Leases
The Company leases office space under operating lease agreements that are non-cancelable and have remaining lease terms ranging from one year to approximately five years. The Company is required to pay property taxes, insurance, and normal maintenance costs for certain of these facilities.
Operating lease costs comprises the following (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Operating lease cost | | | | | $ | 17,402 | | $ | 22,289 | | $ | 23,768 |
| Short-term lease cost | | | | | 1,461 | | 1,087 | | 1,411 |
| Sublease income | | | | | (1,150) | | (1,418) | | (1,128) |
| Total lease cost | | | | | $ | 17,713 | | $ | 21,958 | | $ | 24,051 |
Supplemental information related to operating leases was as follows (in thousands, except for weighted-average data):
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Cash paid for operating leases | | | | | $ | 21,968 | | $ | 27,390 | | $ | 27,048 |
| ROU assets obtained under new or modified operating leases | | | | | $ | 9,340 | | $ | 4,281 | | $ | 982 |
| | | | | | | | | | | |
| As of |
| January 31, 2026 | | February 1, 2025 |
| Weighted-average remaining lease term—operating leases (in years) | 4.5 | | 5.5 |
| Weighted-average discount rate—operating leases | 5.48% | | 5.02% |
Future minimum lease payments included in the measurement of operating lease liabilities as of January 31, 2026 were as follows (in thousands):
| | | | | | | | |
| Fiscal Years Ending | | Amount |
| 2027 | | $ | 16,261 |
| 2028 | | 16,857 |
| 2029 | | 16,429 |
| 2030 | | 15,875 |
| 2031 | | 14,407 |
| 2032 and thereafter | | 3,645 |
Total future minimum lease payments (1) | | 83,474 |
| Less: imputed interest | | (10,706) |
| Total operating lease liabilities | | $ | 72,768 |
__________
(1)The contractual commitment amounts under operating leases in the table above are primarily related to facility leases for the corporate office facilities in San Francisco, California, as well as other offices for local operations.
Prior year lease modification, impairment, and related charges
In April 2023, the Company settled a lease dispute, which was primarily related to lease incentives associated with leasehold improvements in the form of a tenant allowance and received $11.3 million. This amount was recognized primarily as a reduction to the corresponding ROU assets on the consolidated balance sheet and was also included in “Operating lease liabilities” on the consolidated statement of cash flows.
In August 2023, the Company executed a sublease for certain office space, which resulted in an impairment of the corresponding ROU and fixed assets of $4.8 million. This impairment charge was recorded in “Lease modification, impairment, and related charges” for the fiscal year ended February 3, 2024.
In September 2024, the Company executed a sublease for certain office space, which resulted in an impairment of the corresponding ROU and fixed assets of $3.6 million. In January 2025, the Company incurred early termination fees of $0.4 million on another leased office space. These impairment charges were recorded in “Lease modification, impairment, and related charges” for the fiscal year ended February 1, 2025.