v3.25.2
Leases
6 Months Ended
Aug. 31, 2025
Leases [Abstract]  
Leases

8. Leases

The Company leases certain of its facilities and equipment under operating leases, which are recorded as right-of-use assets and lease liabilities. The Company’s leases generally have terms of 15 years, with certain leases including renewal options to extend the leases for additional periods at the Company’s discretion. At lease inception, all renewal options reasonably certain to be exercised are considered when determining the lease term. The Company currently does not have leases that include options to purchase or provisions that would automatically transfer ownership of the leased property to the Company.

Operating lease expense is recognized on a straight-line basis over the lease term, and variable lease payments are expensed as incurred. The Company had no material variable lease costs for the three and six months ended August 31, 2025 and 2024.

The Company determines whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and directs the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from the use of the property, plant, and equipment.

Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates based on the information available at lease commencement date, as rates are not implicitly stated in most leases.

Components of lease expense for the three and six months ended August 31, 2025 and 2024 were as follows (in thousands):

 

 

 

Three months ended

 

 

Six months ended

 

 

 

August 31, 2025

 

 

August 31, 2024

 

 

August 31, 2025

 

 

August 31, 2024

 

Operating lease cost

 

$

1,434

 

 

$

1,389

 

 

$

2,865

 

 

$

2,736

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information related to leases was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

1,446

 

 

$

1,410

 

 

$

2,892

 

 

$

2,779

 

 

 

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

 

 

 

 

 

 

 

 

 

 

Operating leases

 

$

1,793

 

 

$

847

 

 

$

4,092

 

 

$

1,495

 

 

 

Weighted Average Remaining Lease Terms

 

 

 

 

Operating leases

 

3.2 Years

 

2.5 Years

 

 

 

 

Weighted Average Discount Rate

 

 

 

 

Operating leases

 

4.20%

 

4.27%

 

Future minimum lease commitments under non-cancelable operating leases for each of the fiscal years ending are as follows (in thousands):

 

 

 

Operating

 

 

 

Lease

 

 

 

Commitments

 

2026 (remaining 6 months)

 

$

2,170

 

2027

 

 

4,157

 

2028

 

 

2,610

 

2029

 

 

1,631

 

2030

 

 

718

 

Thereafter

 

 

392

 

Total future minimum lease payments

 

$

11,678

 

Less imputed interest

 

 

698

 

Present value of lease liabilities

 

$

10,980