Leases

12 Months Ended

Sep. 30, 2025

The majority of the Company's operating lease payments relate to its corporate headquarters in Seattle, Washington, which includes approximately 515,000 square feet of office space. The lease commenced in April 2019 and expires in 2033 with an option for renewal. The Company also leases additional office and lab space for product development and sales and support personnel in the United States and internationally. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of the Company's operating lease expenses for the years ended September 30, 2025, 2024, and 2023 were as follows (in thousands):


	Fiscal year ended September 30,
	2025		2024		2023
Operating lease expense	$	39,630	$	40,655	$	47,036
Short-term lease expense	2,890		2,791		2,986
Variable lease expense	23,032		23,268		23,139
Total lease expense	$	65,552	$	66,714	$	73,161

Variable lease expense primarily consists of common area maintenance, real estate taxes and parking expenses.

Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate):


	September 30,
	2025			2024
Operating lease right-of-use assets, net	$	185,601		$	178,180

Operating lease liabilities, current1	31,042			33,779
Operating lease liabilities, long-term	230,749			215,785
Total operating lease liabilities	$	261,791		$	249,564

Weighted average remaining lease term (in years)	7.7			7.9
Weighted average discount rate	3.24		%	2.94		%

(1)Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets.

As of September 30, 2025, the future operating lease payments for each of the next five years and thereafter is as follows (in thousands):


Fiscal Years Ending September 30:	Operating Lease Payments
2026	$	38,700
2027	40,386
2028	37,001
2029	34,188
2030	33,715
Thereafter	115,208
Total lease payments	299,198
Less: imputed interest	(37,407)
Total lease liabilities	$	261,791

Operating lease liabilities above do not include sublease income. As of September 30, 2025, the Company expects to receive sublease income of approximately $7.5 million, which consists of $2.3 million to be received in fiscal year 2026 and $5.2 million to be received over the seven fiscal years thereafter.

During the year ended September 30, 2023, the Company recorded an impairment of $3.5 million against the operating lease right-of-use asset related to its third quarter of fiscal 2023 restructuring plan, see Note 13, Restructuring Charges. There were no material impairments against right-of-use assets for the years ended September 30, 2025 and 2024.

As of September 30, 2025, the Company had no significant operating leases that were executed but not yet commenced.