LEASES

12 Months Ended

Sep. 30, 2025

Right-of-use ("ROU") lease assets and lease liabilities that are reported in the Company’s consolidated balance sheets are as follows:


	September 30, 2025		September 30, 2024
Operating ROU assets, net	$	46,358	$	49,165

Current portion of operating lease liabilities	6,896		11,774
Long-term operating lease liabilities	44,344		40,010
Total operating lease liabilities	$	51,240	$	51,784

Finance ROU assets, net	$	2,900	$	652

Current portion of finance lease liabilities	495		211
Long-term finance lease liabilities	2,430		433
Total finance lease liabilities	$	2,925	$	644

The increase in operating right-of-use lease assets and lease liabilities in the twelve months ended September 30, 2025 was primarily related to modifications of leases in both the DSA and RMS segments. The increase in financing right-of-use lease assets and lease liabilities in the twelve months ended September 30, 2025 was primarily due to new vehicles leases associated with the insourcing of the Company's North American transportation operations.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the twelve months ended September 30, 2025, 2024 and 2023 were:


	Fiscal Year Ended September 30,
	2025		2024		2023
Operating lease costs:
Fixed operating lease costs	$	13,459	$	13,474	$	11,790
Lease (income)	(2,537)		(3,003)		(3,039)
Financing lease costs:
Amortization of ROU asset expense	$	397	$	87	$	39
Interest on finance lease liability	315		31		3
Total operating lease cost	11,634		10,589		8,793

The Company serves as lessor to a lessee in thirteen facilities. The gross rental income and underlying lease expense are presented net in the Company’s consolidated statements of operations. The gross rent receivables and underlying lease liabilities are presented gross in the Company’s consolidated balance sheets.

Supplemental cash flow information related to leases was as follows:


	Fiscal Year Ended September 30,
	2025		2024		2023
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,774	$	12,003	$	11,252

Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	7,177	$	19,301	$	15,831
ROU assets obtained in exchange for new finance lease liabilities	2,666		703		—

The weighted average remaining lease term and discount rate for the Company’s operating leases as of September 30, 2025, 2024 and 2023 were:


	Fiscal Year Ended September 30,
	2025		2024		2023
Weighted-average remaining lease term (in years)
Operating lease	9.56		9.25		6.71
Finance lease	5.75		4.21		1.81
Weighted-average discount rate (in percentages)
Operating lease	11.98	%	11.71	%	9.36	%
Finance lease	12.56	%	13.75	%	4.86	%

Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of September 30, 2025, maturities of operating lease liabilities for each of the following five fiscal years and a total thereafter were as follows:


	Operating Leases		Finance Leases
2026	$	12,240	$	826
2027	10,526		797
2028	9,356		769
2029	8,516		707
2030	7,096		320
Thereafter	41,794		710
Total minimum future lease payments	89,528		4,129
Less interest	(38,288)		(1,204)
Total lease liability	$	51,240	$	2,925