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| Leases | 6. Leases The Company’s lease portfolio for the three and six months ended June 30, 2026 included office leases for its current headquarters location and other locations, and leases for office equipment. The Company’s headquarters office lease requires a letter of credit totaling $0.5 million to secure the Company’s obligations under the lease agreement. The letter of credit is maintained under a subfacility of the revolving credit agreement (Note 8). Lease cost is recognized on a straight-line basis over the lease term. The components of lease cost for the three and six months ended June 30, 2026 and 2025 are as follows (in thousands):
Supplemental information related to leases for the periods reported is as follows:
Summer Street Lease In June 2019, the Company entered into a non-cancelable operating lease (the “Summer Street Lease”) for approximately 39,000 square feet of office space on the 23rd floor of 100 Summer Street, Boston, Massachusetts, which has been the Company’s headquarters since October 2019. The Summer Street Lease terminates on June 11, 2030 and includes a 2% annual rent escalation, free rent periods, a tenant improvement allowance, and an option to extend the term of the lease for an additional five years at a market base rental rate. The extension option is not included in the lease term used for the measurement of the lease, as it is not reasonably certain to be exercised. The lease expense, inclusive of the escalating rent payments and lease incentives, is recognized on a straight-line basis over the lease term. As of lease commencement, the Company recorded a right-of-use asset and a lease liability using an incremental borrowing rate of 5.8%. As of June 30, 2026, the balances of the right-of-use asset and operating lease liability were $8.4 million and $11.9 million, respectively. As of December 31, 2025, the balances of the right-of-use asset and operating lease liability were $9.3 million and $13.1 million, respectively. Lease costs recorded during the three and six months ended June 30, 2026 were $0.6 million and $1.3 million, respectively. Lease costs recorded during the three and six months ended June 30, 2025 were $0.6 million and $1.3 million, respectively. Future minimum lease payments under the Summer Street Lease as of June 30, 2026 are as follows (in thousands):
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