The amortized cost of our short-term investments approximates their fair value. Unrealized losses related to our short-term investments are generally due to interest rate fluctuations, as opposed to credit quality. However, we review individual securities that are in an unrealized loss position in order to evaluate whether or not they have experienced or are expected to experience credit losses that would result in a decline in fair value. As of July 31, 2025 and 2026, unrealized gains and losses from our short-term investments were not material and were not the result of a decline in credit quality. As a result, as of July 31, 2025 and 2026, we did not record any credit losses for these investments.

The following table summarizes the estimated fair value of our investments in marketable debt securities by their contractual maturity dates:


	As of July 31, 2026
	(in thousands)
Due within one year	$	731,572
Due in one to three years		852,583
Total	$	1,584,155

Prepaid expenses and other current assets consists of the following:


	As of
	July 31, 2025		July 31, 2026
	(in thousands)
Prepaid operating expenses	$	56,762	$	66,355
VAT receivables		10,316		13,304
Other current assets		38,313		141,824
Total prepaid expenses and other current assets	$	105,391	$	221,483

The increase in other current assets from July 31, 2025 to July 31, 2026 was due primarily to the addition of $97.0 million of current contract assets related to revenue contracts where revenue recognized exceeds billings. For additional details on contract assets, refer to Note 2.

Property and equipment, net consists of the following:


		As of
	Estimated Useful Life	July 31, 2025			July 31, 2026
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	435,564		$	450,087
Demonstration units	12		59,475			55,796
Leasehold improvements	(1)		71,520			80,372
Software	(2)		29,152			28,808
Furniture and fixtures	60		15,542			16,954
Total property and equipment, gross			611,253			632,017
Less: accumulated depreciation			(468,439	)		(497,130	)
Total property and equipment, net		$	142,814		$	134,887

(1)

Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.

(2)

The estimated useful life of software ranges from 36 to 120 months, representing the period during which the software is expected to contribute, either directly or indirectly, to our future cash flows.

Depreciation expense related to our property and equipment was $65.6 million, $66.3 million and $66.8 million for the fiscal years ended July 31, 2024, 2025 and 2026, respectively.

Intangible assets, net consists of the following:


	As of
	July 31, 2025			July 31, 2026
	(in thousands)
Developed technology	$	79,838		$	79,838
Customer relationships		11,230			11,230
Trade name		4,200			4,200
Total intangible assets, gross		95,268			95,268
Less:
Accumulated amortization of developed technology		(78,989	)		(79,405	)
Accumulated amortization of customer relationships		(9,464	)		(9,826	)
Accumulated amortization of trade name		(4,200	)		(4,200	)
Total accumulated amortization		(92,653	)		(93,431	)
Total intangible assets, net	$	2,615		$	1,837

Amortization expense related to our intangible assets is recognized in our consolidated statements of operations within product cost of revenue for developed technology and sales and marketing expense for customer relationships and trade name. Amortization expense was $3.7 million, $2.5 million and $0.8 million for the fiscal years ended July 31, 2024, 2025 and 2026, respectively.

The changes in the net book value of intangible assets, net are as follows:


	As of July 31,
	2025			2026
	(in thousands)
Intangible assets, net—beginning balance	$	5,153		$	2,615
Amortization of intangible assets (1)		(2,538	)		(778	)
Intangible assets, net—ending balance	$	2,615		$	1,837

(1)

Represents amortization expense related to intangible assets recognized during the year in our consolidated statements of operations, within product cost of revenue and sales and marketing expense.

The estimated future amortization expense of our intangible assets is as follows:


Fiscal Year Ending July 31:	Amount
	(in thousands)
2027		778
2028		353
2029		353
2030		353
2031		—
Total	$	1,837

There have been no changes to the carrying amount of goodwill during the periods presented.

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of
	July 31, 2025		July 31, 2026
	(in thousands)
Accrued commissions and taxes	$	51,036	$	51,053
Accrued bonus		37,654		42,620
Accrued vacation		31,062		34,386
Accrued severance		6,264		32,266
Payroll taxes payable		31,366		27,391
Contributions to ESPP withheld		26,325		23,832
Accrued benefits		17,976		22,964
Accrued wages and taxes		18,846		22,243
Other		9,969		12,426
Total accrued compensation and benefits	$	230,498	$	269,181