The Company has entered into agreements under which we lease various real estate spaces in North America, Europe and Asia Pacific, under non-cancellable leases that expire on various dates through fiscal 2037. Some of our leases include options to extend the term of such leases for a period from 12 months to 60 months, and/or have options to early terminate the lease. As of June 30, 2026, we included such options in determining the lease terms for certain of our leases as we were reasonably certain that we would exercise those options. Most of our leases require us to pay certain operating expenses in addition to base rent, such as taxes, insurance and maintenance costs.

The following table summarizes our lease costs for fiscal years ended June 30, 2026 and 2025 (in thousands):


		June 30,
		2026		2025
Operating lease costs:	Financial Statement Classification
Fixed lease costs	Operating expenses	$	13,821	$	11,846
Fixed lease costs	Cost of revenues	4,403		4,605
Variable lease costs	Operating expenses	2,248		631
Variable lease costs	Cost of revenues	674		907
Total lease costs		$	21,146	$	17,989

The operating lease costs in the table above include costs for long-term and short-term leases. Total short-term costs for fiscal years ended June 30, 2026 and 2025 were immaterial. Variable lease costs primarily include maintenance, utilities and operating expenses that are incremental to the fixed base rent payments and are excluded from the calculation of operating lease liabilities and ROU assets. For fiscal years June 30, 2026 and 2025, the cash paid for amounts associated with our operating lease liabilities were approximately $19.9 million and $17.8 million, respectively. Cash paid for amounts associated with the Company's operating lease liabilities were classified as operating activities in the consolidated statement of cash flows.

The following table shows our undiscounted future fixed payment obligations under our recognized operating leases and a reconciliation to the operating lease liabilities as of June 30, 2026:


Fiscal 2027	$	18,070
Fiscal 2028	15,129
Fiscal 2029	12,849
Fiscal 2030	11,582
Fiscal 2031	9,451
Thereafter	26,563
Total future fixed operating lease payments	$	93,644

Less: Imputed interest	$	13,683
Total operating lease liabilities	$	79,961

Weighted-average remaining lease term - operating leases	7 years
Weighted-average discount rate - operating leases	4.8		%