Leases
The Company leases office space under non-cancelable operating leases with various expiration dates through 2028. These leases require monthly lease payments that may be subject to annual increases throughout the lease term.
Components of lease expense are summarized as follows (in thousands): | | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2024 | | 2025 | | 2026 |
| Operating lease expense | $ | 6,131 | | | $ | 5,999 | | | $ | 7,281 | |
| Short-term lease expense | 1,522 | | | 1,177 | | | 649 | |
| Total lease expense | $ | 7,653 | | $ | 7,176 | | $ | 7,930 |
| Sublease income | $ | 1,765 | | $ | 931 | | $ | 1,228 |
Lease term and discount rate information are summarized as follows: | | | | | |
| As of January 31, 2026 |
| Weighted average remaining lease term (years) | 1.8 |
| Weighted average discount rate | 12.7% |
Maturities of lease liabilities as of January 31, 2026 were as follows (in thousands):
| | | | | |
| Year Ending January 31: | |
| 2027 | $ | 8,556 | |
| 2028 | 4,819 | |
| 2029 | 1,246 | |
| |
| Total lease payments | 14,621 |
| Less imputed interest | (1,473) | |
| Present value of lease liabilities | $ | 13,148 |
Cash paid for operating leases was $7.1 million, $7.2 million and $7.2 million,during the years ended January 31, 2024, 2025 and 2026, respectively, and was included in net cash used in operating activities in the consolidated statements of cash flows.
The Company has entered into sublease agreements with various expiration dates through 2027. Under these agreements, the Company expects to receive sublease income of approximately $1.7 million as of January 31, 2026.
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.