Note 9. Leases
The Company primarily leases facilities for office and data center space under non-cancelable operating leases for its U.S. and international locations. As of December 31, 2025, non-cancelable leases expire on various dates between 2026 and 2029.
Generally, the non-cancelable leases include one or more options to renew, with renewal terms that can extend the lease term from one to six years. The Company has the right to exercise or forego the lease renewal options. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As of December 31, 2025 and 2024, the balance sheet components of leases were as follows (in thousands):
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Operating lease right-of-use assets | $ | 30,855 | | | $ | 46,463 | |
| | | |
| Accrued liabilities | $ | 21,293 | | | $ | 20,445 | |
| Operating lease liabilities | 14,372 | | | 29,733 | |
| Total operating lease liabilities | $ | 35,665 | | | $ | 50,178 | |
| | | |
The components of operating lease expense were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Twelve Months Ended December 31, |
| 2025 | | 2024 | | 2023 |
Operating lease cost (1) | $ | 28,891 | | | $ | 25,167 | | | $ | 23,315 | |
Variable lease cost (2) | 5,398 | | | 4,560 | | | 4,412 | |
| Total lease cost | $ | 34,289 | | | $ | 29,727 | | | $ | 27,727 | |
(1)Includes short-term lease costs, which were not material in the years ended December 31, 2025, 2024, and 2023.
(2)Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate.
As of December 31, 2025, maturities of operating lease liabilities were as follows (in thousands):
| | | | | |
| Year Ending December 31, | |
| 2026 | $ | 22,737 | |
| 2027 | 9,578 | |
| 2028 | 4,652 | |
| 2029 onwards | 831 | |
| |
| |
| Total future minimum lease payments | 37,798 | |
| Less: Imputed interest | (2,133) | |
| Present value of lease liabilities | $ | 35,665 | |
The supplemental cash flow information related to operating leases for the twelve months ended December 31, 2025 and 2024 were as follows (in thousands):
| | | | | | | | | | | |
| Year ended December 31, |
| 2025 | | 2024 |
| Operating cash flows resulting from operating leases: | | | |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 26,070 | | | $ | 21,876 | |
| | | |
| New ROU assets obtained in exchange of lease liabilities: | | | |
| Operating leases | $ | 8,229 | | | $ | 24,966 | |
Other information related to operating leases were as follows:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining operating lease term (years) | 2.0 | | 2.6 |
| Weighted-average operating lease discount rate | 6.3 | % | | 6.6 | % |
The lease for our corporate headquarters located at 20 Davis Drive, Belmont, California, comprising approximately 84,148 rentable square feet, is scheduled to expire on July 31, 2026. The terms of the renewal are currently being negotiated and have not been finalized as of the date of issuance of these financial statements.