BEYOND MEAT, INC.BYND
BEYOND MEAT, INC. Leases Disclosure
Leases
Campus Lease
On January 14, 2021, the Company entered into the Original Lease, a 12-year lease with two 5-year extensions to house its corporate headquarters, lab and innovation space (“Campus Headquarters”) in El Segundo, California. Although the Company is involved in the design of the tenant improvements of the Campus Headquarters, the Company does not have title or possession of the assets during construction. In addition, the Company does not obtain control of the leased space at the Campus Headquarters until the tenant improvements for the applicable phase in which the leased space is located have been completed and that phase has been delivered to the Company. The Original Lease was initially classified as an operating lease.
The Company paid $8.3 million and $6.5 million in rent prepayments and payments towards construction costs of the Campus Headquarters in the years ended December 31, 2025 and 2024, respectively. The rent prepayments and payments towards construction costs are initially recorded in Prepaid lease costs, non-current in the Company’s consolidated balance sheets and will ultimately be reclassified as a component of a right-of-use asset upon lease commencement for each phase of the lease.
In 2022, the tenant improvements associated with Phase 1-A were completed, and the underlying asset was delivered to the Company. As such, upon commencement of Phase 1-A, the Company recognized a $64.1 million right-of-use asset, which included the reclassification of $27.7 million of the construction payments previously included in Prepaid lease costs, non-current, and a $36.6 million lease liability. Upon completion of the tenant improvements associated with Phase 1-A, the Company moved its innovation team from its former Manhattan Beach Innovation Center to the Campus Headquarters. In 2023, the tenant improvements associated with Phase 1-B were completed, and the underlying asset was delivered to the Company. As such,
upon commencement of Phase 1-B, the Company recognized a $64.9 million right-of-use asset, which included the reclassification of $29.3 million of the construction payments previously included in Prepaid lease costs, non-current, and a $35.6 million lease liability. Upon completion of the tenant improvements associated with Phase 1-B, the Company moved its headquarters, sales and marketing operations to the Campus Headquarters.
In the three months ended September 27, 2025, the Company tested its long-lived assets for recoverability and recognized a loss from impairment of prepaid lease costs in the amount of $14.6 million as the results of those tests indicated that prepaid lease costs were not recoverable. See Note 8.
On September 17, 2024, the Company entered into the First Amendment to Lease, which amendment: (i) revised the square footage of the premises, building and project resulting in: (a) an increase in the Company’s base rent by approximately $851,000 over the initial lease term; (b) an adjustment to the Company’s percentage share of direct expenses; and (c) an increase in the tenant improvement allowance for use in Phase III of the Campus Headquarters; (ii) increased the tenant improvement allowance reflecting a reduction in the scope of the Landlord’s work under the Original Lease; (iii) specified the tenant improvements that must be removed by the Company from the premises if the premises are not occupied in their entirety throughout the initial lease term and first extension term; and (iv) addressed other ministerial matters concerning the Campus Headquarters. Costs associated with this amendment are included in operating lease costs related to research and development expenses and SG&A expenses and are reflected in the tables below. Aggregate payments towards base rent over the initial lease term associated with the remaining phases not yet delivered to the Company are approximately $53.6 million.
On May 9, 2025, the Company entered into the Second Amendment, which provided for, among other things, (i) the surrender by the Company to the Landlord of the Surrendered Premises; (ii) a release of all claims arising out of, or based upon, any act, matter, or thing regarding the Surrendered Premises; (iii) the continued leasing of approximately 220,519 rentable square feet of the existing premises (the “Remaining Premises”) by the Company, including parking; (iv) payment by the Company of a one-time termination fee of $1.0 million for the benefit of the Landlord; (v) transfer of ownership to certain equipment from the Company to the Landlord; (vi) construction of modifications to the Surrendered Premises by the Company to be completed by June 30, 2025; (vii) payment by the Company of rent for the Surrendered Premises under the Campus Lease until at latest December 14, 2025; (viii) payment by the Company of the difference between (A) the Company’s base rent and parking charges under the Campus Lease for the Surrendered Premises and (B) the base rent and parking charges payable by a new tenant under its new lease for the Surrendered Premises, beginning on the earlier of when the new tenant commences normal business operations in the Surrendered Premises and December 15, 2025, and ending on the last day of the Initial Term (as defined in the Campus Lease); and (ix) payment by the Company of customary brokers’ fees in connection with the Second Amendment.
