Leases

The Company enters into various building leases for office, lab and other uses. Additionally, certain of the Company’s arrangements to utilize data centers represent a lease. These leases are generally considered operating leases. The Company is obligated to make total fixed payments over the lease terms. Some of these arrangements include options to extend the leases. The Company determined that given the length of time between lease commencement and the renewal period, and the uncertainty of business and market conditions in the future, it is not reasonably certain that the renewal options will be exercised.

The Company has also entered into various information technology equipment leases. Certain of these leases are classified as operating leases and others are classified as finance leases, based on the terms of each lease arrangement.

Lease assets and liabilities are reflected in the Company's consolidated balance sheets as follows:


		As of December 31,
Leases	Consolidated balance sheet line item	2025		2024

		(amounts in thousands)
Assets
Operating leases	Other assets	$	39,848	$	34,950
Finance leases	Property and equipment, net	322		40
Total lease assets		$	40,170	$	34,990

Liabilities
Current
Operating leases	Accrued expenses and other current liabilities	$	6,359	$	6,080
Finance leases	Current portion of indebtedness	169		90
Total current lease liabilities		$	6,528	$	6,170
Non-current
Operating leases	Other long-term liabilities	$	42,335	$	38,651
Finance leases	Long-term indebtedness, net of debt discounts	373		243
Total non-current lease liabilities		42,708		38,894
Total lease liabilities		$	49,236	$	45,064

Total lease cost reflected in the consolidated statements of operations and other comprehensive loss were as follows:


		Years Ended December 31,
Lease cost	Consolidated statement of operations and comprehensive loss line item	2025		2024		2023

		(amounts in thousands)
Operating lease cost	Cost of Services - Molecular profiling services	$	1,849	$	1,607	$	1,935
Operating lease cost	Cost of Services - Pharma research and development services	21		40		13
Operating lease cost	General and administrative expense	6,852		6,738		8,037
Operating lease cost	Research and development expense	2,026		2,416		2,116
Finance lease cost:
Amortization of ROU assets	General and administrative expense	81		128		500
Interest on lease liabilities	Interest expense	37		37		78
Total finance lease cost		$	118	$	165	$	578

The table below presents additional information related to the Company’s leases:


	As of December 31,
	2025		2024
Weighted average remaining lease terms
Operating leases	7.31 years		8.04 years
Finance leases	3.12 years		3.28 years
Weighted average discount rate
Operating leases	11.3	%	11.3	%
Finance leases	10.5	%	10.0	%

Short-term lease costs and variable lease costs were immaterial for the years ended December 31, 2025, 2024 and 2023. As of December 31, 2025, the Company did not have any additional operating and finance leases that had not yet commenced, except for the below.

The following table sets forth by year, maturities of operating and finance lease liabilities as of December 31, 2025:


(amounts in thousands)	Operating Leases		Finance Leases		Total
Years Ended December 31,
2026	$	11,333	$	215	$	11,548
2027	10,267		213		10,480
2028	9,203		132		9,335
2029	8,588		72		8,660
2030	8,791		—		8,791
Thereafter	24,213		—		24,213
Total lease payments	72,395		632		73,027
Less imputed interest	(23,701)		(90)		(23,791)
Present value of lease liabilities	$	48,694	$	542	$	49,236

Total lease payments exclude $17.6 million of legally binding minimum lease payments for leases signed but not yet commenced.

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.

Caris Life Sciences, Inc. Leases Disclosure

About Leases Disclosures

Other Available Disclosures