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Leases
 12 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases Leases
We lease office space and data centers under operating lease arrangements, which constitute the majority of our lease obligations. We also enter into finance lease agreements from time to time for certain computer equipment. For any lease with a lease term in excess of 12 months, the related lease assets and liabilities are recognized on our consolidated balance sheets as operating leases or finance leases at the commencement of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine these components together and account for them as a single lease component for all classes of assets. Leases with a lease term of 12 months or less are not recorded on our consolidated balance sheets. Furthermore, we recognize lease expense for these leases on a straight-line basis over the lease term.
Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We use a collateralized incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of future payments. In calculating the incremental borrowing rates, we consider recent ratings from credit agencies and current lease demographic information. Our operating leases also typically require payment of real estate taxes, common area maintenance, insurance and other operating costs as well as payments that are adjusted based on a consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs, and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the lease balances within the accompanying consolidated balance sheets as of September 30, 2025 and 2024:
Balance Sheet LocationSeptember 30,
20252024
(In thousands)
Assets
   Operating leasesOperating lease right-of-use assets$26,213 $29,580 
   Finance leases (*)Property and equipment, net6,946 9,881 
       Total lease assets$33,159 $39,461 
Liabilities
Current:
   Operating leasesOther accrued liabilities$9,615 $11,555 
   Finance leasesOther accrued liabilities3,266 3,144 
Non-current:
   Operating leasesOperating lease liabilities19,187 21,963 
   Finance leasesOther liabilities3,941 7,263 
       Total lease liabilities$36,009 $43,925 
(*) Finance leases were recorded net of accumulated depreciation of $4.8 million and $1.9 million at September 30, 2025 and 2024, respectively.
The components of our operating and finance lease expenses were as follows:
Year Ended September 30,
202520242023
(In thousands)
Operating lease cost$11,686 $14,421 $16,594 
Finance lease cost:
   Depreciation of lease assets2,935 1,859 — 
   Interest on lease liabilities481 369 — 
Short-term lease cost802 811 461 
Variable lease cost1,906 2,060 2,363 
Sublease income (461)(1,073)(429)
     Total lease cost$17,349 $18,447 $18,989 
The following table presents weighted-average remaining lease terms and weighted-average discount rates related to our operating and finance leases:
September 30,
20252024
Operating leases:
     Weighted-average remaining lease term (in months)4644
     Weighted-average discount rate6.58 %6.41 %
Finance leases:
     Weighted-average remaining lease term (in months)2840
     Weighted-average discount rate5.52 %5.52 %
Supplemental cash flow information related to our non-cancellable leases was as follows:
Year Ended September 30,
202520242023
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow for operating leases$11,651 $18,153 $19,780 
Operating cash outflow for finance leases481 369 — 
Financing cash outflow for finance leases3,144 1,333 — 
Lease assets obtained in exchange for new lease liabilities:
Operating leases6,669 22,433 4,150 
Finance leases— 11,740 — 
Future lease payments under our non-cancellable leases as of September 30, 2025 were as follows:
Operating LeasesFinance Leases
(In thousands)
Fiscal 2026$11,214 $3,625 
Fiscal 20278,125 3,625 
Fiscal 20285,576 441 
Fiscal 20293,767 — 
Fiscal 20301,917 — 
Thereafter2,191 — 
      Total future undiscounted lease payments32,790 7,691 
         Less imputed interest(3,988)(484)
      Total reported lease liabilities$28,802 $7,207 
The amounts above do not include contractual sublease income totaling $0.4 million and $0.2 million during fiscal 2026 and 2027, respectively.
Leases Leases
We lease office space and data centers under operating lease arrangements, which constitute the majority of our lease obligations. We also enter into finance lease agreements from time to time for certain computer equipment. For any lease with a lease term in excess of 12 months, the related lease assets and liabilities are recognized on our consolidated balance sheets as operating leases or finance leases at the commencement of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine these components together and account for them as a single lease component for all classes of assets. Leases with a lease term of 12 months or less are not recorded on our consolidated balance sheets. Furthermore, we recognize lease expense for these leases on a straight-line basis over the lease term.
Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We use a collateralized incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of future payments. In calculating the incremental borrowing rates, we consider recent ratings from credit agencies and current lease demographic information. Our operating leases also typically require payment of real estate taxes, common area maintenance, insurance and other operating costs as well as payments that are adjusted based on a consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs, and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the lease balances within the accompanying consolidated balance sheets as of September 30, 2025 and 2024:
Balance Sheet LocationSeptember 30,
20252024
(In thousands)
Assets
   Operating leasesOperating lease right-of-use assets$26,213 $29,580 
   Finance leases (*)Property and equipment, net6,946 9,881 
       Total lease assets$33,159 $39,461 
Liabilities
Current:
   Operating leasesOther accrued liabilities$9,615 $11,555 
   Finance leasesOther accrued liabilities3,266 3,144 
Non-current:
   Operating leasesOperating lease liabilities19,187 21,963 
   Finance leasesOther liabilities3,941 7,263 
       Total lease liabilities$36,009 $43,925 
(*) Finance leases were recorded net of accumulated depreciation of $4.8 million and $1.9 million at September 30, 2025 and 2024, respectively.
The components of our operating and finance lease expenses were as follows:
Year Ended September 30,
202520242023
(In thousands)
Operating lease cost$11,686 $14,421 $16,594 
Finance lease cost:
   Depreciation of lease assets2,935 1,859 — 
   Interest on lease liabilities481 369 — 
Short-term lease cost802 811 461 
Variable lease cost1,906 2,060 2,363 
Sublease income (461)(1,073)(429)
     Total lease cost$17,349 $18,447 $18,989 
The following table presents weighted-average remaining lease terms and weighted-average discount rates related to our operating and finance leases:
September 30,
20252024
Operating leases:
     Weighted-average remaining lease term (in months)4644
     Weighted-average discount rate6.58 %6.41 %
Finance leases:
     Weighted-average remaining lease term (in months)2840
     Weighted-average discount rate5.52 %5.52 %
Supplemental cash flow information related to our non-cancellable leases was as follows:
Year Ended September 30,
202520242023
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow for operating leases$11,651 $18,153 $19,780 
Operating cash outflow for finance leases481 369 — 
Financing cash outflow for finance leases3,144 1,333 — 
Lease assets obtained in exchange for new lease liabilities:
Operating leases6,669 22,433 4,150 
Finance leases— 11,740 — 
Future lease payments under our non-cancellable leases as of September 30, 2025 were as follows:
Operating LeasesFinance Leases
(In thousands)
Fiscal 2026$11,214 $3,625 
Fiscal 20278,125 3,625 
Fiscal 20285,576 441 
Fiscal 20293,767 — 
Fiscal 20301,917 — 
Thereafter2,191 — 
      Total future undiscounted lease payments32,790 7,691 
         Less imputed interest(3,988)(484)
      Total reported lease liabilities$28,802 $7,207 
The amounts above do not include contractual sublease income totaling $0.4 million and $0.2 million during fiscal 2026 and 2027, respectively.