ZoomInfo Technologies Inc.GTM
ZoomInfo Technologies Inc. Leases Disclosure
Note 12 - Leases
The Company has operating leases for corporate offices under non-cancelable agreements with various expiration dates. Our leases do not have significant rent escalation, holidays, concessions, material residual value guarantees, material restrictive covenants, or contingent rent provisions. Our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component. In addition, we have elected the practical expedient to exclude short-term leases, which have an original lease term of one year or less, from our operating lease right-of-use assets and operating lease liabilities as well as the package of practical expedients relating to the adoption of ASC 842.
The Company subleases three offices. The subleases have remaining lease terms of less than eleven years. Sublease income, which is recorded as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income from operations on our Consolidated Statements of Operations, was immaterial for the years ended December 31, 2025, 2024, and 2023.
The following are additional details related to operating leases recorded on our Consolidated Balance Sheets as of December 31, 2025 and 2024:
| December 31, | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Assets | |||||||||||
| Operating lease right-of-use assets, net | $ | 113.3 | $ | 90.9 | |||||||
| Liabilities | |||||||||||
| Current portion of operating lease liabilities | $ | 6.0 | $ | 9.9 | |||||||
| Operating lease liabilities, net of current portion | 239.2 | 151.2 | |||||||||
Total lease liabilities | $ | 245.2 | $ | 161.1 | |||||||
Rent expense was $32.5 million, inclusive of $5.2 million related to the Waltham Lease Restructuring, $64.9 million, inclusive of $38.8 million related to the Waltham Lease Restructuring, and $17.7 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Other information related to leases was as follows:
| December 31, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Supplemental Cash Flow Information | ||||||||||||||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 15.8 | $ | 63.6 | $ | 12.3 | ||||||||||||||
| Cash received for tenant incentive reimbursement | 35.5 | 13.2 | 0.1 | |||||||||||||||||
| Lease liabilities arising from obtaining right-of-use assets | ||||||||||||||||||||
| From new and existing lease agreements and modifications | $ | 49.8 | $ | 134.3 | $ | 31.1 | ||||||||||||||
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted average remaining lease term (in years) | 13.0 | 13.0 | |||||||||
| Weighted average discount rate | 7.2 | % | 7.5 | % | |||||||
The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized as of December 31, 2025 (in millions):
| Year Ending December 31, | Operating Leases | ||||
| 2026 | $ | 8.2 | |||
| 2027 | 31.3 | ||||
| 2028 | 33.5 | ||||
| 2029 | 33.5 | ||||
| 2030 | 31.2 | ||||
| Thereafter | 267.8 | ||||
| Total future minimum lease payments | $ | 405.5 | |||
| Less: Effects of discounting | 160.3 | ||||
| Total lease liabilities | $ | 245.2 | |||
Included in the undiscounted future minimum lease payments for the years ended December 31, 2026 are future tenant improvement allowance reimbursements related to our Ra’anana, Israel; Vancouver, Washington; and Waltham, Massachusetts leases.
Operating lease amounts above do not include sublease income. The Company expects to receive sublease income totaling $16.5 million over the next five years, net of tenant improvement allowances provided to the sublessee, and $8.1 million thereafter. Additionally, the Company has executed sublease agreements that are expected to commence in 2026. These subleases are expected to generate sublease income of $27.3 million, net of provided tenant improvement allowances.
Expense associated with short-term leases and variable lease costs were immaterial for the years ended December 31, 2025, 2024, and 2023. The expense related to short-term leases reasonably reflected our short-term lease commitments.
Current Year Leasing Activity
Relating to our new office space in Waltham, Massachusetts, the lease commenced in May 2025 resulting in additional lease liabilities arising from obtaining right-of-use assets of $36.3 million.
In June 2025, the measurement for determining gross areas at the Company’s corporate headquarters under construction in Vancouver, Washington, was finalized. This resulted in additional rentable square footage that was previously indeterminate, increasing the corresponding fixed minimum lease payments. This remeasurement resulted in the Company recording additional right-of-use assets and lease liabilities of $12.0 million.
Relating to our office space in Vancouver, Washington, we recognized impairment charges of $11.7 million to reduce the carrying value of the associated right-of-use asset. These charges are presented within General and administrative on the Consolidated Statements of Operations and relate to certain space which were intended to sublease.
Other impairments and abandonments recognized during the year were immaterial and relate to subleased space and locations no longer utilized in our operations.
