DLH Holdings Corp.DLHC

DLH Holdings Corp. Leases Disclosure

10-KFiled Dec 10, 20252 min read
Leases
The following table summarizes lease balances presented on our consolidated balance sheets at September 30, 2025 and 2024 (in thousands):

20252024
Operating lease right-of-use assets
$8,764 $6,681 
Operating lease liabilities, current$2,918 $2,652 
Operating lease liabilities, long-term14,022 12,789 
   Operating lease liabilities
$16,940 $15,441 

As of September 30, 2025, operating leases for facilities and equipment have remaining lease terms of less than 1.3 years to 7.3 years. The non-cash increase in both lease liabilities and right-of-use assets during the current period was primarily attributable to an extension of an existing operating lease. The non-cash increase to lease liabilities from the lease extension was $4.2 million.

For the years ended September 30, 2025 and 2024, total lease costs for our operating leases are as follows (in thousands):
20252024
Operating $3,288 $3,574 
Short-term 785 147 
Variable 187 135 
Sublease income (a)(194)(266)
   Lease costs
$4,066 $3,590 
(a): The Company subleases a portion of one of its leased facilities. The sublease is classified as an operating lease with respect to the underlying asset. The sublease term is 5 years and includes two additional 1-year term extension options.

The Company's future minimum lease payments as of September 30, 2025 are as follows (in thousands):

Fiscal year ending:
2026$3,993 
20273,591 
20283,468 
20293,582 
20303,194 
Thereafter2,697 
Total future minimum lease payments20,525 
   Less: imputed interest(3,585)
Present value of future minimum lease payments16,940 
   Less: current portion of operating lease liabilities(2,918)
Long-term operating lease liabilities$14,022 

At September 30, 2025, the weighted-average remaining lease term and weighted-average discount rate are 5.4 years and 6.9%, respectively. The calculation of the weighted-average discount rate was determined based on borrowing terms from our secured term loan.

Other information related to our leases was as follows for the years ending September 30, 2025 and 2024 (in thousands):

20252024
Cash paid for amounts included in the measurement of lease liabilities$3,782 $4,572 
Lease liabilities arising from obtaining right-of-use assets4,187 839 
Other lease information
$7,969 $5,411 

Historical Timeline

Fiscal YearFiled
2025Dec 10, 2025Showing above
2024Dec 4, 2024
2023Dec 6, 2023
2022Dec 5, 2022
2021Dec 6, 2021
2020Dec 7, 2020

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.

Other Available Disclosures

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