Operating Leases
The following is a summary of our operating lease costs:
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| Year Ended July 31, |
| 2025 | | 2024 | | 2023 |
| Real Estate Arrangements | | Co-Location Arrangements | | Total | | Real Estate Arrangements | | Co-Location Arrangements | | Total | | Real Estate Arrangements | | Co-Location Arrangements | | Total |
| (in thousands) |
| Operating lease, including imputed interest | $ | 13,745 | | | $ | 49,170 | | | $ | 62,915 | | | $ | 9,902 | | | $ | 39,577 | | | $ | 49,479 | | | $ | 7,858 | | | $ | 24,677 | | | $ | 32,535 | |
| Short-term lease cost | 4,802 | | | 12,678 | | | 17,480 | | | 5,138 | | | 8,090 | | | 13,228 | | | 4,314 | | | 5,688 | | | 10,002 | |
| Variable lease cost | 9,602 | | | 9,230 | | | 18,832 | | | 9,907 | | | 6,047 | | | 15,954 | | | 6,992 | | | 4,956 | | | 11,948 | |
| | | | | | | | | | | | | | | | | |
| Total operating lease costs | $ | 28,149 | | | $ | 71,078 | | | $ | 99,227 | | | $ | 24,947 | | | $ | 53,714 | | | $ | 78,661 | | | $ | 19,164 | | | $ | 35,321 | | | $ | 54,485 | |
| Weighted-average remaining lease term (in years) | 2.4 | | 2.0 | | | | 2.1 | | 1.9 | | | | 3.0 | | 2.0 | | |
| Weighted-average discount rate | 5.6 | % | | 5.0 | % | | | | 5.3 | % | | 4.7 | % | | | | 4.5 | % | | 3.2 | % | | |
The following table presents information about our leases in the consolidated balance sheets:
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| July 31, |
| 2025 | | 2024 |
| Real Estate Arrangements | | Co-Location Arrangements | | Total | | Real Estate Arrangements | | Co-Location Arrangements | | Total |
| (in thousands) |
| Operating lease right-of-use assets | $ | 21,858 | | | $ | 67,914 | | | $ | 89,772 | | | $ | 22,612 | | | $ | 67,146 | | | $ | 89,758 | |
| Operating lease liabilities, current | $ | 13,359 | | | $ | 39,138 | | | $ | 52,497 | | | $ | 11,381 | | | $ | 39,485 | | | $ | 50,866 | |
| Operating lease liabilities, noncurrent | $ | 9,575 | | | $ | 33,777 | | | $ | 43,352 | | | $ | 12,974 | | | $ | 31,850 | | | $ | 44,824 | |
| | | | | | | | | | | |
Cash paid, net of tenant incentives for amounts included in the measurement of operating lease liabilities was $62.0 million, $49.2 million and $32.2 million for fiscal 2025, fiscal 2024 and fiscal 2023, respectively.
Maturities of operating lease liabilities consisted of the following as of July 31, 2025:
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| | | |
| Real Estate Arrangements | | Co-Location Arrangements | | Total |
| Year ending July 31, | (in thousands) |
| 2026 | $ | 14,308 | | | $ | 41,700 | | | $ | 56,008 | |
| 2027 | 5,225 | | | 25,904 | | | 31,129 | |
| 2028 | 2,849 | | | 8,830 | | | 11,679 | |
| 2029 | 1,631 | | | — | | | 1,631 | |
| 2030 | 1,223 | | | — | | | 1,223 | |
| Total future minimum lease payments | 25,236 | | | 76,434 | | | 101,670 | |
| Less: Imputed interest | 2,302 | | | 3,519 | | | 5,821 | |
| Total | $ | 22,934 | | | $ | 72,915 | | | $ | 95,849 | |
As of July 31, 2025, we have entered into non-cancelable operating leases, including the lease for our new headquarters as described below, with terms greater than 12 months that have not yet commenced. These leases, totaling $85.3 million in undiscounted future minimum payments, are excluded from the above table and are expected to commence between August 2025 and September 2026, with lease terms ranging from approximately 1.75 to 6.33 years.
Effective April 29, 2025, we entered into a lease agreement (the “lease”) for our new headquarters. The property subject to the lease is located in Santa Clara, California, and consists of approximately 301,000 square feet of rentable space. The lease term begins on September 1, 2026, and ends on April 30, 2032, with an option for early access in January 2026 to facilitate tenant improvements. The total base rent, including committed fixed expenses for the duration of the lease term, is approximately $69.5 million. In addition to the base rent, we will be responsible for operating costs and other related expenses. In accordance with Accounting Standard Codification 842, Leases, we will recognize the related right-of-use assets and corresponding operating lease liabilities upon taking possession of the properties.