Leases

6 Months Ended

Dec. 31, 2024

We lease facilities under operating leases with various expiration dates through 2030. We have the option to renew or extend our leases. Certain lease agreements include the option to terminate the lease with prior written notice ranging from nine months to one year. As of December 31, 2024, we have not considered such provisions in the determination of the lease term, as it is not reasonably certain these options will be exercised. Leases have remaining terms that range from less than one year to six years.

Several leases require us to obtain standby letters of credit, naming the lessor as a beneficiary. These letters of credit act as security for the faithful performance by us of all terms, covenants and conditions of the lease agreement. We are required to post collateral for the letters of credit in the form of cash or eligible securities. As of December 31, 2024, the collateral totaled $5.9 million, which was in the form of securities that have been classified as securities available for sale at fair value in the interim condensed consolidated balance sheets. As of June 30, 2024, the collateral totaled $8.8 million, of which $2.0 million was in the form of cash that was classified as restricted cash, and $6.8 million was in the form of securities which was classified as securities available for sale at fair value on our consolidated balance sheets.

No impairment charge was incurred related to leases during the three and six months ended December 31, 2024. No impairment charge was incurred related to leases during the three months ended December 31, 2023. During the six months ended December 31, 2023, we subleased a portion of our leased office space in San Francisco, resulting in an impairment charge of $0.8 million, included in general and administrative expense on our interim condensed consolidated statements of operations and comprehensive income (loss).

Operating lease expense is as follows (in thousands):


	Three Months Ended December 31,		Six Months Ended December 31,
	2024	2023	2024	2023
Operating lease expense (1)	$2,865	$2,946	$5,718	$5,932

(1)Lease expenses for our short-term leases were immaterial for the periods presented.

We have subleased a portion of our leased facilities. Sublease income totaled $1.2 million and $2.5 million during the three and six months ended December 31, 2024, respectively, and $1.2 million and $2.1 million during the three and six months ended December 31, 2023, respectively.

Lease term and discount rate information are summarized as follows:


						December 31, 2024
Weighted average remaining lease term (in years)						2.9
Weighted average discount rate						5.1%

As of December 31, 2024, future minimum lease payments are as follows, by fiscal year (in thousands):


2025 (remaining six months)	$	8,399
2026	15,811
2027	3,046
2028	2,185
2029	2,240
Thereafter	3,273
Total lease payments	34,954
Less imputed interest	(2,921)
Present value of total lease liabilities	$	32,033