v3.26.3
LEASES
 3 Months Ended
Sep. 30, 2026
Leases [Abstract]  
LEASES LEASES
We enter into operating leases, both domestically and internationally, for certain facilities, automobiles, data centers and equipment for use in the ordinary course of business. The duration of the majority of these leases generally ranges from 1 to 10 years, some of which include options to extend for an additional 3 to 5 years after the initial term. Additionally, the land upon which our headquarters in Waterloo, Ontario, Canada is located is leased from the University of Waterloo for a period of 49 years beginning in December 2005, with an option to renew for an additional term of 49 years. We also have finance lease liabilities comprised of equipment lease arrangements with an average duration of 4 to 5 years, of which all are currently being sublet. Leases with an initial term of 12 months or less are not recorded on our Condensed Consolidated Balance Sheets.
The following illustrates the Condensed Consolidated Balance Sheets information related to leases:
Balance Sheet LocationAs of
September 30, 2026		As of
June 30, 2026
Operating Leases
Operating lease right of use assetsOperating lease right of use assets$137,690 $134,377 
Operating lease liabilities (current)Operating lease liabilities$64,822 $63,612 
Operating lease liabilities (non-current)Long-term operating lease liabilities137,939 138,425 
Total operating lease liabilities$202,761 $202,037 
Finance Leases
Finance lease receivables (current)Prepaid expenses and other current assets$591 $453 
Total finance lease receivables$591 $453 
Finance lease liabilities (current)Accounts payable and accrued liabilities$309 $457 
Total finance lease liabilities$309 $457 
The weighted average remaining lease term and discount rate for the periods indicated below were as follows:
As of
September 30, 2026		As of
June 30, 2026
Weighted-average remaining lease term
Operating leases4.90 years4.75 years
Finance leases0.08 years0.31 years
Weighted-average discount rate
Operating leases4.97 %5.08 %
Finance leases5.33 %5.33 %
Lease Costs and Other Information
The following illustrates the various components of lease costs for the period indicated:
Three Months Ended September 30,
20262025
Operating lease cost$16,308 $19,704 
Short-term lease cost230 217 
Variable lease cost1,570 976 
Sublease income(260)(2,032)
Total lease cost$17,848 $18,865 
Supplemental Cash Flow Information
The following table presents supplemental information relating to cash flows arising from lease transactions. Cash payments made for variable lease costs and short-term leases are not included in the measurement of lease liabilities, and, as such, are excluded from the amounts below:
Three Months Ended September 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases$19,830 $23,343 
Finance leases151 510 
Right of use assets obtained in exchange for new lease liabilities:
Operating leases$19,097 $6,415 
Maturity of Lease Liabilities
The following table presents the future minimum lease payments under our lease liabilities as of September 30, 2026:
Fiscal years ending June 30,Operating LeasesFinance Leases
2027 (nine months ending)
$54,842 $309 
2028
58,957 — 
2029
37,254 — 
2030
23,522 — 
2031
15,223 — 
Thereafter37,975 — 
Total lease payments227,773 309 
Less: Imputed interest(25,012)— 
Total$202,761 $309 
Operating lease maturity amounts included in the table above do not include sublease income expected to be received under our various sublease agreements with third parties. Under the agreements initiated with third parties, we expect to receive immaterial sublease income over the remaining terms of the agreements. The Company has undiscounted future minimum lease payments related to operating lease contracts signed but not yet commenced as of September 30, 2026 of $53.5 million, which are excluded from lease liabilities in our Condensed Consolidated Balance Sheets (see Note 12 “Guarantees and Contingencies” for more details).
Lease Income
In connection with the purchase of an office building in the third quarter of Fiscal 2026, the Company assumed existing operating lease agreements as a lessor with third-party tenants. Rental income from these operating leases is recognized on a straight-line basis over the remaining non-cancelable lease terms. The remaining duration of these leases ranges between 2 and 3 years, with options to extend for an additional 23 to 72 years after the initial term.
During the three months ended September 30, 2026, lease income was immaterial and future contractual minimum lease payments (excluding operating expense reimbursements) to be received by the Company as of September 30, 2026 were also immaterial.
