Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows:
Estimated Useful Lives
Capitalized internal-use software3 years
Computer and office equipment3 years
Furniture and fixtures5 years
Leasehold improvementsLesser of useful life or remaining lease term
Property and equipment, net consisted of the following as of December 31, 2025 and 2024:
December 31,
(in thousands)20252024
Capitalized internal-use software$56,690 $39,627 
Computer and office equipment11,929 8,440 
Furniture and fixtures7,510 2,853 
Leasehold improvements29,597 8,720 
Projects in process731 7,672 
Total gross property and equipment
106,457 67,312 
Less: Accumulated depreciation and amortization(44,936)(35,746)
Property and equipment, net$61,521 $31,566 
The following table presents the Company’s capitalized internal-use software, including amortization expense recognized, for the years ended December 31, 2025, 2024, and 2023:
Years Ended December 31,
(in thousands)202520242023
Total capitalized internal-use software costs(1)
$17,063 $16,432 $9,379 
Stock-based compensation costs capitalized to internal-use software4,674 4,728 3,132 
Amortization expense(2)
11,429 8,066 4,529 
__________________
(1) Amounts are inclusive of stock-based compensation costs capitalized to internal-use software as denoted within the table.
(2) Amounts are included within ‘Depreciation and amortization’ on the Consolidated Statements of Operations.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 23, 2024
2022Feb 28, 2023
2021Mar 29, 2022

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.