v3.26.1
Leases
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Leases Leases
The Company has lease arrangements, both as a lessor and a lessee, and makes assumptions and judgments when assessing contracts for lease components, determining lease classifications, and calculating ROU asset and lease liability values. These assumptions and judgments may include the useful lives and fair values of the leased assets, the implicit rate underlying the Company’s leases, the Company’s incremental borrowing rate, or the Company’s intent to exercise or not exercise options available in lease contracts.
Lease expense and other information for the periods presented consisted of the following (in thousands, except terms and rates):
Three Months Ended March 31,
20262025
Lease expense
Finance lease expense:
Amortization of right-of-use assets
$1,870 $1,788 
Interest on lease liabilities
347 347 
Operating lease expense
1,439 
1,386 
Short-term lease expense
17 
10 
Variable lease expense
116 
88 
Total lease expense
$
3,789 
$
3,619 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases
$
347 
$
347 
Financing cash outflow from finance leases
$
1,793 
$
1,773 
Finance lease liabilities arising from obtaining finance lease right-of-use assets
$
2,073 
$
2,177 
Operating leases:
Operating cash outflow from operating leases
$
1,512 
$
1,416 
Operating lease liabilities arising from obtaining operating lease right-of-use assets
$
— 
$
— 
Other information as of March 31, 2026
Finance leases:
Weighted-average remaining lease term (years)
1.8
Weighted-average discount rate
10.9 
%
Operating leases:
Weighted-average remaining lease term (years)
6.8
Weighted-average discount rate
3.9 
%
Operating leases
The Company as the Lessee
The Company leases office space for its headquarters under a non-cancelable operating lease agreement which expires in January 2033. Though the Company will consider renewal options on its lease as it nears expiration, the Company has not recognized any renewal options as part of the current lease term as it is not reasonably certain that it will exercise its option as of March 31, 2026. The rate implicit in the Company’s operating lease is not readily determinable. Thus, the Company uses its incremental borrowing rate to discount lease payments to present value. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis, and is based on the Company’s secured line of credit, which may be adjusted for the specific terms and collateral of the lease. The operating lease agreement does not contain any residual value guarantees or other restrictions or covenants that would cause the Company to incur additional significant financial obligations. The office space lease agreement contains non-lease components, which represent charges for common area maintenance, taxes and
utilities. The Company has elected the practical expedient and does not separate lease components from non-lease components.
The Company has other leases for office space with terms less than twelve months from contract inception and no options to purchase the underlying asset. These agreements are accounted for as short-term leases in accordance with ASC Topic 842, Leases.
Total rent expense for office space leases was $1.4 million for each of the three months ended March 31, 2026 and 2025, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of March 31, 2026 are as follows (in thousands):
Years ending December 31,
2026
$
4,571 
2027
6,009 
2028
6,139 
2029
6,292 
2030
6,450 
Thereafter
13,953 
Total
43,414 
Less: imputed interest
(5,345)
Present value of operating lease obligations
$
38,069 
The Company as the Lessor
The Company provides varying quantities of phone hardware to customers without adjustments to the base subscription price. The Company is deemed a lessor in these arrangements. In April 2023, the Company entered into a Sublease Agreement for the fourth floor of its corporate headquarters in Lehi, Utah. This agreement was renewed in October 2025 with a three-year lease term which began in March 2026. Sublease income is included in other income (expense) on the unaudited condensed consolidated statements of operations and comprehensive loss.
The Company reported revenues associated with these leases for the periods presented as follows (in thousands):
Three Months Ended March 31,
20262025
Phone hardware revenue
$2,006 $1,506 
Sublease revenue
219 219 
Total
$2,225 $1,725 
Finance leases
The Company is the lessee in all of its finance lease arrangements. In June 2016, the Company began financing its purchases of phone hardware through lease agreements classified as finance leases. As of March 31, 2026, the Company had 87 executed and active lease agreements for phone hardware with maturity dates ranging from April 2026 to February 2029. As of March 31, 2026, the gross value of phone hardware acquired under these finance leases approximated $21.5 million. Amortization expense on finance-leased phone hardware was $1.9 million and $1.8 million for the three months ended March 31, 2026 and 2025, respectively, which is included in depreciation expense within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive loss as referenced in Note 7.
