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Leases | 6 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
Leases | Note 8 — Leases The Company determines if an arrangement contains a lease at contract inception. The Company’s current lease agreements have remaining lease terms between one and seven years. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The lease liability is initially measured based on the present value of the unpaid lease payments as of the lease commencement date. Key estimates and judgments used in determining the liability include the (1) discount rate the Company uses to discount the unpaid lease payments to present value, (2) lease term, and (3) lease payments. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit in the lease because it does not have access to the lessor’s estimated residual value or the amount of the lessor’s deferred initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a collateralized basis, it uses quoted interest rates obtained from financial institutions as an input to derive an appropriate incremental borrowing rate, adjusted for the amount of the lease payments, the lease term, and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease. The Company’s lease agreements may include options to extend the lease following the initial term. At the time of adopting ASC 842, the Company initially determined it was reasonably certain it would exercise the options to renew; accordingly, these options were considered in determining the initial lease term. The Company elected the practical expedient of hindsight in determining the option to renew. The Company has since reassessed the assumption of the renewal term and determined that due to the aftermath of the COVID-19 pandemic, the Company expects more of its workforce to be working from home permanently. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of ASC 842, the Company has elected a practical expedient to account for the lease and non-lease components as a single lease component. Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract. Variable lease payments are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. The components of lease expense are as follows:
|  | Three Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |
Operating lease expense |  | $ | 2,088,000 |  |  | $ | 2,304,000 |
Finance lease expense |  |  | — |  |  |  | 20,000 |
Short-term lease expense |  |  | — |  |  |  | 13,000 |
Variable lease expense |  |  | 98,000 |  |  |  | 151,000 |
Total lease expenses |  | $ | 2,186,000 |  |  | $ | 2,488,000 |
|  | Six Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |
Operating lease expense |  | $ | 4,197,000 |  |  | $ | 4,541,000 |
Finance lease expense |  |  | 19,000 |  |  |  | 41,000 |
Short-term lease expense |  |  | — |  |  |  | 109,000 |
Variable lease expense |  |  | 306,000 |  |  |  | 287,000 |
Total lease expenses |  | $ | 4,522,000 |  |  | $ | 4,978,000 |
The following table presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets related to its operating leases at September 30, 2025 and March 31, 2025:
|  | September 30, 2025 |  |  | March 31, 2025 |
Right-of-use asset, net |  | $ | 19,178,000 |  |  | $ | 20,825,000 |
Short-term lease liability |  | $ | 7,317,000 |  |  | $ | 8,126,000 |
Long-term lease liability |  |  | 18,575,000 |  |  |  | 19,953,000 |
Total lease liabilities |  | $ | 25,892,000 |  |  | $ | 28,079,000 |
Weighted average remaining operating lease term |  | 3.91 years |  |  | 4.01 years |
Weighted average remaining finance lease term |  |  | — |  |  | 0.25 years |
Weighted average discount rate |  |  | 4.8 | % |  |  | 4.5 | %
Supplemental cash flow information related to operating leases for the six months ended September 30, 2025 and 2024 was as follows:
|  | Six Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 4,699,000 |  |  | $ | 3,996,000 |
Operating lease liabilities arising from obtaining ROU assets |  | $ | 45,629,000 |  |  | $ | 51,648,000 |
Finance lease liabilities arising from obtaining ROU assets |  | $ | — |  |  | $ | 358,000 |
Additions to ROU assets resulting from additions to operating lease liabilities |  | $ | 1,389,000 |  |  | $ | 1,672,000 |
As of September 30, 2025, maturities of operating lease liabilities for each of the next five years and thereafter are as follows:
2026 |  | $ | 4,438,000 |
2027 |  |  | 7,711,000 |
2028 |  |  | 6,933,000 |
2029 |  |  | 4,742,000 |
2030 |  |  | 2,823,000 |
Thereafter |  |  | 1,905,000 |
Total lease payments |  |  | 28,552,000 |
Less interest |  |  | (2,660,000 | )
Total lease liabilities |  | $ | 25,892,000 |
As of September 30, 2025, the Company has an additional operating lease commitment that has not yet commenced of approximately $650,000. These leases will commence in 2025 and have lease terms between 3 and 6 years.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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