Leases

6 Months Ended

Dec. 31, 2025

Note 6. Leases:

As a lessee, the Company leases offices, labs, and manufacturing facilities, as well as vehicles, copiers, and other equipment. The Company determines whether a contract is a lease or contains a lease at inception date. Upon commencement date, operating lease right-of-use assets and liabilities are recognized based on the present value of lease payments over the lease term. The discount rate used to calculate present value is the Company’s incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term and the economic environment of the applicable country or region. The Company recognizes operating lease expense on a straight-line basis over the lease term. Further, as part of our adoption of ASC 842, the Company also made the accounting policy elections to not capitalize short term leases (defined as a lease with a lease term that is less than 12 months) and to combine lease and non-lease components for all asset classes in determining the lease payments.

The Condensed Consolidated Financial Statements include the following amounts related to operating leases where the Company is the lessee ($ in thousands):


		Quarter Ended							Six Months Ended
		December, 31							December, 31
				2025			2024			2025		2024
Condensed Consolidated Statements of Earnings
Fixed operating lease expense			$	4,401		$	4,345		$	8,810	$	8,723
Variable operating lease expense				1,171			1,319			2,497		2,581
Total operating lease expense			$	5,572		$	5,664		$	11,307	$	11,304

Condensed Consolidated Statements of Cash Flows
Cash paid for amounts included in the measurement of operating lease liabilities			$	4,480		$	4,183		$	8,935	$	8,068
ROU assets obtained in exchange for operating lease obligations				370			522			648		1,321

		As of
Condensed Consolidated Balance Sheets			December 31,			June 30,
Lease Assets and Liabilities	Balance Sheet Classification		2025			2025
Operating lease ROU assets	Right-of-use assets		$	68,249		$	73,399

Operating lease liabilities - current	Operating lease liabilities - current		$	13,710		$	14,098
Operating lease liabilities - long-term	Operating lease liabilities			77,185			83,960
Total operating lease liabilities			$	90,895		$	98,058

Weighted average remaining lease term:				7.2 years			7.6 years
Weighted average discount rate:				4.3	%		4.3	%

The following table summarizes payments by date for the Company’s operating leases, which is then reconciled to our total lease obligation (in thousands):



	December 31,
	2025
Remaining 2026	$	8,516
2027		16,802
2028		16,420
2029		15,857
2030		13,397
Thereafter		35,556
Total	$	106,548
Less: Amounts representing interest		15,653
Total lease obligations	$	90,895

Certain leases include one or more options to renew, with terms that extend the lease term up to five years. Bio-Techne includes the option to renew the lease as part of the right-of-use lease asset and liability when it is reasonably certain the Company will exercise the option. In addition, certain leases contain fair value purchase and termination options with an associated penalty. In general, Bio-Techne is not reasonably certain to exercise such options.

BIO-TECHNE Corp 10-Q