Future minimum lease payments for the Company’s finance leases as of March 31, 2026 were as follows (in thousands):
Years ending December 31,
2026
$
6,175 
2027
5,490 
2028
2,865 
2029
266 
2030
— 
Thereafter
— 
Total
14,796 
Less: amounts representing interest
(1,576)
Present value of finance lease obligations
$
13,220 
Leases Leases
The Company has lease arrangements, both as a lessor and a lessee, and makes assumptions and judgments when assessing contracts for lease components, determining lease classifications, and calculating ROU asset and lease liability values. These assumptions and judgments may include the useful lives and fair values of the leased assets, the implicit rate underlying the Company’s leases, the Company’s incremental borrowing rate, or the Company’s intent to exercise or not exercise options available in lease contracts.
Lease expense and other information for the periods presented consisted of the following (in thousands, except terms and rates):
Three Months Ended March 31,
20262025
Lease expense
Finance lease expense:
Amortization of right-of-use assets
$1,870 $1,788 
Interest on lease liabilities
347 347 
Operating lease expense
1,439 
1,386 
Short-term lease expense
17 
10 
Variable lease expense
116 
88 
Total lease expense
$
3,789 
$
3,619 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases
$
347 
$
347 
Financing cash outflow from finance leases
$
1,793 
$
1,773 
Finance lease liabilities arising from obtaining finance lease right-of-use assets
$
2,073 
$
2,177 
Operating leases:
Operating cash outflow from operating leases
$
1,512 
$
1,416 
Operating lease liabilities arising from obtaining operating lease right-of-use assets
$
— 
$
— 
Other information as of March 31, 2026
Finance leases:
Weighted-average remaining lease term (years)
1.8
Weighted-average discount rate
10.9 
%
Operating leases:
Weighted-average remaining lease term (years)
6.8
Weighted-average discount rate
3.9 
%
Operating leases
The Company as the Lessee
The Company leases office space for its headquarters under a non-cancelable operating lease agreement which expires in January 2033. Though the Company will consider renewal options on its lease as it nears expiration, the Company has not recognized any renewal options as part of the current lease term as it is not reasonably certain that it will exercise its option as of March 31, 2026. The rate implicit in the Company’s operating lease is not readily determinable. Thus, the Company uses its incremental borrowing rate to discount lease payments to present value. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis, and is based on the Company’s secured line of credit, which may be adjusted for the specific terms and collateral of the lease. The operating lease agreement does not contain any residual value guarantees or other restrictions or covenants that would cause the Company to incur additional significant financial obligations. The office space lease agreement contains non-lease components, which represent charges for common area maintenance, taxes and
utilities. The Company has elected the practical expedient and does not separate lease components from non-lease components.
The Company has other leases for office space with terms less than twelve months from contract inception and no options to purchase the underlying asset. These agreements are accounted for as short-term leases in accordance with ASC Topic 842, Leases.
Total rent expense for office space leases was $1.4 million for each of the three months ended March 31, 2026 and 2025, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of March 31, 2026 are as follows (in thousands):
Years ending December 31,
2026
$
4,571 
2027
6,009 
2028
6,139 
2029
6,292 
2030
6,450 
Thereafter
13,953 
Total
43,414 
Less: imputed interest
(5,345)
Present value of operating lease obligations
$
38,069 
The Company as the Lessor
The Company provides varying quantities of phone hardware to customers without adjustments to the base subscription price. The Company is deemed a lessor in these arrangements. In April 2023, the Company entered into a Sublease Agreement for the fourth floor of its corporate headquarters in Lehi, Utah. This agreement was renewed in October 2025 with a three-year lease term which began in March 2026. Sublease income is included in other income (expense) on the unaudited condensed consolidated statements of operations and comprehensive loss.
The Company reported revenues associated with these leases for the periods presented as follows (in thousands):
Three Months Ended March 31,
20262025
Phone hardware revenue
$2,006 $1,506 
Sublease revenue
219 219 
Total
$2,225 $1,725 
Finance leases
The Company is the lessee in all of its finance lease arrangements. In June 2016, the Company began financing its purchases of phone hardware through lease agreements classified as finance leases. As of March 31, 2026, the Company had 87 executed and active lease agreements for phone hardware with maturity dates ranging from April 2026 to February 2029. As of March 31, 2026, the gross value of phone hardware acquired under these finance leases approximated $21.5 million. Amortization expense on finance-leased phone hardware was $1.9 million and $1.8 million for the three months ended March 31, 2026 and 2025, respectively, which is included in depreciation expense within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive loss as referenced in Note 7.
