LEASES

9 Months Ended

Mar. 31, 2025

We enter into operating leases, both domestically and internationally, for certain facilities, automobiles, data centers and equipment for use in the ordinary course of business. The duration of the majority of these leases generally ranges from 1 to 10 years, some of which include options to extend for an additional 3 to 5 years after the initial term. Additionally, the land upon which our headquarters in Waterloo, Ontario, Canada is located is leased from the University of Waterloo for a period of 49 years beginning in December 2005, with an option to renew for an additional term of 49 years. We also have finance lease liabilities comprised of equipment lease arrangements with an average duration of 4 to 5 years, of which all are currently being sublet. Leases with an initial term of 12 months or less are not recorded on our Condensed Consolidated Balance Sheets.

The following illustrates the Condensed Consolidated Balance Sheets information related to leases:


	Balance Sheet Location	As of March 31, 2025		As of June 30, 2024
Operating Leases
Operating lease right of use assets	Operating lease right of use assets	$	209,121	$	219,774

Operating lease liabilities (current)	Operating lease liabilities	$	75,538	$	76,446
Operating lease liabilities (non-current)	Long-term operating lease liabilities	195,394		218,174
Total operating lease liabilities		$	270,932	$	294,620

Finance Leases
Finance lease receivables (current)	Prepaid expenses and other current assets	$	2,265	$	4,031
Finance lease receivables (non-current)	Other assets	907		2,329
Total finance lease receivables		$	3,172	$	6,360

Finance lease liabilities (current)	Accounts payable and accrued liabilities	$	2,025	$	3,173
Finance lease liabilities (non-current)	Accrued liabilities	907		2,327
Total finance lease liabilities		$	2,932	$	5,500

The weighted average remaining lease term and discount rate for the periods indicated below were as follows:


	As of March 31, 2025		As of June 30, 2024
Weighted-average remaining lease term
Operating leases	4.68 years		5.13 years
Finance leases	1.42 years		1.85 years
Weighted-average discount rate
Operating leases	4.96	%	5.00	%
Finance leases	5.36	%	5.47	%

Lease Costs and Other Information

The following illustrates the various components of lease costs for the period indicated:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
Operating lease cost	$	20,433	$	22,068	$	62,181	$	68,402
Short-term lease cost	613		675		1,591		2,567
Variable lease cost	1,142		1,342		3,033		3,798
Sublease income	(2,866)		(2,955)		(8,332)		(9,668)
Total lease cost	$	19,322	$	21,130	$	58,473	$	65,099

Supplemental Cash Flow Information

The following table presents supplemental information relating to cash flows arising from lease transactions. Cash payments made for variable lease costs and short-term leases are not included in the measurement of lease liabilities, and, as such, are excluded from the amounts below:


	Nine Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	75,001	$	82,449
Finance leases	$	2,730	$	4,427
Right of use assets obtained in exchange for new lease liabilities:
Operating leases	$	42,591	$	19,360

Maturity of Lease Liabilities

The following table presents the future minimum lease payments under our lease liabilities as of March 31, 2025:


Fiscal years ending June 30,	Operating Leases		Finance Leases
2025 (three months ended)	$	22,178	$	639
2026	84,382		1,940
2027	70,714		458
2028	49,755		—
2029	28,166		—
Thereafter	45,800		—
Total lease payments	$	300,995	$	3,037
Less: Imputed interest	(30,063)		(105)
Total	$	270,932	$	2,932

Operating lease maturity amounts included in the table above do not include sublease income expected to be received under our various sublease agreements with third parties. Under the agreements initiated with third parties, we expect to receive sublease income of $2.5 million over the remainder of Fiscal 2025 and $24.8 million thereafter.