Leases

12 Months Ended

Jun. 30, 2026

10. Leases

The Company rents office space and equipment under non-cancelable operating leases with various expiration dates through fiscal year 2034. Certain lease agreements include varying terms, escalation clauses and renewal rights. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.

The components of lease costs and other information related to leases were as follows (in thousands):


	Fiscal Year Ended June 30,
	2026			2025			2024
Operating lease costs	$	38,681		$	43,720		$	41,426
Variable lease costs	17,200			14,781			11,908
Total lease costs	$	55,881		$	58,501		$	53,334

Weighted average remaining lease term (in years)	4			5			6
Weighted average discount rate	3.5		%	3.1		%	2.9		%

Supplemental cash flow information related to operating leases were as follows (in thousands):


	Fiscal Year Ended June 30,
	2026		2025		2024
Cash payments for operating leases	$	56,010	$	52,981	$	49,803
Right-of-use assets obtained in exchange for new operating lease liabilities	$	40,601	$	34,717	$	23,265

Future lease payments under non-cancelable operating leases with initial lease terms in excess of one year included in the Company’s lease liabilities as of June 30, 2026 were as follows (in thousands):


Fiscal years:	Operating Lease Payments
2027	$	56,148
2028	51,985
2029	42,186
2030	18,527
2031	19,078
Thereafter	87,443
Total future operating lease payments	275,367
Less: imputed interest	(32,017)
Total lease liability balance	$	243,350

During fiscal year 2026, in addition to operating lease costs disclosed above, the Company recorded an impairment charge of $80.0 million in aggregate for operating lease right-of-use assets as a result of its facilities consolidation restructuring efforts. Refer to Note 14, “Restructuring,” for additional information.

The Company entered into an Agreement for Lease (the “AFL”) for the Australian HQ Property in March 2022. Following the completion of the development of the Australian HQ Property, the AFL requires the Company to enter into a lease agreement for the planned headquarters office space. The lease is expected to commence in fiscal year 2027 and will continue for fifteen years, with the Company’s option to extend the term for up to two additional ten-year periods. Future lease payments are approximately $959.8 million as of June 30, 2026, for the initial term of fifteen years. Please refer to Note 4, “Investments,” for details of the transaction.