The Company has primarily entered into lease arrangements for office space, in addition to other miscellaneous equipment. The Company’s leases have initial non-cancelable lease terms ranging from one to 14 years. Some of the Company’s leases include an option for it to extend the term of the lease for up to 5 years.

During the six months ended June 30, 2026, the Company executed a strategic plan for its office leases in Carpinteria, California, altering its long-term renewal expectations. While the Company previously assumed it was reasonably certain to exercise two 5-year renewal options across all suites, management elected to exercise only one 5-year renewal for its primary core lease space and decline future renewal extensions for the remaining office suites. These actions shortened the remaining lease terms and triggered a reclassification of the arrangements from finance leases to operating leases. Consequently, future contractual rent commitments decreased by a net of $29.7 million. Total finance lease modifications during the period resulted in net decreases to right of use assets–finance leases and corresponding finance lease liabilities of $18.8 million and $27.6 million, respectively, which primarily related to the modified leases in Carpinteria. Total operating lease modifications related to Carpinteria during the period resulted in net increases to right of use assets–operating leases and corresponding operating lease liabilities of $0.9 million and $3.9 million, respectively.

As a result of the Carpinteria lease modifications, the Company recognized a one-time non-cash gain of $5.8 million as an offset to rent expense during the six months ended June 30, 2026. The non-cash gain will be partially offset by accelerated leasehold improvement amortization of $5.1 million through the end of the new lease term, of which $4.1 million and $1.0 million will be recognized in fiscal years 2026 and 2027, respectively. The non-cash gain and the accelerated leasehold improvement amortization are both recorded in general and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss).


	June 30, 2026		December 31, 2025
Operating Leases
Operating right of use assets	$	47,603	$	36,024
Amount included within other current liabilities	8,683		5,019
Operating lease liabilities, non-current	58,813		45,855
Total operating lease liabilities	$	67,496	$	50,874
Finance Leases
Finance right of use assets	$	28	$	19,619
Amount included within other current liabilities	28		1,771
Finance lease liabilities, non-current	2		26,557
Total finance lease liabilities	$	30	$	28,328


Period Ended December 31,	Operating		Finance		Total
2026(1)	$	2,466	$	25	$	2,491
2027	5,836		5		5,841
2028	10,377		—		10,377
2029	8,728		—		8,728
2030	9,497		—		9,497
2031	7,333		—		7,333
Thereafter	51,376		—		51,376
Total lease payments, net of tenant improvement reimbursement	$	95,613	$	30	$	95,643
Less imputed interest	(28,117)		—		(28,117)
Total	$	67,496	$	30	$	67,526