AMBARELLA INC Leases Disclosure
8. Leases
The lease obligations primarily consist of operating leases for the Company's headquarters and its foreign subsidiaries. In December 2024, the Company entered into a new office lease for its headquarters in Santa Clara, California with a term of 104 months from September 1, 2025 to April 30, 2034 and an option to extend for an additional five years. The lease commencement date was established on September 1, 2025. Accordingly, an operating lease ROU asset of approximately $10.0 million, net of $0.5 million of lease incentives and prepayments, and a corresponding $10.5 million lease liability was recorded in the consolidated balance sheets as of the lease commencement date. The optional lease term is not recognized as part of the ROU asset and lease liability.
During the twelve months ended January 31, 2025, the Company extended certain facility leases for its international offices with lease periods expiring between fiscal years 2027 and 2031. An aggregate of approximately $3.6 million of additional operating lease ROU assets and corresponding lease liabilities were recorded in the consolidated balance sheets as a result of these lease extensions.
There were no material lease agreements entered into or modified during the twelve months ended January 31, 2024.
For the fiscal years ended January 31, 2026, 2025 and 2024, the operating lease expense was approximately $3.6 million, $3.8 million and $3.7 million, respectively. The Company's short-term leases and finance leases were immaterial as of January 31, 2026 and 2025, respectively.
Supplemental cash flow information related to the operating leases is as follows:
|
|
Year Ended January 31, |
|
|||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
|
|
(in thousands) |
|
|||||||||
Cash paid for operating leases included in operating cash flows |
|
$ |
2,220 |
|
|
$ |
3,800 |
|
|
$ |
3,877 |
|
Operating lease assets obtained in exchange for lease obligations |
|
$ |
10,058 |
|
|
$ |
3,604 |
|
|
$ |
348 |
|
As of January 31, 2026, the weighted average remaining lease term is 7.0 years, and the weighted average discount rate is 8.04%. Future minimum lease payments for the lease liabilities are as follows:
|
|
As of |
|
|
|
|
January 31, 2026 |
|
|
Fiscal Year |
|
(in thousands) |
|
|
2027 |
|
$ |
3,013 |
|
2028 |
|
|
2,662 |
|
2029 |
|
|
1,896 |
|
2030 |
|
|
1,952 |
|
2031 |
|
|
2,003 |
|
Thereafter |
|
|
6,681 |
|
Total future annual minimum lease payments |
|
|
18,207 |
|
Less: interest |
|
|
(4,772 |
) |
Total lease liabilities |
|
$ |
13,435 |
|
|
|
|
|
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 23, 2026 | Showing above |
| 2025 | Mar 28, 2025 | |
| 2024 | Mar 29, 2024 | |
| 2023 | Mar 31, 2023 | |
| 2022 | Apr 1, 2022 | |
| 2021 | Mar 31, 2021 | |
| 2020 | Mar 27, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.