The Company’s leasing activities primarily consist of real estate leases for its operations, including office space, and certain ground station service agreements that convey the right to control the use of specified equipment and facilities. The Company assesses whether each lease is an operating or finance lease at the lease commencement date. As of July 31, 2025, the Company has no finance leases.

Operating lease costs were $2.5 million and $4.9 million for the three and six months ended July 31, 2025, respectively. Operating lease costs were $2.4 million and $4.7 million for the three and six months ended July 31, 2024, respectively. Variable lease expenses and short-term lease expenses were immaterial for the three and six months ended July 31, 2025 and 2024.

Operating cash flows from operating leases were $2.7 million and $5.4 million for the three and six months ended July 31, 2025, respectively. Operating cash flows from operating leases were $2.6 million and $5.0 million for the three and six months ended July 31, 2024, respectively.

Right of use assets obtained in exchange for operating lease liabilities were $0.3 million for the three and six months ended July 31, 2025. Right of use assets obtained in exchange for operating lease liabilities were $2.7 million and $3.1 million for the three and six months ended July 31, 2024, respectively.


(in thousands)
Remainder of Fiscal Year 2026	$	5,203
2027	7,498
2028	3,340
2029	2,184
2030	943
Thereafter	164
Total lease payments	$	19,332
Less: Imputed interest	(1,789)
Total lease liabilities	$	17,543
Weighted average remaining lease term (years)	2.7
Weighted average discount rate	7.8		%