Leases

The Company leases certain office facilities and equipment under non-cancelable operating leases with remaining terms from less than one to nine years.

Operating lease ROU assets are included in other assets in the consolidated balance sheets. With respect to operating lease liabilities, current operating lease liabilities are included in current liabilities and non-current operating lease liabilities are included in long-term liabilities in the consolidated balance sheets.

The following table presents information about the operating lease right-of-use assets and lease liabilities as well as lease term and discount rates:


Lease right-of-use assets, lease liabilities, lease term and discount rate:	December 31, 2025		December 31, 2024

	(In thousands)
Lease right of use assets
Operating leases	$	11,939	$	13,841
	$	11,939	$	13,841
Lease liabilities
Current
Operating leases	$	3,920	$	5,306
Noncurrent
Operating leases	8,438		11,166
	$	12,358	$	16,472


	For the year ended December 31, 2025		For the year ended December 31, 2024
Weighted-average remaining lease term (years):
Operating leases	5.8		5.4
Weighted-average discount rate:
Operating leases	5.8	%	5.5	%

The components of total lease cost were as follows:


	December 31, 2025		December 31, 2024

	(In thousands)
Operating lease cost	$	4,602	$	5,454
Short-term lease cost	534		453
Variable lease cost	1,115		(7)
Sublease income	(314)		(217)
Total lease cost	$	5,937	$	5,683

Supplemental cash flow and non-cash flow information was as follows:


	December 31, 2025		December 31, 2024

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,983	$	4,684
Financing cash flows from finance leases	$	—	$	—
Right-of-use assets obtained in exchange for new and remeasured operating leases	$	1,037	$	5,912
Right-of-use assets obtained through acquisition	$	—	$	2,052

The following table summarizes by year the maturities of our minimum lease payments as of December 31, 2025.


	LEASES

	(In thousands)
Year ending December 31,
2026	$	4,125
2027	3,116
2028	1,301
2029	1,180
2030	1,100
Thereafter	4,108
Total future lease payments	14,930
Less: imputed interest	(2,572)
Total	$	12,358

Lease abandonment

For the year ended December 31, 2024, the Company recorded lease abandonment expense of $1,219 and reduced the lease ROU assets for the same amount in connection with the evaluation of the Company's office space footprint. For the year ended December 31, 2025, the Company recorded a net lease abandonment gain of $830, net of the associated termination fee, and derecognized the related lease liabilities in connection with the termination of a lease contract. The abandonment gain and expense are included within the general and administrative expenses in the Company's consolidated statements of operations and comprehensive income (loss).

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.

Certara, Inc. Leases Disclosure

About Leases Disclosures

Other Available Disclosures