The Company enters into lease agreements that are primarily used for office space. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the term of the lease. The Company occasionally assumes equipment lease agreements through business acquisitions. These leases are accounted for as finance leases.

Included in a portion of the Company's current leases are options to extend or cancel the lease term. The exercise of such options is solely at the Company's discretion. The lease liability recorded in the unaudited Consolidated Balance Sheets includes lease payments related to options to extend or cancel the lease term if the Company determined at the inception date that the lease was expected to be renewed or extended. The Company, in determining the present value of lease payments, utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields, as explicit rates of interest were not readily determinable in the lease contracts. The Company does not carry debt; thus, no incremental borrowing rate was available to the Company.

Lease expense is included in office and technology expenses in the unaudited Consolidated Statements of Operations. Information regarding the Company’s leases is as follows:


	Three Months Ended March 31,
(in thousands)	2026		2025
Operating leases	$	534	$	667
Finance leases:
Amortization of lease assets	48		62
Interest on lease liabilities	4		—
Lease expense	$	586	$	729
Sub-lease income	(21)		(43)
Lease cost	$	565	$	686


(in thousands)	As of March 31, 2026		As of December 31, 2025
Current:
Operating lease liabilities	$	1,659	$	1,548
Finance lease liabilities	150		130
Non-current:
Operating lease liabilities	6,694		6,116
Finance lease liabilities	188		256
Total lease liabilities	$	8,691	$	8,050

The future minimum lease payments for leases that have initial or remaining noncancelable lease terms in excess of one year as of March 31, 2026, are summarized as follows:


Year Ended (in thousands)	Operating Leases		Finance Leases		Total
2026	$	1,459	$	125	$	1,584
2027	1,744		129		1,873
2028	1,347		74		1,421
2029	1,266		19		1,285
2030	1,176		10		1,186
Thereafter	2,484		—		2,484
Total undiscounted payments	$	9,476	$	357	$	9,833
Less: present value adjustment	(1,123)		(19)		(1,142)
Lease liabilities	$	8,353	$	338	$	8,691


	As of March 31, 2026		As of December 31, 2025
Weighted average remaining lease term (years)
Operating leases	6.11		6.38
Finance leases	2.51		2.65
Weighted average discount rate
Operating leases	4.0	%	4.1	%
Finance leases	4.5	%	4.5	%