Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 13 years. At June 30, 2026 and December 31, 2025, operating lease right-of-use assets were $769.2 million and $788.5 million, respectively, and lease liabilities were $838.1 million and $855.9 million, respectively.

The tables below summarize our net lease cost for the three and six months ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,
	2026			2025
Operating lease cost	$	27,486		$	28,587
Short-term lease cost		352			462
Variable lease cost		8,056			7,532
Sublease income		(222	)		(241	)
Net lease cost	$	35,672		$	36,340


	Six Months Ended June 30,
	2026			2025
Operating lease cost	$	56,915		$	56,137
Short-term lease cost		730			813
Variable lease cost		15,260			14,751
Sublease income		(471	)		(320	)
Net lease cost	$	72,434		$	71,381

Operating lease costs are included in occupancy and equipment rental in the consolidated statements of operations.

The table below summarizes other information related to our operating leases as of and for the six months ended June 30, 2026 (in thousands):


Operating lease cash flows	$	57,293
Right-of-use assets obtained in exchange for new operating lease liabilities	$	14,281
Weighted-average remaining lease term (years)		11.9
Weighted-average discount rate		5.17	%

The weighted average discount rate represents our company’s incremental borrowing rate at the lease inception date.

The table below presents information about operating lease liabilities as of June 30, 2026, (in thousands, except percentages).


Remainder of 2026	$	55,636
2027		111,917
2028		110,077
2029		107,753
2030		102,752
Thereafter		673,562
Total undiscounted lease payments		1,161,697
Imputed interest		(323,607	)
Present value of operating lease liabilities	$	838,090

As of June 30, 2026, the Company had a total lease portfolio of 4 aircraft engines with a net book value of $16.7 million. The aircraft engines were purchased by the Company, through its subsidiaries, during 2024. See Note 25 for additional information.

There were no sales during the six months ended June 30, 2026. During the three months ended June 30, 2025, the Company sold 5 aircraft engines with a net book value of $42.1 million and recognized a gain from the sale of $28.5 million, which is included in principal transactions in the consolidated statements of operations. During the six months ended June 30, 2025, the Company sold 6 aircraft engines with a net book value of $53.1 million and recognized a gain from the sale of $32.1 million, which is included in principal transactions in the consolidated statements of operations.

Lease income, included in other income in the consolidated statements of operations, was $0.6 million and $2.6 million for the three months ended June 30, 2026 and 2025, respectively, and $1.3 million and $6.5 million for the six months ended June 30, 2026 and 2025, respectively.