v3.26.1
LEASES
 9 Months Ended
Jun. 30, 2026
Leases [Abstract]  
LEASES LEASES
The Company recognizes right-of-use ("ROU") assets and lease liabilities on the balance sheet, with the exception of leases with a term of twelve months or less. The Company determines if an arrangement is a lease at inception. The ROU assets and short and long-term liabilities associated with our Operating leases are shown as separate line items on our Condensed Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, and the related finance lease obligations are presented within debt on our Condensed Consolidated Balance Sheets. The Company's finance leases are immaterial. ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments primarily include rent and insurance costs (lease components). The Company's leases also include non-lease components such as real estate taxes and common-area maintenance costs. The Company elected the practical expedient to account for lease and non-lease components as a single component. In certain of the Company's leases, the non-lease components are variable and in accordance with the standard are therefore excluded from lease payments to determine the ROU asset. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases, the ROU asset is included in property, plant and equipment, net and is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Condensed Consolidated Balance Sheets. Variable lease costs are recognized as incurred. Components of operating lease costs are as follows:
For the Three Months Ended June 30,For the Nine Months Ended June 30,
2026202520262025
Fixed$5,469 $5,460 $15,666 $16,154 
Variable (a), (b)
2,511 1,815 6,019 5,625 
Short-term (b)
287 267 1,190 804 
Total$8,267 $7,542 $22,875 $22,583 
________________
(a) Primarily relates to common-area maintenance and property taxes.
(b) Not recorded on the balance sheet.
Supplemental cash flow information was as follows:
For the Nine Months Ended June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$14,923 $13,723 
Financing cash flows from finance leases19 18 
Total$14,942 $13,741 
Right of use assets obtained in exchange for new lease obligations:
Operating leases$25,856 $15,490 
Finance leases— — 
Total$25,856 $15,490 

Supplemental Condensed Consolidated Balance Sheet information related to leases was as follows:
June 30, 2026September 30, 2025
Operating Leases:
Right of use assets:
Operating right-of-use assets$65,335 $53,041 
Lease Liabilities:
Current portion of operating lease liabilities$16,834 $15,473 
Long-term operating lease liabilities52,523 40,453 
Total operating lease liabilities$69,357 $55,926 
Finance Leases:
Property, plant and equipment, net(1)
$10 $181 
Lease Liabilities:
Notes payable and current portion of long-term debt$11 $33 
Long-term debt, net— 3 
Total financing lease liabilities$11 $36 
(1) Finance lease assets are recorded net of accumulated depreciation of $84 and $1,214 as of June 30, 2026 and September 30, 2025, respectively.
The aggregate future maturities of lease payments for operating leases and finance leases as of June 30, 2026 are as follows:
Operating LeasesFinance Leases
2026(a)
$5,346 $7 
202719,650 4 
202815,762 — 
202912,625 — 
20309,723 — 
20314,881 — 
Thereafter14,027 — 
Total lease payments$82,014 $11 
Less: imputed interest
(12,657)— 
Present value of lease liabilities$69,357 $11 
(a) Excluding the nine months ended June 30, 2026.

Average lease terms and discount rates at June 30, 2026 were as follows:
Weighted-average remaining lease term (years):
    Operating Leases
5.41
    Finance Leases0.42
Weighted-average discount rate:
    Operating Leases6.02%
    Finance Leases7.29%
LEASES LEASES
The Company recognizes right-of-use ("ROU") assets and lease liabilities on the balance sheet, with the exception of leases with a term of twelve months or less. The Company determines if an arrangement is a lease at inception. The ROU assets and short and long-term liabilities associated with our Operating leases are shown as separate line items on our Condensed Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, and the related finance lease obligations are presented within debt on our Condensed Consolidated Balance Sheets. The Company's finance leases are immaterial. ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments primarily include rent and insurance costs (lease components). The Company's leases also include non-lease components such as real estate taxes and common-area maintenance costs. The Company elected the practical expedient to account for lease and non-lease components as a single component. In certain of the Company's leases, the non-lease components are variable and in accordance with the standard are therefore excluded from lease payments to determine the ROU asset. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases, the ROU asset is included in property, plant and equipment, net and is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Condensed Consolidated Balance Sheets. Variable lease costs are recognized as incurred. Components of operating lease costs are as follows:
For the Three Months Ended June 30,For the Nine Months Ended June 30,
2026202520262025
Fixed$5,469 $5,460 $15,666 $16,154 
Variable (a), (b)
2,511 1,815 6,019 5,625 
Short-term (b)
287 267 1,190 804 
Total$8,267 $7,542 $22,875 $22,583 
________________
(a) Primarily relates to common-area maintenance and property taxes.
(b) Not recorded on the balance sheet.
Supplemental cash flow information was as follows:
For the Nine Months Ended June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$14,923 $13,723 
Financing cash flows from finance leases19 18 
Total$14,942 $13,741 
Right of use assets obtained in exchange for new lease obligations:
Operating leases$25,856 $15,490 
Finance leases— — 
Total$25,856 $15,490 

Supplemental Condensed Consolidated Balance Sheet information related to leases was as follows:
June 30, 2026September 30, 2025
Operating Leases:
Right of use assets:
Operating right-of-use assets$65,335 $53,041 
Lease Liabilities:
Current portion of operating lease liabilities$16,834 $15,473 
Long-term operating lease liabilities52,523 40,453 
Total operating lease liabilities$69,357 $55,926 
Finance Leases:
Property, plant and equipment, net(1)
$10 $181 
Lease Liabilities:
Notes payable and current portion of long-term debt$11 $33 
Long-term debt, net— 3 
Total financing lease liabilities$11 $36 
(1) Finance lease assets are recorded net of accumulated depreciation of $84 and $1,214 as of June 30, 2026 and September 30, 2025, respectively.
The aggregate future maturities of lease payments for operating leases and finance leases as of June 30, 2026 are as follows:
Operating LeasesFinance Leases
2026(a)
$5,346 $7 
202719,650 4 
202815,762 — 
202912,625 — 
20309,723 — 
20314,881 — 
Thereafter14,027 — 
Total lease payments$82,014 $11 
Less: imputed interest
(12,657)— 
Present value of lease liabilities$69,357 $11 
(a) Excluding the nine months ended June 30, 2026.

Average lease terms and discount rates at June 30, 2026 were as follows:
Weighted-average remaining lease term (years):
    Operating Leases
5.41
    Finance Leases0.42
Weighted-average discount rate:
    Operating Leases6.02%
    Finance Leases7.29%