Gloo Holdings, Inc. Leases Disclosure
The Company leases office facilities under non-cancellable operating lease arrangements, expiring at various dates through 2031. The Company’s leases generally provide for periodic rent increases and may contain escalation clauses, extension options, or renewal options. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
On February 28, 2025, as part of the Barna Acquisition, the Company acquired one lease, resulting in an operating lease liability of $0.2 million and a right-of-use asset of $0.2 million.
On May 31, 2025, as part of the Midwestern Acquisition, the Company acquired four leases, resulting in operating lease liabilities of $1.5 million and right-of-use assets of $1.5 million.
On July 3, 2025, as part of the Masterworks Acquisition, the Company acquired one lease, resulting in an operating lease liability of $0.6 million and a right-of-use asset of $0.6 million.
Two of the facilities are leased from entities controlled by the CEO of the Company, and total lease payments for these properties totaled $0.2 million for each of the years ended January 31, 2026, 2025, and 2024. For information on the lease arrangements with related parties, see Note 19, Related Party Transactions.
On January 2, 2024, as part of the acquisition of Outreach Media, Inc, the Company acquired two leases with favorable terms, resulting in a total operating lease liability of $3.5 million and a total right-of-use asset of $3.8 million. These two leases are from entities controlled by the sellers of Outreach Media, Inc, who are also employees of the Company.
The components of lease costs, lease term, and discount rate for operating leases are as follows for the years ended January 31, 2026, 2025, and 2024 are as follows:
|
|
Year Ended January 31, |
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|
|
2026 |
|
|
2025 |
|
|
2024 |
|
||||||
|
|
(in thousands) |
|
||||||||||||
Operating lease costs |
|
$ |
|
2,098 |
|
|
$ |
|
1,231 |
|
|
$ |
|
466 |
|
Variable lease costs |
|
|
|
526 |
|
|
|
|
910 |
|
|
|
|
384 |
|
Total lease cost |
|
$ |
|
2,624 |
|
|
$ |
|
2,141 |
|
|
$ |
|
850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted-average remaining lease term (in years) |
|
|
4.08 |
|
|
|
|
5.37 |
|
|
|
|
4.60 |
|
|
Weighted-average discount rate |
|
|
11.24% |
|
|
|
|
11.50 |
% |
|
|
|
11.41 |
% |
|
Supplemental balance sheet information related to operating leases consisted of the following as of January 31, 2026 and 2025:
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|
|
|
|||||||
|
|
January 31, |
|
|||||||
|
|
2026 |
|
|
2025 |
|
||||
|
|
(in thousands) |
|
|||||||
Operating lease ROU assets – related parties |
|
$ |
|
5,074 |
|
|
$ |
|
3,618 |
|
Operating lease ROU assets – third parties |
|
|
|
3,631 |
|
|
|
|
217 |
|
|
$ |
|
8,705 |
|
|
$ |
|
3,835 |
|
|
|
|
|
|
|
|
|
|
|
||
Operating lease liabilities – related parties |
|
$ |
|
5,153 |
|
|
$ |
|
3,556 |
|
Operating lease liabilities – third parties |
|
|
|
3,848 |
|
|
|
|
224 |
|
Total operating lease liabilities |
|
$ |
|
9,001 |
|
|
$ |
|
3,780 |
|
Supplemental cash flow information related to operating leases were as follows:
|
|
Year Ended January 31, |
|
||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
||||||
|
|
(in thousands) |
|
||||||||||||
Cash payments for operating leases |
|
$ |
|
1,743 |
|
|
$ |
|
955 |
|
|
$ |
|
437 |
|
The future maturities of long-term operating lease liabilities for each fiscal year are as follows:
|
|
Maturity of |
|
||
|
|
(in thousands) |
|
||
2026 |
|
$ |
|
2,812 |
|
2027 |
|
|
|
2,800 |
|
2028 |
|
|
|
2,677 |
|
2029 |
|
|
|
1,761 |
|
2030 |
|
|
|
1,168 |
|
Thereafter |
|
|
|
— |
|
Total |
|
|
|
11,218 |
|
Less: imputed interest |
|
|
|
(2,217 |
) |
Present value of lease liabilities |
|
|
|
9,001 |
|
Less: current obligations |
|
|
|
(1,925 |
) |
Long-term obligations under leases |
|
$ |
|
7,076 |
|
Other supplemental information related to long-term operating leases for the years ended January 31, 2026, 2025 and 2024 consists of the following:
|
|
Year Ended January 31, |
|
||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
||||||
|
|
(in thousands) |
|
||||||||||||
Fair value of below-market lease obtained in acquisition included in acquired right-of-use asset |
|
$ |
|
— |
|
|
$ |
|
304 |
|
|
$ |
|
356 |
|
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.