LEASES LEASES
We enter into operating leases, both domestically and internationally, for certain facilities, automobiles, data centers and equipment for use in the ordinary course of business. The duration of the majority of these leases generally ranges from 1 to 10 years, some of which include options to extend for an additional 3 to 5 years after the initial term. Additionally, the land upon which our headquarters in Waterloo, Ontario, Canada is located is leased from the University of Waterloo for a period of 49 years beginning in December 2005, with an option to renew for an additional term of 49 years. We also have finance lease liabilities comprised of equipment lease arrangements with an average duration of 4 to 5 years, of which all are currently being sublet. Leases with an initial term of 12 months or less are not recorded on our Condensed Consolidated Balance Sheets.
The following illustrates the Condensed Consolidated Balance Sheets information related to leases:
Balance Sheet LocationAs of
September 30, 2026		As of
June 30, 2026
Operating Leases
Operating lease right of use assetsOperating lease right of use assets$137,690 $134,377 
Operating lease liabilities (current)Operating lease liabilities$64,822 $63,612 
Operating lease liabilities (non-current)Long-term operating lease liabilities137,939 138,425 
Total operating lease liabilities$202,761 $202,037 
Finance Leases
Finance lease receivables (current)Prepaid expenses and other current assets$591 $453 
Total finance lease receivables$591 $453 
Finance lease liabilities (current)Accounts payable and accrued liabilities$309 $457 
Total finance lease liabilities$309 $457 
The weighted average remaining lease term and discount rate for the periods indicated below were as follows:
As of
September 30, 2026		As of
June 30, 2026
Weighted-average remaining lease term
Operating leases4.90 years4.75 years
Finance leases0.08 years0.31 years
Weighted-average discount rate
Operating leases4.97 %5.08 %
Finance leases5.33 %5.33 %
Lease Costs and Other Information
The following illustrates the various components of lease costs for the period indicated:
Three Months Ended September 30,
20262025
Operating lease cost$16,308 $19,704 
Short-term lease cost230 217 
Variable lease cost1,570 976 
Sublease income(260)(2,032)
Total lease cost$17,848 $18,865 
Supplemental Cash Flow Information
The following table presents supplemental information relating to cash flows arising from lease transactions. Cash payments made for variable lease costs and short-term leases are not included in the measurement of lease liabilities, and, as such, are excluded from the amounts below:
Three Months Ended September 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases$19,830 $23,343 
Finance leases151 510 
Right of use assets obtained in exchange for new lease liabilities:
Operating leases$19,097 $6,415 
Maturity of Lease Liabilities
The following table presents the future minimum lease payments under our lease liabilities as of September 30, 2026:
Fiscal years ending June 30,Operating LeasesFinance Leases
2027 (nine months ending)
$54,842 $309 
2028
58,957 — 
2029
37,254 — 
2030
23,522 — 
2031
15,223 — 
Thereafter37,975 — 
Total lease payments227,773 309 
Less: Imputed interest(25,012)— 
Total$202,761 $309 
Operating lease maturity amounts included in the table above do not include sublease income expected to be received under our various sublease agreements with third parties. Under the agreements initiated with third parties, we expect to receive immaterial sublease income over the remaining terms of the agreements. The Company has undiscounted future minimum lease payments related to operating lease contracts signed but not yet commenced as of September 30, 2026 of $53.5 million, which are excluded from lease liabilities in our Condensed Consolidated Balance Sheets (see Note 12 “Guarantees and Contingencies” for more details).
Lease Income
In connection with the purchase of an office building in the third quarter of Fiscal 2026, the Company assumed existing operating lease agreements as a lessor with third-party tenants. Rental income from these operating leases is recognized on a straight-line basis over the remaining non-cancelable lease terms. The remaining duration of these leases ranges between 2 and 3 years, with options to extend for an additional 23 to 72 years after the initial term.
During the three months ended September 30, 2026, lease income was immaterial and future contractual minimum lease payments (excluding operating expense reimbursements) to be received by the Company as of September 30, 2026 were also immaterial.