v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
The components of lease costs for operating leases, inclusive of leases assumed as a part of the Anywhere Merger, for the three and six months ended June 30, 2026 and 2025 was as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease costs54 $27 105 $54 
Short-term lease costs4 — 9 1 
Sublease income— (1)(2)(3)
Variable lease costs12 10 31 19 
Total$70 $36 $143 $71 
The Company has a small population of subleases whereby it acts as a lessor and has recognized sublease income as noted in the table above. The impact of this portfolio is not material to the consolidated financial statements.
For the three months ended June 30, 2026 and 2025, the Company recognized costs related to operating leases, net of sublease income, of $68 million and $35 million, respectively, in Operations and support and $2 million and $1 million, respectively, in General and administrative in the consolidated statements of operations. For the six months ended June 30, 2026 and 2025, the Company recognized costs related to operating leases, net of sublease income, of $139 million and $69 million, respectively, in Operations and support and $4 million and $2 million, respectively, in General and administrative in the consolidated statements of operations.
In connection with the Anywhere Merger, the Company acquired finance lease assets which represent equipment leases which primarily consist of furniture, computers and other office equipment. During the three and six months ended June 30, 2026, the Company recognized $6 million and $8 million, respectively, of expense related to its finance lease assets.
Supplemental balance sheet information related to the Company's leases was as follows (in millions):
Lease TypeBalance Sheet ClassificationJune 30, 2026December 31, 2025
Assets:
Operating lease assetsOperating lease right-of-use assets$690 $381
Finance lease assetsProperty and equipment, net7 —
Total lease assets, net$697 $381
Liabilities:
Current:
Operating lease liabilitiesCurrent lease liabilities$178$99
Finance lease liabilitiesCurrent lease liabilities4—
Non-current:
Operating lease liabilitiesNon-current lease liabilities594354
Finance lease liabilitiesNon-current lease liabilities2—
Total lease liabilities$778$453

The following table represents the weighted-average remaining lease term and discount rate for the Company’s operating leases:
June 30, 2026December 31, 2025
Weighted average remaining lease term (years):
Operating leases4.85.1
Finance leases2.00.0
Weighted average discount rate:
Operating leases6.3%6.1%
Finance leases5.5%—%
Future undiscounted lease payments for the Company’s operating and finance lease liabilities are as follows as of June 30, 2026 (in millions):

Operating LeasesFinance LeasesTotal
Remaining 2026
$107 $2 $109 
2027
222 3 225 
2028183 1 184 
2029148 — 148 
203097 — 97 
Thereafter147 — 147 
Total future lease payments904 6 910 
Less: imputed interest132 — 132 
Present value of lease liabilities$772 $6 $778 
Supplemental cash flow information related to leases was as follows (in millions):

Six Months Ended June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$118 $65 
Financing cash flows from finance leases3 — 
Supplemental non-cash information:
Lease assets obtained in exchange for lease obligations:
Operating leases$84 $41 
Finance leases1 — 

As of June 30, 2026, the Company had additional operating leases that have not yet commenced with future undiscounted lease payments of approximately $40 million payable through 2038, which have been excluded from above.
Leases Leases
The components of lease costs for operating leases, inclusive of leases assumed as a part of the Anywhere Merger, for the three and six months ended June 30, 2026 and 2025 was as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease costs54 $27 105 $54 
Short-term lease costs4 — 9 1 
Sublease income— (1)(2)(3)
Variable lease costs12 10 31 19 
Total$70 $36 $143 $71 
The Company has a small population of subleases whereby it acts as a lessor and has recognized sublease income as noted in the table above. The impact of this portfolio is not material to the consolidated financial statements.
For the three months ended June 30, 2026 and 2025, the Company recognized costs related to operating leases, net of sublease income, of $68 million and $35 million, respectively, in Operations and support and $2 million and $1 million, respectively, in General and administrative in the consolidated statements of operations. For the six months ended June 30, 2026 and 2025, the Company recognized costs related to operating leases, net of sublease income, of $139 million and $69 million, respectively, in Operations and support and $4 million and $2 million, respectively, in General and administrative in the consolidated statements of operations.
In connection with the Anywhere Merger, the Company acquired finance lease assets which represent equipment leases which primarily consist of furniture, computers and other office equipment. During the three and six months ended June 30, 2026, the Company recognized $6 million and $8 million, respectively, of expense related to its finance lease assets.
Supplemental balance sheet information related to the Company's leases was as follows (in millions):
Lease TypeBalance Sheet ClassificationJune 30, 2026December 31, 2025
Assets:
Operating lease assetsOperating lease right-of-use assets$690 $381
Finance lease assetsProperty and equipment, net7 —
Total lease assets, net$697 $381
Liabilities:
Current:
Operating lease liabilitiesCurrent lease liabilities$178$99
Finance lease liabilitiesCurrent lease liabilities4—
Non-current:
Operating lease liabilitiesNon-current lease liabilities594354
Finance lease liabilitiesNon-current lease liabilities2—
Total lease liabilities$778$453

The following table represents the weighted-average remaining lease term and discount rate for the Company’s operating leases:
June 30, 2026December 31, 2025
Weighted average remaining lease term (years):
Operating leases4.85.1
Finance leases2.00.0
Weighted average discount rate:
Operating leases6.3%6.1%
Finance leases5.5%—%
Future undiscounted lease payments for the Company’s operating and finance lease liabilities are as follows as of June 30, 2026 (in millions):

Operating LeasesFinance LeasesTotal
Remaining 2026
$107 $2 $109 
2027
222 3 225 
2028183 1 184 
2029148 — 148 
203097 — 97 
Thereafter147 — 147 
Total future lease payments904 6 910 
Less: imputed interest132 — 132 
Present value of lease liabilities$772 $6 $778 
Supplemental cash flow information related to leases was as follows (in millions):

Six Months Ended June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$118 $65 
Financing cash flows from finance leases3 — 
Supplemental non-cash information:
Lease assets obtained in exchange for lease obligations:
Operating leases$84 $41 
Finance leases1 — 

As of June 30, 2026, the Company had additional operating leases that have not yet commenced with future undiscounted lease payments of approximately $40 million payable through 2038, which have been excluded from above.