Leases
The Company’s leases provide for rental of corporate office space under non-cancelable operating lease agreements that expire at various dates through fiscal 2036. The Company does not have any finance leases.
Lease Costs
Components of lease costs included in the consolidated statements of operations were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended April 30, |
| | | | | 2025 | | 2024 | | 2023 |
| Operating lease cost | | | | | $ | 11,102 | | | $ | 12,114 | | | $ | 12,411 | |
| Short-term lease cost | | | | | 2,232 | | | 1,921 | | | 2,217 | |
| Variable lease cost | | | | | 1,456 | | | 1,342 | | | 726 | |
| Total lease cost | | | | | $ | 14,790 | | | $ | 15,377 | | | $ | 15,354 | |
Lease term and discount rate information are summarized as follows:
| | | | | |
| As of
April 30, 2025 |
| Weighted average remaining lease term (in years) | 5.1 |
| Weighted average discount rate | 5.5 | % |
Future minimum lease payments under non-cancelable operating leases on an undiscounted cash flow basis as of April 30, 2025 were as follows (in thousands, by fiscal year):
| | | | | |
| 2026 | $ | 10,151 | |
| 2027 | 5,483 | |
| 2028 | 3,732 | |
| 2029 | 2,279 | |
| 2030 | 1,264 | |
| Thereafter | 7,007 | |
| Total minimum lease payments | 29,916 | |
| Less imputed interest | (4,631) | |
| Present value of future minimum lease payments | 25,285 | |
| Less current lease liabilities | (8,928) | |
| Operating lease liabilities, non-current | $ | 16,357 | |
Future minimum lease payments as of April 30, 2025 include future cash payments on leases with corresponding right-of-use assets which were written down for impairment due to facilities-related cost optimization actions during the year ended April 30, 2023. During the year ended April 30, 2023, the Company recorded an impairment charge of $5.1 million related to the exit from leased office space.
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.