The Company leased office space beginning in March 2021 at One Main Street, Cambridge, Massachusetts to serve as its corporate headquarters (the “Cambridge office”). The 4.5 year lease includes a base rent of $2 million per year. In December 2024, the Company closed the Cambridge office and relocated its corporate headquarters to office space already leased in Waltham, Massachusetts (the “Waltham office”), effective January 1, 2025. The Company recorded a restructuring expense of $3.7 million as a result of closing the Cambridge office.

The Waltham office is 131 thousand square feet of leased office space located at 225 Wyman Street, Waltham, Massachusetts. The lease term of 11 years began on August 1, 2021, with no rent due until August 1, 2022. The annual rent equals the base rent of approximately $6 million, with 3% annual increases, plus a portion of building operating costs and real estate taxes. In addition, the Company received an improvement allowance from the landlord of $11.8 million.

Expense


(in thousands)	2024		2023		2022
Fixed lease costs	$	21,422	$	19,718	$	20,186
Short-term lease costs	1,746		2,884		3,356
Variable lease costs	6,901		8,148		3,894
	$	30,069	$	30,750	$	27,436

Right of use assets and lease liabilities


(in thousands)	December 31, 2024		December 31, 2023
Right of use assets (1)	$	62,429	$	64,198
Operating lease liabilities (2)	$	14,551	$	15,000
Long-term operating lease liabilities	$	67,647	$	66,901

(1) Represents the Company’s right to use the leased asset during the lease term. Included in other long-term assets.

The weighted-average remaining lease term and discount rate for the Company’s leases were:


	December 31, 2024		December 31, 2023
Weighted-average remaining lease term	6.2 years		6.8 years
Weighted-average discount rate (1)	4.8	%	4.0	%

(1) The rates implicit in the Company’s leases are not readily determinable. Therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur to borrow an amount equal to the lease payments on a collateralized basis over the lease term in a similar economic environment.

Maturities of lease liabilities:


(in thousands)	December 31, 2024
2025	$	18,106
2026	15,404
2027	13,972
2028	13,367
2029	10,742
Thereafter	23,535
Total lease payments	95,126
Less: imputed interest (1)	(12,928)
	$	82,198

(1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated due to a lease reassessment event.

Cash flow information


(in thousands)	2024		2023
Cash paid for operating leases, net of tenant improvement allowances	$	18,444	$	20,045
Right of use assets recognized for new leases and amendments (non-cash)	$	16,682	$	1,460