Leases
Operating Leases
The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring through fiscal 2033. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised.
Lease right-of-use assets and liabilities are recognized at the lease’s commencement date based on the present value of lease payments over the lease term. As the implicit rate of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available on the commencement date to determine the present value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances.
The Company’s operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected a practical expedient that allows it to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments.
Leases with a term of one year or less are not recognized on the consolidated balance sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.
In June 2023, the Company entered into a sublease for a portion of its San Francisco office location. The sublease term ended during the fiscal year ended January 31, 2026. Sublease income, which is recorded as a reduction of rent expense, was not material for the fiscal years ended January 31, 2026, 2025, and 2024.
The following table presents information about leases on the consolidated balance sheets as of the dates indicated (in thousands):
| | | | | | | | | | | |
| January 31, |
| 2026 | | 2025 |
| Assets: | | | |
| Lease right-of-use assets | $ | 12,509 | | | $ | 6,806 | |
| Liabilities: | | | |
| Lease liabilities, current | 5,000 | | | 3,307 | |
| Lease liabilities, non-current | 12,598 | | | 9,637 | |
As of January 31, 2026 and 2025, the weighted average remaining lease term was 3.6 years and 3.5 years, respectively. As of January 31, 2026 and 2025, the weighted average discount rate used to determine the net present value of the lease liabilities was 5.9% and 5.2%, respectively.
The following table presents information about leases on the consolidated statements of operations for the periods indicated (in thousands):
| | | | | | | | | | | | | | | | | |
| Year ended January 31, |
| 2026 | | 2025 | | 2024 |
| Operating lease expense | $ | 3,245 | | | $ | 3,067 | | | $ | 4,736 | |
| Short-term lease expense | 1,829 | | | 2,261 | | | 1,856 | |
| Variable lease expense | 1,198 | | | 937 | | | 1,149 | |
The following table presents supplemental cash flow information about the Company’s leases for the periods indicated (in thousands):
| | | | | | | | | | | | | | | | | |
| Year ended January 31, |
| 2026 | | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 4,231 | | | $ | 6,647 | | | $ | 6,557 | |
New operating lease right-of-use assets obtained in exchange for lease liabilities | $ | 8,061 | | | $ | 6,111 | | | $ | 349 | |
As of January 31, 2026, remaining maturities of lease liabilities were as follows (in thousands):
| | | | | |
Year ended January 31, | |
| 2027 | $ | 5,877 | |
| 2028 | 6,206 | |
| 2029 | 4,022 | |
| 2030 | 1,567 | |
| 2031 | 1,092 | |
| Thereafter | 891 | |
| Gross lease payments | $ | 19,655 | |
| Less: imputed interest | 2,057 | |
| Total lease liabilities | $ | 17,598 | |
In the fiscal year ended January 31, 2024, the Company recorded an impairment charge to its right-of-use assets of $6.1 million. The impairment charges represent the amount by which the carrying value of the right-of-use asset exceeded its estimated fair value. The estimated fair value was based on the present value of the estimated cash flows that could be generated from subleasing the property for the remaining lease term. The impairment charge was recorded in general and administrative expenses on the consolidated statement of operations. There were no impairment charges recorded in the years ended January 31, 2026 or 2025.