LESSEE ARRANGEMENTS

12 Months Ended

Mar. 31, 2026

The Company has operating leases for the use of real estate, machinery, and office equipment.

The components of lease cost for the fiscal years ended March 31, 2026 and 2025 were as follows (in thousands):


	Year Ended March 31,
	2026		2025
Operating lease cost	$	3,860	$	3,121
Short-term lease cost	1,429		1,111
Variable lease cost	1,207		1,049
Total lease cost	$	6,496	$	5,281

Amounts reported in the consolidated balance sheets for leases where we are the lessee were as follows (in thousands):


	March 31, 2026			March 31, 2025
Operating leases
Operating lease ROU assets	$	14,594		$	13,274
Operating lease liabilities	$	15,592		$	14,220

Weighted-average remaining lease term
Operating leases	9 years, 10 months			10 years, 3 months

Weighted-average discount rate
Operating leases	7.33		%	5.67		%

During the fiscal years ended March 31, 2026 and 2025, the Company had ROU assets that were obtained in exchange for new operating lease liabilities in the amount of $4.0 million and $4.1 million, respectively, of which $3.8 million was obtained through the acquisitions of Royal and Rex during the fiscal year ended March 31, 2026.

Maturities of lease liabilities under non-cancellable leases where we are the lessee as of March 31, 2026 are as follows (in thousands):


Fiscal	Operating Leases
2027	$	4,374
2028	3,713
2029	2,342
2030	1,228
2031	760
Thereafter	9,257
Total undiscounted lease payments	21,674
Interest	(6,082)
Total lease liabilities	$	15,592