7. Leases

The Company has operating leases for off-campus classroom and laboratory sites, office space, office equipment, and optical fiber communication lines. These leases have remaining lease terms that range from two months to 11 years. At lease inception, we determine the lease term by assuming no exercises of renewal options due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company had operating lease costs of $9,065 and $8,749 for the six-month periods ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, the Company had $31,055 of non-cancelable operating lease commitments for five off-campus classroom and laboratory sites that had not yet commenced. The Company’s weighted-average remaining lease term relating to its operating leases is 6.97 years, with a weighted-average discount rate of 4.51%. The cash paid for operating lease liabilities was $9,372 and $8,358 for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at June 30, 2026, by year and in the aggregate, are as follows:

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