Dynatrace, Inc.DT

Dynatrace, Inc. Leases Disclosure

10-KFiled May 22, 20252 min read
Leases
The Company leases office space under non-cancelable operating leases which expire at various dates from fiscal 2026 to 2035. As of March 31, 2025, the weighted average remaining lease term was 6.1 years and the weighted average discount rate was 4.2%. The Company does not have any finance leases.
The following table presents information about leases on the consolidated statements of operations (in thousands):
Fiscal Year Ended March 31,
202520242023
Operating lease expense (1)
$15,282 $15,522 $12,908 
Short-term lease expense
$2,591 $2,033 $1,847 
Variable lease expense
$1,412 $1,585 $891 
_________________
(1) Presented gross of sublease income.
The following table presents supplemental cash flow information about the Company’s leases (in thousands):
Fiscal Year Ended March 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities$19,950 $18,908 $16,098 
Operating lease assets obtained in exchange for new operating lease liabilities$21,198 $10,470 $24,323 
As of March 31, 2025, remaining maturities of lease liabilities were as follows (in thousands):
Fiscal Years Ending March 31,Amount
2026$16,690 
202715,488 
202812,065 
202911,052 
203010,293 
Thereafter19,661 
Total operating lease payments85,249 
Less: imputed interest(9,886)
Total operating lease liabilities$75,363 
As of March 31, 2025, the Company had commitments of $97.0 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use assets or operating lease liabilities. These operating leases are expected to commence during fiscal year 2026, with lease terms ranging from 8 to 10 years.

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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