Leases
We have operating leases for our corporate headquarters, office spaces and laboratory facilities. One of our office space leases has a finance lease component representing lessor provided furniture and office equipment. Our finance lease, which is presented as part of “Property and equipment, net” on our consolidated balance sheets, is not material.
Certain leases include renewal options at our election and we include the renewal options when we are reasonably certain that the renewal option will be exercised. The lease liabilities were measured using a weighted-average discount rate based on the most recent borrowing rate as of the calculation of the respective lease liability, adjusted for the remaining lease term and aggregate amount of the lease.
The components of lease cost are as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | Years Ended December 31, |
| | | | | 2025 | | 2024 | | 2023 |
| | | | | | | | | |
| | | (in thousands) |
| Straight-line operating lease costs | | | | | $ | 4,902 | | | $ | 4,110 | | | $ | 4,032 | |
| Finance lease costs | | | | | 367 | | | 395 | | | 420 | |
| Variable lease costs | | | | | 4,417 | | | 6,305 | | | 6,844 | |
| Total lease cost | | | | | $ | 9,686 | | | $ | 10,810 | | | $ | 11,296 | |
Supplemental cash flow information related to leases are as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| (in thousands) |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows for operating leases | $ | 6,547 | | | $ | 5,092 | | | $ | 4,829 | |
| Operating cash flows for finance lease | $ | 460 | | | $ | 445 | | | $ | 397 | |
Operating lease right-of-use assets obtained in exchange for
operating lease obligations | $ | 6,567 | | | $ | 1,591 | | | $ | 1,179 | |
Supplemental information related to the remaining lease term and discount rate are as follows:
| | | | | | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | 2023 |
| Weighted-average remaining lease term (in years) | | | | | |
| Operating leases | 2.9 | | 3.6 | | 4.7 |
| Finance lease | 0.1 | | 1.1 | | 2.1 |
| Weighted-average discount rate | | | | | |
| Operating leases | 6.8 | % | | 6.0 | % | | 6.0 | % |
| Finance lease | 6.6 | % | | 6.6 | % | | 6.6 | % |
As of December 31, 2025, future minimum lease payments for our noncancelable operating leases are as follows. Future minimum lease payments under our finance lease are not material.
| | | | | |
| Amount |
| (in thousands) |
| |
| Year ending December 31: | |
| 2026 | $ | 6,642 | |
| 2027 | 1,320 | |
| 2028 | 976 | |
| 2029 | 494 | |
| 2030 | 494 | |
| Thereafter | 947 | |
| Total future minimum lease payments | 10,873 | |
| Imputed interest | (870) | |
| Total | $ | 10,003 | |
| |
| Reported as of December 31, 2025 | |
| Operating lease liabilities, current portion | $ | 6,192 | |
| Operating lease liabilities, net of current portion | 3,811 | |
| Total operating lease liabilities | $ | 10,003 | |
No impairment loss was recognized for the year ended December 31, 2025. The impairment loss recognized was immaterial for the years ended December 31, 2024 and 2023, respectively.
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.