Leases
The components of lease expense were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended March 31, |
| 2026 | | 2025 | | 2024 |
| Operating lease expense | $ | 10,868 | | | $ | 11,631 | | | $ | 10,934 | |
| Variable lease expense | $ | 3,912 | | | $ | 3,932 | | | $ | 3,690 | |
The supplemental cash flow information related to leases was as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended March 31, |
| 2026 | | 2025 | | 2024 |
| Cash outflows from operating leases | $ | 13,680 | | | $ | 14,590 | | | $ | 14,634 | |
| Right-of-use assets obtained in exchange for operating lease obligations | $ | — | | | $ | 1,954 | | | $ | 2,311 | |
Short-term lease expense was immaterial during the years ended March 31, 2026, 2025, and 2024, respectively.
The following table presents supplemental lease information:
| | | | | | | | | | | |
| March 31, 2026 | | March 31, 2025 |
| Weighted average remaining lease term | 4.5 years | | 5.4 years |
| Weighted average discount rate | 4.6% | | 4.7% |
The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of March 31, 2026:
| | | | | |
| 2027 | $ | 12,253 | |
| 2028 | 11,509 | |
| 2029 | 11,397 | |
| 2030 | 11,408 | |
| 2031 | 7,940 | |
| |
| Total lease payments | 54,507 | |
| Less: imputed interest | (5,050) | |
| Present value of lease liabilities | $ | 49,457 | |
| Operating lease liabilities | 10,357 | |
| Operating lease liabilities, non-current | $ | 39,100 | |
The Company continues to evaluate its leases for potential impairments, noting no impairments during the years ended March 31, 2026 and 2025, respectively.
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.