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Leases (Tables) | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
Schedule of Lease, Cost | The weighted average remaining lease terms and discount rates as of September 30, 2025 and December 31, 2024 were as follows:
| September 30, 2025 |  | December 31, 2024
| Operating leases |  | Finance Leases(1) |  | Operating leases |  | Finance Leases(1)
Remaining lease term | 5.6 years |  | 2.4 years |  | 4.4 years |  | 1.9 years
Discount rate | 6.9 | % |  | 12.3 | % |  | 7.2 | % |  | 11.9 | %
________________ (1) Includes lease financing obligation costs. The following table presents the components of lease expense (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024(1) |  | 2025 |  | 2024
Finance lease costs |  |  |  |  |  |  |
Depreciation expense(2) | $ | 2,033 |  |  | $ | 3,775 |  |  | $ | 6,879 |  |  | $ | 11,831 |
Interest expense | $ | 792 |  |  | $ | 596 |  |  | $ | 2,325 |  |  | $ | 1,770 |
Lease financing obligation costs |  |  |  |  |  |  |
Depreciation expense(2) | $ | 246 |  |  | $ | 666 |  |  | $ | 1,088 |  |  | $ | 2,000 |
Interest expense | $ | 39 |  |  | $ | 154 |  |  | $ | 211 |  |  | $ | 549 |
Operating lease costs |  |  |  |  |  |  |
Rental expense related to lease components | $ | 1,779 |  |  | $ | 929 |  |  | $ | 4,248 |  |  | $ | 2,285 |
Rental expense related to non-lease components(3) | 914 |  |  | 1,227 |  |  | 3,140 |  |  | 3,768 |
Variable lease costs | 1,240 |  |  | 1,034 |  |  | 3,557 |  |  | 2,945 |
Total operating lease costs | $ | 3,933 |  |  | $ | 3,190 |  |  | $ | 10,945 |  |  | $ | 8,998 |
Total included in cost of revenue | $ | 3,730 |  |  | $ | 2,893 |  |  | $ | 10,275 |  |  | $ | 8,122 |
Total included in general and administrative expense | $ | 203 |  |  | $ | 297 |  |  | 670 |  |  | $ | 876 |
________________ (1) The presentation of prior period data has been revised to conform to current year presentation. There have been no changes to the reported amounts, rather certain amounts have been disaggregated to further improve clarity and transparency. (2) Substantially all of the depreciation expense on assets acquired through the Company’s finance leases and lease financing obligations is included in cost of revenue in its condensed consolidated statements of operations and comprehensive loss. (3) Non-lease components are related to non-tangible utilities and services used in the Company’s co-location data center spaces, which are not recorded on the Company’s condensed consolidated balance sheets. The Company used judgment and third-party data in determining the stand-alone price for allocating consideration to lease and non-lease components under these co-location lease agreements, such as the price of utilities as compared to its tangible data center footprint within each co-location facility. The following table presents supplemental cash flow information relating to the Company’s leases (in thousands):
| Nine Months Ended September 30,
| 2025 |  | 2024
Operating cash flows |  |  |
Cash paid for interest on finance lease and lease financing obligations | $ | 2,626 |  |  | $ | 2,319 |
Cash paid for operating lease liabilities | $ | 4,144 |  |  | $ | 2,041 |
Non-cash items |  |  |
Equipment acquired through finance leases | $ | 19,901 |  |  | $ | 11,355 |
Right-of-use assets obtained in exchange for operating lease obligations | $ | 12,469 |  |  | $ | 7,457 |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | The future minimum commitments for finance leases and lease financing obligations as of September 30, 2025 were as follows (in thousands):
Year Ending December 31, | Finance leases |  | Lease financing obligations |  | Total
Remainder of 2025 | $ | 4,949 |  |  | $ | 502 |  |  | $ | 5,451 |
2026 | 16,484 |  |  | 249 |  |  | 16,733 |
2027 | 12,163 |  |  | — |  |  | 12,163 |
2028 | 4,315 |  |  | — |  |  | 4,315 |
2029 | 3,081 |  |  | — |  |  | 3,081 |
Total future minimum lease and financing commitments | 40,992 |  |  | 751 |  |  | 41,743 |
Less imputed interest | (6,258) |  |  | (25) |  |  | (6,283) |
Total finance lease and lease financing obligation liabilities | $ | 34,734 |  |  | $ | 726 |  |  | $ | 35,460 |
Schedule of Lessee, Operating Lease, Liability, Maturity | As of September 30, 2025, the Company's future minimum obligations for operating leases and non-cancellable contractual commitments related to non-lease components were as follows (in thousands):
Year Ending December 31, | Operating leases |  | Non-lease components |  | Total
Remainder of 2025 | $ | 1,443 |  |  | $ | 1,429 |  |  | $ | 2,872 |
2026 | 6,576 |  |  | 4,092 |  |  | 10,668 |
2027 | 5,604 |  |  | 3,075 |  |  | 8,679 |
2028 | 5,266 |  |  | 3,081 |  |  | 8,347 |
2029 | 4,163 |  |  | 2,560 |  |  | 6,723 |
Thereafter | 8,687 |  |  | 1,460 |  |  | 10,147 |
Total future minimum operating lease commitments | 31,739 |  |  | $ | 15,697 |  |  | $ | 47,436 |
Less imputed interest | (5,518) |  |  |  |  |
Total liability | $ | 26,221 |  |  |  |  |
Schedule of Other Commitments | As of September 30, 2025, the Company's future minimum obligations for operating leases and non-cancellable contractual commitments related to non-lease components were as follows (in thousands):
Year Ending December 31, | Operating leases |  | Non-lease components |  | Total
Remainder of 2025 | $ | 1,443 |  |  | $ | 1,429 |  |  | $ | 2,872 |
2026 | 6,576 |  |  | 4,092 |  |  | 10,668 |
2027 | 5,604 |  |  | 3,075 |  |  | 8,679 |
2028 | 5,266 |  |  | 3,081 |  |  | 8,347 |
2029 | 4,163 |  |  | 2,560 |  |  | 6,723 |
Thereafter | 8,687 |  |  | 1,460 |  |  | 10,147 |
Total future minimum operating lease commitments | 31,739 |  |  | $ | 15,697 |  |  | $ | 47,436 |
Less imputed interest | (5,518) |  |  |  |  |
Total liability | $ | 26,221 |  |  |  |  |

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- Definition Tabular disclosure of undiscounted cash flows of finance lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to finance lease liability recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-6 + Details
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- Definition Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-4 + Details
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- Definition Tabular disclosure of undiscounted cash flows of lessee's operating lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to operating lease liability recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-6 + Details
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