Leases Leases (Notes)

3 Months Ended

Sep. 30, 2025

LEASES

The Company determines if an arrangement is a lease, or contains a lease, at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date. The determination of the incremental borrowing rate requires judgment and is determined by using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease.

The Company leases certain office space, data centers, and equipment with remaining terms of 6 months to 8 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. Variable lease costs are recognized as a variable lease expense when incurred.

At September 30, 2025, and June 30, 2025, the Company had operating lease assets of $42,423 and $44,761, respectively. At September 30, 2025, total operating lease liabilities of $48,886 were comprised of current operating lease liabilities of $9,372 and noncurrent operating lease liabilities of $39,514. At June 30, 2025, total operating lease liabilities of $51,187 were comprised of current operating lease liabilities of $9,397 and noncurrent operating lease liabilities of $41,790.

Operating lease assets are included within other non-current assets, and operating lease liabilities are included within accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s condensed consolidated balance sheets. Operating lease assets were recorded net of accumulated amortization of $43,581 and $41,229 as of September 30, 2025, and June 30, 2025, respectively.

Operating lease costs for the fiscal three months ended September 30, 2025, and 2024, were $2,769 and $2,893, respectively. Total operating lease costs for the respective quarters included variable lease costs of $798 and $554, respectively. Operating lease expense is included within cost of services, research and development, and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statements of income.

For the fiscal three months ended September 30, 2025, and 2024, the Company had operating cash flows for payments on operating leases of $2,731 and $2,505, and ROU assets obtained in exchange for operating lease liabilities of $0 and $7, respectively.

As of September 30, 2025, and June 30, 2025, the weighted-average remaining lease term for the Company's operating leases was 67 months and 69 months, respectively, and the weighted-average discount rate was 2.71% at both dates.

Maturity of Lease Liabilities under ASC 842

Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at September 30, 2025:


Due Dates (fiscal year)	Future Minimum Rental Payments

2026 (remaining period)	$	8,315
2027	10,455
2028	10,106
2029	7,548
2030	6,525
Thereafter	11,141
Total lease payments	$	54,090
Less: interest	(5,204)
Present value of lease liabilities	$	48,886

Future lease payments include $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At September 30, 2025, there were $2,070 of legally binding lease payments for leases signed but not yet commenced.

Lessor, Operating Leases

The Company may sublease its facilities from time to time to third parties. Sublease income is recognized on a straight-line basis over the lease term, and is included within revenue on the Company's condensed consolidated statements of income. Sublease income was immaterial for the fiscal three months ended September 30, 2025, and 2024, and the Company expects sublease income to remain immaterial in future periods