v3.26.3
Leases
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Leases Leases
The Company has leases for offices, data centers and computer and networking equipment that expire at various dates through 2031. The Company’s leases have remaining terms of one to five years, some of the leases include a Company option to extend the leases for up to one to five years, and some of the leases include the option to terminate the leases upon 30 days' notice. The Company does not separate lease and non-lease components for real estate operating leases.
As the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. Operating leases with a duration of 12 months or less are excluded from right-of-use assets and operating lease liabilities, and related lease payments are generally recognized on a straight-line basis over the lease term and variable lease payments are recognized as incurred.
The Company entered into additional three-year equipment finance lease agreements and recognized $3.8 million right of use assets during the nine months ended September 30, 2026, which were reported within Finance lease right-of-use assets and are being depreciated on a straight-line basis over the lease term. As a result, the Company also recognized short-term lease liabilities of $1.2 million within Finance lease liabilities and long-term lease liabilities of $2.6 million within Finance lease liabilities - less current portion during these periods.
The components of lease expenses were as follows (in thousands):
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Operating lease cost$3,931 $3,292 $11,347 $9,587 
Finance lease cost:
Amortization of right-of-use assets$2,114 $2,301 $6,622 $6,619 
Interest on finance lease liabilities164 258 510 809 
Total finance lease cost$2,278 $2,559 $7,132 $7,428 
Supplemental cash flow information related to leases was as follows (in thousands):
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases$(3,878)$(3,579)$(10,653)$(10,471)
Financing cash used in finance leases(2,334)(2,511)(7,259)(7,183)
Right of use assets obtained in exchange for lease obligations:
Operating leases5,792 3,059 13,965 7,629 
Finance leases2,158 — 3,757 3,853 
Supplemental balance sheet information related to leases was as follows (in thousands):
September 30, 2026December 31, 2025
Operating leases
Operating lease right-of-use assets$43,403 $46,375 
Operating lease liabilities$15,240 $12,922 
Operating lease liabilities — less current portion42,824 42,116 
Total operating lease liabilities$58,064 $55,038 
Finance leases
Finance lease right-of-use assets$11,359 $14,216 
Property and equipment, gross$14,175 $14,354 
Less: accumulated depreciation and amortization(14,175)(14,354)
Property and equipment, net$— $— 
Finance lease liabilities$8,602 $8,480 
Finance lease liabilities — less current portion2,958 6,090 
Total finance lease liabilities$11,560 $14,570 
Weighted average remaining terms were as follows (in years):
September 30, 2026December 31, 2025
Weighted average remaining lease term
Operating leases3.94.6
Finance leases1.61.7
Weighted average discount rates were as follows:
September 30, 2026December 31, 2025
Weighted average discount rate
Operating leases4.9 %4.7 %
Finance leases5.9 %5.8 %
Maturities of lease liabilities were as follows (in thousands):
Year Ending December 31,Operating LeasesFinance Leases
Remaining 2026$4,644 $2,391 
202716,834 7,261 
202814,915 1,675 
202913,772 764 
203011,234 — 
Thereafter2,332 — 
Total future minimum lease payments63,731 12,091 
Less: imputed interest(5,667)(531)
Total$58,064 $11,560 
As of September 30, 2026, the Company had entered into additional operating leases to commence in October 2026 and January 2027, representing a total commitment over its term of approximately $10.5 million.
Leases Leases
The Company has leases for offices, data centers and computer and networking equipment that expire at various dates through 2031. The Company’s leases have remaining terms of one to five years, some of the leases include a Company option to extend the leases for up to one to five years, and some of the leases include the option to terminate the leases upon 30 days' notice. The Company does not separate lease and non-lease components for real estate operating leases.
As the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. Operating leases with a duration of 12 months or less are excluded from right-of-use assets and operating lease liabilities, and related lease payments are generally recognized on a straight-line basis over the lease term and variable lease payments are recognized as incurred.
The Company entered into additional three-year equipment finance lease agreements and recognized $3.8 million right of use assets during the nine months ended September 30, 2026, which were reported within Finance lease right-of-use assets and are being depreciated on a straight-line basis over the lease term. As a result, the Company also recognized short-term lease liabilities of $1.2 million within Finance lease liabilities and long-term lease liabilities of $2.6 million within Finance lease liabilities - less current portion during these periods.
The components of lease expenses were as follows (in thousands):
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Operating lease cost$3,931 $3,292 $11,347 $9,587 
Finance lease cost:
Amortization of right-of-use assets$2,114 $2,301 $6,622 $6,619 
Interest on finance lease liabilities164 258 510 809 
Total finance lease cost$2,278 $2,559 $7,132 $7,428 
Supplemental cash flow information related to leases was as follows (in thousands):
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases$(3,878)$(3,579)$(10,653)$(10,471)
Financing cash used in finance leases(2,334)(2,511)(7,259)(7,183)
Right of use assets obtained in exchange for lease obligations:
Operating leases5,792 3,059 13,965 7,629 
Finance leases2,158 — 3,757 3,853 
Supplemental balance sheet information related to leases was as follows (in thousands):
September 30, 2026December 31, 2025
Operating leases
Operating lease right-of-use assets$43,403 $46,375 
Operating lease liabilities$15,240 $12,922 
Operating lease liabilities — less current portion42,824 42,116 
Total operating lease liabilities$58,064 $55,038 
Finance leases
Finance lease right-of-use assets$11,359 $14,216 
Property and equipment, gross$14,175 $14,354 
Less: accumulated depreciation and amortization(14,175)(14,354)
Property and equipment, net$— $— 
Finance lease liabilities$8,602 $8,480 
Finance lease liabilities — less current portion2,958 6,090 
Total finance lease liabilities$11,560 $14,570 
Weighted average remaining terms were as follows (in years):
September 30, 2026December 31, 2025
Weighted average remaining lease term
Operating leases3.94.6
Finance leases1.61.7
Weighted average discount rates were as follows:
September 30, 2026December 31, 2025
Weighted average discount rate
Operating leases4.9 %4.7 %
Finance leases5.9 %5.8 %
Maturities of lease liabilities were as follows (in thousands):
Year Ending December 31,Operating LeasesFinance Leases
Remaining 2026$4,644 $2,391 
202716,834 7,261 
202814,915 1,675 
202913,772 764 
203011,234 — 
Thereafter2,332 — 
Total future minimum lease payments63,731 12,091 
Less: imputed interest(5,667)(531)
Total$58,064 $11,560 
As of September 30, 2026, the Company had entered into additional operating leases to commence in October 2026 and January 2027, representing a total commitment over its term of approximately $10.5 million.