LEASES
Our operating leases primarily include leases for office space in various locations around the world under non-cancellable operating lease arrangements that expire at various dates through fiscal year 2033. Certain leases contain escalation clauses and renewal options. Generally, our leases have no purchase options, residual value guarantees or material covenants. Our leases require us to pay certain operating expenses, such as taxes, repairs and insurance.
The components of lease cost include fixed payments on our operating leases, fixed payments on our short-term leases and variable lease payments. Variable lease payments consist of common area maintenance, utilities reimbursed to the landlord, taxes and other costs and are expensed as incurred. The components of lease cost were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2026 | | 2025 | | 2024 |
| Operating lease costs | $ | 17,994 | | | $ | 15,047 | | | $ | 15,393 | |
| Short-term lease costs | 2,006 | | | 3,234 | | | 6,467 | |
| Variable lease costs | 2,020 | | | 2,139 | | | 1,853 | |
| Total lease costs | $ | 22,020 | | | $ | 20,420 | | | $ | 23,713 | |
Supplemental cash flow information related to leases was as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2026 | | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 18,121 | | | $ | 12,864 | | | $ | 15,518 | |
| Operating lease right-of-use assets obtained in exchange for lease obligations | $ | 5,560 | | | $ | 9,773 | | | $ | 22,507 | |
| Increase (decrease) of lease liabilities due to lease modifications | $ | 812 | | | $ | 2,240 | | | $ | (2,745) | |
| Increase (decrease) of right-of-use assets due to lease modifications | $ | 812 | | | $ | 3,032 | | | $ | (2,745) | |
| Termination of operating lease liabilities | $ | 168 | | | $ | 909 | | | $ | 321 | |
| Termination of operating lease right-of-use assets | $ | 164 | | | $ | 806 | | | $ | 284 | |
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During the year ended January 31, 2024, we agreed to an early termination of our office lease in Dallas, Texas and paid an aggregate of $5.5 million in early termination fees. The early termination is treated as a lease modification in the supplemental cash flow information included in the above table.
Supplemental disclosure information related to leases was as follows:
| | | | | | | | | | | | | |
| As of January 31, |
| 2026 | | 2025 | | |
| Weighted-average remaining lease term for operating leases | 4.5 years | | 5.4 years | | |
| Weighted-average discount rate | 10.8 | % | | 11.1 | % | | |
Maturities of lease liabilities as of January 31, 2026 were as follows (in thousands):
| | | | | | | | |
| Year Ended January 31, | | Amount |
| 2027 | | $ | 16,467 | |
| 2028 | | 15,048 | |
| 2029 | | 9,934 | |
| 2030 | | 7,831 | |
| 2031 | | 7,306 | |
| Thereafter | | 6,076 | |
| Total lease payments | | 62,662 | |
| Less: imputed interest | | (13,102) | |
| Present value of lease liabilities | | $ | 49,560 | |
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.