Finance and Operating Leases

3 Months Ended

Sep. 30, 2026

5. Finance and Operating Leases

Finance Leases

The Company is a lessee under finance leases for computers and peripherals under agreements with Banc of America Leasing & Capital, LLC (“BALC”) and CSI Leasing, Inc. (“CSI Leasing”). As of September 30, 2026 and June 30, 2026, the finance lease liability was $190.1 million and $116.9 million, respectively, with lease interest rates ranging from 4.12% to 6.35%. As of September 30, 2026 and June 30, 2026, the balance of the associated right-of-use assets was $133.8 million and $95.3 million, respectively. The right-of-use asset is recorded within property and equipment, net on the condensed consolidated balance sheets. Lease amortization expense associated with the Company’s finance leases is recorded within both instructional costs and services and selling, general, and administrative expenses on the condensed consolidated statements of operations.

The Company entered into agreements with BALC and CSI Leasing in April 2020 and August 2022, respectively, to provide financing for its computers and peripherals. Individual leases with BALC include 36-month payment terms, fixed rates ranging from 4.75% to 6.23%, and a $1 purchase option at the end of each lease term. The Company has pledged the assets financed to secure the outstanding leases. Individual leases under the agreement with CSI Leasing include 36-month payment terms, but do not include a stated interest rate. The Company uses its incremental borrowing rate as the implied interest rate and the total lease payments to calculate its lease liability.

The following is a summary, as of September 30, 2026 and June 30, 2026, respectively, of the present value of the net minimum lease payments under the Company’s finance leases:


		September 30, 2026		June 30, 2026

		(in thousands)
2027		$	69,990	$	64,471
2028			74,821		42,580
2029			47,598		15,356
2030			9,259		373
2031			—		—
Total minimum payments			201,668		122,780
Less: imputed interest			(11,544)		(5,848)
Finance lease liability			190,124		116,932
Less: current portion of finance lease liability			(85,463)		(60,477)
Long-term finance lease liability		$	104,661	$	56,455

Operating Leases

The Company is a lessee under operating leases for various facilities to support the Company’s operations. As of September 30, 2026 and June 30, 2026, the operating lease liability was $10.5 million and $11.1 million, respectively. As of September 30, 2026 and June 30, 2026, the balance of the associated right-of-use assets was $7.2 million and $7.3 million, respectively. The right-of-use asset is recorded within deposits and other assets on the condensed consolidated balance sheets. Lease expense associated with the Company’s operating leases is recorded within both instructional costs and services and selling, general, and administrative expenses on the condensed consolidated statements of operations.

Individual operating leases range in terms of 1 to 7 years and expire on various dates through fiscal year 2034 and the minimum lease payments are discounted using the Company’s incremental borrowing rate.

The following is a summary as of September 30, 2026 and June 30, 2026, respectively, of the present value of the minimum lease payments under the Company’s operating leases:



		September 30, 2026		June 30, 2026

		(in thousands)
2027		$	2,157	$	3,128
2028			2,137		2,066
2029			1,756		1,684
2030			1,665		1,590
2031			1,484		1,406
Thereafter			2,484		2,443
Total minimum payments			11,683		12,317
Less: imputed interest			(1,203)		(1,264)
Operating lease liability			10,480		11,053
Less: current portion of operating lease liability			(2,374)		(2,737)
Long-term operating lease liability		$	8,106	$	8,316

The following is a summary of the Company’s lease cost, weighted-average remaining lease term, weighted-average discount rate and certain other cash flows as it relates to its operating and finance leases for the three months ended September 30, 2026 and 2025:


	Three Months Ended September 30,
	2026			2025

	(in thousands)
Lease cost

Finance lease cost:
Instructional costs and services:
Amortization of right-of-use assets	$	16,143		$	10,352
Selling, general, and administrative expenses:
Amortization of right-of-use assets		335			158
Interest on lease liabilities		1,297			1,524
Operating lease cost:
Instructional costs and services:
Operating lease cost		127			2,325
Short-term lease cost		8			54
Sublease income		—			(66)
Selling, general, and administrative expenses:
Operating lease cost		185			506
Short-term lease cost		26			24
Total lease cost	$	18,121		$	14,877

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(899)		$	(879)
Financing cash flows from finance leases		(16,540)			(11,961)
Right-of-use assets obtained in exchange for new finance lease liabilities		87,233			47,309
Right-of-use assets obtained in exchange for new operating lease liabilities		325			693
Weighted-average remaining lease term - finance leases		2.15	yrs.		1.95	yrs.
Weighted-average remaining lease term - operating leases		5.58	yrs.		4.93	yrs.
Weighted-average discount rate - finance leases		4.82	%		5.18	%
Weighted-average discount rate - operating leases		4.10	%		2.96	%