Operating Leases

9 Months Ended

Jun. 30, 2026

The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Some of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expenses that do not depend on an index or rate.

We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date.

Operating lease expense is included as a component of general and administrative expenses in our condensed consolidated statements of operations. Sublease income and variable lease expenses are de minimis. The following table presents operating lease expense and cash payments on lease liabilities for the periods presented:


	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands	2026		2025		2026		2025
Operating lease expense	$	3,428	$	1,172	$	10,272	$	3,481
Cash payments on lease liabilities	$	2,155	$	1,154	$	6,244	$	3,435

At June 30, 2026 and 2025, the weighted-average remaining lease term and discount rate were as follows:


	As of June 30,
	2026	2025
Weighted-average remaining lease term	5.2 years	6.2 years
Weighted-average discount rate	5.30%	6.43%

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of June 30, 2026:


Fiscal Years Ending September 30,
in thousands
2026(a)	$	2,409
2027	7,184
2028	5,492
2029	4,678
2030	3,864
Thereafter	7,986
Total lease payments(b)	31,613
Less: imputed interest	5,268
Total operating lease liabilities	$	26,345

(a) Remaining lease payments are for the period beginning July 1, 2026 through September 30, 2026.

(b) Lease payments exclude $3.5 million of legally binding minimum lease payments for office leases signed but not yet commenced. The related right-of-use asset and operating lease liability are not reflected on the Company's condensed consolidated balance sheet as of June 30, 2026.