The Company leases its facilities and certain equipment, with current lease terms running through 2032. Many leases include options to renew. The Company did not include renewal options in the calculation of the lease liability and right-of use asset at the lease inception unless the exercise of such options was reasonably certain. Fixed rent generally escalates each year, and the Company is responsible for a portion of the landlords’ operating expenses such as property tax, insurance and common area maintenance.

The Company’s leases include various operating leases expiring at various dates through September 2032 and a finance lease expiring September 2032 for one of our buildings in San Jose.

The Company’s leases do not have any contingent rent payments and do not contain residual value guarantees.

The components of lease related expense are as follows (amounts in thousands):


	Three Months Ended March 31,
Lease costs	2026			2025
Finance lease costs:
Amortization of right-of-use assets	$	1,467		$	718
Interest on lease liabilities		478			528
Operating lease costs		1,720			2,250
Sublease income		(436	)		—
Variable lease costs		614			1,277
Total lease expense	$	3,843		$	4,773

The components of supplemental cash and non-cash information related to leases are as follows (amounts in thousands):


	Three Months Ended March 31,
	2026		2025
Operating outgoing cash flows - finance lease	$	478	$	528
Financing outgoing cash flows - finance lease		870		784
Operating outgoing cash flows - operating lease		1,769		2,248
Right-of-use assets obtained in exchange for new operating lease liabilities		217		—

The table below displays additional information for leases as of March 31, 2026 and December 31, 2025:


	March 31, 2026			December 31, 2025
Finance lease
Weighted-average remaining lease term - finance lease (in years)		6.5			6.8
Weighted-average discount rate - finance lease		6.06	%		6.06	%
Operating lease
Weighted-average remaining lease term - operating lease (in years)		6.4			6.6
Weighted-average discount rate - operating lease		6.52	%		6.52	%

As of March 31, 2026, future minimum payments during the next five years and thereafter are as follows (amounts in thousands):


Fiscal Year	Operating Leases			Finance Lease
2026 (remaining nine months)	$	5,390		$	4,069
2027		7,314			5,566
2028		7,129			5,719
2029		7,129			5,876
2030		7,343			6,038
2031		7,563			6,204
Thereafter		5,166			4,228
Total		47,034			37,700
Less present value discount		(8,845	)		(6,705	)
Lease liabilities		38,189			30,995

As the Company’s lease agreements do not provide an implicit rate, the Company used an estimated incremental borrowing rate that will be incurred to borrow on a collateralized basis over a similar term at the lease commencement date or modification date in determining the present value of lease payments.

The Company establishes assets and liabilities for the present value of estimated future costs to return certain of our leased facilities to their original condition upon the termination or expiration of a lease. The recognition of an asset retirement obligation requires the Company to make assumptions and judgments including the actions required to satisfy the liability, inflation rates and the credit-adjusted risk-free rate. The initially recognized asset retirement cost is included in the leasehold improvements, and amortized using the same method and useful life as the long-lived asset to which it relates. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. The Company recorded asset retirement obligation of approximately $13.8 million and $13.7 million as of March 31, 2026 and December 31, 2025, respectively, in Other liabilities in the Condensed Consolidated Balance Sheets.