Leases

6 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

NOTE 4: LEASES

We determine if a contract contains a lease at inception. Our lease portfolio consists primarily of operating leases for pawn store locations and corporate offices with lease terms ranging from three to ten years and finance leases for vehicles with lease terms ranging from two to five years.

The table below presents balances of our lease assets and liabilities and their balance sheet locations for both operating and financing leases:

(in thousands)	Balance Sheet Location	March 31, 2025		March 31, 2024		September 30, 2024
Lease assets:
Operating lease right-of-use assets	Right-of-use assets, net	$	229,878	$	243,752	$	226,602
Financing lease assets	Other assets, net	1,256		2,094		1,559
Total lease assets		$	231,134	$	245,846	$	228,161
Lease liabilities:
Current:
Operating lease liabilities	Operating lease liabilities, current	$	58,855	$	55,658	$	58,998
Financing lease liabilities	Accounts payable, accrued expenses and other current liabilities	589		583		570
Total current lease liabilities		$	59,444	$	56,241	$	59,568
Non-current:
Operating lease liabilities	Operating lease liabilities	$	182,873	$	197,285	$	180,616
Financing lease liabilities	Other long-term liabilities	798		1,626		1,110
Total non-current lease liabilities		$	183,671	$	198,911	$	181,726
Total lease liabilities		$	243,115	$	255,152	$	241,294

The table below provides major components of our lease costs:

	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands)	2025		2024		2025		2024
Operating lease cost:
Operating lease cost*	$	18,244	$	19,840	$	38,213	$	38,906
Variable lease cost	5,759		4,643		9,052		8,858
Total operating lease cost	$	24,003	$	24,483	$	47,265	$	47,764
Financing lease cost:
Amortization of financing lease assets	$	143	$	164	$	282	$	315
Interest on financing lease liabilities	41		63		85		128
Total financing lease cost	$	184	$	227	$	367	$	443
Total lease cost	$	24,187	$	24,710	$	47,632	$	48,207

*Includes a reduction for sublease rental income of $0.6 million for both the three months ended March 31, 2025 and 2024, respectively, and $1.3 million and $1.7 million for the six months ended March 31, 2025 and 2024 respectively.

Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store expenses” and “General and administrative” under operating expenses, based on the underlying lease use. Cash paid for operating leases was $20.0 million and $24.3 million for the three months ended March 31, 2025 and 2024, respectively, and $40.0 million and $44.6 million for the six months ended March 31, 2025 and 2024, respectively. Cash paid for principal and interest on finance leases was $0.1 million and less than $0.1 million, respectively, for the three months ended March 31, 2025 and $0.1 million and $0.1 million, respectively, for the three months ended March 31, 2024 and $0.3 million and $0.1 million for the six months ended March 31, 2025 respectively, and $0.3 million and $0.1 million for the six months ended 2024 respectively.

The weighted-average term and discount rates for leases are as follows:

	Six Months Ended March 31,
	2025		2024
Weighted-average remaining lease term (years):
Operating leases	5.01		4.88
Financing leases	2.31		3.17
Weighted-average discount rate:
Operating leases	8.56	%	8.41	%
Financing leases	11.14	%	11.14	%

As of March 31, 2025, maturities of lease liabilities under ASC 842 by fiscal year were as follows:

(in thousands)	Operating Leases		Financing Leases
Remaining 2025	$	38,713	$	357
Fiscal 2026	72,795		714
Fiscal 2027	58,696		460
Fiscal 2028	43,227		44
Fiscal 2029	29,498		2
Thereafter	56,740		—
Total lease liabilities	$	299,669	$	1,577
Less: portion representing imputed interest	57,941		190
Total net lease liabilities	$	241,728	$	1,387
Less: current portion	58,855		589
Total long-term net lease liabilities	$	182,873	$	798

We recorded $34.0 million and $35.0 million in non-cash additions to our operating right-of-use assets and lease liabilities for the six months ended March 31, 2025 and 2024, respectively. We recorded no non-cash finance lease additions for the six months ended March 31, 2025 and $0.2 million for the six months ended March 31, 2024.