Termination costs related to the Surrendered Premises in the year ended December 31, 2025 were $32.6 million, consisting of $31.1 million in prepaid rent related to the Surrendered Premises, a $1.0 million one-time termination fee and $0.5 million in brokers’ fees. The termination costs are being recognized over the remaining initial term and first extension term of the Campus Lease. These costs are reflected in the tables below. As a result of the Second Amendment, the Company remeasured the remaining lease liability and the corresponding right-of-use (“ROU”) asset associated with the continuing portion of the lease. Based on the revised terms, including updated lease payments and term, the Company concluded that the classification of the remaining portion of the lease had changed from an operating lease to a finance lease. As such, $115.6 million previously classified as an operating lease right-of-use asset was reclassified as a finance lease right-of-use asset. In addition, the right-of-use assets for the remaining portion of the lease increased by $19.9 million, due to the reclassification of amounts previously recorded as prepaid rent, and by $10.1 million related to increases in the present value of the lease liability following the modification. The remeasurement was performed using the Company’s incremental borrowing rate as of the modification date.
On July 16, 2025, the Company and the Landlord entered into the Third Amendment, resolving a dispute between the Company and the Landlord regarding the provision and disbursement of the tenant improvement allowance under the Campus Lease. Under the terms of the Third Amendment, in exchange for a release of certain claims, the Landlord agreed to provide to the Company a rent credit of up to $700,000 for certain tenant improvements, a tenant improvement allowance of up to $150,000 to construct certain improvements, and an extension to the end of the initial term of the Campus Lease for a Landlord-approved subtenant, assignee or transferee to use the tenant improvement allowance to construct improvements for its intended use.
Concurrent with the Company’s execution of the Original Lease, the Company delivered to the Landlord a letter of credit in the amount of $12.5 million as security for the performance of its obligations under the Campus Lease. In the fourth quarter of 2025 and in connection with the Varda Sublease, the Company and the Landlord entered into the Fourth Amendment to Lease whereby the parties agreed to amend the schedule for reduction of the Company’s letter of credit to: (i) $8.25 million on November 9, 2026; (ii) $6.25 million on November 9, 2027; and (iii) $3.125 million on November 9, 2028; provided the Company is not then in default of its obligations under the Campus Lease. The letter of credit is secured by a $12.6 million deposit. As of December 31, 2025 and 2024, $9.3 million and $12.6 million, respectively, of the restricted cash was included in Restricted cash, non-current.
Varda Sublease
Effective as of July 22, 2025, the Company entered into the Varda Sublease with the Subtenant, pursuant to which the Company will sublease to the Subtenant approximately 54,749 rentable square feet of the Remaining Premises, consisting of approximately 16,967 rentable square feet of improved space (the “Improved Space”) and approximately 37,782 rentable square feet of unimproved space (the “Unimproved Space” and, collectively with the Improved Space, the “Subleased Premises”). Pursuant to ASC 842, the Varda sublease is classified as an operating lease and is accounted for separately from the Company’s original lease with the landlord. See Note 2.
The Varda Sublease is subject to the applicable terms and conditions of the Campus Lease. The commencement date for the Improved Space is 30 days after receiving Landlord’s consent to the Varda Sublease (the “Improved Space Commencement Date”). The commencement date for the Unimproved Space is the earlier to occur of (i) the date Subtenant achieves substantial completion of its improvements within the Unimproved Space and receives a temporary certificate of occupancy or its equivalent, or (ii) 13 months following the Landlord’s consent to the Varda Sublease (the “Unimproved Space Commencement Date”). The Varda Sublease expires on October 31, 2033, unless extended or sooner terminated pursuant to its terms.
