LEASESWe have entered into real estate operating lease agreements with various expiration dates through fiscal 2030, some of which include options to extend the leases for up to three years, and some of which include options to terminate the leases. Our operating lease arrangements do not contain any restrictive covenants or residual value guarantees.
The following tables provide supplemental lease information, including supplemental balance sheet information as of January 31, 2026 and 2025, supplemental cash flow information for fiscal 2026, 2025, and 2024 as well as the weighted-average remaining lease term and weighted-average discount rate as of January 31, 2026 and 2025 (in thousands, except lease term and discount rate):
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| | | | As of January 31, |
| | Classification | | 2026 | | 2025 |
| Supplemental Balance Sheet Information | | | | | | |
| Operating lease ROU assets – non-current | | Other assets | | $ | 10,145 | | | $ | 15,486 | |
| | | | | | |
| Operating lease liabilities – current | | Accrued expenses and other current liabilities | | $ | 5,894 | | | $ | 5,278 | |
| Operating lease liabilities – non-current | | Other liabilities | | 9,107 | | | 13,787 | |
| Total operating lease liabilities | | | | $ | 15,001 | | | $ | 19,065 | |
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended January 31, |
| | 2026 | | 2025 | | 2024 |
| Supplemental Cash Flow Information | | | | | | |
| Cash paid for amount included in the measurement of operating lease liabilities | | $ | 6,373 | | | $ | 5,858 | | | $ | 4,987 | |
| Operating lease ROU assets obtained in exchange for operating lease liabilities | | $ | — | | | $ | 1,091 | | | $ | 616 | |
| | | | | | | | | | | |
| As of January 31, |
| 2026 | | 2025 |
| Lease Term and Discount Rate | | | |
| Weighted-average remaining lease term (years) | 2.60 | | 3.52 |
| Weighted-average discount rate | 4.2 | % | | 4.3 | % |
The components of lease costs, net of sublease income, consisted of the following (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended January 31, |
| | | | | 2026 | | 2025 | | 2024 |
| Operating lease costs | | | | | $ | 4,753 | | | $ | 4,719 | | | $ | 4,855 | |
| Short-term lease costs | | | | | 150 | | | 35 | | | 19 | |
| Variable lease costs | | | | | 2,342 | | | 1,627 | | | 1,323 | |
Sublease income | | | | | (1,722) | | | (979) | | | (941) | |
| Total lease costs | | | | | $ | 5,523 | | | $ | 5,402 | | | $ | 5,256 | |
The maturities of our operating lease liabilities as of January 31, 2026 were as follows (in thousands):
| | | | | | | | |
| Fiscal Year Ending January 31, | | Amount |
| 2027 | | $ | 6,321 |
| 2028 | | 6,232 |
| 2029 | | 2,966 |
| 2030 | | 155 |
| | |
| | |
| Total operating lease payments | | 15,674 |
| Less: Imputed interest | | (673) |
| Present value of operating lease liabilities | | $ | 15,001 |
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.