v3.26.1
Leases
 12 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Leases Leases
The Company leases warehouses, distribution centers, office space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to ten years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company’s equipment leases are finance leases of assets used to operate its distribution center in Ontario, California.
Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842, “Leases”. The Company uses its incremental borrowing rate to determine the present value of lease payments.
Supplemental balance sheet information related to leases as of March 31, 2026 and March 31, 2025 is as follows (in thousands):
 ClassificationMarch 31, 2026March 31, 2025
Assets
Operating lease assets Other assets$61,703 $54,157 
Total leased assets$61,703 $54,157 
Liabilities
Current
Operating Accrued expenses and other current liabilities$7,624 $7,621 
Noncurrent
Operating Long-term operating lease obligations69,928 48,721 
Total lease liabilities$77,552 $56,342 

For the fiscal years ended March 31, 2026, March 31, 2025 and March 31, 2024, the components of operating and finance lease costs were as follows (in thousands):
Fiscal year ended March 31,
 Classification202620252024
Operating lease cost Selling, general and administrative (“SG&A”) expenses$16,085 $12,752 $7,341 
Amortization of leased assetsSG&A expenses— — 210 
Interest on lease liabilitiesInterest expense, net— — 10 
Total lease cost$16,085 $12,752 $7,561 
As of March 31, 2026, the aggregate future minimum lease payments under non-cancellable operating leases presented in accordance with ASC 842 are as follows (in thousands):
Year ending March 31,
2027$11,490 
202811,541 
202912,809 
203012,103 
203112,627 
Thereafter39,907 
Total lease payments100,477 
Less: Interest(22,925)
Present value of operating lease liabilities$77,552 
As of March 31, 2026 and March 31, 2025, the weighted-average remaining lease term (in years) and discount rate were as follows:
 March 31, 2026March 31, 2025
Weighted-average remaining lease term
Operating leases7.9 years7.9 years
Weighted-average discount rate
Operating leases6.3 %6.0 %
Operating cash outflows from operating leases for the fiscal years ended March 31, 2026, March 31, 2025 and March 31, 2024 were $10.3 million, $10.7 million and $6.0 million, respectively. Right-of-use assets obtained in exchange for lease obligations for the fiscal years ended March 31, 2026, March 31, 2025 and March 31, 2024 were $16.8 million, $36.3 million and $18.9 million, respectively.
Leases Leases
The Company leases warehouses, distribution centers, office space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to ten years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company’s equipment leases are finance leases of assets used to operate its distribution center in Ontario, California.
Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842, “Leases”. The Company uses its incremental borrowing rate to determine the present value of lease payments.
Supplemental balance sheet information related to leases as of March 31, 2026 and March 31, 2025 is as follows (in thousands):
 ClassificationMarch 31, 2026March 31, 2025
Assets
Operating lease assets Other assets$61,703 $54,157 
Total leased assets$61,703 $54,157 
Liabilities
Current
Operating Accrued expenses and other current liabilities$7,624 $7,621 
Noncurrent
Operating Long-term operating lease obligations69,928 48,721 
Total lease liabilities$77,552 $56,342 

For the fiscal years ended March 31, 2026, March 31, 2025 and March 31, 2024, the components of operating and finance lease costs were as follows (in thousands):
Fiscal year ended March 31,
 Classification202620252024
Operating lease cost Selling, general and administrative (“SG&A”) expenses$16,085 $12,752 $7,341 
Amortization of leased assetsSG&A expenses— — 210 
Interest on lease liabilitiesInterest expense, net— — 10 
Total lease cost$16,085 $12,752 $7,561 
As of March 31, 2026, the aggregate future minimum lease payments under non-cancellable operating leases presented in accordance with ASC 842 are as follows (in thousands):
Year ending March 31,
2027$11,490 
202811,541 
202912,809 
203012,103 
203112,627 
Thereafter39,907 
Total lease payments100,477 
Less: Interest(22,925)
Present value of operating lease liabilities$77,552 
As of March 31, 2026 and March 31, 2025, the weighted-average remaining lease term (in years) and discount rate were as follows:
 March 31, 2026March 31, 2025
Weighted-average remaining lease term
Operating leases7.9 years7.9 years
Weighted-average discount rate
Operating leases6.3 %6.0 %
Operating cash outflows from operating leases for the fiscal years ended March 31, 2026, March 31, 2025 and March 31, 2024 were $10.3 million, $10.7 million and $6.0 million, respectively. Right-of-use assets obtained in exchange for lease obligations for the fiscal years ended March 31, 2026, March 31, 2025 and March 31, 2024 were $16.8 million, $36.3 million and $18.9 million, respectively.