Black Rock Coffee Bar, Inc.BRCB

Black Rock Coffee Bar, Inc. Leases Disclosure

10-KFiled Mar 4, 20261 min read
Leases
The Company leases its stores, roasting and warehouse facilities, and corporate offices under operating leases, typically with initial terms of 10 to 15 years.
The components of net lease costs, included in occupancy and related expenses, pre-opening costs as well as selling, general and administrative expenses in the consolidated statements of operations, were as follows:
Year Ended December 31,
(in thousands)202520242023
Operating lease cost$16,920 $13,280 $10,837 
Variable lease cost1,063 1,006 931 
Less sublease income(108)(108)(108)
Total lease cost$17,875 $14,178 $11,660 
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Cash paid for amounts included in the measurement of operating lease liabilities$14,363 $10,851 $10,194 
Operating lease right-of-use assets obtained in exchange for lease obligations36,976 29,472 16,920 
A summary of lease terms and discount rates related to leases is as follows:
December 31, 2025
December 31, 2024
Weighted average remaining lease term (in years)11.311.3
Weighted average discount rate6.0 %5.6 %

As of December 31, 2025, future minimum lease payments for operating leases consisted of the following:
(in thousands)
2026$16,902 
202717,934 
202817,502 
202916,882 
203016,318 
Thereafter109,634 
Total lease payments195,172 
Less imputed interest(57,874)
Total operating lease liabilities137,298 
Less current portion(8,960)
Total operating lease liability, net of current portion$128,338 

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.

Other Available Disclosures

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