v3.26.1
Leases
 6 Months Ended
Jun. 30, 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 right-of-use 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 June 30,Six Months Ended June 30,
2026202520262025
Lease expense
Finance lease expense:
Amortization of right-of-use assets
$1,932 $1,848 $3,802 $3,636 
Interest on lease liabilities
380 364 727 710 
Operating lease expense
1,439 
1,386 
2,879 
2,771 
Short-term lease expense
11 
12 
28 
22 
Variable lease expense
74 
140 
191 
228 
Total lease expense
$
3,836 
$
3,750 
$
7,627 
$
7,367 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases
$
380 
$
364 
$
727 
$
710 
Financing cash outflow from finance leases
$
1,868 
$
1,814 
$
3,661 
$
3,587 
Finance lease liabilities arising from obtaining finance lease right-of-use assets
$
3,122 
$
2,165 
$
5,195 
$
4,342 
Operating leases:
Operating cash outflow from operating leases
$
1,524 
$
1,428 
$
3,036 
$
2,845 
Other information as of June 30, 2026
Finance leases:
Weighted-average remaining lease term (years)
1.9
Weighted-average discount rate
11.3 
%
Operating leases:
Weighted-average remaining lease term (years)
6.6
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 June 30, 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.
Total rent expense for office space leases was $1.3 million and $1.4 million for each of the three months ended June 30, 2026 and 2025, respectively, and $2.7 million and $2.8 million million for each of the six months ended June 30, 2026 and 2025, respectively, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of June 30, 2026 are as follows (in thousands):
Years ending December 31,
Remainder of 2026
$
3,047 
2027
6,009 
2028
6,139 
2029
6,292 
2030
6,450 
Thereafter
13,953 
Total
41,890 
Less: imputed interest
(4,983)
Present value of operating lease obligations
$
36,907 
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 one 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, net 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 June 30,Six Months Ended June 30,
2026202520262025
Phone hardware revenue
$2,170 $1,632 $4,176 $3,138 
Sublease revenue
225 219 444 439 
Total
$2,395 $1,851 $4,620 $3,577 
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 June 30, 2026, the Company had 91 executed and active lease agreements for phone hardware with maturity dates ranging from July 2026 to May 2029. As of June 30, 2026, the gross value of phone hardware acquired under these finance leases approximated $22.9 million. Amortization expense on finance-leased phone hardware as disclosed within the lease expense table above is included in depreciation expense within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive loss.
Future minimum lease payments for the Company’s finance leases as of June 30, 2026 were as follows (in thousands):
Years ending December 31,
Remainder of 2026
$
4,611 
2027
6,668 
2028
3,963 
2029
1,081 
2030
— 
Thereafter
— 
Total
16,323 
Less: amounts representing interest
(1,849)
Present value of finance lease obligations
$
14,474 
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 right-of-use 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 June 30,Six Months Ended June 30,
2026202520262025
Lease expense
Finance lease expense:
Amortization of right-of-use assets
$1,932 $1,848 $3,802 $3,636 
Interest on lease liabilities
380 364 727 710 
Operating lease expense
1,439 
1,386 
2,879 
2,771 
Short-term lease expense
11 
12 
28 
22 
Variable lease expense
74 
140 
191 
228 
Total lease expense
$
3,836 
$
3,750 
$
7,627 
$
7,367 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases
$
380 
$
364 
$
727 
$
710 
Financing cash outflow from finance leases
$
1,868 
$
1,814 
$
3,661 
$
3,587 
Finance lease liabilities arising from obtaining finance lease right-of-use assets
$
3,122 
$
2,165 
$
5,195 
$
4,342 
Operating leases:
Operating cash outflow from operating leases
$
1,524 
$
1,428 
$
3,036 
$
2,845 
Other information as of June 30, 2026
Finance leases:
Weighted-average remaining lease term (years)
1.9
Weighted-average discount rate
11.3 
%
Operating leases:
Weighted-average remaining lease term (years)
6.6
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 June 30, 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.
Total rent expense for office space leases was $1.3 million and $1.4 million for each of the three months ended June 30, 2026 and 2025, respectively, and $2.7 million and $2.8 million million for each of the six months ended June 30, 2026 and 2025, respectively, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of June 30, 2026 are as follows (in thousands):
Years ending December 31,
Remainder of 2026
$
3,047 
2027
6,009 
2028
6,139 
2029
6,292 
2030
6,450 
Thereafter
13,953 
Total
41,890 
Less: imputed interest
(4,983)
Present value of operating lease obligations
$
36,907 
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 one 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, net 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 June 30,Six Months Ended June 30,
2026202520262025
Phone hardware revenue
$2,170 $1,632 $4,176 $3,138 
Sublease revenue
225 219 444 439 
Total
$2,395 $1,851 $4,620 $3,577 
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 June 30, 2026, the Company had 91 executed and active lease agreements for phone hardware with maturity dates ranging from July 2026 to May 2029. As of June 30, 2026, the gross value of phone hardware acquired under these finance leases approximated $22.9 million. Amortization expense on finance-leased phone hardware as disclosed within the lease expense table above is included in depreciation expense within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive loss.
