Leases

6 Months Ended

Dec. 31, 2025

7. LEASES

Components of lease expense were as follows (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2025		2024		2025		2024
Operating lease costs	$	1,725	$	709	$	3,388	$	1,418
Variable lease costs		519		167		1,006		349
Short term lease costs		15		19		88		29
Finance lease costs		9		7		37		14
	$	2,268	$	902	$	4,519	$	1,810

For the six months ended December 31, 2025, we made cash payments of $3.4 million for operating lease obligations. These payments are included in operating cash flows. As of December 31, 2025, the weighted-average remaining lease term under our capitalized operating leases was 5.1 years, while the weighted-average discount rate for our operating leases was approximately 6.1%.

The future undiscounted cash flows for each of the next five years and thereafter, and reconciliation to the lease liabilities as of December 31, 2025 for our operating leases were as follows (in thousands):


Fiscal Year ending June 30,	Operating Leases
2026 (remainder)	$	3,310
2027		5,805
2028		4,759
2029		3,613
2030		2,891
Thereafter		4,498
Total lease payments		24,876
Imputed interest		(3,640	)
Total operating lease liability	$	21,236		(1)
Operating lease liability - current	$	5,155		(2)
Operating lease liability - long-term		16,081		(3)
	$	21,236		(1)

(1)

Represents the present value of the operating lease liabilities as of December 31, 2025.

(2)

Current operating lease liabilities are presented within accrued liabilities on our condensed consolidated balance sheets.

(3)

Long-term operating lease liabilities are presented within other liabilities on our condensed consolidated balance sheets.

The lease payments presented in the table above exclude amounts related to a failed sale-leaseback transaction. For information regarding the failed sale-leaseback transaction, refer to Note 15.

For information regarding the Company's related party leases, refer to Note 14.