Leases
The Company leases facilities under non-cancelable operating lease agreements with varying terms that range from 1 to 13 years. In addition, some of these leases have renewal options for up to five years. The Company determines if an
arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities on the Company's consolidated balance sheets. The Company does not have any finance leases.
Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Optional periods to extend a lease under renewal options are included in the lease term when it is reasonably certain that the option will be exercised. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs).
Operating lease cost was $15.9 million, $9.2 million and $7.6 million for the years ended December 31, 2025, 2024, and 2023 respectively, and is allocated between cost of revenue and each operating expense line item based on headcount. Variable lease cost and short-term lease cost were immaterial during each of the years ended December 31, 2025, 2024 and 2023. Future minimum lease payments at December 31, 2025 under the Company's non-cancellable leases were as follows:
| | | | | | | | |
| For the year ending December 31, | | |
| 2026 | | $ | 16,488 | |
| 2027 | | 11,345 | |
| 2028 | | 6,235 | |
| 2029 | | 5,328 | |
| Thereafter | | 2,381 | |
| Total future minimum lease payments | | 41,777 | |
| Less: Imputed interest | | (4,084) | |
| Present value of future minimum lease payments | | 37,693 | |
| Less: Current portion of operating lease liability | | (15,138) | |
| Operating lease liabilities - noncurrent | | $ | 22,555 | |
The table above does not include any legally binding minimum lease payments for leases signed but not yet
commenced. As of December 31, 2025, the Company had $34.7 million of undiscounted future minimum lease payments
under operating leases that have been signed but have not yet commenced. There was no lease signed but not yet
commenced as of December 31, 2024.
In January 2026, the Company executed an agreement to extend the lease for its headquarter in Boise, Idaho until October 2036 which has $34.2 million of undiscounted future minimum lease payments that will commence in the fourth quarter of 2026.
The following table presents supplemental information for the Company's non-cancellable operating leases for the years ended December 31, 2025 and 2024 (in thousands, except for weighted average and percentage data):
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Weighted average remaining lease term | 3.08 | | 3.28 |
| Weighted average discount rate | 6.19 | % | | 5.83 | % |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 16,626 | | | $ | 8,854 | |
| Noncash right-of-use assets obtained in exchange for operating lease obligations | $ | 7,928 | | | $ | 10,091 | |
| Net impact of non-cash changes to right-of-use assets related to modifications and reassessments of operating leases | $ | (3,936) | | | $ | — | |