v3.25.2
Leases
 9 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
We have entered into a number of facility and equipment leases which qualify as operating leases under GAAP. We also have a limited number of equipment leases that qualify as finance leases.
The following table presents certain information related to lease term and incremental borrowing rates for leases as of June 30, 2025 and September 30, 2024:
June 30, 2025September 30, 2024
Weighted-average remaining lease term (in months):
Operating leases 47.3 46.0
Finance leases5.813.4
Weighted-average discount rate:
Operating leases7.3%6.6%
Finance leases4.4%4.4%
The following table presents lease expense for the three and nine months ended June 30, 2025 and 2024 (dollars in thousands):
Three Months Ended June 30,Nine Months Ended June 30,
2025202420252024
Finance lease costs:
Amortization of right of use asset$96 $104 $288 $320 
Interest on lease liability1 5 6 18 
Operating lease cost1,974 1,554 4,759 4,763 
Variable lease cost158 259 1,076 1,830 
Sublease income(56)(50)(153)(161)
Total lease cost$2,173 $1,872 $5,976 $6,770 
For the three months ended June 30, 2025 and 2024, cash payments related to operating leases were $2.0 million and $1.6 million, respectively, and $4.7 million and $4.9 million for the nine months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025 and 2024, cash payments related to finance leases were $0.1 million and $0.1 million, respectively, of which an immaterial amount related to the interest portion of the lease liability. For the nine months ended June 30, 2025 and 2024, cash payments related to financing leases were $0.3 million and $0.3 million, respectively, of which an immaterial amount related to the interest portion of the lease liability. For the three months ended June 30, 2025 and 2024, right of use assets obtained in exchange for lease obligations were immaterial and $2.0 million, respectively, and $7.9 million and $3.6 million for the nine months ended June 30, 2025 and 2024, respectively.
The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized on the Condensed Consolidated Balance Sheet as of June 30, 2025 (dollars in thousands):
Year Ending September 30,Operating LeasesFinancing LeasesTotal
2025$1,043 $106 $1,149 
20265,701 53 5,754 
20275,265 — 5,265 
20284,521 — 4,521 
20293,188 — 3,188 
Thereafter1,239 — 1,239 
Total future minimum lease payments$20,957 $159 $21,116 
Less effects of discounting(2,952)(1)(2,953)
Total lease liabilities$18,005 $158 $18,163 
Reported as of June 30, 2025
Short-term lease liabilities$4,158 $158 $4,316 
Long-term lease liabilities13,847 — 13,847 
Total lease liabilities$18,005 $158 $18,163 
Leases Leases
We have entered into a number of facility and equipment leases which qualify as operating leases under GAAP. We also have a limited number of equipment leases that qualify as finance leases.
The following table presents certain information related to lease term and incremental borrowing rates for leases as of June 30, 2025 and September 30, 2024:
June 30, 2025September 30, 2024
Weighted-average remaining lease term (in months):
Operating leases 47.3 46.0
Finance leases5.813.4
Weighted-average discount rate:
Operating leases7.3%6.6%
Finance leases4.4%4.4%
The following table presents lease expense for the three and nine months ended June 30, 2025 and 2024 (dollars in thousands):
Three Months Ended June 30,Nine Months Ended June 30,
2025202420252024
Finance lease costs:
Amortization of right of use asset$96 $104 $288 $320 
Interest on lease liability1 5 6 18 
Operating lease cost1,974 1,554 4,759 4,763 
Variable lease cost158 259 1,076 1,830 
Sublease income(56)(50)(153)(161)
Total lease cost$2,173 $1,872 $5,976 $6,770 
For the three months ended June 30, 2025 and 2024, cash payments related to operating leases were $2.0 million and $1.6 million, respectively, and $4.7 million and $4.9 million for the nine months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025 and 2024, cash payments related to finance leases were $0.1 million and $0.1 million, respectively, of which an immaterial amount related to the interest portion of the lease liability. For the nine months ended June 30, 2025 and 2024, cash payments related to financing leases were $0.3 million and $0.3 million, respectively, of which an immaterial amount related to the interest portion of the lease liability. For the three months ended June 30, 2025 and 2024, right of use assets obtained in exchange for lease obligations were immaterial and $2.0 million, respectively, and $7.9 million and $3.6 million for the nine months ended June 30, 2025 and 2024, respectively.
The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized on the Condensed Consolidated Balance Sheet as of June 30, 2025 (dollars in thousands):
Year Ending September 30,Operating LeasesFinancing LeasesTotal
2025$1,043 $106 $1,149 
20265,701 53 5,754 
20275,265 — 5,265 
20284,521 — 4,521 
20293,188 — 3,188 
Thereafter1,239 — 1,239 
Total future minimum lease payments$20,957 $159 $21,116 
Less effects of discounting(2,952)(1)(2,953)
Total lease liabilities$18,005 $158 $18,163 
Reported as of June 30, 2025
Short-term lease liabilities$4,158 $158 $4,316 
Long-term lease liabilities13,847 — 13,847 
Total lease liabilities$18,005 $158 $18,163