The Company leases offices, warehouses and other premises, vehicles and certain equipment under non-cancelable operating leases. Operating lease expense recognized and supplemental cash flow information related to operating leases for the three and nine months ended March 31, 2025 and 2024 were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
Operating lease expense (including expense for lease agreements with related parties of $208 and $86 for the three months ended March 31, 2025 and 2024, respectively, and $538 and $363 for the nine months ended March 31, 2025 and 2024, respectively)	$	5,712	$	2,538	$	12,685	$	7,076
Cash payments for operating leases (including payments to related parties of $202 and $75 for the three months ended March 31, 2025 and 2024, respectively, $508 and $333 for the nine months ended March 31, 2025 and 2024, respectively)	$	5,380	$	2,469	$	11,959	$	6,756
New operating lease assets obtained in exchange for operating lease liabilities	$	110,145	$	22,301	$	128,617	$	24,140

During the three and nine months ended March 31, 2025 and 2024, the Company’s costs related to short-term lease arrangements for real estate were $0.2 million each, and costs related to short-term lease arrangements for non-real estate were $0.8 million and $0.6 million, respectively. Non-lease variable payments expensed in the three and nine months ended March 31, 2025 were $1.0 million and $2.5 million. Non-lease variable payments expensed in the three and nine months ended March 31, 2024 were $0.6 million and $1.6 million, respectively.

As of March 31, 2025 and June 30, 2024, the Operating lease right of use assets recorded within Other assets in the condensed consolidated balance sheets were $152.9 million and $34.6 million, respectively. As of March 31, 2025, the weighted average remaining lease term for operating leases was 8.5 years and the weighted average discount rate was 5.8%. As of March 31, 2024, the weighted average remaining lease term for operating leases was 4.8 years and the weighted average discount rate was 5.0%. The short-term portion of the lease liability is included in accrued liabilities and the long-term portion of the lease liability is included in other long-term liabilities on the condensed consolidated balance sheets.

In June 2024, the Company entered into a lease agreement for a 21 megawatt (“MW”) data center co-location space located in Vernon, California (the “Data Center Space”), with a lease term expiring on August 31, 2035. The lease agreement consists of five tranches, with the first tranche of 6 MW having commenced on January 24, 2025. The right-of-use asset and lease liability associated with the commencement of the first tranche, totaling $87.9 million, were recorded during the three months ended March 31, 2025.

Simultaneously, the Company sublicensed the first tranche to an unrelated party (the “Sub licensee”) for the same term, expiring on August 31, 2035. Pursuant to the sublicense, the Company sublicensed the Data Center Space lease to the Sub licensee, and the Sub licensee assumed all rights and obligations with respect to the Data Center Space lease. The Company accounted for the lease as an operating lease and the sublicense as a sublease under ASC 842. The first tranche of 6 MW commenced simultaneously on January 24, 2025, and the related sublicense income for the three and nine months ended March 31, 2025, amounted to $1.3 million. As of March 31, 2025, the future total minimum sublicense receipts expected to be received are as follows (in thousands):


Fiscal Year:	Future minimum sublicense receipts
Remainder of 2025	$	3,699
2026	10,037
2027	10,984
2028	11,285
2029	11,653
2030 and beyond	79,994
Total sublicense receipts - Lessor	$	127,652

The future undiscounted fixed non-cancelable payment obligation and future minimum sublicense receipts pertaining to the remaining four tranches that have not yet commenced as of March 31, 2025 is approximately $291.4 million and $308.9 million, respectively.

The Company holds an equity investment of $42.5 million in the Sub licensee, which is classified under investments in privately held companies and recorded in Other assets on the condensed consolidated balance sheets. The Sub licensee does not meet the criteria of a related party. Additionally, the Sub licensee has been a customer of the Company, and the Company concluded that equity investment agreements and sub-licensing agreement are separate from revenue contracts as all transactions have been recorded at the respective fair values.

Additionally, the Company extended its warehouse lease in Fremont, California for an additional 63 months, expiring on October 31, 2030. In connection with the foregoing, the Company recorded an additional $20.5 million right-of-use asset and lease liability to the condensed consolidated balance sheets during the three months ended March 31, 2025.


Fiscal Year:	Maturities of operating leases(1)
Remainder of 2025	$	6,258
2026	23,958
2027	25,044
2028	23,899
2029	23,565
2030 and beyond	101,931
Total future lease payments	204,655
Less: Imputed interest	(49,054)
Present value of operating lease liabilities	155,601
Less: Current portion	(13,188)
Long-term portion of operating lease liabilities	$	142,413