triggers related to its ROU assets in 2023, primarily due to the vacancy of a portion of the Company’s leased office space and the time expected to find a new subtenant. As a result of impairment testing performed on these ROU assets, the Company recorded an impairment charge of $196 thousand for the year ended December 31, 2023. No impairment charge was identified for the years ended December 31, 2025 and 2024.

In March 2024, the Company entered into an amendment to its Phoenix office lease, the most prominent impact of which was to extend the lease term for an additional period through October 2029. As a result of this lease modification, the Company recorded additional ROU operating lease assets and liabilities of $0.3 million.

Future maturities of operating lease liabilities as of December 31, 2025 were as follows (in thousands). The present value of the future minimum lease payments represents the Company’s operating lease liabilities as of December 31, 2025 and

are included in “Other Liabilities” on the consolidated balance sheets.


	December 31, 2025
2026	$	4,648
2027	3,834
2028	1,948
2029	410
Thereafter	—
Total future minimum lease payments	10,840
Less: Imputed interest	(1,647)
Present value of future minimum lease payments	$	9,193

Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments. Supplemental cash flow information related to the Company’s operating leases is as follows (dollars in thousands):


	Years Ended December 31,
	2025		2024		2023
Non-cash operating activity:
ROU assets obtained or adjusted in exchange for new, amended and modified operating lease liabilities	$	—	$	35	$	(697)

The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities are as follows (dollars in thousands):


	December 31, 2025


Weighted-average remaining lease term	2.51 years
Weighted-average discount rate	11.16	%