Prior Year Leasing Activity
Relating to our office space in Waltham, Massachusetts, the third and fourth phases of the lease commenced in April 2024 which, collectively, resulted in additional lease liabilities arising from obtaining right-of-use assets of $8.5 million. We recognized impairment charges of $4.3 million to reduce the carrying value of the associated right-of-use assets. Additionally, we recognized impairment charges of $4.8 million to reduce the carrying value of the right-of-use asset associated with the second phase of the lease. These charges are presented within General and administrative on the Consolidated Statements of Operations and relate to certain spaces which were intended to sublease. During the second quarter of 2024, the Company committed to the cease-use of all phases except for the first and second phases. As a result, we incurred lease abandonment charges of $4.1 million for the vacated spaces. These charges were allocated among the appropriate financial statement line items on the Consolidated Statements of Operations.
Subsequently, in July 2024, the Company executed an agreement to restructure its existing lease commitments (“Waltham Lease Restructuring”). Pursuant to the agreement, the Company made a payment of $59.1 million. In accordance with ASC 842, the Company remeasured its lease liabilities using the revised lease payments under the modified agreement, which included the $59.1 million, and reallocated the remaining minimum lease payments in the contract to the remaining lease components. The reallocated portion of the minimum lease payments for the final phase, which had not yet commenced, of $13.1 million was recorded as a prepaid. These charges will be recognized in rent expense over the remaining lease terms which originally ranged from December 31, 2024 to December 31, 2025. The increase in our operating lease right-of-use assets resulting from the $59.1 million payment, combined with the shortened lease term, increased the amortization of those assets. Refer to the discussion below regarding the subsequent amendment to the agreement in November 2024. The Company also recorded a gain of $1.7 million as a result of the modification, which is presented within General and administrative on the Consolidated Statements of Operations for the year ended December 31, 2024. Additionally, the fifth phase of the lease commenced in the third quarter of 2024, resulting in additional lease liabilities arising from obtaining right-of-use assets of $16.1 million.
Also in July 2024, the Company executed a new lease agreement for separate office space in Waltham, Massachusetts with the same landlord, with rent payments expected to commence in the first quarter of 2026. The lease will terminate on December 31, 2038. The lease is subject to fixed-rate rent escalations and provides for $7.6 million in tenant improvements and the option to extend the lease for two terms of five years each. The Company determined that it is the accounting owner of all tenant improvements. Undiscounted lease payments are $62.1 million.
In November 2024, the Company executed an amendment to the Waltham Lease Restructuring agreement (“Amended Waltham Lease Restructuring”). Pursuant to the amendment, the Company agreed to lease separate office space in Waltham, Massachusetts with the same landlord in place of certain remaining lease components of the existing space, whereby the existing space terminated immediately upon execution. The Company derecognized right-of-use assets of $17.6 million and operating lease liabilities of $1.4 million associated with these components, as well as $13.1 million in prepaid rent and $0.8 million in initial direct costs resulting from the accounting treatment of the termination fee to a leased space which had not commenced as of the execution date. Additionally, in accordance with ASC 842, the resulting loss was partially offset by $1.6 million due to the difference between the present value of the lease payments and the market rent. This resulted in a net loss of $28.3 million which was allocated to the appropriate financial statement line items on the Consolidated Statements of Operations. The remaining components which were not impacted by the amendment terminated on December 31, 2024 under the terms of the Amended Waltham Lease Restructuring (refer to the separate amendment agreement subsequently signed below). Related to the Amended Waltham Lease Restructuring, rent payments commenced in the first quarter of 2025. The lease ends on December 31, 2025 and provides the option to extend the lease for up to three months. Undiscounted lease payments are $1.5 million.
Additionally, in November 2024, the Company executed a second amendment to the Waltham Lease Restructuring agreement to extend the term for a portion of the remaining components, which were set to terminate on December 31, 2024, by three months to terminate on March 31, 2025. The Company was not obligated to make any additional lease payments as a result of the extension.
Relating to our new corporate headquarters in Vancouver, Washington, the sixth floor of the lease commenced in March 2024. The commencement of the floor resulted in additional lease liabilities arising from obtaining right-of-use assets of $27.5 million. The seventh, eighth, and ninth floors of the lease commenced in April, May, and June, respectively. The commencement of these floors resulted in additional lease liabilities arising from obtaining right-of-use assets of $59.2 million. The tenth floor and lobby of the lease commenced in September, resulting in additional lease liabilities arising from obtaining right-of-use assets of $15.4 million. The amenities portion of the lease commenced in October, resulting in additional lease liabilities arising from obtaining right-of-use assets of $4.4 million. During the year ended December 31, 2024, we recognized impairment charges of $37.9 million to reduce the carrying value of the right-of-use assets associated with certain spaces of the leased premises which were intended to sublease. These charges are presented within General and administrative on the Consolidated Statements of Operations.
Relating to our office space in Ra’anana, Israel, which commenced during the third quarter of 2023, we recognized additional impairment charges of $5.9 million during the year ended December 31, 2024 related to certain spaces of the leased premises which were intended to sublease. These charges are presented within General and administrative on the Consolidated Statements of Operations.
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.