Intapp, Inc. Leases Disclosure
Note 9. Leases
The Company leases the majority of its office space in the U.S., U.K., Netherlands, Ukraine, Germany, Portugal and Singapore under non-cancelable operating lease agreements, which have various expiration dates through November 2030, some of which include options to extend the leases for up to 5 years.
During the fiscal year ended June 30, 2024, the Company amended the lease in Palo Alto, California to extend the existing leased office space for an additional 12 months through . In June 2025, the Company further amended the lease in Palo Alto to extend the existing leased office space through . The Company accounts for these lease extensions as lease modifications and recorded an adjustment of $2.5 million and $2.2 million to the operating ROU asset and operating lease liability on the consolidated balance sheets as of June 30, 2025 and 2024, respectively.
As part of the Company’s continuing assessment of its facilities requirements, during the fiscal year ended June 30, 2023, the Company exited a portion of the leased office space in its headquarters in Palo Alto, California and amended the underlying lease agreement to relieve the Company of certain lease payments. As a result, the Company assessed the operating ROU asset associated with the leased office space and deemed it to be impaired. The Company also assessed the lease liability in view of the amended lease agreement. The Company recorded a net charge of $1.6 million in connection with the impairment of the related operating ROU asset and the reassessment of the operating lease liability, which was included on its consolidated statements of operations for the fiscal year ended June 30, 2023.
The components of lease costs were as follows (in thousands):
|
|
Year Ended June 30, |
|
|||||||||
Operating Leases: |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost (1) |
|
$ |
6,612 |
|
|
$ |
6,353 |
|
|
$ |
6,113 |
|
Short-term lease cost |
|
|
1,817 |
|
|
|
1,290 |
|
|
|
843 |
|
Variable lease cost |
|
|
477 |
|
|
|
455 |
|
|
|
— |
|
(1) Amount excluded a net charge of $1.6 million related to lease modification and impairment for the fiscal year ended June 30, 2023 as described above.
The weighted-average remaining lease term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:
Lease Term and Discount Rate: |
|
June 30, 2025 |
|
|
June 30, 2024 |
|
||
Weighted-average remaining lease term (in years) |
|
|
4.4 |
|
|
|
5.3 |
|
Weighted-average discount rate |
|
|
6.8 |
% |
|
|
7.0 |
% |
The following table presents supplemental cash flow information related to the Company’s operating leases (in thousands):
|
|
Year Ended June 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash payments included in the measurement of operating lease liabilities |
|
$ |
6,847 |
|
|
$ |
5,847 |
|
ROU assets obtained in exchange for new operating lease liabilities |
|
|
2,084 |
|
|
|
8,983 |
|
of $6.5 million and $6.0 million were included in other current liabilities on the Company’s consolidated balance sheets as of June 30, 2025 and 2024, respectively.
As of June 30, 2025, remaining maturities of operating lease liabilities are as follows (in thousands):
Fiscal Year Ending June 30, |
|
Amount |
|
|
2026 |
|
$ |
7,780 |
|
2027 |
|
|
4,757 |
|
2028 |
|
|
4,632 |
|
2029 |
|
|
5,076 |
|
2030 |
|
|
3,817 |
|
2031 and thereafter |
|
|
19 |
|
Total lease payments |
|
|
26,081 |
|
Less: imputed interest |
|
|
(3,492 |
) |
Present value of operating lease liabilities |
|
$ |
22,589 |
|
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.