We lease offices, warehouses and other premises, vehicles and certain equipment under non-cancelable operating leases. Operating lease expense recognized and supplemental cash flow information related to operating leases for the three and nine months ended March 31, 2026 and 2025 were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2026		2025		2026		2025
Operating lease expense (including expense for lease agreements with related parties of $292 and $208 for the three months ended March 31, 2026 and 2025, respectively, and $758 and $538 for the nine months ended March 31, 2026 and 2025, respectively)	$	15,098	$	5,712	$	43,117	$	12,685
Cash payments for operating leases (including payments to related parties of $297 and $202 for the three months ended March 31, 2026 and 2025, respectively, and $788 and $508 for the nine months ended March 31, 2026 and 2025, respectively)	$	13,663	$	5,380	$	36,012	$	11,959
New operating lease assets obtained in exchange for operating lease liabilities	$	834	$	110,145	$	94,907	$	128,617

During the three and nine months ended March 31, 2026 and 2025, our costs related to short-term lease arrangements were immaterial. Variable lease payments expensed in the three and nine months ended March 31, 2026 and 2025 were immaterial.


	March 31, 2026			June 30, 2025
Other assets	$	361,437		$	293,692

Accrued liabilities	$	32,703		$	21,189
Other long-term liabilities	345,352			280,368
Total lease liabilities	$	378,055		$	301,557

Weighted average remaining lease term	8.6 years			9.1 years
Weighted average discount rate (1)	5.8		%	5.8		%

(1) As the interest rate in the lease contract is typically not readily available, we estimate the incremental borrowing rate considering credit notching approach based on information available at lease commencement.

In June 2024, we entered into a lease agreement for a 21 megawatt (“MW”) data center co-location space located in Vernon, California (the “Data Center Space”) that will expire on September 30, 2035. We do not have an option to extend (or to terminate) the lease. The lease agreement consists of three tranches, with the first tranche of 6 MW having commenced on January 24, 2025, the second tranche of 9 MW commenced on May 12, 2025, and the third tranche of 6 MW commenced on August 15, 2025. As of March 31, 2026, the ROU assets and lease liabilities related to all three tranches totaled $284.0 million and $294.9 million, respectively. Variable lease payments not dependent on a rate or index associated with our leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed as probable. Variable lease payments are presented as operating expenses in the condensed consolidated statements of operations.

Simultaneously, we entered into a Sublicense agreement, the term of which coincides with our Data Center Space lease. We accounted for the lease as an operating lease and the Sublicense as a sublease under Accounting Standards Codification Topic 842, Leases. The Sublicense did not relieve our original obligation under the Data Center Space lease, and therefore we did not adjust the operating lease ROU asset and related liability. Sublicense income is recognized on a straight-line basis and the rental income is included in other income (expense), net on the condensed consolidated statements of operations.


Fiscal Year:	Maturities of operating leases
Remainder of 2026	$	14,123
2027	55,980
2028	55,498
2029	55,890
2030	57,437
2031 and beyond	251,685
Total future lease payments	490,613
Less: Imputed interest	(112,558)
Present value of operating lease liabilities	$	378,055
Current portion	$	32,703
Long-term portion	$	345,352