Leases
We lease office space under operating leases with various expiration dates through 2032. We have the option to renew or extend our leases. Certain lease agreements include the option to terminate the lease with prior written notice ranging from nine months to one year. As of June 30, 2025, we have not considered such provisions in the determination of the lease term, as it is not reasonably certain these options will be exercised. Leases have remaining terms that range from less than one year to seven years.
Several leases require us to obtain standby letters of credit, naming the lessor as a beneficiary. These letters of credit act as security for the faithful performance by us of all terms, covenants and conditions of the lease agreement. We are required to post collateral for the letters of credit in the form of cash or eligible securities. As of June 30, 2025, the collateral totaled $4.5 million, which was in the form of securities that have been classified as securities available for sale at fair value in the consolidated balance sheets. As of June 30, 2024, the collateral totaled $8.8 million, of which $2.0 million was in the form of cash that was classified as restricted cash, and $6.8 million was in the form of securities which was classified as securities available for sale at fair value within our consolidated balance sheets.
No impairment charge was incurred related to leases during the fiscal year ended June 30, 2025. During the years ended June 30, 2024 and 2023, we subleased a portion of our leased office space in San Francisco, resulting in
an impairment charge of $0.8 million and $1.2 million, respectively, included in general and administrative expense within our consolidated statements of operations and comprehensive income (loss).
Operating lease expense is as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | |
| | | | June 30, 2025 | | June 30, 2024 | | June 30, 2023 |
Operating lease expense (1) (2) | | | | $ | 11,949 | | | $ | 11,549 | | | $ | 18,954 | |
| | | | | | | | |
(1)Lease expenses for our short-term leases were immaterial for the years presented.
(2)During the year ended June 30, 2023, we incurred charges of $4.7 million, within restructuring and other, within our consolidated statements of operations and comprehensive income (loss), related to a reduction to our ROU lease assets which were attributed to certain leased space we were no longer utilizing for our business operations.
We have subleased a portion of our leased facilities. Sublease income totaled $3.8 million, $4.6 million, and $3.4 million during the years ended June 30, 2025, 2024, and 2023, respectively.
Lease term and discount rate information are summarized as follows: | | | | | | | | |
| | June 30, 2025 |
| Weighted average remaining lease term (in years) | | 4.2 |
| Weighted average discount rate | | 5.7% |
As of June 30, 2025, future minimum lease payments are as follows (in thousands):
| | | | | | | | |
| 2026 | | $ | 16,575 | |
| 2027 | | 4,443 | |
| 2028 | | 3,563 | |
| 2029 | | 3,618 | |
| 2030 | | 3,749 | |
| Thereafter | | 4,432 | |
| Total lease payments | | 36,380 | |
| Less imputed interest | | (4,437) | |
| Present value of total lease liabilities | | $ | 31,943 | |