Leases

12 Months Ended

Sep. 30, 2025

Leases [Abstract]

Leases

NOTE 11: LEASES

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	September 30, 2025		September 30, 2024
Lease assets:
Operating lease right-of-use assets	Right-of-use assets, net	$	236,462	$	226,602
Financing lease assets	Other assets, net	1,075		1,559
Total lease assets		$	237,537	$	228,161
Lease liabilities:
Current:
Operating lease liabilities	Operating lease liabilities, current	$	61,228	$	58,998
Financing lease liabilities	Accounts payable, accrued expenses and other current liabilities	643		570
Total current lease liabilities		$	61,871	$	59,568
Non-current:
Operating Lease liabilities	Operating lease liabilities	$	184,736	$	180,616
Financing lease liabilities	Other long-term liabilities	573		1,110
Total non-current lease liabilities		$	185,309	$	181,726
Total lease liabilities		$	247,180	$	241,294

The table below provides major components of our lease costs:

	Fiscal Year Ended September 30,
(in thousands)	2025		2024		2023
Operating lease cost:
Operating lease cost *	$	77,384	$	79,184	$	74,086
Variable lease cost	20,541		17,732		16,315
Total operating lease cost	$	97,925	$	96,916	$	90,401
Financing lease cost:
Amortization of financing lease assets	$	589	$	568	$	327
Interest on financing lease liabilities	162		215		145
Total financing lease cost	$	751	$	783	$	472
Total lease cost	$	98,676	$	97,699	$	90,873

* Includes a reduction for sublease rental income of $2.0 million, $3.1 million and $3.7 million for fiscal years ending September 2025, 2024 and 2023, 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” expense, based on the underlying lease use.

Cash flow information consisted of the following:

	Fiscal Year Ended September 30,
(in thousands)	2025		2024		2023
Cash provided by operating activities:
Cash paid for operating leases	$	81,137	$	79,700	$	76,700
Cash paid for interest portion of financing leases	$	162	$	200	$	100
Cash used in financing activities:
Cash paid for principal portion of finance leases	$	606	$	492	$	275

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

	Fiscal Year Ended September 30,
	2025		2024
Weighted-average remaining lease term (years):
Operating leases	5.07		4.81
Financing leases	1.94		2.77
Weighted-average discount rate:
Operating leases	9.05	%	8.30	%
Financing leases	11.27	%	11.14	%

As of September 30, 2025, maturities of lease liabilities under ASC 842 by fiscal year were as follows (in thousands):

	Operating Leases		Financing Leases
Fiscal 2026	$	80,054	$	751
Fiscal 2027	66,801		523
Fiscal 2028	50,291		68
Fiscal 2029	35,840		21
Fiscal 2030	23,971		2
Thereafter	52,851		—
Total lease liabilities	$	309,808	$	1,365
Less: portion representing imputed interest	63,844		149
Total net lease liabilities	$	245,964	$	1,216
Less: current portion	61,228		643
Total long term net lease liabilities	$	184,736	$	573

In December 2014, we entered into a non-cancelable 13-year operating lease for our corporate offices, with rent payments beginning February 2016 and ending March 2029. In May of 2025, we entered into an amendment which extended certain elements of the lease until October 2035. The amendment contains a renewal option for an additional five years at a market rental rate to be determined when the renewal notice is delivered. This renewal option has not been recognized in the right of use asset or liability for this lease.

The estimated minimum future rental payments under the lease are approximately $13.1 million as of September 30, 2025. As of September 30, 2025, we have subleases in place for a portion of our corporate operating office lease for estimated minimum future sublease payments of approximately $6.4 million.

In fiscal 2023, we assessed the recoverability of the right-of-use asset for our corporate office, primarily due to the termination of a significant sublease. We determined the undiscounted cash flows of the relative corporate lease and sublease did not exceed the net book value of the right-of-use asset. We then determined the fair value of the corporate lease and sublease did not exceed the book value of the right-of-use asset, and an impairment charge of $4.3 million was recorded in fiscal 2023 to “Impairment of other assets” in the Consolidated Statements of Operations.

The following table presents our corporate office lease measured at fair value as a result of the aforementioned impairment charges aggregated by the level in the fair value hierarchy within which measurements fall on a non-recurring basis at September 30, 2023, and the related impairment charge recorded (in thousands):

	Fair Value as of September 30, 2023								Fiscal Year Ended 2023
	Level 1		Level 2		Level 3		Total		Impairment Charges
Corporate office	$	—	$	—	$	6,233	$	6,233	$	4,343

We recorded $66.2 million, $55.3 million and $66.5 million in non-cash additions to our operating right-of-use assets and lease liabilities for the fiscal year ended September 30, 2025, 2024 and 2023, respectively.

