Leases

12 Months Ended

Jul. 31, 2025

Leases [Abstract]

Leases

Leases

Our leases historically relate to the leasing of facilities and equipment. In accordance with FASB ASC 842 - "Leases" ("ASC 842"), we determine at inception whether an arrangement is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. At lease commencement, we recognize a right-of-use ("ROU") asset and lease liability based on the present value of the future lease payments over the estimated lease term. We elected to not recognize a ROU asset or lease liability for any leases with terms of twelve months or less. Instead, for such short-term leases, we recognize lease expense on a straight-line basis over the lease term. Certain of our leases include options to extend the term of the lease or to terminate the lease early. When it is reasonably certain that we will exercise a renewal option or will not exercise a termination option, we include the impact of exercising or not exercising such option, respectively, in the estimate of the lease term. As our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate ("IBR") on the commencement date to calculate the present value of future lease payments. Such IBR represents our estimated rate of interest to borrow on a collateralized basis over a term commensurate with the expected lease term.

Some of our leases include payments that are based on the Consumer Price Index ("CPI") or other similar indices. These variable lease payments are included in the calculation of the ROU asset and lease liability using the index as of the lease commencement date. Other variable lease payments, such as common area maintenance, property taxes, and usage-based amounts, are required by ASC 842 to be excluded from the ROU asset and lease liability and expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset would also consider, to the extent applicable, any deferred rent upon adoption, lease pre-payments or initial direct costs of obtaining the lease (e.g., such as commissions).

For all classes of leased assets, we elected the practical expedient to not separate lease components (i.e., the actual item being leased, such as the facility or piece of equipment) from non-lease components (i.e., the distinct elements of a contract not related to securing the use of the leased asset, such as common area maintenance and consumable supplies).

Certain of our facility lease agreements (which are classified as operating leases) contain rent holidays or rent escalation clauses. For rent holidays and rent escalation clauses during the lease term, we record rental expense on a straight-line basis over the term of the lease. As of July 31, 2025, none of our leases contained a residual value guarantee and covenants included in our lease agreements are customary for the types of facilities and equipment being leased.

The components of lease expense are as follows:

	Fiscal years ended July 31,
	2025		2024	2023
Finance lease expense:
Amortization of ROU assets	$	—	—	5,000
Operating lease expense	7,489,000		8,414,000	10,439,000
Short-term lease expense	137,000		293,000	435,000
Variable lease expense	4,560,000		4,381,000	4,031,000
Sublease income	(28,000)		(67,000)	(67,000)
Total lease expense	$	12,158,000	13,021,000	14,843,000

Additional information related to leases is as follows:

	Fiscal years ended July 31,
	2025		2024	2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases - Operating cash outflows	$	8,277,000	8,983,000	10,604,000
Finance leases - Financing cash outflows	—		—	4,000
ROU assets obtained in the exchange for lease liabilities (non-cash):
Operating leases	$	5,428,000	677,000	3,211,000

The following table is a reconciliation of future cash flows relating to operating lease liabilities presented on our Consolidated Balance Sheets as of July 31, 2025:

	Operating
Fiscal 2026	$	7,637,000
Fiscal 2027	5,949,000
Fiscal 2028	5,392,000
Fiscal 2029	4,850,000
Fiscal 2030	4,449,000
Thereafter	14,663,000
Total future undiscounted cash flows	42,940,000
Less: Present value discount	6,314,000
Lease liabilities	$	36,626,000
Weighted-average remaining lease terms (in years)	7.60
Weighted-average discount rate	4.47		%

As of July 31, 2025, we do not have any material rental commitments that have not commenced.

Leases

Leases

Our leases historically relate to the leasing of facilities and equipment. In accordance with FASB ASC 842 - "Leases" ("ASC 842"), we determine at inception whether an arrangement is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. At lease commencement, we recognize a right-of-use ("ROU") asset and lease liability based on the present value of the future lease payments over the estimated lease term. We elected to not recognize a ROU asset or lease liability for any leases with terms of twelve months or less. Instead, for such short-term leases, we recognize lease expense on a straight-line basis over the lease term. Certain of our leases include options to extend the term of the lease or to terminate the lease early. When it is reasonably certain that we will exercise a renewal option or will not exercise a termination option, we include the impact of exercising or not exercising such option, respectively, in the estimate of the lease term. As our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate ("IBR") on the commencement date to calculate the present value of future lease payments. Such IBR represents our estimated rate of interest to borrow on a collateralized basis over a term commensurate with the expected lease term.

Some of our leases include payments that are based on the Consumer Price Index ("CPI") or other similar indices. These variable lease payments are included in the calculation of the ROU asset and lease liability using the index as of the lease commencement date. Other variable lease payments, such as common area maintenance, property taxes, and usage-based amounts, are required by ASC 842 to be excluded from the ROU asset and lease liability and expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset would also consider, to the extent applicable, any deferred rent upon adoption, lease pre-payments or initial direct costs of obtaining the lease (e.g., such as commissions).

For all classes of leased assets, we elected the practical expedient to not separate lease components (i.e., the actual item being leased, such as the facility or piece of equipment) from non-lease components (i.e., the distinct elements of a contract not related to securing the use of the leased asset, such as common area maintenance and consumable supplies).

Certain of our facility lease agreements (which are classified as operating leases) contain rent holidays or rent escalation clauses. For rent holidays and rent escalation clauses during the lease term, we record rental expense on a straight-line basis over the term of the lease. As of July 31, 2025, none of our leases contained a residual value guarantee and covenants included in our lease agreements are customary for the types of facilities and equipment being leased.

The components of lease expense are as follows:

	Fiscal years ended July 31,
	2025		2024	2023
Finance lease expense:
Amortization of ROU assets	$	—	—	5,000
Operating lease expense	7,489,000		8,414,000	10,439,000
Short-term lease expense	137,000		293,000	435,000
Variable lease expense	4,560,000		4,381,000	4,031,000
Sublease income	(28,000)		(67,000)	(67,000)
Total lease expense	$	12,158,000	13,021,000	14,843,000

Additional information related to leases is as follows:

	Fiscal years ended July 31,
	2025		2024	2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases - Operating cash outflows	$	8,277,000	8,983,000	10,604,000
Finance leases - Financing cash outflows	—		—	4,000
ROU assets obtained in the exchange for lease liabilities (non-cash):
Operating leases	$	5,428,000	677,000	3,211,000

The following table is a reconciliation of future cash flows relating to operating lease liabilities presented on our Consolidated Balance Sheets as of July 31, 2025:

	Operating
Fiscal 2026	$	7,637,000
Fiscal 2027	5,949,000
Fiscal 2028	5,392,000
Fiscal 2029	4,850,000
Fiscal 2030	4,449,000
Thereafter	14,663,000
Total future undiscounted cash flows	42,940,000
Less: Present value discount	6,314,000
Lease liabilities	$	36,626,000
Weighted-average remaining lease terms (in years)	7.60
Weighted-average discount rate	4.47		%

As of July 31, 2025, we do not have any material rental commitments that have not commenced.