The Company enters into operating leases primarily for standalone homes, luxury condos and hotel rooms and suites. As of September 30, 2025, active leases have remaining initial terms ranging from less than one to eighteen years, and generally contain extension options at the approval of both parties as well termination rights where the Company can terminate the lease with 180 to 360 days' notice without a termination fee. The Company has not generally included these renewal periods nor the lease termination options within the lease term as it is not reasonably certain that either will be exercised. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Variable lease expense includes expenses incurred as a result of the lease agreement, which are not considered known expenses at lease inception and are recognized as incurred. Variable expenses can include, but are not limited to, revenue shares, owner buyback adjustments and usage-based agreements. Operating lease expense and variable lease expense are included in cost of revenue within the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating lease expense	$	15,735	$	18,076	$	47,891	$	56,634
Variable lease expense	191		225		924		726
Total lease expense	$	15,926	$	18,301	$	48,815	$	57,360


Fiscal Year Ending	Operating Leases
Remainder of 2025	$	16,525
2026	55,487
2027	37,102
2028	25,234
2029	16,349
2030 and thereafter	38,666
Total minimum lease payments	189,363
Less: interest expense	32,829
Present value of lease obligations	156,534
Less: current lease obligations	50,053
Long-term lease obligations	$	106,481

The Company has entered into a subleasing agreement for a number of homes in a single location which contains an extension option at the approval of both parties. During the three and nine months ended September 30, 2025, the Company had $0.3 million and $0.9 million, respectively, in sublease income related to this agreement. There was no sublease income during the three and nine months ended September 30, 2024.

During the three months ended September 30, 2025 and 2024, the Company reviewed cash flow forecasts of leases against the carrying value of their right-of-use assets. The Company determined that the right-of-use assets for leases had estimated undiscounted future cash flows that exceeded their net carrying values and therefore no impairment was recorded for the three months ended September 30, 2025 or 2024.

During the nine months ended September 30, 2025 and 2024, the Company reviewed cash flow forecasts of leases against the carrying value of their right-of-use assets. During the nine months ended September 30, 2025, the Company determined that one lease had ceased all active use and consequently impaired the right-of-use asset to zero and recorded $0.4 million in impairment expense related to this lease within cost of revenue on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. There was no impairment expense recorded during the nine months ended September 30, 2024.

The Company entered into a Lease Termination and Surrender Agreement on August 12, 2024, subsequently amended on August 30, 2024, effective August 31, 2024 (the “Termination Agreement”) to terminate certain previously impaired, underperforming leases under which the Company did not previously have termination rights. The Termination Agreement resulted in a decrease to the Company’s right-of-use assets of $4.6 million and corresponding decrease to operating lease liabilities of approximately $41.7 million, resulting in a gain on lease termination of $37.1 million, which was recorded to asset impairments and (gain) on lease termination on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) during three and nine months ended September 30, 2024. Additionally, as part of the