Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company leases office locations, warehouse facilities and stores under various non-cancellable operating lease agreements. The Company’s leases have remaining lease terms of approximately 1 year to 10 years, which represent the non-cancellable periods of the leases and include extension options that the Company determined are reasonably certain to be exercised. The Company excludes from the lease terms any extension options that are not reasonably certain to be exercised, ranging from approximately 6 months to 3 years. Lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as payments for common area maintenance and administrative services. The Company often receives customary incentives from landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. The Company does not have any material financing leases.
Operating lease right-of-use assets and liabilities on the consolidated balance sheets represent the present value of the remaining lease payments over the remaining lease terms. The Company uses its incremental borrowing rate to calculate the present value of the lease payments, as the implicit rates in the leases are not readily determinable. Operating lease costs consist primarily of the fixed lease payments included in the operating lease liabilities and are recorded on a straight-line basis over the lease terms.
The Company’s operating lease costs were as follows:
Year Ended December 31,
2025 2024 2023
Operating lease costs $ 19,069 $ 12,845 $ 10,005
Variable lease costs 1,970 1,252 944
Short-term lease costs 430 488 385
Total lease costs $ 21,469 $ 14,585 $ 11,334
The Company does not have any sublease income and the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants.
Supplemental cash flow information relating to the Company’s operating leases was as follows:
Year Ended December 31,
2025 2024 2023
Cash paid for operating lease liabilities $ 14,013 $ 11,367 $ 8,421
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 30,362 38,534 8,447
Other information relating to the Company’s operating leases was as follows:
As of December 31,
2025 2024
Weighted-average remaining lease term
 6.6 years 6.7 years
Weighted-average discount rate
 7.4% 6.9%
As of December 31, 2025, the maturities of operating lease liabilities were as follows:
2026 $ 18,167
2027 19,743
2028 19,249
2029 19,420
2030 16,785
Thereafter
 36,515
Total remaining lease payments
 129,879
Less: imputed interest
 29,159
Total operating lease liabilities
 100,720
Less: current portion
 (13,052)
Long-term operating lease liabilities
 $ 87,668
As of December 31, 2025, the Company had obligations under several lease agreements with expected commencement dates ranging from the first half of 2026 through early 2027 and terms of between ten and eleven years. The Company expects to classify these leases as operating leases and recognize lease obligations totaling $34.0 million over the terms of the leases.