Leases

6 Months Ended

Mar. 31, 2026

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

The operating leases have remaining terms of up to 5.1 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 office and warehouse space, when applicable. The Company's finance leases and related balances are not significant.

The components of lease expense are:


	Three Months Ended March 31,					Six Months Ended March 31,
	2026			2025		2026			2025
Finance lease – lease asset amortization	$	19		$	18	$	37		$	32
Finance lease – interest on lease liabilities		4			6		9			10
Operating lease cost		1,292			1,475		2,587			2,931
Short-term lease cost		254			166		511			235
Variable lease cost (1)		401			272		901			532
Sublease income		(162	)		—		(324	)		—
Total net lease cost	$	1,808		$	1,937	$	3,721		$	3,740

(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:


	March 31, 2026
	Operating Leases			Finance Leases
Remainder of 2026	$	3,555		$	71
2027		4,156			73
2028		3,758			51
2029		2,943			47
2030		1,748			50
Thereafter		478			30
Total lease payments (1)	$	16,638		$	322
Less: imputed interest (2)		(1,597	)		(37	)
Total lease liabilities	$	15,041		$	285

(1)

The weighted average remaining lease term is 3.6 years for operating leases and 4.1 years for finance leases.

(2)

The weighted average discount rate is 5.7% for operating leases and 5.8% for finance leases.

Supplemental disclosures of cash flow information related to leases are:


	Six Months Ended March 31,
	2026		2025
Cash paid for amounts included in operating lease liabilities	$	2,776	$	2,909
Cash paid for amounts included in finance lease liabilities	$	55	$	49
Non-cash: lease liabilities arising from new operating lease assets obtained	$	2,964	$	716
Non-cash: lease liabilities arising from new finance lease assets obtained	$	—	$	240
Non-cash: adjustments to lease assets and liabilities(1)	$	555	$	2,918

(1)

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

The increase in adjustments to lease assets and liabilities during the six months ended March 31, 2026, is primarily due to execution of a new warehouse lease in Garland, Texas associated with our RSCG reportable segment, and the Company's renewal of an existing auction staging lot lease in Tucson, Arizona associated with our GovDeals reportable segment.