v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
3. Leases
Lessee Arrangements
The Company took possession of a data center leased space in the first quarter of 2024 and later de-recognized the remaining $70.3 million of right-of-use assets and lease liabilities associated with the lease in the third quarter of 2024 due to an early termination. The early termination did not have a material impact on the results of operations during the fiscal year 2024.
During the year ended December 31, 2023, the Company recognized a $7.0 million impairment loss within general and administrative expenses, which included $4.8 million related to operating lease right-of-use assets and $2.2 million related to property and equipment, net, as a result of the execution of a sub-lease arrangement for a portion of its prior San Mateo, California corporate headquarters.
The components of lease expense were as follows (in thousands):
Year Ended December 31,
202520242023
Operating lease expense$178,697 $174,174 $139,482 
Variable and short-term lease expense67,637 53,627 31,655 
Net operating lease expense$246,334 $227,801 $171,137 
For leases which have commenced, the following table presents the expected timing of future lease payments as of December 31, 2025 (in thousands):
Year ending December 31,
2026$171,440 
2027159,647 
2028137,753 
2029123,009 
203099,002 
Thereafter299,590 
Total lease payments$990,441 
Less: imputed interest (1)
(195,535)
Present value of lease liabilities$794,906 
(1)Calculated using each lease’s incremental borrowing rate.
In addition, the Company has executed operating leases for real estate and co-located data centers which have not commenced as of December 31, 2025, with lease payments totaling $1,618.6 million over lease terms ranging between five to fifteen years.
The following table presents the weighted average remaining lease terms and discount rates as of December 31, 2025, and December 31, 2024:
As of December 31,
20252024
Weighted average remaining lease term (years)6.77.5
Weighted average discount rate6.2 %6.3 %
Supplemental cash and noncash information related to operating leases is as follows (in thousands):
Year ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities, net of leasehold incentives received
$172,734 $158,381 $105,337 
Lease liabilities arising from obtaining new right-of-use assets (noncash)$105,786 $120,822 $256,500 
Sublease Arrangements as Lessor
Sublease income was as follows (in thousands):
Year ended December 31,
202520242023
Sublease income
$10,317 $8,405 $3,337 
The following table presents future sublease payments due to the Company as of December 31, 2025 (in thousands):
Year ending December 31,
2026
$12,520 
2027
7,094 
2028525 
Thereafter— 
Total sublease income
$20,139