Leases
The Company has operating leases for corporate offices and data centers (“colocation” leases) and finance leases for networking equipment. The Company’s operating leases have remaining lease terms ranging from less than 1 year to 9 years, some of which include options to extend the leases. The Company also subleases a portion of its corporate office spaces. The Company’s subleases have remaining lease terms ranging from less than 1 year to 4 years. Sublease income was $0.8 million, $1.4 million, and $1.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The components of lease cost were as follows:
| | | | | | | | | | | | | | | | | |
| As of December 31, |
| 2025 | | 2024 | | 2023 |
| (in thousands) |
| Operating lease cost: | | | | | |
| Operating lease cost | $ | 26,809 | | | $ | 26,581 | | | $ | 26,996 | |
| Variable lease cost | 20,546 | | | 17,003 | | | 15,112 | |
| Total operating lease cost | $ | 47,355 | | | $ | 43,584 | | | $ | 42,108 | |
| Finance lease cost: | | | | | |
| Amortization of assets under finance lease | $ | 11,598 | | | $ | 13,521 | | | $ | 14,391 | |
| Interest | 15 | | | 378 | | | 1,328 | |
| Total finance lease cost | $ | 11,613 | | | $ | 13,899 | | | $ | 15,719 | |
The short-term lease costs were not material for the years ended December 31, 2025, 2024 and 2023.
The Company did not recognize any material impairment charge on its operating lease right-of-use assets during the year ended December 31, 2025. During the year ended December 31, 2024, the Company recognized an impairment charge of $1.7 million related to right-of-use assets, of which $1.3 million was related to the Company exiting a certain office facility and is included within the impairment expense line in the Company's consolidated statements of operations. During the year ended December 31, 2023, the Company recognized impairment on its operating lease right-of-use assets of $0.7 million.
| | | | | | | | | | | | | | | | | |
| As of December 31, |
| 2025 | | 2024 | | 2023 |
| (in thousands) |
| Weighted Average Remaining Lease term (in years): | | | | | |
| Operating leases | 4.39 | | 2.84 | | 3.48 |
| Finance leases | — | | | 0.32 | | 1.00 |
| Weighted Average Discount Rate: | | | | | |
| Operating leases | 7.16 | % | | 6.36 | % | | 6.03 | % |
| Finance leases | — | % | | 4.67 | % | | 4.67 | % |
Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows:
| | | | | |
| Operating Leases |
| (in thousands) |
| Year ending December 31, | |
| 2026 | $ | 30,344 | |
| 2027 | 21,670 | |
| 2028 | 12,133 | |
| 2029 | 6,559 | |
| 2030 | 5,028 | |
| Thereafter | 15,245 | |
| Total future minimum lease payments | $ | 90,979 | |
| Less: imputed interest | (13,526) | |
| Total liability | $ | 77,453 | |
As of December 31, 2025, the Company has undiscounted commitments of $9.1 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in the first quarter of 2026 with lease terms ranging from 2 years to 5 years.