Subject to and in accordance with the provisions of a work letter, Subtenant will receive an improvement allowance from the Landlord equal to $3,350,600 to use in constructing improvements within the Unimproved Space and the Company will pay to Subtenant up to $80,000 to construct a demising wall at the Subleased Premises. Subtenant will deliver to the Company a letter of credit in the amount of $1,564,527 as security for the performance of its obligations under the Varda Sublease, which amount is subject to decrease in the future on condition that Subtenant is not then in default of its obligations under the Varda Sublease.
On October 7, 2025, the Company entered into a letter agreement with the Landlord and the Subtenant, pursuant to which, among other things, the Landlord provided its consent to the Varda Sublease.
Sublease income in the years ended December 2025, 2024 and 2023 was $0.6 million, $0 and $0, respectively. Sublease income is recognized on a straight-line basis and included in the Company’s consolidated statements of operations as a credit to Research and development expenses.
The lease for the Company’s Manhattan Beach Project Innovation Center expired on January 31, 2024. Costs associated with this lease through its expiration date are included in operating lease costs related to research and development expenses and are reflected in the tables below.
Letter of Credit
Concurrently with the Company’s execution of the Original Lease, the Company delivered to the Landlord a letter of credit in the amount of $12.5 million as security for the performance of its obligations under the Campus Lease. In connection with the Varda Sublease, the Company and the Landlord entered into the Fourth Amendment to Lease whereby the parties agreed to amend the schedule for reduction of the Company’s letter of credit to: (i) $8.25 million on November 9, 2026; (ii) $6.25 million on November 9, 2027; and (iii) $3.125 million on November 9, 2028; provided the Company is not then in default of its obligations under the Campus Lease. The letter of credit is secured by a $12.6 million deposit. As of December 31, 2025 and 2024, the Company had $9.3 million and $12.6 million, respectively, of the restricted cash included in Restricted cash, non-current.
Enschede Property
Given the Company’s intention to reduce its overall operating expenses and cash expenditures, on February 2, 2024, the Company terminated the agreement to purchase a property in Enschede, the Netherlands (the “Enschede Property”) and the security deposit was returned to the Company, which was subsequently paid to the purchaser of the property and applied towards the deposit and future lease payments. The Company entered into a lease agreement with the purchaser of the property to lease the approximately 114,000 square foot property for an initial period of five years with an option to extend the initial term for an additional five years at an annual rent of approximately €1.0 million (the “Enschede Property Lease”). The Enschede Property Lease is classified as a finance lease in the Company’s consolidated balance sheets as of December 31, 2025 and 2024. Costs associated with the Enschede Property Lease are included in finance lease costs related to cost of goods sold and are reflected in the tables below.
