F5, INC.FFIV

F5, INC. Leases Disclosure

10-KFiled Nov 25, 20252 min read
Leases
The majority of the Company's operating lease payments relate to its corporate headquarters in Seattle, Washington, which includes approximately 515,000 square feet of office space. The lease commenced in April 2019 and expires in 2033 with an option for renewal. The Company also leases additional office and lab space for product development and sales and support personnel in the United States and internationally. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The components of the Company's operating lease expenses for the years ended September 30, 2025, 2024, and 2023 were as follows (in thousands):
Fiscal year ended September 30,
 202520242023
Operating lease expense$39,630 $40,655 $47,036 
Short-term lease expense2,890 2,791 2,986 
Variable lease expense23,032 23,268 23,139 
Total lease expense
$65,552 $66,714 $73,161 
Variable lease expense primarily consists of common area maintenance, real estate taxes and parking expenses.
Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate):
September 30,
20252024
Operating lease right-of-use assets, net$185,601 $178,180 
Operating lease liabilities, current1
31,042 33,779 
Operating lease liabilities, long-term230,749 215,785 
Total operating lease liabilities
$261,791 $249,564 
Weighted average remaining lease term (in years)7.77.9
Weighted average discount rate3.24 %2.94 %
(1)Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets.
As of September 30, 2025, the future operating lease payments for each of the next five years and thereafter is as follows (in thousands):
Fiscal Years Ending September 30:Operating Lease
Payments
2026$38,700 
202740,386 
202837,001 
202934,188 
203033,715 
Thereafter115,208 
Total lease payments299,198 
Less: imputed interest(37,407)
Total lease liabilities$261,791 
Operating lease liabilities above do not include sublease income. As of September 30, 2025, the Company expects to receive sublease income of approximately $7.5 million, which consists of $2.3 million to be received in fiscal year 2026 and $5.2 million to be received over the seven fiscal years thereafter.
During the year ended September 30, 2023, the Company recorded an impairment of $3.5 million against the operating lease right-of-use asset related to its third quarter of fiscal 2023 restructuring plan, see Note 13, Restructuring Charges. There were no material impairments against right-of-use assets for the years ended September 30, 2025 and 2024.
As of September 30, 2025, the Company had no significant operating leases that were executed but not yet commenced.

Historical Timeline

Fiscal YearFiled
2025Nov 25, 2025Showing above
2024Nov 18, 2024
2023Nov 14, 2023
2022Nov 15, 2022
2021Nov 16, 2021
2020Nov 19, 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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