Leases
Operating Leases
In February 2021, the Company entered into a lease agreement for office and laboratory space in Menlo Park, CA which will expire in February 2031. In December 2023, the Company entered into a lease agreement for office and laboratory space in Union City, CA, which will expire in June 2033. The Union City, CA lease contains a one-time tenant option to extend the lease term by a period of five years which the Company is not reasonably certain to exercise and which has been excluded from recognition in the Company’s right-of-use assets and lease liabilities. The Company records rent expense associated with operating lease liabilities in operating expenses in the statements of operations and comprehensive income (loss).
In April 2024, the Company entered into a lease agreement for premises to be constructed in Austin, TX. The lease is expected to commence prior to September 30, 2027 at an initial rental rate of $12.3 million per year. The lease agreement includes annual rent increases of 3% and is for a term of fifteen years and nine months. The agreement also includes a seven-year extension option that can be exercised by the Company. As part of the lease agreement, the Company remitted to the landlord $2.0 million in respect of a security deposit and $1.0 million in respect of the first month’s rent payment, which were recorded in other non-current assets on the balance sheets for the years ended December 31, 2025 and 2024.
The Company’s operating lease costs were $9.4 million, $9.4 million and $5.5 million during the years ended December 31, 2025, 2024 and 2023, respectively. The Company’s variable lease expense totaled $4.4 million, $4.4 million and $3.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. The Company's short-term lease costs totaled $0.2 million during the year ended December 31, 2025 and were not material during the years ended December 31, 2024 and 2023.
Other information related to the Company’s operating leases was as follows for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of operating lease liabilities within operating cash flows | $ | 8,810 | | | $ | 8,516 | | | $ | 4,872 | |
As of December 31, 2025 and 2024, the weighted average remaining operating lease term was 6.8 years and 7.8 years, respectively.
As of December 31, 2025 and 2024, the weighted average discount rate used to estimate operating lease liabilities was 8.4% and 8.4%, respectively.
As of December 31, 2025, future lease payments under operating leases were as follows (in thousands):
| | | | | |
| Year ending December 31: | |
| 2026 | $ | 9,115 | |
| 2027 | 9,430 | |
| 2028 | 9,757 | |
| 2029 | 10,094 | |
| 2030 | 10,444 | |
| Thereafter | 18,938 | |
| Total lease payments | $ | 67,778 | |
| Less: imputed interest | (16,976) | |
| Present value of operating lease liabilities | $ | 50,802 | |
Financing Leases
As of December 31, 2025 and 2024, the weighted average remaining financing lease term was 1.7 years and 1.8 years, respectively.
As of December 31, 2025 and 2024, the weighted average interest rate for the Company’s financing leases was 5.4% and 6.5%, respectively.
As of December 31, 2025, future lease payments under financing leases were as follows (in thousands):
| | | | | |
| Year ending December 31: | |
| 2026 | $ | 543 | |
| 2027 | 362 | |
| Total lease payments | $ | 905 | |
| Less: interest expense | (38) | |
| Present value of financing lease liabilities | $ | 867 | |
Other information related to the Company’s financing leases were as follows for the years ended December 31 (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Amortization of right-of-use assets: | $ | 1,855 | | | $ | 3,436 | | | $ | 3,085 | |
| Operating cash flows from financing leases (interest paid): | 104 | | | 243 | | | 361 | |
| Total finance lease cost | $ | 1,959 | | | $ | 3,679 | | | $ | 3,446 | |