OOMA INC Leases Disclosure
Note 7: Operating Leases
The Company leases its headquarters located in Sunnyvale, California, as well as office space and data center facilities in several locations under non-cancelable operating lease agreements, with expiration dates through fiscal 2033. The lease agreements often include escalating rent payments, renewal provisions and other provisions which require the Company to pay common area maintenance costs, property taxes and insurance. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Operating lease right-of-use assets and long-term operating lease liabilities are included on the face of the consolidated balance sheet. Short-term operating lease liabilities are presented within accrued expenses and other current liabilities.
Supplemental balance sheet information related to leases was as follows (in thousands):
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As of |
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January 31, |
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January 31, |
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Assets |
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Operating lease right-of-use assets |
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$ |
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14,198 |
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$ |
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15,311 |
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Total leased assets |
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$ |
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14,198 |
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$ |
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15,311 |
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Liabilities |
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Short-term operating lease liabilities |
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$ |
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4,284 |
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$ |
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3,713 |
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Long-term operating lease liabilities |
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10,988 |
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12,234 |
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Total lease liabilities |
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$ |
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15,272 |
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$ |
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15,947 |
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Weighted-average remaining lease term |
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4.5 years |
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5.2 years |
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Weighted-average discount rate |
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6.4% |
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6.3% |
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The components of lease expense were as follows (in thousands):
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Fiscal Year Ended January 31, |
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2026 |
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2025 |
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2024 |
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Operating lease costs (1) |
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$ |
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5,490 |
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$ |
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5,025 |
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$ |
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4,581 |
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Variable lease costs (2) |
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1,647 |
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1,427 |
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1,217 |
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Total lease cost |
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$ |
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7,137 |
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$ |
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6,452 |
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$ |
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5,798 |
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(1) Recognized on a straight-line basis over the lease term. Includes rent for leases with initial terms of twelve months or less, which were not material.
(2) Primarily included common area maintenance, utilities and property taxes and insurance, which were expensed as incurred.
Supplemental cash flow information related to leases was as follows (in thousands):
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Fiscal Year Ended January 31, |
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2026 |
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2025 |
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2024 |
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Cash payments for operating leases |
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$ |
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3,878 |
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$ |
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3,845 |
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$ |
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3,895 |
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Right-of-use assets recognized in exchange for new operating lease obligations |
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$ |
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2,211 |
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$ |
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1,344 |
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$ |
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7,303 |
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As of January 31, 2026, maturities of operating lease liabilities were as follows (in thousands):
Fiscal Years Ending January 31, |
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January 31, 2026 |
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2027 |
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$ |
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4,405 |
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2028 |
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4,495 |
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2029 |
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4,050 |
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2030 |
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1,522 |
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2031 |
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1,181 |
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Thereafter |
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2,209 |
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Total future minimum lease payments |
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17,862 |
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Less: imputed interest |
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(2,590 |
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Present value of lease liabilities |
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$ |
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15,272 |
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Historical Timeline
| Fiscal Year | Filed | |
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| 2026 | Apr 3, 2026 | Showing above |
| 2025 | Apr 1, 2025 | |
| 2024 | Apr 2, 2024 | |
| 2023 | Apr 7, 2023 | |
| 2022 | Apr 8, 2022 | |
| 2021 | Apr 7, 2021 | |
| 2020 | Apr 14, 2020 | |
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.