The Company is obligated under various non-cancelable operating leases primarily for office space. The initial terms of the leases expire on various dates through 2032. The Company determines if an arrangement is a lease at inception.

The components of the Company’s operating lease expenses are reflected in the condensed consolidated statements of income as follows:

⁽¹⁾ Short-term lease expenses include rent expenses from leases of 12 months or less on the transition date or lease commencement.

⁽²⁾ Variable lease cost includes common area maintenance, property taxes, and fluctuations in rent due to a change in an index or rate.

The Company’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company elected to combine fixed payments for non-lease components, for all classes of underlying assets, with its lease payments and account for them together as a single lease component, which increases the amount of the Company's lease assets and liabilities.

During the nine months ended September 30, 2026 and 2025, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $19.8 million and $9.0 million, respectively.

Other information related to operating leases is as follows:

	*Three Months Ended September 30,*				*Nine Months Ended September 30,*
	*2026*		*2025*		*2026*		*2025*
	(in thousands)
Cash paid for amounts included in the measurement of the lease liability:
Operating cash flows from operating leases	$	2,944	$	2,216	$	8,229	$	6,840

As of September 30, 2026, the Company’s operating leases had a weighted average remaining lease term of 3.3 years and a weighted average discount rate of 5.1%.

As of December 31, 2025, the Company’s operating leases had a weighted average remaining lease term of 3.1 years and a weighted average discount rate of 5.4%.

The maturity schedule of the operating lease liabilities as of September 30, 2026 is as follows:

Year Ending December 31:
	(in thousands)
2026 (three months)	$	3,372
2027		12,138
2028		7,448
2029		5,359
2030		2,958
Thereafter		1,315
Total future lease payments		32,590
Less: Present value adjustment		(2,669	)
Present value of future lease payments ⁽¹⁾	$	29,921

⁽¹⁾ Includes the current portion of operating lease liabilities of $11.8 million, which is reflected in accrued expenses and other current liabilities in the condensed consolidated balance sheets.

As of September 30, 2026, letters of credit have been issued in the amount of $1.6 million as security for operating leases. The letters of credit are secured by a sublimit of the Company’s line of credit (see “Note 7 - Line of Credit” for more information).