The Company has multiple operating leases for office space and a finance lease for equipment that expire at various dates through 2037. The Company has elected the package of practical expedients under the transition guidance of ASC Topic 842, Leases, to exclude short-term leases from the balance sheet and to combine lease and non-lease components. The Company classifies finance lease right of use assets under property and equipment, net and finance short-term and long-term lease liabilities under other accrued liabilities and other liabilities, long-term, respectively.

Upon inception of a lease, the Company determines if an arrangement is a lease, if it is classified as an operating or finance lease, if it includes options to extend or terminate the lease, and if it is reasonably certain that the Company will exercise the options. Lease cost, representing lease payments over the term of the lease and any capitalizable direct costs less any incentives received, is recognized on a straight-line basis over the lease term as lease expense.

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 if the rate implicit in the lease is not readily determinable. Upon execution of a new lease, the Company performs an analysis to determine its incremental borrowing rate using its current borrowing rate, adjusted for various factors including level of collateralization and lease term. As of June 30, 2026, the remaining weighted average lease term for operating and finance leases was 10 years.

During the three months ended June 30, 2026, the Company modified one of its operating leases. The modified right-of-use (“ROU”) asset and lease liability were $3,439. The ROU asset and lease liability were equal as no lease costs or incentives were associated with the modification of the lease.

Variable and short-term lease costs for the Company's operating and finance leases were immaterial for the six months ended June 30, 2026 and 2025. Additional details of the Company's operating and finance leases are presented in the following table:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Lease costs	$	4,391	$	4,569	$	8,888	$	9,078

Cash paid for leases	4,052		4,212		8,264		8,398

Maturities of operating and finance lease liabilities as of June 30, 2026 under noncancelable leases were as follows:


Year ending December 31:
Remainder of 2026	$	8,602
2027	16,411
2028	15,700
2029	15,317
2030	15,446
Thereafter	84,014
Total future minimum lease payments	155,490
Less: imputed interest	(47,487)
Present value of future minimum lease payments	108,003
Less: current portion of lease payments	(16,501)
Lease liabilities, long-term	$	91,502

From time to time, the Company may become involved in routine litigation arising in the ordinary course of business. While the results of such litigation cannot be predicted with certainty, management believes that the final outcome of such matters is not likely to have a material adverse effect on the Company’s financial position or results of operations or cash flows.