Commitments and Contingencies
Leases
In October 2025, we executed the sixth amendment to our lease agreement (the "Amendment") for our current headquarters located in Minneapolis, Minnesota where we lease approximately 198,000 square feet effective October 1, 2025. The Amendment extends the lease term to end in July 2043 and provides approximately $33 million of lease incentives, which were included in the initial measurement of the operating lease right-of-use asset. The Company expects to utilize approximately $23 million of these lease incentives during the year ending December 31, 2027, with the remaining balance to be utilized thereafter.
The components of lease expense were as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 3,709 | | | $ | 3,420 | | | $ | 3,123 | |
| Variable lease cost | 2,767 | | | 3,685 | | | 3,771 | |
| $ | 6,476 | | | $ | 7,105 | | | $ | 6,894 | |
Supplemental cash flow information related to operating leases was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | |
| Operating cash outflows from operating leases | $ | 6,555 | | | $ | 5,209 | | | $ | 5,022 | |
| Right-of-use assets obtained in exchange for operating lease liabilities | 580 | | | 3,158 | | | 1,147 | |
Supplemental balance sheet information related to operating leases was as follows:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining lease term | 11.0 years | | 2.4 years |
| Weighted-average discount rate | 6.0 | % | | 4.3 | % |
Future minimum lease payments under operating leases are presented net of lease incentives deemed payable at lease commencement. At December 31, 2025, our future minimum payments under operating leases were as follows:
| | | | | |
| (in thousands) | |
| |
| 2026 | 4,668 | |
| 2027 | (21,307) | |
| 2028 | 1,348 | |
| 2029 | 2,893 | |
| 2030 | 2,951 | |
| Thereafter | 35,466 | |
| Total future gross payments | 26,019 | |
| Less: imputed interest | (18,827) | |
| Total operating lease liabilities | 7,192 | |
Purchase Commitments
We have entered into separate noncancelable agreements with computing infrastructure, productivity software, customer relationship management, and performance and security data analytics vendors for services through 2030. At December 31, 2025, our remaining purchase commitments and estimated purchase timing were as follows:
| | | | | |
| (in thousands) | |
| 2026 | 11,030 | |
| 2027 | 3,491 | |
| 2028 | 2,288 | |
| 2029 | 1,360 | |
| 2030 | 92 | |
| |
| Total estimated future purchases | 18,261 | |
| |
Contingencies
We may be involved in various claims and legal actions in the normal course of business. We believe that the outcome of any such claim or legal action is not expected to have a material adverse effect on our financial position or results of operations.