Future minimum lease payments for the Company’s finance leases as of June 30, 2026 were as follows (in thousands):
Years ending December 31,
Remainder of 2026
$
4,611 
2027
6,668 
2028
3,963 
2029
1,081 
2030
— 
Thereafter
— 
Total
16,323 
Less: amounts representing interest
(1,849)
Present value of finance lease obligations
$
14,474 
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 right-of-use 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 June 30,Six Months Ended June 30,
2026202520262025
Lease expense
Finance lease expense:
Amortization of right-of-use assets
$1,932 $1,848 $3,802 $3,636 
Interest on lease liabilities
380 364 727 710 
Operating lease expense
1,439 
1,386 
2,879 
2,771 
Short-term lease expense
11 
12 
28 
22 
Variable lease expense
74 
140 
191 
228 
Total lease expense
$
3,836 
$
3,750 
$
7,627 
$
7,367 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases
$
380 
$
364 
$
727 
$
710 
Financing cash outflow from finance leases
$
1,868 
$
1,814 
$
3,661 
$
3,587 
Finance lease liabilities arising from obtaining finance lease right-of-use assets
$
3,122 
$
2,165 
$
5,195 
$
4,342 
Operating leases:
Operating cash outflow from operating leases
$
1,524 
$
1,428 
$
3,036 
$
2,845 
Other information as of June 30, 2026
Finance leases:
Weighted-average remaining lease term (years)
1.9
Weighted-average discount rate
11.3 
%
Operating leases:
Weighted-average remaining lease term (years)
6.6
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 June 30, 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.
Total rent expense for office space leases was $1.3 million and $1.4 million for each of the three months ended June 30, 2026 and 2025, respectively, and $2.7 million and $2.8 million million for each of the six months ended June 30, 2026 and 2025, respectively, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of June 30, 2026 are as follows (in thousands):
Years ending December 31,
Remainder of 2026
$
3,047 
2027
6,009 
2028
6,139 
2029
6,292 
2030
6,450 
Thereafter
13,953 
Total
41,890 
Less: imputed interest
(4,983)
Present value of operating lease obligations
$
36,907 
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 one 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, net 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 June 30,Six Months Ended June 30,
2026202520262025
Phone hardware revenue
$2,170 $1,632 $4,176 $3,138 
Sublease revenue
225 219 444 439 
Total
$2,395 $1,851 $4,620 $3,577 
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 June 30, 2026, the Company had 91 executed and active lease agreements for phone hardware with maturity dates ranging from July 2026 to May 2029. As of June 30, 2026, the gross value of phone hardware acquired under these finance leases approximated $22.9 million. Amortization expense on finance-leased phone hardware as disclosed within the lease expense table above is included in depreciation expense within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive loss.
Future minimum lease payments for the Company’s finance leases as of June 30, 2026 were as follows (in thousands):
Years ending December 31,
Remainder of 2026
$
4,611 
2027
6,668 
2028
3,963 
2029
1,081 
2030
— 
Thereafter
— 
Total
16,323 
Less: amounts representing interest
(1,849)
Present value of finance lease obligations
$
14,474 
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 right-of-use 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 June 30,Six Months Ended June 30,
2026202520262025
Lease expense
Finance lease expense:
Amortization of right-of-use assets
$1,932 $1,848 $3,802 $3,636 
Interest on lease liabilities
380 364 727 710 
Operating lease expense
1,439 
1,386 
2,879 
2,771 
Short-term lease expense
11 
12 
28 
22 
Variable lease expense
74 
140 
191 
228 
Total lease expense
$
3,836 
$
3,750 
$
7,627 
$
7,367 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases
$
380 
$
364 
$
727 
$
710 
Financing cash outflow from finance leases
$
1,868 
$
1,814 
$
3,661 
$
3,587 
Finance lease liabilities arising from obtaining finance lease right-of-use assets
$
3,122 
$
2,165 
$
5,195 
$
4,342 
Operating leases:
Operating cash outflow from operating leases
$
1,524 
$
1,428 
$
3,036 
$
2,845 
Other information as of June 30, 2026
Finance leases:
Weighted-average remaining lease term (years)
1.9
Weighted-average discount rate
11.3 
%
Operating leases:
Weighted-average remaining lease term (years)
6.6
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 June 30, 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.
Total rent expense for office space leases was $1.3 million and $1.4 million for each of the three months ended June 30, 2026 and 2025, respectively, and $2.7 million and $2.8 million million for each of the six months ended June 30, 2026 and 2025, respectively, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of June 30, 2026 are as follows (in thousands):
Years ending December 31,
Remainder of 2026
$
3,047 
2027
6,009 
2028
6,139 
2029
6,292 
2030
6,450 
Thereafter
13,953 
Total
41,890 
Less: imputed interest
(4,983)
Present value of operating lease obligations
$
36,907 
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 one 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, net 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 June 30,Six Months Ended June 30,
2026202520262025
Phone hardware revenue
$2,170 $1,632 $4,176 $3,138 
Sublease revenue
225 219 444 439 
Total
$2,395 $1,851 $4,620 $3,577 
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 June 30, 2026, the Company had 91 executed and active lease agreements for phone hardware with maturity dates ranging from July 2026 to May 2029. As of June 30, 2026, the gross value of phone hardware acquired under these finance leases approximated $22.9 million. Amortization expense on finance-leased phone hardware as disclosed within the lease expense table above is included in depreciation expense within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive loss.
Future minimum lease payments for the Company’s finance leases as of June 30, 2026 were as follows (in thousands):
Years ending December 31,
Remainder of 2026
$
4,611 
2027
6,668 
2028
3,963 
2029
1,081 
2030
— 
Thereafter
— 
Total
16,323 
Less: amounts representing interest
(1,849)
Present value of finance lease obligations
$
14,474