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LEASES | 9 Months Ended
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Mar. 31, 2026
Leases [Abstract] |
LEASES | LEASES 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. In connection with the purchase of an office building in the third quarter of Fiscal 2026, the Company assumed existing operating lease agreements as a lessor with third-party tenants. Rental income from these operating leases is recognized on a straight-line basis over the remaining non-cancelable lease terms. The remaining duration of these leases ranges between 2 and 3 years, with options to extend for an additional 23 to 72 years after the initial term. During the three and nine months ended March 31, 2026, lease income was immaterial. The following illustrates the Condensed Consolidated Balance Sheets information related to leases:
| Balance Sheet Location |  | As of March 31, 2026 |  | As of June 30, 2025
Operating Leases |  |  |  |  |
Operating lease right of use assets (1) | Operating lease right of use assets |  | $ | 138,829 |  |  | $ | 197,977 |
Operating lease liabilities (current) (2) | Operating lease liabilities |  | $ | 62,606 |  |  | $ | 75,914 |
Operating lease liabilities (non-current) | Long-term operating lease liabilities |  | 141,239 |  |  | 189,949 |
Total operating lease liabilities |  |  | $ | 203,845 |  |  | $ | 265,863 |
Finance Leases |  |  |  |  |
Finance lease receivables (current) | Prepaid expenses and other current assets |  | $ | 1,083 |  |  | $ | 1,867 |
Finance lease receivables (non-current) | Other assets |  | — |  |  | 457 |
Total finance lease receivables |  |  | $ | 1,083 |  |  | $ | 2,324 |
Finance lease liabilities (current) | Accounts payable and accrued liabilities |  | $ | 908 |  |  | $ | 1,877 |
Finance lease liabilities (non-current) | Accrued liabilities |  | — |  |  | 457 |
Total finance lease liabilities |  |  | $ | 908 |  |  | $ | 2,334 |
______________________ (1)Excludes $0.1 million of operating lease right of use assets that have been reclassified to Assets held for sale as of March 31, 2026, related to the proposed divestiture of Vertica. See Note 17 “Acquisitions and Divestitures” for more details. (2)Excludes operating lease liabilities that have been reclassified to Liabilities held for sale as of March 31, 2026, related to the proposed divestiture of Vertica. See Note 17 “Acquisitions and Divestitures” for more details. The weighted average remaining lease term and discount rate for the periods indicated below were as follows:
| As of March 31, 2026 |  | As of June 30, 2025
Weighted-average remaining lease term |  |  |
Operating leases | 4.54 years |  | 4.59 years
Finance leases | 0.53 years |  | 1.23 years
Weighted-average discount rate |  |  |
Operating leases | 4.90 | % |  | 4.92 | %
Finance leases | 5.33 | % |  | 5.33 | %
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,
| 2026 |  | 2025 |  | 2026 |  | 2025
Operating lease cost | $ | 17,202 |  |  | $ | 20,433 |  |  | $ | 55,158 |  |  | $ | 62,181 |
Short-term lease cost | 275 |  |  | 613 |  |  | 699 |  |  | 1,591 |
Variable lease cost | 1,141 |  |  | 1,142 |  |  | 2,951 |  |  | 3,033 |
Sublease income | (2,503) |  |  | (2,866) |  |  | (7,371) |  |  | (8,332) |
Total lease cost | $ | 16,115 |  |  | $ | 19,322 |  |  | $ | 51,437 |  |  | $ | 58,473 |
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,
| 2026 |  | 2025
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating leases | $ | 67,053 |  |  | $ | 75,001 |
Finance leases | $ | 1,487 |  |  | $ | 2,730 |
Right of use assets obtained in exchange for new lease liabilities, net of terminations: |  |  |
Operating leases (1) | $ | (3,512) |  |  | $ | 42,591 |
______________________ (1)During the nine months ended March 31, 2026, we modified certain lease agreements, resulting in a net reduction of our right of use assets and related lease liabilities, of which $13.7 million was attributable to a facility in the Americas. Maturity of Lease Liabilities The following table presents the future minimum lease payments under our lease liabilities as of March 31, 2026:
Fiscal years ending June 30, | Operating Leases |  | Finance Leases
2026 (three months ending) | $ | 19,948 |  |  | $ | 460 |
2027 | 66,755 |  |  | 459 |
2028 | 49,960 |  |  | — |
2029 | 35,016 |  |  | — |
2030 | 21,010 |  |  | — |
Thereafter | 33,126 |  |  | — |
Total lease payments | $ | 225,815 |  |  | $ | 919 |
Less: Imputed interest | (21,970) |  |  | (11) |
Total | $ | 203,845 |  |  | $ | 908 |
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 $2.0 million over the remainder of Fiscal 2026 and $0.9 million thereafter.
