Finance Leases and Equipment Financing Obligations

12 Months Ended

Dec. 31, 2025

Finance Leases and Equipment Financing Obligations

As part of the Paperspace acquisition, the Company recognized finance leases for data center equipment. As of December 31, 2025, the Company had $1,652 in current and $287 in long-term liabilities for equipment under finance leases on the consolidated balance sheets. The Company’s finance leases have original lease periods expiring between February 2026 and March 2028.

During the year ended December 31, 2025, the Company entered into arrangements with a third-party financial institution for $131,503 of acquired servers and related equipment resulting in equipment financing obligations of $131,503, which are included in finance lease liabilities and equipment financing obligations on the consolidated balance sheets. The Company did not enter into any such arrangements during the year ended December 31, 2024.

Weighted-average remaining term and discount rate of finance lease liabilities and equipment financing obligations were as follows:


	December 31,
	2025	2024
Weighted-average remaining term (in years)	3.9	1.4
Weighted-average discount rate	7%	8%

Maturities of finance lease liabilities and equipment financing obligations of December 31, 2025 were as follows:


2026	$	39,240
2027	37,796
2028	37,592
2029	33,708


Total undiscounted finance lease liabilities and equipment financing obligations	148,336
Less: Imputed interest	(17,822)
Total present value of finance lease liabilities and equipment financing obligations	130,514
Less: Finance lease liabilities and equipment financing obligations, current	(31,411)
Finance lease liabilities and equipment financing obligations, long-term	$	99,103

Subsequent to December 31, 2025, the Company entered into finance leases for servers and related equipment with total estimated undiscounted payments of $60,698, a lease term of 4.0 years, and a commencement date in January 2026