The Company leases facilities and certain equipment under noncancelable operating leases with remaining lease terms of 0.5 years to 12.1 years, some of which include options to extend for up to two five-year terms. These optional periods were not considered in the determination of the right-of-use asset or the lease liability as the Company did not consider it reasonably certain that it would exercise such options.

The operating lease costs were as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Operating lease cost	$	5,060		$	3,869		$	9,209		$	7,907
Operating sublease income		(612	)		(594	)		(1,218	)		(1,183	)
Net operating lease cost	$	4,448		$	3,275		$	7,991		$	6,724

Supplemental cash flow information related to the Company’s leases were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,177	$	3,002	$	6,236	$	5,868
Right-of-use assets obtained in exchange for operating lease obligations:		25,396		2,499		26,480		8,679

The balance sheet classification of the Company’s lease liabilities was as follows (in thousands):


	June 30, 2026		December 31, 2025
Operating lease liabilities
Current portion included in accrued liabilities	$	14,307	$	11,633
Operating lease liabilities		59,547		40,554
Total operating lease liabilities	$	73,854	$	52,187

Maturities of lease liabilities were as follows (in thousands):


	Operating Leases
Remainder of 2026	$	7,411
Years ending December 31,
2027		15,086
2028		15,287
2029		14,844
2030		12,674
Thereafter		27,991
Total lease payments		93,293
Less:
Imputed interest		(19,439	)
Total operating lease liabilities	$	73,854

Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. As of June 30, 2026, the weighted average remaining lease term was 6.1 years and the weighted average discount rate used to determine the operating lease liability was 5.1%.

In the fourth quarter of 2018, the Company entered into an agreement to lease the 4th and 5th floors of corporate office space in San Diego, California with total minimum lease payments of $50.4 million over an initial term of 10 years and 9 months. In February 2020, the Company entered into the first amendment to the lease agreement to lease the 2nd floor of corporate office space in San Diego, California with total minimum lease payments of $25.3 million over an initial term of approximately 10 years and 7 months. In March 2020, the Company entered into the second amendment to the lease agreement which increased the total minimum lease payments of the original corporate office space to $51.4 million. In the third quarter of 2020, the lease for the 4th and 5th floors of corporate office space commenced and the Company capitalized a right of use asset and related lease liability of $40.3 million. In the first quarter of 2021, the lease for the 2nd floor of corporate office space commenced and the Company capitalized a right of use asset and related lease liability of $19.2 million. In connection with this lease and the amendment, the Company established a letter of credit for $3.1 million, which has automatic annual extensions and is fully secured by restricted cash.

In May 2023, the Company entered into an agreement to sublease its 2nd floor of corporate office space in San Diego to a sublessee with a total minimum sublease income of $18.4 million over a term of approximately 7 years and 6 months. The Company delivered full possession of its 2nd floor of corporate office space to the sublessee in August 2023 and began receiving sublease payments in December 2023.

In May 2025, the Company entered into an agreement to lease the corporate office space in Princeton, New Jersey (the New Princeton Lease) with total minimum lease payments of $24.5 million over an initial term of 12 years and 2 months. The Company’s prior Princeton office lease expired in the second quarter of 2026 in accordance with its terms upon commencement of the New Princeton Lease. The New Princeton Lease commenced in the second quarter of 2026, at which time the Company recognized a right-of-use asset and corresponding operating lease liability of approximately $15.7 million. In connection with this New Princeton Lease agreement, the Company established a letter of credit for $0.6 million, which has automatic annual extensions and is fully secured by restricted cash.