Future minimum lease payments for the Company’s finance leases as of March 31, 2026 were as follows (in thousands):
Years ending December 31,
2026
$
6,175 
2027
5,490 
2028
2,865 
2029
266 
2030
— 
Thereafter
— 
Total
14,796 
Less: amounts representing interest
(1,576)
Present value of finance lease obligations
$
13,220 
Leases Leases
The Company has lease arrangements, both as a lessor and a lessee, and makes assumptions and judgments when assessing contracts for lease components, determining lease classifications, and calculating ROU asset and lease liability values. These assumptions and judgments may include the useful lives and fair values of the leased assets, the implicit rate underlying the Company’s leases, the Company’s incremental borrowing rate, or the Company’s intent to exercise or not exercise options available in lease contracts.
Lease expense and other information for the periods presented consisted of the following (in thousands, except terms and rates):
Three Months Ended March 31,
20262025
Lease expense
Finance lease expense:
Amortization of right-of-use assets
$1,870 $1,788 
Interest on lease liabilities
347 347 
Operating lease expense
1,439 
1,386 
Short-term lease expense
17 
10 
Variable lease expense
116 
88 
Total lease expense
$
3,789 
$
3,619 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases
$
347 
$
347 
Financing cash outflow from finance leases
$
1,793 
$
1,773 
Finance lease liabilities arising from obtaining finance lease right-of-use assets
$
2,073 
$
2,177 
Operating leases:
Operating cash outflow from operating leases
$
1,512 
$
1,416 
Operating lease liabilities arising from obtaining operating lease right-of-use assets
$
— 
$
— 
Other information as of March 31, 2026
Finance leases:
Weighted-average remaining lease term (years)
1.8
Weighted-average discount rate
10.9 
%
Operating leases:
Weighted-average remaining lease term (years)
6.8
Weighted-average discount rate
3.9 
%
Operating leases
The Company as the Lessee
The Company leases office space for its headquarters under a non-cancelable operating lease agreement which expires in January 2033. Though the Company will consider renewal options on its lease as it nears expiration, the Company has not recognized any renewal options as part of the current lease term as it is not reasonably certain that it will exercise its option as of March 31, 2026. The rate implicit in the Company’s operating lease is not readily determinable. Thus, the Company uses its incremental borrowing rate to discount lease payments to present value. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis, and is based on the Company’s secured line of credit, which may be adjusted for the specific terms and collateral of the lease. The operating lease agreement does not contain any residual value guarantees or other restrictions or covenants that would cause the Company to incur additional significant financial obligations. The office space lease agreement contains non-lease components, which represent charges for common area maintenance, taxes and
utilities. The Company has elected the practical expedient and does not separate lease components from non-lease components.
The Company has other leases for office space with terms less than twelve months from contract inception and no options to purchase the underlying asset. These agreements are accounted for as short-term leases in accordance with ASC Topic 842, Leases.
Total rent expense for office space leases was $1.4 million for each of the three months ended March 31, 2026 and 2025, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of March 31, 2026 are as follows (in thousands):
Years ending December 31,
2026
$
4,571 
2027
6,009 
2028
6,139 
2029
6,292 
2030
6,450 
Thereafter
13,953 
Total
43,414 
Less: imputed interest
(5,345)
Present value of operating lease obligations
$
38,069 
The Company as the Lessor
The Company provides varying quantities of phone hardware to customers without adjustments to the base subscription price. The Company is deemed a lessor in these arrangements. In April 2023, the Company entered into a Sublease Agreement for the fourth floor of its corporate headquarters in Lehi, Utah. This agreement was renewed in October 2025 with a three-year lease term which began in March 2026. Sublease income is included in other income (expense) on the unaudited condensed consolidated statements of operations and comprehensive loss.
The Company reported revenues associated with these leases for the periods presented as follows (in thousands):
Three Months Ended March 31,
20262025
Phone hardware revenue
$2,006 $1,506 
Sublease revenue
219 219 
Total
$2,225 $1,725 
Finance leases
The Company is the lessee in all of its finance lease arrangements. In June 2016, the Company began financing its purchases of phone hardware through lease agreements classified as finance leases. As of March 31, 2026, the Company had 87 executed and active lease agreements for phone hardware with maturity dates ranging from April 2026 to February 2029. As of March 31, 2026, the gross value of phone hardware acquired under these finance leases approximated $21.5 million. Amortization expense on finance-leased phone hardware was $1.9 million and $1.8 million for the three months ended March 31, 2026 and 2025, respectively, which is included in depreciation expense within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive loss as referenced in Note 7.
