LeasesThe Company has entered into various non-cancelable operating lease agreements for office space, data storage facilities, and other leases with remaining lease terms of approximately 1 to 6 years, often with one or more Company options to renew. These renewal terms can extend the lease term from 5 to 10 years and are included in the lease term when it is reasonably certain that the Company will exercise the option.
The components of operating lease expense were as follows: | | | | | | | | | | | | | | | | | |
| Year ended January 31, |
| (in thousands) | 2025 | | 2024 | | 2023 |
| Operating lease expense | $ | 9,125 | | | $ | 9,437 | | | $ | 11,371 | |
| Sublease income | (4,097) | | | (2,680) | | | (2,187) | |
| Net operating lease expense | $ | 5,028 | | | $ | 6,757 | | | $ | 9,184 | |
Weighted average lease term and discount rate were as follows: | | | | | | | | | | | |
| January 31, 2025 | | January 31, 2024 |
| Weighted average remaining lease term | 5.7 years | | 6.7 years |
| Weighted average discount rate | 4.4 | % | | 4.3 | % |
Lease liabilities were as follows: | | | | | | | | | | | |
| (in thousands) | January 31, 2025 | | January 31, 2024 |
| Gross lease liabilities | $ | 59,209 | | | $ | 67,269 | |
| Less: imputed interest | (6,989) | | | (9,099) | |
| Present value of lease liabilities | 52,220 | | | 58,170 | |
| Less: current portion of lease liabilities | (10,001) | | | (9,404) | |
| Lease liabilities, non-current | $ | 42,219 | | | $ | 48,766 | |
Supplemental cash flow information related to the Company's operating leases was as follows: | | | | | | | | | | | |
| Year ended January 31, |
| (in thousands) | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from operating leases | $ | 9,874 | | | $ | 10,900 | |
| Right-of-use assets obtained in exchange for lease obligations | $ | 1,469 | | | $ | 2,109 | |
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.