Krystal Biotech, Inc.KRYS

Krystal Biotech, Inc. Leases Disclosure

10-KFiled Feb 17, 20261 min read
Leases
Lease Agreements
The Company’s operating leases primarily consist of leased office, manufacturing and laboratory space. The Company has an operating lease for laboratory and office space in Pittsburgh, Pennsylvania that commenced in June 2016 (the “Wharton Lease”). The Wharton Lease currently consists of approximately 67,000 square feet of office, lab, manufacturing, and warehouse space, including our commercial scale CGMP-compliant manufacturing facility (“ANCORIS”) for a term ending on October 31, 2031.
In January 2021, in connection with the Company’s second commercial gene therapy manufacturing facility (“ASTRA”) in the Pittsburgh, Pennsylvania area, the Company entered into a ground lease with a term ending on January 31, 2071.
As of December 31, 2025, future minimum commitments under the Company’s operating leases were as follows:
(in thousands)
December 31, 2025
2026$1,864 
20271,919 
20281,954 
20291,990 
2030
2,016 
Thereafter7,279 
Future minimum operating lease payments17,021 
Less: Interest(7,682)
Present value of lease liability$9,339 
As of December 31, 2025 and 2024, the Company's weighted-average remaining lease term for operating leases was 10.1 years and 12.2 years, respectively, and the Company’s weighted-average discount rate for operating leases was 9.7% and 9.5% as of December 31, 2025 and 2024, respectively.
The components of the Company's lease expense are as follows:
 Years Ended December 31,
(in thousands)202520242023
Lease cost:
Operating lease expense$1,594 $1,215 $1,596 
Variable lease expense226 210 203 
Total lease expense$1,820 $1,425 $1,799 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 19, 2025
2023Feb 26, 2024
2022Feb 27, 2023

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

Income TaxesRevenueEarnings Per ShareFair ValuePP&ESegmentsCommitmentsStock CompensationNew StandardsPay vs Performance