Leases

NOTE 11: LEASES

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	September 30, 2025		September 30, 2024
Lease assets:
Operating lease right-of-use assets	Right-of-use assets, net	$	236,462	$	226,602
Financing lease assets	Other assets, net	1,075		1,559
Total lease assets		$	237,537	$	228,161
Lease liabilities:
Current:
Operating lease liabilities	Operating lease liabilities, current	$	61,228	$	58,998
Financing lease liabilities	Accounts payable, accrued expenses and other current liabilities	643		570
Total current lease liabilities		$	61,871	$	59,568
Non-current:
Operating Lease liabilities	Operating lease liabilities	$	184,736	$	180,616
Financing lease liabilities	Other long-term liabilities	573		1,110
Total non-current lease liabilities		$	185,309	$	181,726
Total lease liabilities		$	247,180	$	241,294

The table below provides major components of our lease costs:

	Fiscal Year Ended September 30,
(in thousands)	2025		2024		2023
Operating lease cost:
Operating lease cost *	$	77,384	$	79,184	$	74,086
Variable lease cost	20,541		17,732		16,315
Total operating lease cost	$	97,925	$	96,916	$	90,401
Financing lease cost:
Amortization of financing lease assets	$	589	$	568	$	327
Interest on financing lease liabilities	162		215		145
Total financing lease cost	$	751	$	783	$	472
Total lease cost	$	98,676	$	97,699	$	90,873

* Includes a reduction for sublease rental income of $2.0 million, $3.1 million and $3.7 million for fiscal years ending September 2025, 2024 and 2023, 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” expense, based on the underlying lease use.

Cash flow information consisted of the following:

	Fiscal Year Ended September 30,
(in thousands)	2025		2024		2023
Cash provided by operating activities:
Cash paid for operating leases	$	81,137	$	79,700	$	76,700
Cash paid for interest portion of financing leases	$	162	$	200	$	100
Cash used in financing activities:
Cash paid for principal portion of finance leases	$	606	$	492	$	275

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

	Fiscal Year Ended September 30,
	2025		2024
Weighted-average remaining lease term (years):
Operating leases	5.07		4.81
Financing leases	1.94		2.77
Weighted-average discount rate:
Operating leases	9.05	%	8.30	%
Financing leases	11.27	%	11.14	%

As of September 30, 2025, maturities of lease liabilities under ASC 842 by fiscal year were as follows (in thousands):

	Operating Leases		Financing Leases
Fiscal 2026	$	80,054	$	751
Fiscal 2027	66,801		523
Fiscal 2028	50,291		68
Fiscal 2029	35,840		21
Fiscal 2030	23,971		2
Thereafter	52,851		—
Total lease liabilities	$	309,808	$	1,365
Less: portion representing imputed interest	63,844		149
Total net lease liabilities	$	245,964	$	1,216
Less: current portion	61,228		643
Total long term net lease liabilities	$	184,736	$	573

In December 2014, we entered into a non-cancelable 13-year operating lease for our corporate offices, with rent payments beginning February 2016 and ending March 2029. In May of 2025, we entered into an amendment which extended certain elements of the lease until October 2035. The amendment contains a renewal option for an additional five years at a market rental rate to be determined when the renewal notice is delivered. This renewal option has not been recognized in the right of use asset or liability for this lease.

The estimated minimum future rental payments under the lease are approximately $13.1 million as of September 30, 2025. As of September 30, 2025, we have subleases in place for a portion of our corporate operating office lease for estimated minimum future sublease payments of approximately $6.4 million.

In fiscal 2023, we assessed the recoverability of the right-of-use asset for our corporate office, primarily due to the termination of a significant sublease. We determined the undiscounted cash flows of the relative corporate lease and sublease did not exceed the net book value of the right-of-use asset. We then determined the fair value of the corporate lease and sublease did not exceed the book value of the right-of-use asset, and an impairment charge of $4.3 million was recorded in fiscal 2023 to “Impairment of other assets” in the Consolidated Statements of Operations.

The following table presents our corporate office lease measured at fair value as a result of the aforementioned impairment charges aggregated by the level in the fair value hierarchy within which measurements fall on a non-recurring basis at September 30, 2023, and the related impairment charge recorded (in thousands):

	Fair Value as of September 30, 2023								Fiscal Year Ended 2023
	Level 1		Level 2		Level 3		Total		Impairment Charges
Corporate office	$	—	$	—	$	6,233	$	6,233	$	4,343

We recorded $66.2 million, $55.3 million and $66.5 million in non-cash additions to our operating right-of-use assets and lease liabilities for the fiscal year ended September 30, 2025, 2024 and 2023, respectively.