Leases
Our lease liabilities relate primarily to operating leases for our global office infrastructure. These operating leases expire at various dates through fiscal 2036. We did not have any finance leases for the years ended March 31, 2026, 2025 or 2024.
Net lease cost recognized in our Consolidated Statements of Operations was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended March 31, |
| 2026 | | 2025 | | 2024 |
| Operating lease cost | $ | 9,447 | | | $ | 5,760 | | | $ | 5,770 | |
| Short-term lease cost | 66 | | | 21 | | | 272 | |
| Variable lease cost | 1,855 | | | 1,233 | | | 1,333 | |
| Net lease cost | $ | 11,368 | | | $ | 7,014 | | | $ | 7,375 | |
As of March 31, 2026, the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows:
| | | | | |
| 2027 | $ | 8,069 | |
| 2028 | 7,669 | |
| 2029 | 6,768 | |
| 2030 | 6,144 | |
| 2031 | 4,029 | |
| Thereafter | 12,073 | |
| Total minimum lease payments | 44,752 | |
| Less: Imputed interest | 8,114 | |
| Present value of operating lease liabilities | 36,638 | |
| Less: Current portion of operating lease liabilities | 6,963 | |
| Long-term operating lease liabilities | $ | 29,675 | |
As of March 31, 2026, the minimum lease commitment amount for operating leases signed but not yet commenced was not material.
Lease term and Discount rate
| | | | | | | | | | | |
| Year Ended March 31, |
| 2026 | | 2025 |
| Weighted-average remaining term (in years) | 6.35 | | 3.19 |
| Weighted-average discount rate | 6.16 | % | | 4.86 | % |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.