FTC Solar, Inc. Leases Disclosure
Note 8. Leases
We lease office and warehouse space in various locations, including in the United States, India and Australia. Additionally, we lease space for an applications laboratory in Austin, Texas and research and development facilities in both Seguin, Texas and India. Apart from our acquisition of Alpha Steel, and the related sublease we have on the Alpha Steel facility, the remainder of our manufacturing is outsourced to contract manufacturing partners, and we currently do not own or lease any other manufacturing facilities.
We utilized a weighted average discount rate of approximately 10% in establishing our operating lease ROU assets and liabilities at lease inception. At December 31, 2025, our weighted average remaining lease term for our operating leases was approximately 2.5 years.
Our expense for our operating leases consisted of the following:
|
|
Year ended December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Operating lease cost |
|
$ |
1,166 |
|
|
$ |
1,123 |
|
Short-term lease cost |
|
|
386 |
|
|
|
390 |
|
Total lease cost |
|
$ |
1,552 |
|
|
$ |
1,513 |
|
|
|
|
|
|
|
|
||
Reported in: |
|
|
|
|
|
|
||
Cost of revenue |
|
$ |
858 |
|
|
$ |
881 |
|
Research and development |
|
|
74 |
|
|
|
91 |
|
Selling and marketing |
|
|
88 |
|
|
|
126 |
|
General and administrative |
|
|
532 |
|
|
|
415 |
|
Total lease cost |
|
$ |
1,552 |
|
|
$ |
1,513 |
|
Future remaining operating lease payment obligations were as follows:
(in thousands) |
|
December 31, |
|
|
2026 |
|
|
535 |
|
2027 |
|
|
482 |
|
2028 |
|
|
94 |
|
2029 |
|
|
57 |
|
2030 |
|
|
24 |
|
Total lease payments |
|
|
1,192 |
|
Less: imputed interest |
|
|
(235 |
) |
Present value of operating lease liabilities |
|
$ |
957 |
|
|
|
|
|
|
Current portion of operating lease liability |
|
$ |
404 |
|
Operating lease liability, net of current portion |
|
|
553 |
|
Present value of operating lease liabilities |
|
$ |
957 |
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 21, 2022 | |
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.