Leases

3 Months Ended

Dec. 31, 2024

The Company has operating leases for its corporate offices, warehouses, vehicles, and equipment.

The operating leases have remaining terms of up to 4.4 years. Some of the leases have options to extend or terminate the leases. The exercise of such options is generally at the Company’s discretion. The lease agreements do not contain any significant residual value guarantees or restrictive covenants. The Company also subleases excess corporate office space. The Company's finance leases and related balances are not significant.

The components of lease expense are:


	Three Months Ended December 31,
	2024		2023
Finance lease – lease asset amortization	$	14	$	20
Finance lease – interest on lease liabilities		4		3
Operating lease cost		1,456		1,293
Short-term lease cost		69		39
Variable lease cost (1)		260		323
Sublease income		—		(3	)
Total net lease cost	$	1,803	$	1,675

(1)

Variable lease costs primarily relate to the Company's election to combine non-lease components such as common area maintenance, insurance and taxes related to its real estate leases. To a lesser extent, the Company's equipment leases have variable costs associated with usage and subsequent changes to costs based upon an index.

Maturities of lease liabilities are:


	December 31, 2024
	Operating Leases			Finance Leases
Remainder of 2025	$	5,879		$	86
2026		4,205			83
2027		2,404			30
2028		2,050			6
2029		1,196			—
Thereafter		—			—
Total lease payments (1)	$	15,734		$	205
Less: imputed interest (2)		(1,481	)		(14	)
Total lease liabilities	$	14,253		$	191

(1)

The weighted average remaining lease term is 3.1 years for operating leases and 4.6 years for finance leases.

(2)

The weighted average discount rate is 6.1% for operating leases and 5.8% for finance leases.

Supplemental disclosures of cash flow information related to leases are:


	Three Months Ended December 31,
	2024		2023
Cash paid for amounts included in operating lease liabilities	$	1,454	$	1,154
Cash paid for amounts included in finance lease liabilities	$	24	$	26
Non-cash: lease liabilities arising from new operating lease assets obtained	$	582	$	—
Non-cash: lease liabilities arising from new finance lease assets obtained	$	240	$	—
Non-cash: adjustments to lease assets and liabilities(1)	$	2	$	293

(1)

These include adjustments due to lease modifications, renewals, and other related adjustments.