Leases
Operating Leases
The Company leases its facilities and a portion of its equipment under various non-cancelable agreements, which expire at various times through December 2034, some of which include options to extend for up to one year. See Note 16 “Restructuring” regarding lease terminations in connection with the 2023 and 2026 Restructuring Plans.
The components of lease expense were as follows:
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended January 31, |
| 2024 | | 2025 | | 2026 |
| Operating lease expense | $ | 4,940 | | | $ | 5,575 | | | $ | 5,026 | |
| Variable lease expense | 1,979 | | | 2,581 | | | 2,650 | |
| Short-term lease expense | 451 | | | 272 | | | 218 | |
| Sublease income | — | | | (382) | | | (174) | |
| Total lease expense | $ | 7,370 | | | $ | 8,046 | | | $ | 7,720 | |
Supplemental cash flow information related to operating leases was as follows:
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended January 31, |
| 2024 | | 2025 | | 2026 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 4,489 | | | $ | 4,400 | | | $ | 5,137 | |
| Operating right-of-use assets obtained in exchange for operating lease liabilities | 13,152 | | | 3,349 | | | 1,724 | |
| | | | | |
| Operating right-of-use assets and operating lease liabilities reductions related to operating lease terminations or modifications | 115 | | | 1,995 | | | 2,102 | |
The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating lease liabilities as of January 31, 2026 were 6.99 years and 6.8%, respectively.
Future minimum lease payments as of January 31, 2026 were as follows:
| | | | | |
| Operating Leases |
| Fiscal 2027 | $ | 4,593 | |
| Fiscal 2028 | 2,516 | |
| Fiscal 2029 | 1,845 | |
| Fiscal 2030 | 1,346 | |
| Fiscal 2031 | 446 | |
| Thereafter | 6,857 | |
| Total lease liabilities | 17,603 | |
| Less: imputed interest | (3,626) | |
| Total lease obligations | 13,977 | |
| Less: current obligations | (4,229) | |
| Long-term lease obligations | $ | 9,748 | |
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.