LEASES | LEASES 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. In connection with the purchase of an office building in the third quarter of Fiscal 2026, the Company assumed existing operating lease agreements as a lessor with third-party tenants. Rental income from these operating leases is recognized on a straight-line basis over the remaining non-cancelable lease terms. The remaining duration of these leases ranges between 2 and 3 years, with options to extend for an additional 23 to 72 years after the initial term. During the three and nine months ended March 31, 2026, lease income was immaterial. The following illustrates the Condensed Consolidated Balance Sheets information related to leases:
| Balance Sheet Location |  | As of March 31, 2026 |  | As of June 30, 2025
Operating Leases |  |  |  |  |
Operating lease right of use assets (1) | Operating lease right of use assets |  | $ | 138,829 |  |  | $ | 197,977 |
Operating lease liabilities (current) (2) | Operating lease liabilities |  | $ | 62,606 |  |  | $ | 75,914 |
Operating lease liabilities (non-current) | Long-term operating lease liabilities |  | 141,239 |  |  | 189,949 |
Total operating lease liabilities |  |  | $ | 203,845 |  |  | $ | 265,863 |
Finance Leases |  |  |  |  |
Finance lease receivables (current) | Prepaid expenses and other current assets |  | $ | 1,083 |  |  | $ | 1,867 |
Finance lease receivables (non-current) | Other assets |  | — |  |  | 457 |
Total finance lease receivables |  |  | $ | 1,083 |  |  | $ | 2,324 |
Finance lease liabilities (current) | Accounts payable and accrued liabilities |  | $ | 908 |  |  | $ | 1,877 |
Finance lease liabilities (non-current) | Accrued liabilities |  | — |  |  | 457 |
Total finance lease liabilities |  |  | $ | 908 |  |  | $ | 2,334 |
______________________ (1)Excludes $0.1 million of operating lease right of use assets that have been reclassified to Assets held for sale as of March 31, 2026, related to the proposed divestiture of Vertica. See Note 17 “Acquisitions and Divestitures” for more details. (2)Excludes operating lease liabilities that have been reclassified to Liabilities held for sale as of March 31, 2026, related to the proposed divestiture of Vertica. See Note 17 “Acquisitions and Divestitures” for more details. The weighted average remaining lease term and discount rate for the periods indicated below were as follows:
| As of March 31, 2026 |  | As of June 30, 2025
Weighted-average remaining lease term |  |  |
Operating leases | 4.54 years |  | 4.59 years
Finance leases | 0.53 years |  | 1.23 years
Weighted-average discount rate |  |  |
Operating leases | 4.90 | % |  | 4.92 | %
Finance leases | 5.33 | % |  | 5.33 | %
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,
| 2026 |  | 2025 |  | 2026 |  | 2025
Operating lease cost | $ | 17,202 |  |  | $ | 20,433 |  |  | $ | 55,158 |  |  | $ | 62,181 |
Short-term lease cost | 275 |  |  | 613 |  |  | 699 |  |  | 1,591 |
Variable lease cost | 1,141 |  |  | 1,142 |  |  | 2,951 |  |  | 3,033 |
Sublease income | (2,503) |  |  | (2,866) |  |  | (7,371) |  |  | (8,332) |
Total lease cost | $ | 16,115 |  |  | $ | 19,322 |  |  | $ | 51,437 |  |  | $ | 58,473 |
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,
| 2026 |  | 2025
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating leases | $ | 67,053 |  |  | $ | 75,001 |
Finance leases | $ | 1,487 |  |  | $ | 2,730 |
Right of use assets obtained in exchange for new lease liabilities, net of terminations: |  |  |
Operating leases (1) | $ | (3,512) |  |  | $ | 42,591 |
______________________ (1)During the nine months ended March 31, 2026, we modified certain lease agreements, resulting in a net reduction of our right of use assets and related lease liabilities, of which $13.7 million was attributable to a facility in the Americas. Maturity of Lease Liabilities The following table presents the future minimum lease payments under our lease liabilities as of March 31, 2026:
Fiscal years ending June 30, | Operating Leases |  | Finance Leases
2026 (three months ending) | $ | 19,948 |  |  | $ | 460 |
2027 | 66,755 |  |  | 459 |
2028 | 49,960 |  |  | — |
2029 | 35,016 |  |  | — |
2030 | 21,010 |  |  | — |
Thereafter | 33,126 |  |  | — |
Total lease payments | $ | 225,815 |  |  | $ | 919 |
Less: Imputed interest | (21,970) |  |  | (11) |
Total | $ | 203,845 |  |  | $ | 908 |
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 $2.0 million over the remainder of Fiscal 2026 and $0.9 million thereafter.

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