Future minimum lease payments for the Company’s finance leases as of March 31, 2026 were as follows (in thousands):
Years ending December 31,
2026
$
6,175 
2027
5,490 
2028
2,865 
2029
266 
2030
— 
Thereafter
— 
Total
14,796 
Less: amounts representing interest
(1,576)
Present value of finance lease obligations
$
13,220 
Leases Leases
The Company has lease arrangements, both as a lessor and a lessee, and makes assumptions and judgments when assessing contracts for lease components, determining lease classifications, and calculating ROU asset and lease liability values. These assumptions and judgments may include the useful lives and fair values of the leased assets, the implicit rate underlying the Company’s leases, the Company’s incremental borrowing rate, or the Company’s intent to exercise or not exercise options available in lease contracts.
Lease expense and other information for the periods presented consisted of the following (in thousands, except terms and rates):
Three Months Ended March 31,
20262025
Lease expense
Finance lease expense:
Amortization of right-of-use assets
$1,870 $1,788 
Interest on lease liabilities
347 347 
Operating lease expense
1,439 
1,386 
Short-term lease expense
17 
10 
Variable lease expense
116 
88 
Total lease expense
$
3,789 
$
3,619 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases
$
347 
$
347 
Financing cash outflow from finance leases
$
1,793 
$
1,773 
Finance lease liabilities arising from obtaining finance lease right-of-use assets
$
2,073 
$
2,177 
Operating leases:
Operating cash outflow from operating leases
$
1,512 
$
1,416 
Operating lease liabilities arising from obtaining operating lease right-of-use assets
$
— 
$
— 
Other information as of March 31, 2026
Finance leases:
Weighted-average remaining lease term (years)
1.8
Weighted-average discount rate
10.9 
%
Operating leases:
Weighted-average remaining lease term (years)
6.8
Weighted-average discount rate
3.9 
%
Operating leases
The Company as the Lessee
The Company leases office space for its headquarters under a non-cancelable operating lease agreement which expires in January 2033. Though the Company will consider renewal options on its lease as it nears expiration, the Company has not recognized any renewal options as part of the current lease term as it is not reasonably certain that it will exercise its option as of March 31, 2026. The rate implicit in the Company’s operating lease is not readily determinable. Thus, the Company uses its incremental borrowing rate to discount lease payments to present value. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis, and is based on the Company’s secured line of credit, which may be adjusted for the specific terms and collateral of the lease. The operating lease agreement does not contain any residual value guarantees or other restrictions or covenants that would cause the Company to incur additional significant financial obligations. The office space lease agreement contains non-lease components, which represent charges for common area maintenance, taxes and
utilities. The Company has elected the practical expedient and does not separate lease components from non-lease components.
The Company has other leases for office space with terms less than twelve months from contract inception and no options to purchase the underlying asset. These agreements are accounted for as short-term leases in accordance with ASC Topic 842, Leases.
Total rent expense for office space leases was $1.4 million for each of the three months ended March 31, 2026 and 2025, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of March 31, 2026 are as follows (in thousands):
Years ending December 31,
2026
$
4,571 
2027
6,009 
2028
6,139 
2029
6,292 
2030
6,450 
Thereafter
13,953 
Total
43,414 
Less: imputed interest
(5,345)
Present value of operating lease obligations
$
38,069 
The Company as the Lessor
The Company provides varying quantities of phone hardware to customers without adjustments to the base subscription price. The Company is deemed a lessor in these arrangements. In April 2023, the Company entered into a Sublease Agreement for the fourth floor of its corporate headquarters in Lehi, Utah. This agreement was renewed in October 2025 with a three-year lease term which began in March 2026. Sublease income is included in other income (expense) on the unaudited condensed consolidated statements of operations and comprehensive loss.
The Company reported revenues associated with these leases for the periods presented as follows (in thousands):
Three Months Ended March 31,
20262025
Phone hardware revenue
$2,006 $1,506 
Sublease revenue
219 219 
Total
$2,225 $1,725 
Finance leases
The Company is the lessee in all of its finance lease arrangements. In June 2016, the Company began financing its purchases of phone hardware through lease agreements classified as finance leases. As of March 31, 2026, the Company had 87 executed and active lease agreements for phone hardware with maturity dates ranging from April 2026 to February 2029. As of March 31, 2026, the gross value of phone hardware acquired under these finance leases approximated $21.5 million. Amortization expense on finance-leased phone hardware was $1.9 million and $1.8 million for the three months ended March 31, 2026 and 2025, respectively, which is included in depreciation expense within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive loss as referenced in Note 7.
Future minimum lease payments for the Company’s finance leases as of March 31, 2026 were as follows (in thousands):
Years ending December 31,
2026
$
6,175 
2027
5,490 
2028
2,865 
2029
266 
2030
— 
Thereafter
— 
Total
14,796 
Less: amounts representing interest
(1,576)
Present value of finance lease obligations
$
13,220