Leases

6 Months Ended

Mar. 31, 2025

The Company leases certain of its facilities under non-cancellable operating leases expiring at various dates through 2044. The Company is also responsible for utilities, maintenance, insurance, and property taxes under these leases. The lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms, as well as payments for common-area-maintenance and administrative services. The Company often receives customary incentives from its landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. The Company does not have any material financing leases.

Certain leases include options to renew or terminate at the Company’s discretion. The lease terms include periods covered by these options if it is reasonably certain the Company will renew or not terminate. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants.

The following table presents the Company's right-of-use assets and lease liabilities related to the Company’s operating leases as of March 31, 2025:


(in thousands)	March 31, 2025
Assets:
Operating lease right-of-use asset	$	54,065
Current liabilities:
Current portion of operating lease liabilities	$	15,218
Noncurrent liabilities:
Operating lease liabilities, net of current portion	$	65,080

Future minimum lease payments under all non-cancelable operating leases as of March 31, 2025 are as follows:


(in thousands)	Operating leases
Years ending September 30:
Remainder of 2025	$	7,495
2026	13,885
2027	8,371
2028	8,471
2029	6,609
Thereafter	81,405
Total minimum lease payments	$	126,236
Less: imputed interest	(45,938)

Total operating lease liabilities	$	80,298
Less: current portion	(15,218)
Operating lease liabilities, net of current portion	$	65,080

The components of lease expense and supplemental information were as follows:


	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands except years and percentage)	2025		2024		2025			2024
Operating lease costs	$	3,738	$	3,943	$	7,477		$	7,945
Variable lease costs	1,888		2,280		3,808			3,820
Weighted-average remaining lease term (in years) - operating leases					14.7			15.3
Weighted-average discount rate - operating leases					6.3		%	6.5		%

Supplemental cash flow information related to leases are as follows:


	Six months ended March 31,
(in thousands)	2025		2024
Cash payments included in the measurement of operating lease liabilities	$	7,319	$	7,260