Commitments and Contingencies

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

7. Commitments and Contingencies

Leases

As of December 31, 2025 and 2024, the Company had operating lease agreements for its office facilities in San Francisco, California, as well as in India, which expire at various dates through November 2028. For its primary operating leases, the Company has the option to extend the lease terms.

In September 2023, Ethos Life Technologies (India) Pvt. Ltd. entered into a lease agreement in Bangalore, Karnataka, India. The lease agreement was canceled as of November 2024 and replaced with a new agreement that expires November 2026. The lease was modified in June 2025 to extend the lease term through April 2027 and expand the leased space. The Company accounted for this amendment as a lease modification. The terms of the lease agreement provide for fixed rental payments on a graduated basis.

In May 2024, the Company entered into a lease agreement in San Francisco, CA. The lease was for the same space leased in 2022, which consisted of 9,079 square feet of office space. The terms of the lease agreement provides for fixed rental payments on a graduated basis and contains an option to extend the terms of the lease.

The components of lease costs, which consist of rent expense for leased office space, during the years ended December 31, 2025 and 2024 were as follows:


	Year Ended December 31,
	2025		2024
Fixed operating lease cost	$	1,046	$	668
Short-term lease cost		69		83
Sublease income		—		(14	)
Total lease cost	$	1,115	$	737

Supplemental cash flow information related to the Company’s operating leases as well as the weighted-average lease term and discount rate as of December 31, 2025 and 2024 were as follows:


	Year Ended December 31,
	2025			2024
Cash paid for operating lease liabilities	$	959		$	613
Operating lease assets obtained in exchange for new operating lease obligations	$	596		$	2,663
Weighted-average remaining lease term (years)		2.28			3.26
Weighted-average discount rate		6.00	%		6.00	%

Future lease payments under the Company’s operating lease agreements as of December 31, 2025 were as follows:


2026	$	1,265
2027		794
2028		503
Total future lease payments		2,562
Less interest		(209	)
Present value of lease liabilities	$	2,353

Contingencies

During 2022 the Company experienced a cyber incident related to its website. The Company did not identify any unauthorized access to or exfiltration of customer data stored on its systems. During the year ended December 31, 2024, the Company reversed a prior accrual of a $2,000 loss contingency related to costs, fees, and potential fines associated with the incident, as prior civil litigation has been resolved and it is more likely than not that no regulatory fine will result.

Letter of Credit

As of December 31, 2025, we had an unsecured letter of credit of $30.0 million with Citizens Bank in favor of two carrier partners. The line of credit cannot be drawn upon in the normal course of business and will only be drawn upon automatically to fund the letter of credit obligation if the carrier partner calls on the letter of credit. If there is a draw on the letter of credit, the Company must reimburse the bank in cash, in immediately available funds, within one business day following notice of such draw from the lender. The letter of credit expires in June 2026. As of December 31, 2025, there were no borrowings outstanding under the senior unsecured letter of credit or the unsecured line of credit.

Ethos Technologies Inc. 10-K