v3.26.1
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company maintains operating lease agreements for office leases with various expiration dates through June 2038. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include options to extend or terminate the lease. Options to extend lease terms that are reasonably certain of exercise are recognized as part of the operating lease right-of-use asset and operating lease liability balances. The periods associated with these options to renew or extend have not been included in the determination of the operating lease assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the renewal options.
During the year ended December 31, 2025, the Company entered into nine new office leases with various expiration dates through June 2038, resulting in aggregate increases of $19.6 million to operating lease liabilities and $19.6 million to operating lease right-of-use assets. During the year ended December 31, 2024, the Company entered into six new office leases with various expiration dates through October 2029, resulting in aggregate increases of $11.4 million to operating lease liabilities and $8.5 million to operating lease right-of-use assets.
During the year ended December 31, 2025, the Company modified three of its office leases to extend the lease terms and/or add additional space to the existing leases, or reduce the lease space, resulting in aggregate decreases of $1.8 million to operating lease liabilities and $1.8 million to operating lease right-of-use assets. During the year ended December 31, 2024, the Company modified five of its office leases to extend the lease term and/or add additional space to the existing
leases, resulting in aggregate increases of $0.9 million to operating lease liabilities and $0.9 million operating lease right-of-use assets.
As of December 31, 2025, the Company has committed to payments of $2.3 million related to an operating lease agreement that had not yet commenced as of December 31, 2025. This operating lease will commence during 2026 with a term through July 2033.
The liabilities under operating leases are recorded at the present value of the minimum lease payments. Lease expense relating to operating leases, consisting of right-of-use asset amortization and lease liability interest, is included in cost of services and sales, general and administrative expenses, allocated based upon headcount of non-remote full-time equivalent employees on the accompanying consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023.
The Company leases certain equipment under finance leases. Finance leases were immaterial as of December 31, 2025 and December 31, 2024, and during the years ended December 31, 2025, 2024 and 2023.
The following maturity analysis of operating lease liabilities as of December 31, 2025 is approximately as follows (in thousands):
Year Ending December 31,
Operating
Leases
2026 $ 9,121 
2027 23,773 
2028 24,252 
2029 22,655 
2030 18,800 
Thereafter
44,959 
Total lease payments
 143,560 
Less: amount representing interest
(33,154)
Present value of lease liabilities
$ 110,406 
Supplemental balance sheet information is as follows (in thousands):
Leases
Classification
 December 31,
2025 2024
Assets
Operating leases
Operating lease right-of-use assets $ 82,104  $ 76,908 
Total lease assets
$ 82,104  $ 76,908 
Liabilities
Current
Operating leases
Operating lease liabilities, current $ 3,958  $ 17,074 
Noncurrent
Operating leases
Operating lease liabilities, noncurrent 106,448  90,881 
Total lease liabilities
$ 110,406  $ 107,955 
The components of lease expense as follows for the years presented (in thousands):
 Year Ended December 31,
 2025
2024
2023
Operating lease costs:
Fixed lease costs
$ 19,181  $ 18,702 
$ 16,985 
Variable lease costs
5,066  4,543 
3,278 
Short-term lease costs
493  78 
169 
Total operating lease costs
$24,740 
$23,323 
$20,432 
Sublease income
(636) (636)
(159)
Total lease costs, net
$24,104  $22,687 
$20,273 
Other information related to leases was as follows (in thousands, except as noted):
Year Ended December 31,
2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases
 21,938 20,607
Weighted-average remaining lease term (in years):
Weighted average remaining lease term in years—operating leases
6.90 6.08
Weighted-average discount rate:
Weighted average discount rate—operating leases
 6.3  % 5.3%
Leases Leases
The Company maintains operating lease agreements for office leases with various expiration dates through June 2038. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include options to extend or terminate the lease. Options to extend lease terms that are reasonably certain of exercise are recognized as part of the operating lease right-of-use asset and operating lease liability balances. The periods associated with these options to renew or extend have not been included in the determination of the operating lease assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the renewal options.
During the year ended December 31, 2025, the Company entered into nine new office leases with various expiration dates through June 2038, resulting in aggregate increases of $19.6 million to operating lease liabilities and $19.6 million to operating lease right-of-use assets. During the year ended December 31, 2024, the Company entered into six new office leases with various expiration dates through October 2029, resulting in aggregate increases of $11.4 million to operating lease liabilities and $8.5 million to operating lease right-of-use assets.
During the year ended December 31, 2025, the Company modified three of its office leases to extend the lease terms and/or add additional space to the existing leases, or reduce the lease space, resulting in aggregate decreases of $1.8 million to operating lease liabilities and $1.8 million to operating lease right-of-use assets. During the year ended December 31, 2024, the Company modified five of its office leases to extend the lease term and/or add additional space to the existing
leases, resulting in aggregate increases of $0.9 million to operating lease liabilities and $0.9 million operating lease right-of-use assets.
As of December 31, 2025, the Company has committed to payments of $2.3 million related to an operating lease agreement that had not yet commenced as of December 31, 2025. This operating lease will commence during 2026 with a term through July 2033.
The liabilities under operating leases are recorded at the present value of the minimum lease payments. Lease expense relating to operating leases, consisting of right-of-use asset amortization and lease liability interest, is included in cost of services and sales, general and administrative expenses, allocated based upon headcount of non-remote full-time equivalent employees on the accompanying consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023.
The Company leases certain equipment under finance leases. Finance leases were immaterial as of December 31, 2025 and December 31, 2024, and during the years ended December 31, 2025, 2024 and 2023.
The following maturity analysis of operating lease liabilities as of December 31, 2025 is approximately as follows (in thousands):
Year Ending December 31,
Operating
Leases
2026 $ 9,121 
2027 23,773 
2028 24,252 
2029 22,655 
2030 18,800 
Thereafter
44,959 
Total lease payments
 143,560 
Less: amount representing interest
(33,154)
Present value of lease liabilities
$ 110,406 
Supplemental balance sheet information is as follows (in thousands):
Leases
Classification
 December 31,
2025 2024
Assets
Operating leases
Operating lease right-of-use assets $ 82,104  $ 76,908 
Total lease assets
$ 82,104  $ 76,908 
Liabilities
Current
Operating leases
Operating lease liabilities, current $ 3,958  $ 17,074 
Noncurrent
Operating leases
Operating lease liabilities, noncurrent 106,448  90,881 
Total lease liabilities
$ 110,406  $ 107,955 
The components of lease expense as follows for the years presented (in thousands):
 Year Ended December 31,
 2025
2024
2023
Operating lease costs:
Fixed lease costs
$ 19,181  $ 18,702 
$ 16,985 
Variable lease costs
5,066  4,543 
3,278 
Short-term lease costs
493  78 
169 
Total operating lease costs
$24,740 
$23,323 
$20,432 
Sublease income
(636) (636)
(159)
Total lease costs, net
$24,104  $22,687 
$20,273 
Other information related to leases was as follows (in thousands, except as noted):
Year Ended December 31,
2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases
 21,938 20,607
Weighted-average remaining lease term (in years):
Weighted average remaining lease term in years—operating leases
6.90 6.08
Weighted-average discount rate:
Weighted average discount rate—operating leases
 6.3  % 5.3%