Leases

9 Months Ended

Jun. 30, 2025

NOTE 5: 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	June 30, 2025		June 30, 2024		September 30, 2024
Lease assets:
Operating lease right-of-use assets	Right-of-use assets, net	$	236,064	$	235,030	$	226,602
Financing lease assets	Other assets, net	1,210		1,832		1,559
Total lease assets		$	237,274	$	236,862	$	228,161




Lease liabilities:
Current:
Operating lease liabilities	Operating lease liabilities, current	$	60,183	$	58,905	$	58,998
Financing lease liabilities	Accounts payable, accrued expenses and other current liabilities	657		596		570
Total current lease liabilities		$	60,840	$	59,501	$	59,568

Non-current:
Operating lease liabilities	Operating lease liabilities	$	184,295	$	188,996	$	180,616
Financing lease liabilities	Other long-term liabilities	695		1,352		1,110
Total non-current lease liabilities		$	184,990	$	190,348	$	181,726
Total lease liabilities		$	245,830	$	249,849	$	241,294

The table below provides major components of our lease costs:


	Three Months Ended June 30,			Nine Months Ended June 30,
(in thousands)		2025		2024		2025		2024

Operating lease cost:
Operating lease cost*		$	19,742	$	20,406	$	57,955	$	59,312
Variable lease cost		5,770		4,318		14,822		13,176
Total operating lease cost		$	25,512	$	24,724	$	72,777	$	72,488

Financing lease cost:
Amortization of financing lease assets		$	153	$	140	$	435	$	455
Interest on financing lease liabilities		40		49		125		177
Total financing lease cost		$	193	$	189	$	560	$	632
Total lease cost		$	25,705	$	24,913	$	73,337	$	73,120

*Includes a reduction for sublease rental income of $0.7 million and $0.7 million for both the three months ended June 30, 2025 and 2024, respectively, and $2.0 million and $2.4 million for the nine months ended June 30, 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 $20.3 million and $15.9 million for the three months ended June 30, 2025 and 2024, respectively, and $60.3 million and $60.5 million for the nine months ended June 30, 2025 and 2024, respectively.

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


	Nine Months Ended June 30,
	2025		2024

Weighted-average remaining lease term (years):
Operating leases	5.00		4.88
Financing leases	2.08		3.01

Weighted-average discount rate:
Operating leases	8.77	%	8.33	%
Financing leases	11.14	%	11.14	%

As of June 30, 2025, maturities of lease liabilities under ASC 842 by fiscal year were as follows:


(in thousands)	Operating Leases		Financing Leases
Remaining 2025	$	19,813	$	194
Fiscal 2026	76,814		771
Fiscal 2027	62,927		497
Fiscal 2028	46,718		52
Fiscal 2029	32,926		6
Thereafter	66,958		—
Total lease liabilities	$	306,156	$	1,520
Less: portion representing imputed interest	61,678		168
Total net lease liabilities	$	244,478	$	1,352
Less: current portion	60,183		657
Total long-term net lease liabilities	$	184,295	$	695

We recorded $51.2 million and $46.1 million in non-cash additions to our operating right-of-use assets and lease liabilities for the nine months ended June 30, 2025 and 2024, respectively.

Leases