Leases

9 Months Ended

Jun. 30, 2026

NOTE 5: LEASES

We determine if a contract contains a lease at inception. Our lease portfolio consists primarily of operating leases for pawn store locations and corporate offices with lease terms ranging from five to ten years and finance leases for vehicles with lease terms ranging from two to five years.

The table below presents balances of our lease assets and liabilities and their balance sheet locations for both operating and financing leases:


(in thousands)	Balance Sheet Location	June 30, 2026		June 30, 2025		September 30, 2025
Lease assets:
Operating lease right-of-use assets	Right-of-use assets	$	281,159	$	236,064	$	236,462
Financing lease assets	Other assets, net	991		1,210		1,075
Total lease assets		$	282,150	$	237,274	$	237,537

Lease liabilities:
Current:
Operating lease liabilities	Operating lease liabilities, current	$	69,755	$	60,183	$	61,228
Financing lease liabilities	Accounts payable, accrued expenses and other current liabilities	701		657		643
Total current lease liabilities		$	70,456	$	60,840	$	61,871

Non-current:
Operating lease liabilities	Operating lease liabilities	$	221,499	$	184,295	$	184,736
Financing lease liabilities	Other long-term liabilities	407		695		573
Total non-current lease liabilities		$	221,906	$	184,990	$	185,309
Total lease liabilities		$	292,362	$	245,830	$	247,180

The table below provides major components of our lease costs:


	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2026		2025		2026		2025

Operating lease cost:
Operating lease cost*	$	24,004	$	19,742	$	68,114	$	57,955
Variable lease cost	6,166		5,770		17,892		14,822
Total operating lease cost	$	30,170	$	25,512	$	86,006	$	72,777

Financing lease cost:
Amortization of financing lease assets	$	179	$	153	$	514	$	435
Interest on financing lease liabilities	36		40		108		125
Total financing lease cost	$	215	$	193	$	622	$	560
Total lease cost	$	30,385	$	25,705	$	86,628	$	73,337

* Includes reductions for sublease rental income for the three and nine-month periods ended June 30, 2026 and 2025 of $0.6 million and $0.7 million, and $2.0 million and $2.0 million, respectively.

Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store expenses” and “General and administrative” under Operating expenses, based on the underlying lease use. Cash paid for operating leases for the three and nine-month periods ended June 30, 2026 and 2025, was $24.2 million and $20.3 million, and $68.9 million and $60.3 million, respectively.

The weighted-average term and discount rates for leases are as follows:


	Nine Months Ended June 30,
	2026		2025
Weighted-average remaining lease term (years):
Operating leases	5.32		5.00
Financing leases	2.05		2.08

Weighted-average discount rate:
Operating leases	8.23	%	8.77	%
Financing leases	12.31	%	11.14	%

As of June 30, 2026, maturities of lease liabilities under ASC 842 by fiscal year were as follows:


(in thousands)	Operating Leases		Financing Leases
Remaining 2026	$	22,432	$	231
Fiscal 2027	87,999		648
Fiscal 2028	70,813		189
Fiscal 2029	54,441		140
Fiscal 2030	39,927		50
Thereafter	86,318		—
Total lease liabilities	$	361,930	$	1,258
Less: portion representing imputed interest	70,676		150
Total net lease liabilities	$	291,254	$	1,108
Less: current portion	69,755		701
Total long-term net lease liabilities	$	221,499	$	407

We recorded $93.6 million and $51.2 million in non-cash additions to our operating right-of-use assets and lease liabilities for the nine months ended June 30, 2026 and 2025, respectively.

Leases