The Company has entered into operating leases for facilities utilized for commercial and research and development. Operating leases have remaining lease terms which range from less than 1 year to 8 years, and often include one or more options to renew. These renewal terms can extend the lease term from 5 to 15 years and are included in the lease term when it is reasonably certain that the option will be exercised. The exercise of lease renewal and termination options are at the sole discretion of the Company. The Company also has variable lease payments that are primarily comprised of common area maintenance and utility charges.

The components of lease costs are as follows:


	Year Ended
(in thousands)	December 31, 2025		December 31, 2024		December 31, 2023
Operating lease costs	$	17,767	$	18,577	$	24,357

Variable lease costs	4,061		4,666		3,676
Total lease costs	$	21,828	$	23,243	$	28,033

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases were as follows:


	As of December 31,
	2025		2024
Weighted-average remaining lease term	6.9 years		7.3 years
Weighted average discount rate	2.6	%	2.5	%


(in thousands)	Amount
2026	$	13,590
2027	8,442
2028	8,232
2029	8,448
2030	8,260
Thereafter	23,871
Total undiscounted lease payments	70,843
Less: Imputed interest	(6,290)
Less: Tenant improvement allowance*	(9,690)
Total operating lease liabilities	$	54,863
*Tenant improvement allowance is estimated to be received as follows: approximately $0.3 million in 2026 and $9.4 million thereafter.

Excluded from the lease obligation table above is a commercial lease agreement (the “Lease”) entered into by and between the Company and Sunnyvale Office Acquisition, LLC, as of September 11, 2025, pursuant to which the Company agreed to lease an aggregate of approximately 75,556 square feet for a new corporate headquarters in Sunnyvale, California, which will be recognized as an operating lease upon the lease commencement date. The actual timing of lease commencement for accounting purposes, as well as the Company’s obligation to begin making payments and recognizing rental and other expenses, is dependent upon when the space is made available to the Company and the Company obtains control of the underlying asset. The Company’s current estimate of the total estimated undiscounted lease payments, excluding the renewal option and option to expand into additional space, for this leased office space is approximately $61.7 million.