Leases

9 Months Ended

Jun. 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 three and nine months ended June 30, 2025 and 2024 were as follows (in thousands):


	Three months ended June 30,				Nine months ended June 30,
	2025		2024		2025		2024
Operating lease expense	$	10,067	$	10,101	$	30,117	$	30,594
Short-term lease expense	740		699		2,250		2,065
Variable lease expense	5,715		5,557		17,229		17,532
Total lease expense	$	16,522	$	16,357	$	49,596	$	50,191

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):


	June 30, 2025			September 30, 2024
Operating lease right-of-use assets, net	$	182,217		$	178,180

Operating lease liabilities, current1	30,407			33,779
Operating lease liabilities, long-term	229,411			215,785
Total operating lease liabilities	$	259,818		$	249,564

Weighted average remaining lease term (in years)	7.8			7.9
Weighted average discount rate	3.15		%	2.94		%

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

As of June 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
2025 (remainder)	$	7,801
2026	40,832
2027	39,799
2028	34,959
2029	32,076
2030	31,617
Thereafter	109,357
Total lease payments	296,441
Less: imputed interest	(36,623)
Total lease liabilities	$	259,818

Operating lease liabilities above do not include sublease income. As of June 30, 2025, the Company expects to receive sublease income of $8.2 million, which consists of $0.7 million to be received for the remainder of fiscal 2025 and $7.5 million to be received over the eight fiscal years thereafter.

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