Leases

12 Months Ended

Dec. 31, 2025

The Company leases its office facilities under a non-cancelable operating lease agreement with an unrelated party through September 2030. The lease agreement includes non-lease components, such as common area maintenance and reimbursements for real estate taxes, which are expensed as incurred as variable lease payments. The lease agreement also includes options to extend or terminate the lease agreement. The Company is not reasonably certain that it will extend or terminate the lease agreement; as such, lease payments do not take into account these options. The Company’s lease agreement does not contain any material residual value guarantees or material restrictive covenants. In connection with the lease agreement, the Company executed a letter of credit in the amount of $1.8 million. As of December 31, 2025 and 2024, there were no outstanding balances on the letter of credit.

On October 10, 2022, the Company entered into a sublease agreement with a third-party to sublease one of its office facilities through August 2025. On January 30, 2025, the Company entered into a new sublease agreement with the third-party sublessee to extend the sublease from August 2025 through August 2030. The new sublease agreement includes an option for the third-party sublessee to terminate the lease agreement. The Company is not reasonably certain that the third-party sublessee will terminate the lease agreement; as such, lease payments do not take into account this option. The Company’s new sublease agreement does not contain any material residual value guarantees or material restrictive covenants. Under the terms of the new sublease agreement, the third-party sublessee provides the Company with an irrevocable letter of credit in the amount of $0.1 million. The Company is entitled to draw on the letter of credit in the event of any default under the terms of the new sublease agreement. The new sublease agreement did not relieve the Company of its primary obligation under its lease agreement. The sublease income to be earned was determined to be less than the costs associated with the primary lease held by the Company. As a result, the Company recorded additional impairment expense of $0.2 million on the new sublease commencement date to adjust its operating lease right-of-use asset, which was included in general, administrative and other in the consolidated statement of operations.

The components of total lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):


	2025		2024		2023
Operating lease cost	$	2,206	$	2,300	$	2,347
Variable lease expense	1,725		1,604		1,983
Short-term lease cost	160		97		71
Sublease income	(327)		(318)		(318)
Total lease cost	$	3,764	$	3,683	$	4,083

Supplemental cash flow information related to the leases for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):


	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,277	$	2,476	$	2,647
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	—	$	—	$	159

The aggregate weighted-average remaining lease term and weighted-average discount rate as of December 31, 2025, 2024 and 2023 were as follows:


	2025		2024		2023
Weighted-average remaining lease term (in years)	4.8		5.8		6.7
Weighted-average discount rate	5	%	5	%	5	%

Future minimum operating leases as of December 31, 2025 were as follows (in thousands):


Year	Amount
2026	$	2,557
2027	2,633
2028	2,712
2029	2,794
2030	2,144
Total lease payments	12,840
Less: imputed interest	(1,416)
Operating lease liabilities	$	11,424

OppFi Inc. 10-K