QUINSTREET, INC Leases Disclosure
10. Leases
The Company has operating leases primarily for its office facilities. The leases expire at various dates through fiscal year 2030, some of which include options to renew, with renewal terms of up to 5 years. The Company does not include any renewal options in the lease terms for calculating lease liability, as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain that it will exercise these renewal options at the time of the lease commencement.
The components of lease expense were as follows (in thousands):
|
|
Fiscal Year Ended June 30, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease expense |
|
$ |
3,617 |
|
|
$ |
4,220 |
|
|
$ |
4,790 |
|
Short-term lease expense |
|
|
818 |
|
|
|
840 |
|
|
|
638 |
|
Variable lease expense (1) |
|
|
207 |
|
|
|
565 |
|
|
|
666 |
|
Total lease expense |
|
$ |
4,642 |
|
|
$ |
5,625 |
|
|
$ |
6,094 |
|
Supplemental information related to operating leases was as follows (in thousands, except lease term and discount rate):
|
|
Fiscal Year Ended June 30, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash paid for amounts included in the measurement of lease liabilities |
|
|
|
|
|
|
|
|
|
|||
Operating cash flows used for operating leases |
|
$ |
3,382 |
|
|
$ |
5,114 |
|
|
$ |
5,860 |
|
|
|
|
|
|
|
|
|
|
|
|||
Lease liabilities arising from obtaining right-of-use assets |
|
|
|
|
|
|
|
|
|
|||
Operating leases |
|
$ |
2,539 |
|
|
$ |
11,026 |
|
|
$ |
824 |
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted average remaining lease term - operating leases |
|
3.9 years |
|
|
4.3 years |
|
|
1.5 years |
|
|||
Weighted average discount rate - operating leases |
|
|
7.3 |
% |
|
|
6.9 |
% |
|
|
5.5 |
% |
The implicit rate within each lease is not readily determinable and therefore the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of the lease payments. The determination of the incremental borrowing rate requires judgment. The Company determined its incremental borrowing rate for each lease using indicative bank borrowing rates, adjusted for various factors including level of collateralization, term and currency to align with the terms of a lease.
Maturities of operating lease liabilities as of June 30, 2025 were as follows (in thousands):
Fiscal Year Ending June 30, |
|
|
|
|
|
Amount |
|
|
2026 |
|
|
|
|
|
$ |
3,221 |
|
2027 |
|
|
|
|
|
|
3,357 |
|
2028 |
|
|
|
|
|
|
3,360 |
|
2029 |
|
|
|
|
|
|
2,114 |
|
2030 |
|
|
|
|
|
|
837 |
|
Thereafter |
|
|
|
|
|
|
33 |
|
Total minimum lease payments |
|
|
|
|
|
|
12,922 |
|
Less: imputed interest |
|
|
|
|
|
|
(2,726 |
) |
Present value of net minimum lease payments |
|
|
|
|
|
$ |
10,196 |
|
Operating lease liabilities: |
|
|
|
|
|
|
|
|
(included in Accrued Liabilities) |
|
|
|
|
|
$ |
2,814 |
|
Noncurrent |
|
|
|
|
|
|
7,382 |
|
Total |
|
|
|
|
|
$ |
10,196 |
|
As of June 30, 2025, the Company had additional undiscounted future minimum payments of $0.5 million relating to an operating lease for office space that had been signed but had not yet commenced. This operating lease will commence during the second quarter of fiscal year 2026 and will have a lease term of approximately 6 years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 21, 2025 | Showing above |
| 2024 | Aug 21, 2024 | |
| 2023 | Aug 21, 2023 | |
| 2022 | Aug 22, 2022 | |
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.