Leases Nextracker has several commitments under operating leases for warehouses, buildings, and equipment. Leases have initial lease terms ranging from one year to ten years.
The components of lease cost recognized under ASC 842 Leases were as follow (in thousands):
| | | | | | | | | | | | | | | | | |
| Fiscal year ended March 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 8,049 | | | $ | 2,281 | | | $ | 1,922 | |
Amounts reported in the consolidated balance sheet as of March 31, 2025 and 2024 were as follows (in thousands, except weighted average lease term and discount rate):
| | | | | | | | | | | |
| As of March 31, |
| 2025 | | 2024 |
| Operating Leases: | | | |
| Operating lease ROU assets | $ | 32,795 | | | $ | 17,390 | |
| Operating lease liabilities | 34,114 | | | 17,457 | |
| | | |
| Weighted-average remaining lease term (In years) | 4.9 | | 4.3 |
| | | |
| Weighted-average discount rate | 6.2 | % | | 5.6 | % |
Other information related to leases was as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Fiscal year ended March 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 7,780 | | | $ | 2,299 | | | $ | 1,928 | |
| | | | | |
| Non-cash investing and financing activity: | | | | | |
| Right-of-use assets obtained in exchange of lease liabilities | $ | 29,858 | | | $ | 15,873 | | | $ | 756 | |
| Reduction of lease liabilities and right-of-use assets from lease termination | (8,608) | | | — | | | — | |
Future lease payments under non-cancellable leases as of March 31, 2025 are as follows (in thousands):
| | | | | |
| Operating Leases |
| Fiscal year ended March 31, | |
| 2026 | $ | 9,458 | |
| 2027 | 8,763 | |
| 2028 | 7,044 | |
| 2029 | 6,317 | |
| 2030 | 2,418 | |
| Thereafter | 6,054 | |
| Total undiscounted lease payments | 40,054 | |
| Less: imputed interest | 5,940 | |
| Total lease liabilities | $ | 34,114 | |
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.