The Company has entered into operating agreements with lease periods expiring between 2025 and 2032. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

Components of lease expense are as follows, all recorded within operating expenses in the Condensed Consolidated Statements of Operations:


	Three months ended Mar. 31,
(in thousands)		2026		2025
Operating lease cost		934		2,210
Short-term lease cost(1)		—		3
Variable lease cost(2)		26		46
Sublease income		(922)		(726)
Total net lease expense		$	38	$	1,533

(1)Includes costs related to leases, which at the commencement date, have a lease term of 12 months or less.

(2)Includes costs incurred by the Company for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.

As part of the Company’s continued cost savings initiatives, the Company is actively looking to terminate or sublease certain office spaces and call centers. These actions resulted in $0.7 million in operating lease impairment charges for the three months ended March 31, 2025 which are recorded in “Indefinite and long-lived asset impairment charges” on the Condensed Consolidated Statements of Operations. The operating lease impairment charges reduce the carrying value of the associated ROU assets and leasehold improvements to their estimated fair values. For the three months ended March 31, 2025, the Company recognized $0.2 million of one-time gains from the remeasurement of the lease liability and adjustment of the ROU asset (which was previously impaired) related to the early termination of one of its leases. The gain on lease remeasurement was recorded in general and administrative expense on the Condensed Consolidated Statements of Operations. There were no operating lease impairment charges recorded for the three months ended March 31, 2026.

As of March 31, 2026, future minimum lease payments for operating leases consisted of the following:


(in thousands)	Operating Leases
Remainder of 2026	$	8,859
2027	7,787
2028	6,745
2029	5,717
2030	5,733
Thereafter	8,738
Total lease payments	$	43,579
Less: Imputed interest	(8,592)
Present value of lease liabilities	$	34,987

Supplemental cash flow information related to leases are as follows:


	Three months ended Mar. 31,
(in thousands)		2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	1,176	$	2,341


Non-cash activity:
Operating lease assets obtained in exchange for new lease obligations(1)		—		1,626
Reduction in operating lease liabilities due to remeasurement		$	419	$	—

(1)For the three months ended March 31, 2025, the Company recognized operating lease assets arising from operating leases of an acquiree.

The weighted average remaining operating lease term and discount rate are as follows:


	Mar. 31,
	2026		2025
Weighted average remaining lease term	5.6 years		6.4 years


Weighted average discount rate	9.2	%	9.4	%