XML 38 R19.htm IDEA: XBRL DOCUMENT
v3.25.2

Leases | 12 Months Ended
--- | ---
Jun. 30, 2025
Leases [Abstract] |
Leases | Note 9. Leases We lease offices, warehouses and other premises, vehicles, and certain equipment under non-cancelable operating leases. Operating lease expense recognized, and supplemental cash flow information related to operating leases for the years ended June 30, 2025, 2024, and 2023 were as follows (in thousands):
| Years Ended June 30,
| 2025 |  | 2024 |  | 2023
Operating lease expense (including expense for lease agreements with related parties of $742, $450, and $561 for the years ended June 30, 2025, 2024, and 2023, respectively) | $ | 22,977 |  |  | $ | 9,983 |  |  | $ | 8,299 |
Cash payments for operating leases (including payments to related parties of $726, $406, and $524 for the years ended June 30, 2025, 2024, and 2023 , respectively) | $ | 17,849 |  |  | $ | 9,343 |  |  | $ | 8,275 |
New operating lease assets obtained in exchange for operating lease liabilities | $ | 276,170 |  |  | $ | 32,581 |  |  | $ | 3,197 |
During the years ended June 30, 2025, 2024 and 2023, our costs related to short-term lease arrangements for real estate and non-real estate assets were immaterial. Variable lease payments expensed in the years ended June 30, 2025, 2024, and 2023 were $3.4 million, $2.3 million, and $1.8 million, respectively. As of June 30, 2025 and June 30, 2024, the Operating lease ROU assets recorded within other assets on the consolidated balance sheets were $293.7 million and $34.6 million, respectively. As the interest rate in the lease contract is typically not readily available, we estimate the incremental borrowing rate considering credit notching approach based on information available at lease commencement. As of June 30, 2025, the weighted average remaining lease term for operating leases was 9.1 years and the weighted average discount rate was 5.8%. As of June 30, 2024, the weighted average remaining lease term for operating leases was 4.7 years and the weighted average discount rate was 5.1%. The short-term portion of the lease liability is included in accrued liabilities and the long-term portion of the lease liability is included in other long-term liabilities on the consolidated balance sheets. In June 2024, we entered into a lease agreement for a 21 megawatt (“MW”) data center co-location space located in Vernon, California (the “Data Center Space”) that will expire on October 31, 2035. We do not have an option to extend (or to terminate) the lease. The lease agreement consists of three tranches, with the first tranche of 6 MW having commenced on January 24, 2025, and the second tranche of 9 MW commenced on May 12, 2025 and the third tranche of 6 MW expected to commence in October 2025. The Data Center Space lease has escalating base rent due to base rate ($/MW/Month) increase in every 12 months from service commencement date. During the first twelve months of initial term, we have no obligation to pay base rent in excess of base rent ramp maximum amount. The ROU asset and lease liability associated with the commencement of three tranches totaling $211.9 million, were recorded during the year ended June 30, 2025. The lease agreement includes variable lease payments related to power consumption charges. Variable lease payments not dependent on a rate or index associated with our leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed as probable. Variable lease payments are presented as operating expenses in the consolidated statement of operations. Simultaneously, we entered into a sublicense agreement with an unrelated party to sublease the entire space in Vernon, California (the “Sublicense”). The Sublicense term coincides with our Data Center Space lease. We accounted for the lease as an operating lease and the sublicense as a sublease under Accounting Standards Codification Topic 842, Leases. The Sublicense did not relieve our original obligation under the Data Center Space lease, and therefore we did not adjust the operating lease ROU asset and related liability. Sublicense income is recognized on a straight-line basis and the rental income is included in other income, net on the consolidated statements of operations. For the year ended June 30, 2025, we recorded $8.0 million rental income. As of June 30, 2025, the future total minimum sublicense receipts expected to be received are as follows (in thousands):
Fiscal Year: |  | Future minimum sublicense receipts(1)
2026 |  | $ | 24,684 |
2027 |  | 27,459 |
2028 |  | 28,255 |
2029 |  | 29,132 |
2030 |  | 30,006 |
2031 and beyond |  | 169,980 |
Total sublicense receipts - Lessor |  | $ | 309,516 |
(1) The table does not include amounts pertaining to leases that have not yet commenced. The future undiscounted fixed non-cancelable payment obligation and future minimum sublicense receipts pertaining to the remaining tranche that has not yet commenced as of June 30, 2025 is approximately $117.7 million and $124.8 million, respectively. We hold an equity investment of $92.5 million in the sub-licensee, which is classified under investments in privately held companies and recorded in other assets on the consolidated balance sheets. The sub-licensee does not meet the criteria of a related party. Additionally, the sub-licensee has been our customer, and we concluded that equity investment agreements and sub-licensing agreement are separate from revenue contracts as all transactions have been recorded at the respective fair values. Additionally, the warehouse lease in San Jose, California commenced on May 1, 2025 for 66 months, expiring in October, 2030. In connection with this lease, we recorded $14.3 million ROU asset and lease liability to the consolidated balance sheets as of June 30, 2025. Maturities of operating lease liabilities under non-cancelable operating lease arrangements as of June 30, 2025, were as follows (in thousands):
Fiscal Year: |  | Maturities of operating leases(1)
2026 |  | $ | 39,846 |
2027 |  | 43,938 |
2028 |  | 43,218 |
2029 |  | 43,635 |
2030 |  | 44,866 |
2031 and beyond |  | 182,932 |
Total future lease payments |  | 398,435 |
Less: Imputed interest |  | (96,878) |
Present value of operating lease liabilities |  | 301,557 |
Less: Current portion |  | (21,189) |
Long-term portion of operating lease liabilities |  | $ | 280,368 |
(1) The table does not include amounts pertaining to leases that have not yet commenced. Related party leases We have entered into lease agreements with related parties. See Note 10, “Related Party Transactions” in the notes to the consolidated financial statements for further discussion.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration