LEASES

3 Months Ended

Sep. 30, 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 September 30, 2025		As of June 30, 2025
Operating Leases
Operating lease right of use assets	Operating lease right of use assets	$	186,920	$	197,977

Operating lease liabilities (current)	Operating lease liabilities	$	73,770	$	75,914
Operating lease liabilities (non-current)	Long-term operating lease liabilities	181,973		189,949
Total operating lease liabilities		$	255,743	$	265,863

Finance Leases
Finance lease receivables (current)	Prepaid expenses and other current assets	$	1,902	$	1,867
Finance lease receivables (non-current)	Other assets	103		457
Total finance lease receivables		$	2,005	$	2,324

Finance lease liabilities (current)	Accounts payable and accrued liabilities	$	1,748	$	1,877
Finance lease liabilities (non-current)	Accrued liabilities	103		457
Total finance lease liabilities		$	1,851	$	2,334

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


	As of September 30, 2025		As of June 30, 2025
Weighted-average remaining lease term
Operating leases	4.48 years		4.59 years
Finance leases	1.00 year		1.23 years
Weighted-average discount rate
Operating leases	4.90	%	4.92	%
Finance leases	5.32	%	5.33	%

Lease Costs and Other Information

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


	Three Months Ended September 30,
	2025		2024
Operating lease cost	$	19,704	$	21,105
Short-term lease cost	217		339
Variable lease cost	976		1,055
Sublease income	(2,032)		(2,774)
Total lease cost	$	18,865	$	19,725

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:


	Three Months Ended September 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	23,343	$	25,918
Finance leases	510		1,124
Right of use assets obtained in exchange for new lease liabilities:
Operating leases	$	6,415	$	14,519

Maturity of Lease Liabilities

The following table presents the future minimum lease payments under our lease liabilities as of September 30, 2025:


Fiscal years ending June 30,	Operating Leases		Finance Leases
2026 (nine months ended)	$	63,952	$	1,437
2027	76,254		459
2028	56,537		—
2029	34,230		—
2030	20,486		—
Thereafter	31,616		—
Total lease payments	283,075		1,896
Less: Imputed interest	(27,332)		(45)
Total	$	255,743	$	1,851

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 $7.2 million over the remainder of Fiscal 2026 and $16.0 million thereafter.