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PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2025

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT

The major components of property and equipment are as follows:


		As of September 30,			As of December 31,
		2025			2024
		(unaudited)
Leasehold improvements		$	20,513		$	20,096
Equipment			18,377			14,386
Computer software purchased			1,383			1,344
Internal-use software developed:
Cloud-based customer solutions			313,120			237,232
Internal systems and tools			85,743			72,406
Furniture and fixtures			7,324			7,292
In-process internal-use software			18,243			28,916
Property and equipment			464,703			381,672
Less accumulated depreciation and amortization			(262,048)			(204,113)
Property and equipment, net		$	202,655		$	177,559

Depreciation expense for property and equipment, excluding all internal-use software developed and finance leases, was $1,089 and $1,004 for the three months ended September 30, 2025 and 2024, respectively, and $3,213 and $3,369 for the nine months ended September 30, 2025 and 2024, respectively, and is included in depreciation and amortization in the condensed consolidated statements of comprehensive income.

Finance lease amortization was $18 and $19 for the three months ended September 30, 2025 and 2024, respectively, and $56 and $61 for the nine months ended September 30, 2025 and 2024, respectively, and is included in depreciation and amortization in the condensed consolidated statements of comprehensive income.

Assets under finance leases of $265 and $172, net of accumulated amortization of $153 and $97, respectively, at September 30, 2025 and December 31, 2024, respectively, are included in property and equipment, net in the condensed consolidated balance sheets.

The major components of internal-use software developed are as follows:


		As of September 30,			As of December 31,
		2025			2024
		(unaudited)
Internal-use software developed		$	398,863		$	309,638
Less accumulated depreciation			(225,652)			(171,181)
Internal-use software developed, net of accumulated depreciation			173,211			138,457
In-process internal-use software			18,243			28,916
Internal-use software developed, net		$	191,454		$	167,373

Amounts included in property and equipment additions related to capitalized internal-use software on the condensed consolidated statements of cash flows are as follows:


		For the nine months ended September 30,
		2025			2024

		(unaudited)
Cloud-based customer solutions		$	49,177		$	32,078
Internal systems and tools			16,001			14,683
Total		$	65,178		$	46,761

In-process internal-use software developed is not depreciated until it is available for its intended use. Depreciation expense for internal-use software developed for cloud-based customer solutions for the three months ended September 30, 2025 and 2024 was $12,522 and $7,909, respectively, and $33,791 and $25,685 for the nine months ended September 30, 2025 and 2024, respectively, and is included in cost of revenues, software subscriptions in the condensed consolidated statements of comprehensive income.

Depreciation expense for internal-use software developed for internal systems and tools for the three months ended September 30, 2025 and 2024 was $5,264 and $4,191, respectively, and $15,170 and $12,002 for the nine months ended September 30, 2025 and 2024, respectively, and is included in depreciation and amortization in the condensed consolidated statements of comprehensive income.