Operating Leases
We entered into various operating lease agreements for office space, with remaining contractual periods of up to five years. Many of our leases contain one or more options to extend. As leases approach maturity, we consider various factors such as market conditions and the terms of any renewal options that may exist to determine whether we are reasonably certain to exercise the options to extend the lease. Operating lease expense for the fiscal years ended January 31, 2026, 2025 and 2024 was $27.0 million, $26.7 million and $24.9 million, respectively, excluding short-term lease costs, variable lease costs, and sublease income, each of which was immaterial for the fiscal years ended January 31, 2026, 2025 and 2024.
Supplemental balance sheet information related to operating leases was as follows:
| | | | | | | | | | | |
| As of January 31, |
| 2026 | | 2025 |
| (in thousands, except life and percentages) |
| Reported as: | | | |
| Assets: | | | |
| Operating lease right-of-use assets | $ | 52,423 | | | $ | 55,900 | |
| Liabilities: | | | |
| Accrued expenses and other current liabilities | $ | 27,765 | | | $ | 27,026 | |
| Operating lease liabilities, noncurrent | 30,710 | | | 37,406 | |
| Total operating lease liabilities | $ | 58,475 | | | $ | 64,432 | |
| | | |
| Weighted average remaining lease term | 2.7 years | | 3.3 years |
| Weighted average discount rate | 4.8 | % | | 4.4 | % |
Supplemental cash flow and other information related to operating leases was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2026 | | 2025 | | 2024 |
| (in thousands) |
| Cash payments included in the measurement of our operating lease liabilities | $ | 30,403 | | | $ | 31,197 | | | $ | 26,471 | |
| Operating lease right-of-use assets recognized in exchange for new operating lease obligations | $ | 22,111 | | | $ | 21,760 | | | $ | — | |
As of January 31, 2026, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows:
| | | | | |
| As of January 31, 2026 |
| (in thousands) |
| Year Ending January 31, | |
| 2027 | $ | 26,585 | |
| 2028 | 20,504 | |
| 2029 | 10,799 | |
| 2030 | 3,633 | |
| 2031 | 798 | |
| Thereafter | — | |
| Total operating lease payments | $ | 62,319 | |
| Less: imputed interest | (3,844) | |
| Total operating lease liabilities | $ | 58,475 | |
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.