Lease costs for operating and finance leases were as follows:
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| December 31, | ||||||||||||||||||||
| (in thousands) | Statement of Operations Location | 2025 | 2024 | |||||||||||||||||
| Operating lease cost: | ||||||||||||||||||||
| Lease cost | Cost of goods sold | $ | 1,779 | $ | 1,668 | |||||||||||||||
| Lease cost | Research and development expenses | 2,872 | 9,539 | |||||||||||||||||
| Lease cost | SG&A expenses | 1,225 | 2,503 | |||||||||||||||||
Variable lease cost(1) | Cost of goods sold | 354 | 269 | |||||||||||||||||
Variable lease cost(1) | Research and development expenses | — | 6 | |||||||||||||||||
Variable lease cost(1) | SG&A expenses | 1,468 | 4,158 | |||||||||||||||||
| Operating lease cost | $ | 7,698 | $ | 18,143 | ||||||||||||||||
Short- term lease cost: | ||||||||||||||||||||
| Short-term lease cost | Cost of goods sold | $ | 391 | $ | 93 | |||||||||||||||
| Short-term lease cost | Research and development expenses | 49 | 105 | |||||||||||||||||
| Short-term lease cost | SG&A expenses | 550 | 369 | |||||||||||||||||
| Short-term lease cost | 990 | 567 | ||||||||||||||||||
| Finance lease cost: | ||||||||||||||||||||
| Amortization of right-of use assets | Cost of goods sold | $ | 922 | $ | 992 | |||||||||||||||
| Amortization of right-of use assets | Research and development expenses | 5,260 | 14 | |||||||||||||||||
| Amortization of right-of use assets | SG&A expenses | 973 | — | |||||||||||||||||
| Interest on lease liabilities | Interest expense | 4,471 | 164 | |||||||||||||||||
Variable lease cost(1) | Cost of goods sold | 43 | 13 | |||||||||||||||||
| Variable lease cost | Research and development expenses | 2 | $ | — | ||||||||||||||||
| Variable lease cost | SG&A expenses | 2,488 | $ | — | ||||||||||||||||
| Finance lease cost | 14,159 | $ | 1,183 | |||||||||||||||||
| Total lease cost | $ | 22,847 | $ | 19,893 | ||||||||||||||||
(1) Variable lease cost primarily consists of common area maintenance, such as cleaning and repairs.
Supplemental balance sheet information related to leases are:
December 31, | ||||||||||||||||||||
| (in thousands) | Balance Sheet Location | 2025 | 2024 | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Operating leases | Operating lease right-of-use assets | $ | 5,661 | $ | 123,975 | |||||||||||||||
| Finance leases, net | 103,849 | 3,817 | ||||||||||||||||||
| Total lease assets | $ | 109,510 | $ | 127,792 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current: | ||||||||||||||||||||
| Operating lease liabilities | Current portion of operating lease liabilities | $ | 2,132 | $ | 4,125 | |||||||||||||||
| Finance lease liabilities | 4,385 | 851 | ||||||||||||||||||
| Long-term: | ||||||||||||||||||||
| Operating lease liabilities | Operating lease liabilities, net of current portion | 4,059 | 73,613 | |||||||||||||||||
| Finance lease liabilities | Finance lease liabilities | 76,590 | 2,812 | |||||||||||||||||
| Total lease liabilities | $ | 87,166 | $ | 81,401 | ||||||||||||||||
The following is a schedule by year of the maturities of lease liabilities with original terms in excess of one year, as of December 31, 2025:
| December 31, 2025 | ||||||||||||||
| (in thousands) | Operating Leases | Finance Leases | ||||||||||||
| 2026 | $ | 2,308 | $ | 10,960 | ||||||||||
| 2027 | 2,003 | 9,618 | ||||||||||||
| 2028 | 923 | 9,179 | ||||||||||||
| 2029 | 630 | 9,264 | ||||||||||||
| 2030 | 505 | 9,519 | ||||||||||||
| Thereafter | 296 | 86,046 | ||||||||||||
| Total undiscounted future minimum lease payments | 6,665 | 134,586 | ||||||||||||
| Less imputed interest | (474) | (53,611) | ||||||||||||
| Total discounted future minimum lease payments | $ | 6,191 | $ | 80,975 | ||||||||||
Weighted average remaining lease terms and weighted average discount rates were:
| December 31, 2025 | ||||||||||||||
Operating Leases | Finance Leases | |||||||||||||
| Weighted average remaining lease term (years) | 3.6 | 12.7 | ||||||||||||
| Weighted average discount rate | 4.8 | % | 8.4 | % | ||||||||||
Supplemental cash flow information:
| December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 4,830 | $ | 8,656 | |||||||
| Operating lease right-of-use assets obtained in exchange for lease liabilities | $ | 1,877 | $ | 1,755 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 9, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 2, 2022 | |
| 2020 | Mar 1, 2021 | |
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.