v3.26.3
Leases
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Leases Leases
The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates, with options to extend or terminate before expiration date. The Company finances its use of certain motor vehicles, leasehold improvements and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements.

The Company had performed an evaluation of its contracts with suppliers in accordance with ASC Topic 842, Leases, and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease.
The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows:

Three months ended September 30,Nine months ended September 30,
2026202520262025
Finance lease:
Depreciation on underlying ROU assets$204 $157 $541 $436 
Interest on lease liabilities110 79 244 225 
314 236 785 661 
Operating lease(1)
7,491 6,414 21,756 19,121 
Variable lease costs1,599 1,227 3,958 3,514 
Sublease income— (111)— (334)
Total lease cost$9,404 $7,766 $26,499 $22,962 

(1) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:
Nine months ended September 30,
20262025
Cash payments for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$18,865$18,895
Operating cash outflows for finance leases$244$79
Financing cash outflows for finance leases$509$365
ROU assets obtained in exchange for new operating lease liabilities$14,197$14,996
ROU assets obtained in exchange for new finance lease liabilities$904$733
Weighted average remaining lease term (in years)
Finance lease2.6 years2.7 years
Operating lease6.4 years4.5 years
Weighted average discount rate
Finance lease13.8 %15.1 %
Operating lease7.5 %8.1 %

As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space. The Company modified certain of its operating leases, resulting in an increase in lease liabilities by $4,797 and $5,766, during the nine months ended September 30, 2026 and 2025, respectively, with a corresponding adjustment to ROU assets.

As of September 30, 2026 and December 31, 2025, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company.
Maturities of lease liabilities as of September 30, 2026 were as follows:

Operating LeasesFinance Leases
2026 (October 1 - December 31)$6,647 $999 
202727,227 897 
202824,429 610 
202915,962 305 
203011,663 239 
2031 and thereafter45,002 — 
Total lease payments130,930 3,050 
Less: Imputed interest26,632 618 
Present value of lease liabilities$104,298 $2,432 
Leases Leases
The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates, with options to extend or terminate before expiration date. The Company finances its use of certain motor vehicles, leasehold improvements and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements.

The Company had performed an evaluation of its contracts with suppliers in accordance with ASC Topic 842, Leases, and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease.
The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows:

Three months ended September 30,Nine months ended September 30,
2026202520262025
Finance lease:
Depreciation on underlying ROU assets$204 $157 $541 $436 
Interest on lease liabilities110 79 244 225 
314 236 785 661 
Operating lease(1)
7,491 6,414 21,756 19,121 
Variable lease costs1,599 1,227 3,958 3,514 
Sublease income— (111)— (334)
Total lease cost$9,404 $7,766 $26,499 $22,962 

(1) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:
Nine months ended September 30,
20262025
Cash payments for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$18,865$18,895
Operating cash outflows for finance leases$244$79
Financing cash outflows for finance leases$509$365
ROU assets obtained in exchange for new operating lease liabilities$14,197$14,996
ROU assets obtained in exchange for new finance lease liabilities$904$733
Weighted average remaining lease term (in years)
Finance lease2.6 years2.7 years
Operating lease6.4 years4.5 years
Weighted average discount rate
Finance lease13.8 %15.1 %
Operating lease7.5 %8.1 %

As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space. The Company modified certain of its operating leases, resulting in an increase in lease liabilities by $4,797 and $5,766, during the nine months ended September 30, 2026 and 2025, respectively, with a corresponding adjustment to ROU assets.

As of September 30, 2026 and December 31, 2025, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company.
Maturities of lease liabilities as of September 30, 2026 were as follows:

Operating LeasesFinance Leases
2026 (October 1 - December 31)$6,647 $999 
202727,227 897 
202824,429 610 
202915,962 305 
203011,663 239 
2031 and thereafter45,002 — 
Total lease payments130,930 3,050 
Less: Imputed interest26,632 618 
Present value of lease liabilities$104,298 $2,432