v3.25.2
Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
The Company has operating leases for corporate offices and data centers (“colocation” leases), and finance leases for networking equipment. The Company’s operating leases have remaining lease terms ranging from less than 1 year to 9 years, some of which include options to extend the leases. The Company’s finance leases have remaining lease terms less than 1 year. During the three months ended June 30, 2025, the Company has extended the lease term of its corporate headquarters to July of 2034. The Company also subleases a portion of its corporate office spaces. The Company’s subleases have remaining lease terms ranging from less than 1 year to 5 years. The Company’s sublease income was $0.2 million and $0.3 million for the three months ended June 30, 2025 and 2024, respectively. The Company’s sublease income was $0.4 million and $0.7 million for the six months ended June 30, 2025 and 2024, respectively.
The components of lease cost were as follows:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in thousands)
Operating lease costs:
Operating lease cost$6,719 $6,832 $13,301 $13,438 
Variable lease cost5,154 3,981 10,127 8,228 
Total operating lease costs$11,873 $10,813 $23,428 $21,666 
Finance lease costs:
Amortization of assets under finance lease$2,974 $3,440 $5,992 $7,035 
Interest3 110 15 272 
Total finance lease costs$2,977 $3,550 $6,007 $7,307 
The short-term lease costs were not material for either of the three and six months ended June 30, 2025 and 2024.
During both the three and six months ended June 30, 2024, the Company recognized a non-recurring impairment charge of $1.3 million related to right-of-use assets mainly due to the Company exiting a certain office facility. This impairment charge is included within the impairment expense line in the Company's condensed consolidated statements of operations. The Company did not recognize any material impairment on its operating lease right-of-use assets for either of the three and six months ended June 30, 2025.
As of June 30, 2025As of December 31, 2024
Weighted Average Remaining Lease Term (in years):
Operating leases4.612.84
Finance leases0.100.32
Weighted Average Discount Rate:
Operating leases7.11 %6.36 %
Finance leases4.62 %4.67 %
Future minimum lease payments under non-cancellable leases as of June 30, 2025 were as follows:
Operating LeasesFinance Leases
(in thousands)
Remaining 2025$15,247 $80 
202623,380 — 
202717,265 — 
20288,555 — 
20295,795 — 
Thereafter19,757 — 
Total future minimum lease payments$89,999 $80 
Less: imputed interest(15,120)— 
Total liability$74,879 $80 
As of June 30, 2025, the Company has undiscounted commitments of $2.6 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in the third quarter of 2025 with lease terms of up to 3 years.
Leases Leases
The Company has operating leases for corporate offices and data centers (“colocation” leases), and finance leases for networking equipment. The Company’s operating leases have remaining lease terms ranging from less than 1 year to 9 years, some of which include options to extend the leases. The Company’s finance leases have remaining lease terms less than 1 year. During the three months ended June 30, 2025, the Company has extended the lease term of its corporate headquarters to July of 2034. The Company also subleases a portion of its corporate office spaces. The Company’s subleases have remaining lease terms ranging from less than 1 year to 5 years. The Company’s sublease income was $0.2 million and $0.3 million for the three months ended June 30, 2025 and 2024, respectively. The Company’s sublease income was $0.4 million and $0.7 million for the six months ended June 30, 2025 and 2024, respectively.
The components of lease cost were as follows:
Three months ended June 30,Six months ended June 30,
2025202420252024
(in thousands)
Operating lease costs:
Operating lease cost$6,719 $6,832 $13,301 $13,438 
Variable lease cost5,154 3,981 10,127 8,228 
Total operating lease costs$11,873 $10,813 $23,428 $21,666 
Finance lease costs:
Amortization of assets under finance lease$2,974 $3,440 $5,992 $7,035 
Interest3 110 15 272 
Total finance lease costs$2,977 $3,550 $6,007 $7,307 
The short-term lease costs were not material for either of the three and six months ended June 30, 2025 and 2024.
During both the three and six months ended June 30, 2024, the Company recognized a non-recurring impairment charge of $1.3 million related to right-of-use assets mainly due to the Company exiting a certain office facility. This impairment charge is included within the impairment expense line in the Company's condensed consolidated statements of operations. The Company did not recognize any material impairment on its operating lease right-of-use assets for either of the three and six months ended June 30, 2025.
As of June 30, 2025As of December 31, 2024
Weighted Average Remaining Lease Term (in years):
Operating leases4.612.84
Finance leases0.100.32
Weighted Average Discount Rate:
Operating leases7.11 %6.36 %
Finance leases4.62 %4.67 %
Future minimum lease payments under non-cancellable leases as of June 30, 2025 were as follows:
Operating LeasesFinance Leases
(in thousands)
Remaining 2025$15,247 $80 
202623,380 — 
202717,265 — 
20288,555 — 
20295,795 — 
Thereafter19,757 — 
Total future minimum lease payments$89,999 $80 
Less: imputed interest(15,120)— 
Total liability$74,879 $80 
As of June 30, 2025, the Company has undiscounted commitments of $2.6 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in the third quarter of 2025 with lease terms of up to 3 years.