Leases

NOTE 4: LEASES

We determine if a contract contains a lease at inception. Our lease portfolio consists primarily of operating leases for pawn store locations and corporate offices with lease terms ranging from three to ten years and finance leases for vehicles with lease terms ranging from two to five years.

The table below presents balances of our lease assets and liabilities and their balance sheet locations for both operating and financing leases:

(in thousands)	Balance Sheet Location	March 31, 2025		March 31, 2024		September 30, 2024
Lease assets:
Operating lease right-of-use assets	Right-of-use assets, net	$	229,878	$	243,752	$	226,602
Financing lease assets	Other assets, net	1,256		2,094		1,559
Total lease assets		$	231,134	$	245,846	$	228,161
Lease liabilities:
Current:
Operating lease liabilities	Operating lease liabilities, current	$	58,855	$	55,658	$	58,998
Financing lease liabilities	Accounts payable, accrued expenses and other current liabilities	589		583		570
Total current lease liabilities		$	59,444	$	56,241	$	59,568
Non-current:
Operating lease liabilities	Operating lease liabilities	$	182,873	$	197,285	$	180,616
Financing lease liabilities	Other long-term liabilities	798		1,626		1,110
Total non-current lease liabilities		$	183,671	$	198,911	$	181,726
Total lease liabilities		$	243,115	$	255,152	$	241,294

The table below provides major components of our lease costs:

	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands)	2025		2024		2025		2024
Operating lease cost:
Operating lease cost*	$	18,244	$	19,840	$	38,213	$	38,906
Variable lease cost	5,759		4,643		9,052		8,858
Total operating lease cost	$	24,003	$	24,483	$	47,265	$	47,764
Financing lease cost:
Amortization of financing lease assets	$	143	$	164	$	282	$	315
Interest on financing lease liabilities	41		63		85		128
Total financing lease cost	$	184	$	227	$	367	$	443
Total lease cost	$	24,187	$	24,710	$	47,632	$	48,207

*Includes a reduction for sublease rental income of $0.6 million for both the three months ended March 31, 2025 and 2024, respectively, and $1.3 million and $1.7 million for the six months ended March 31, 2025 and 2024 respectively.

Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store expenses” and “General and administrative” under operating expenses, based on the underlying lease use. Cash paid for operating leases was $20.0 million and $24.3 million for the three months ended March 31, 2025 and 2024, respectively, and $40.0 million and $44.6 million for the six months ended March 31, 2025 and 2024, respectively. Cash paid for principal and interest on finance leases was $0.1 million and less than $0.1 million, respectively, for the three months ended March 31, 2025 and $0.1 million and $0.1 million, respectively, for the three months ended March 31, 2024 and $0.3 million and $0.1 million for the six months ended March 31, 2025 respectively, and $0.3 million and $0.1 million for the six months ended 2024 respectively.

The weighted-average term and discount rates for leases are as follows:

	Six Months Ended March 31,
	2025		2024
Weighted-average remaining lease term (years):
Operating leases	5.01		4.88
Financing leases	2.31		3.17
Weighted-average discount rate:
Operating leases	8.56	%	8.41	%
Financing leases	11.14	%	11.14	%

As of March 31, 2025, maturities of lease liabilities under ASC 842 by fiscal year were as follows:

(in thousands)	Operating Leases		Financing Leases
Remaining 2025	$	38,713	$	357
Fiscal 2026	72,795		714
Fiscal 2027	58,696		460
Fiscal 2028	43,227		44
Fiscal 2029	29,498		2
Thereafter	56,740		—
Total lease liabilities	$	299,669	$	1,577
Less: portion representing imputed interest	57,941		190
Total net lease liabilities	$	241,728	$	1,387
Less: current portion	58,855		589
Total long-term net lease liabilities	$	182,873	$	798

We recorded $34.0 million and $35.0 million in non-cash additions to our operating right-of-use assets and lease liabilities for the six months ended March 31, 2025 and 2024, respectively. We recorded no non-cash finance lease additions for the six months ended March 31, 2025 and $0.2 million for the six months ended March 31, 2024.