Leases

12 Months Ended

Sep. 30, 2025

16. Leases

Our headquarters are located at 121 Seaport Boulevard, Boston, Massachusetts, encompassing approximately 250,000 square feet under a lease agreement that runs through June 2037. Base rent for the first year of the lease was $11.0 million and increases by $1 per square foot per year thereafter ($0.3 million per year). Base rent first became payable on July 1, 2020. In addition to the base rent, we are required to pay our pro rata portions of building operating costs and real estate taxes (together, “Additional Rent”). Annual Additional Rent is estimated to be approximately $8.2 million.

In 2025, we subleased certain portions of our Seaport headquarters for lease terms ending May 2031 and June 2037. We recognized an impairment charge of $12.8 million on right-of-use assets related to subleased facilities. For additional information on this impairment charge, see Note 2. Summary of Significant Accounting Policies.

The components of lease cost reflected in the Consolidated Statements of Operations for the years ended September 30, 2025, 2024, and 2023 were as follows:


(in thousands)	Year ended September 30,
	2025			2024			2023
Operating lease cost	$	32,912		$	33,288		$	32,402
Short-term lease cost		1,453			3,691			5,411
Variable lease cost		10,572			9,919			10,945
Sublease income		(958	)		(1,436	)		(4,749	)
Total lease cost	$	43,979		$	45,462		$	44,009

Supplemental cash flow information for the years ended September 30, 2025, 2024, and 2023 was as follows:


(in thousands)	Year ended September 30,
	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	36,303	$	35,498	$	36,038
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases(1)	$	16,664	$	11,079	$	28,257

(1)

In the year ended September 30, 2023, operating lease additions included $4.0 million related to the ServiceMax acquisition.

Supplemental balance sheet information related to the leases as of September 30, 2025 and 2024 was as follows:


	September 30,
	2025			2024
Weighted-average remaining lease term - operating leases	9.4 years			10.3 years
Weighted-average discount rate - operating leases		5.3	%		5.4	%

Maturities of lease liabilities as of September 30, 2025 are as follows:


(in thousands)	Operating Leases
2026	$	31,829
2027		26,987
2028		22,214
2029		18,674
2030		17,460
Thereafter		104,477
Total future lease payments		221,641
Less: imputed interest		(49,208	)
Total lease liability	$	172,433

As of September 30, 2025, we had an operating lease that had not yet commenced. The lease will commence in 2026 with a lease term of 5 years and we will make future lease payments of approximately $7.4 million.