Leases

12 Months Ended

Dec. 31, 2025

LEASES

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets also exclude lease incentives received. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

We have operating leases primarily for office buildings and spaces. Our leases have remaining lease terms of 1 year to 3 years. Supplemental information, for continuing operations and discontinued operations, related to lease expense and valuation of the ROU assets and lease liabilities was as follows:


	Year Ended December 31,
	2025			2024
Operating lease cost	$	2,137		$	2,747
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,042			2,702
Leased assets obtained in exchange for new operating lease liabilities	201			1,111
Weighted average remaining lease term (in years)	1.56			1.90
Weighted average discount rate	8.45		%	7.55		%

Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows:


Operating Lease Payments
Years ending December 31:
2026	$	734
2027	342
2028	75





Total operating lease payments	1,151
Less imputed interest	(83)
Total operating lease liabilities	$	1,068

As of December 31, 2025, we had no operating lease liabilities that had not commenced.

PIXELWORKS, INC 10-K