As of June 30, 2026, our lease portfolio consists entirely of operating leases for corporate offices. Our operating leases have remaining lease terms with various expiration dates through 2031, and some leases include options to extend the term for up to an additional 10 years.

Expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. We have lease agreements which require payments for lease and non-lease components (i.e., common area maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as maintenance costs, utilities, and service charges are not included in right-of-use (“ROU”) assets for operating leases or operating lease liabilities but rather are expensed as incurred and recorded as variable lease expense. We often receive customary incentives from our landlords such as tenant improvement allowances (“TIAs”) and rent abatement periods, which effectively reduce total lease payments owed for the leases.

The following table sets forth the components of lease expense for the three and six months ended June 30, 2026 and 2025 (in thousands, exclusive of sublease income):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	2,556	$	2,615	$	4,919	$	5,008
Short-term lease cost	247		282		453		532
Variable lease cost	1,536		1,244		3,197		2,616
Total	$	4,339	$	4,141	$	8,569	$	8,156

Sublease income totaled $0.3 million and $0.6 million for the three and six months ended June 30, 2026, respectively. Sublease income totaled $0.3 million and $0.7 million for the three and six months ended June 30, 2025, respectively.

Supplemental balance sheet information related to operating leases as of June 30, 2026 and December 31, 2025 is presented in the following table (in thousands, except for lease term and discount rate):


	As of
	June 30, 2026			December 31, 2025
Right-of-use assets for operating leases	$	30,437		$	28,075

Operating lease liabilities, current	$	14,171		$	13,181
Operating lease liabilities, net of current portion	45,128			45,693
Total operating lease liabilities	$	59,299		$	58,874

Weighted average remaining lease term (in years)	5.0			5.5

Weighted average discount rate	9.2		%	9.4		%

Supplemental cash flow and expense information related to operating leases for the three and six months ended June 30, 2026 and 2025 is shown below (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating cash outflows for operating leases	$	3,414	$	3,248	$	6,824	$	6,441

Amortization of operating lease right-of-use assets	1,211		947		2,254		1,857
Interest expense on operating lease liabilities	1,345		1,466		2,665		2,949

Non-cash operating lease liabilities arising from obtaining right-of-use assets	5,370		—		5,370		—


	Operating Leases
2026 (excluding the six months ended June 30, 2026)	$	7,633
2027	15,007
2028	14,096
2029	14,098
2030	14,140

Thereafter	10,842
Total lease payments	75,816
Less: imputed interest	(16,517)
Total	$	59,299