Leases

12 Months Ended

Dec. 31, 2025

We have two operating lease agreements related to our corporate headquarters and a data center facility for which we recognized operating ROU assets and lease liabilities of $6.7 million and $8.5 million in “Other Assets” and “Other Liabilities,” respectively, on our consolidated balance sheets as of December 31, 2025. As of December 31, 2024, we recognized operating ROU assets and lease liabilities of $8.2 million and $10.3 million, respectively. As of December 31, 2025 and 2024, we did not have any finance leases.

We did not enter into any new operating leases or recognize any new ROU assets or lease liabilities during the year ended December 31, 2025.

The following table provides a summary of our ROU asset and lease liability assumptions as of December 31, 2025 and 2024:


	December 31, 2025		December 31, 2024
Weighted average remaining lease term	4.2 years		5.1 years
Weighted average discount rate	6.50	%	6.50	%

Cash paid on our operating leases for the years ended December 31, 2025, 2024 and 2023 was $2.4 million, $2.3 million and $1.5 million and lease expense incurred was $2.1 million, $2.1 million and $2.0 million during each respective period.

Future payments due under our existing operating leases as of December 31, 2025 are as follows:


Years ending December 31,	(In Thousands)
2026	$	2,211
2027	2,256
2028	2,322
2029	2,392
2030	602
Total undiscounted lease payments	9,783
Less effects of discounting	(1,276)
Present value of lease payments	$	8,507

Lease expense is recorded in “Underwriting and Operating Expenses” on the consolidated statements of operations and comprehensive income. Our existing leases have original terms that range from two to eight years. The lease for our corporate headquarters includes an option to renew for an additional five years at prevailing market rates at time of renewal. This renewal option is not included in the calculation of future lease payments due under the existing lease as presented above as it is not reasonably certain to be exercised.

NMI Holdings, Inc. 10-K