Note 7 – Leases
The Company has operating leases for its offices and data centers. Balance sheet information related to operating leases was as follows (in thousands):
| | | | | | | | | | | | | |
| | | January 31, |
| Reported as: | | | 2026 | | 2025 |
| Other assets, noncurrent (operating lease ROU assets) | | | $ | 32,908 | | | $ | 25,906 | |
| | | | | |
| Accrued expenses and other current liabilities (operating lease liabilities, current) | | | 12,709 | | | 10,087 | |
| Other liabilities, noncurrent (operating lease liabilities, noncurrent) | | | 24,253 | | | 18,382 | |
| Total operating lease liabilities | | | $ | 36,962 | | | $ | 28,469 | |
The Company had operating lease costs of $14.8 million, $11.9 million and $11.1 million for the fiscal years ended January 31, 2026, 2025 and 2024, respectively.
Supplemental cash flow information and non-cash activity related to the Company’s operating leases were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | |
| | | Year Ended January 31, |
| | | 2026 | | 2025 | | 2024 |
| Cash paid for amounts included in measurement of operating lease liabilities | | | $ | 13,842 | | $ | 12,261 | | $ | 11,397 |
| ROU assets obtained in exchange of lease liabilities for new operating leases | | | $ | 20,657 | | $ | 6,810 | | $ | 6,375 |
Supplemental information related to the remaining lease term and discount rate were as follows:
| | | | | | | | | | | | | |
| | | January 31, |
| | | 2026 | | 2025 |
| Weighted-average remaining lease term | | | 3.2 years | | 3.0 years |
| Weighted-average discount rate | | | 6.0% | | 5.5% |
The following table summarizes the maturity of the Company’s operating lease liabilities as of January 31, 2026 (in thousands):
| | | | | |
| Fiscal Year Ending January 31, | Operating Leases |
| 2027 | $ | 14,571 | |
| 2028 | 13,458 | |
| 2029 | 6,389 | |
| 2030 | 4,218 | |
| 2031 | 1,851 | |
| Thereafter | 591 | |
| Total operating lease payments | 41,078 | |
| Less: imputed interest | (4,116) | |
| Total operating lease liabilities | $ | 36,962 | |
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.