Leases

9 Months Ended

Sep. 30, 2025

Note 8. Leases

The Company primarily leases facilities for office and data center space under non-cancelable operating leases for its U.S. and international locations. As of September 30, 2025, non-cancelable leases expire on various dates between 2025 and 2029.

Generally, the non-cancelable leases include one or more options to renew, with renewal terms that can extend the lease term from one to six years or more. The Company has the right to exercise or forego the lease renewal options. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As of September 30, 2025 and December 31, 2024, the balance sheet components of leases were as follows (in thousands):


	September 30, 2025		December 31, 2024
Operating lease right-of-use assets (1)	$	33,443	$	46,463

Accrued liabilities	21,680		20,445
Operating lease liabilities	16,887		29,733
Total operating lease liabilities	$	38,567	$	50,178

(1)During the nine months ended September 30, 2025, the Company recorded a non-cash impairment charge of $1.3 million related to the abandonment of one of its leased operating facilities.

The supplemental cash flow information related to operating leases for the nine months ended September 30, 2025 and 2024 were as follows (in thousands):


	Nine Months Ended September 30,
	2025		2024
Operating cash flows resulting from operating leases:
Cash paid for amounts included in the measurement of lease liabilities	$	19,325	$	15,590

New ROU assets obtained in exchange of lease liabilities:
Operating leases	$	4,651	$	17,172

In July 2025, the Company exercised its option to renew its corporate headquarters located at 20 Davis Drive, Belmont, California, comprising approximately 84,148 rentable square feet. The renewal is for an additional five-year term, subject to specified conditions. Pursuant to the agreement, the Company’s right to occupy the premises under the extended lease term will commence on August 1, 2026, and continue through July 31, 2031, unless earlier terminated in accordance with the terms of the lease.

RingCentral, Inc. 10-Q