We have operating leases for offices, research and development facilities and data centers and finance leases for certain data center equipment. Our leases have remaining lease terms of one year to approximately nine years, some of which include options to renew or terminate. We do not include renewal options in the lease terms for calculating our lease liability, as we are not reasonably certain that we will exercise these renewal options at the time of the lease commencement. Our lease agreements do not contain any residual value guarantees or restrictive covenants.

Total operating lease cost was approximately $38.6 million, $37.7 million and $45.6 million for the fiscal years ended July 31, 2024, 2025 and 2026, respectively, excluding short-term lease costs, variable lease costs and sublease income, each of which were not material. Variable lease costs primarily include common area maintenance charges. Total finance lease cost was immaterial for the fiscal years ended July 31, 2024, 2025 and 2026.

In fiscal 2026, we executed an agreement to reduce the term and payments of a lease for a data center facility. The agreement was accounted for as a lease modification under ASC 842. Accordingly, the lease liability was remeasured resulting in a $16.7 million reduction to both the lease liability and right-of-use asset.

Supplemental balance sheet information related to our leases is as follows:


	As of
	July 31, 2025			July 31, 2026
	(in thousands)
Operating leases:
Operating lease right-of-use assets, gross	$	217,060		$	264,718
Accumulated amortization		(82,534	)		(100,291	)
Operating lease right-of-use assets, net	$	134,526		$	164,427
Operating lease liabilities—current	$	23,234		$	35,713
Operating lease liabilities—non-current		115,754			134,310
Total operating lease liabilities	$	138,988		$	170,023
Weighted average remaining lease term (in years):		4.5			4.5
Weighted average discount rate:		6.3	%		6.2	%


	As of
	July 31, 2025			July 31, 2026
	(in thousands)
Finance leases:
Finance lease right-of-use assets, gross (1)	$	18,288		$	10,539
Accumulated amortization (1)		(12,805	)		(8,125	)
Finance lease right-of-use assets, net (1)	$	5,483		$	2,414
Finance lease liabilities—current (2)	$	3,301		$	1,763
Finance lease liabilities—non-current (3)		2,734			971
Total finance lease liabilities	$	6,035		$	2,734
Weighted average remaining lease term (in years):		2.0			1.5
Weighted average discount rate:		7.1	%		7.6	%

(1)

Included in our consolidated balance sheets within property and equipment, net.

(2)

Included in our consolidated balance sheets within accrued expenses and other current liabilities.

(3)

Included in our consolidated balance sheets within other liabilities—non-current.

Supplemental cash flow and other information related to our leases is as follows:


	Fiscal Year Ended July 31,
	2024		2025		2026
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	39,973	$	37,419	$	41,481
Operating cash flows from finance leases	$	885	$	614	$	317
Financing cash flows from finance leases	$	3,601	$	3,922	$	3,399
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	46,153	$	54,435	$	64,847
Finance leases	$	1,066	$	—	$	—

The undiscounted cash flows for our lease liabilities as of July 31, 2026 were as follows:


Fiscal Year Ending July 31:	Operating Leases			Finance Leases			Total
	(in thousands)
2027	$	45,428		$	1,908		$	47,336
2028		46,307			961			47,268
2029		44,063			42			44,105
2030		33,935			—			33,935
2031		10,163			—			10,163
Thereafter		16,918			—			16,918
Total lease payments		196,814			2,911			199,725
Less: imputed interest		(26,791	)		(177	)		(26,968	)
Total lease obligation		170,023			2,734			172,757
Less: current lease obligations		(35,713	)		(1,763	)		(37,476	)
Long-term lease obligations	$	134,310		$	971		$	135,281

As of July 31, 2026, we had additional operating lease commitments of approximately $51.4 million on an undiscounted basis for certain office leases that have not yet commenced. These operating leases will commence during fiscal 2027, with lease terms of approximately seven years.