The Company has various operating leases for fulfillment and corporate facilities with lease periods expiring between fiscal years 2026 and 2041, including renewal options the Company is reasonably certain to exercise. The operating lease agreements provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments, if exercised. The Company utilizes the reasonably certain threshold criteria in determining which options it will exercise.

In the third quarter of 2025, the Company executed a new operating lease in New Albany, Ohio, resulting in an additional operating lease right-of-use (“ROU”) asset of $69.4 million along with a corresponding increase to operating lease liabilities. In the second quarter of 2025, the Company accounted for a lease extension for its existing operating lease in New Albany, Ohio as a lease modification. This resulted in the remeasurement of the lease liability and an adjustment of $10.4 million to the carrying amount of the corresponding ROU asset for the existing facility. In the first quarter of 2025, the Company executed new operating leases in Mesa, Arizona and Menlo Park, California, resulting in additional operating lease ROU assets of $20.9 million and $31.5 million, respectively, along with corresponding increases to operating lease liabilities.

For the three months ended September 30, 2025 and 2024, the Company recorded operating lease costs of $4.9 million and $0.8 million, respectively, including variable operating lease costs of $0.3 million and $0.2 million, respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded operating lease costs of $8.5 million and $2.2 million, respectively, including variable operating lease costs of $0.6 million and $0.4 million, respectively.

For the nine months ended September 30, 2025 and 2024, operating cash flows used for operating leases were $7.9 million and $1.8 million, respectively. As of September 30, 2025, the weighted average remaining lease term and weighted average discount rate, including for renewal options the Company is reasonably certain to exercise, was 12.1 years and 6.1%, respectively.

Future minimum lease payments subsequent to September 30, 2025 under the Company's non-cancelable operating leases with an initial lease term in excess of one year are as follows (in thousands):


The remainder of 2025	$	1,248
2026	12,342
2027	16,340
2028	16,564
2029	17,120
2030 and thereafter	154,607
Gross lease payments	218,221
Less: imputed interest	(71,221)

Present value of net future minimum lease payments	$	147,000