Lucid Group, Inc.LCID
Lucid Group, Inc. Leases Disclosure
LEASES
The Company has entered into various non-cancellable operating and finance lease agreements for certain of the Company’s offices, manufacturing and warehouse facilities, retail and service locations, equipment and vehicles, worldwide. The Company has determined if an arrangement is a lease, or contains a lease, including embedded leases, at inception and records the leases in the Company’s financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.
Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Our assessed lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Certain operating leases provide for annual increases to lease payments based on an index or rate. The Company estimates the annual increase in lease payments based on the index or rate at the lease commencement date. Differences between the estimated lease payment and actual payment are expensed as incurred. Lease expense for finance lease payments is recognized as amortization expense of the finance lease ROU asset and interest expense on the finance lease liability over the lease term.
In August 2022, the Company entered into a four-year agreement (“Lease Agreement”) to lease land in Casa Grande, Arizona adjacent to our manufacturing facility. The Company classifies this lease as a finance lease because the Lease Agreement contains a purchase option which the Company is reasonably certain to exercise. As of December 31, 2025 and 2024, assets associated with the finance lease were $79.3 million. As of December 31, 2025 and 2024, liabilities associated with the finance lease were $79.4 million and $80.0 million, respectively.
Contemporaneously with the execution of the Lease Agreement, the Company entered into a sale agreement, pursuant to which the Company sold certain parcels of land for $31.7 million to the lessor and leased back these parcels of land under the Lease Agreement. The sale of the land and subsequent lease did not result in change in the transfer of control of the land; therefore, the sale-leaseback transaction is accounted for as a failed sale and leaseback financing obligation. The Company recorded $31.7 million of sales proceeds received as a financial liability within other current liabilities in the consolidated balance sheet as of December 31, 2025 and within other long-term liabilities in the consolidated balance sheet as of December 31, 2024.
The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s consolidated balance sheets (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Operating leases: | |||||||||||
| Right-of-use assets | $ | 241,974 | $ | 211,886 | |||||||
| $ | 64,171 | $ | 35,596 | ||||||||
| 225,434 | 229,835 | ||||||||||
| Total operating lease liabilities | $ | 289,605 | $ | 265,431 | |||||||
| Finance leases: | |||||||||||
| $ | 185,721 | $ | 82,823 | ||||||||
| Total finance lease assets | $ | 185,721 | $ | 82,823 | |||||||
| Finance lease liabilities, current portion | $ | 84,222 | $ | 6,788 | |||||||
| Finance lease liabilities, net of current portion | 104,559 | 76,096 | |||||||||
Total finance lease liabilities(1) | $ | 188,781 | $ | 82,884 | |||||||
(1) As of December 31, 2025, the Company recorded $95.3 million of finance lease assets and $98.9 million of finance lease liabilities related to certain facility leases assumed in connection with the assets acquisition from Nikola Corporation.
The components of lease expense were as follows within the Company’s consolidated statements of operations and comprehensive loss (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease expense: | |||||||||||||||||
Operating lease expense (1) | $ | 79,505 | $ | 62,119 | $ | 55,307 | |||||||||||
| Variable lease expense | 2,187 | 1,948 | 1,770 | ||||||||||||||
| Finance lease expense: | |||||||||||||||||
| Amortization of leased assets | $ | 6,803 | $ | 3,009 | $ | 5,252 | |||||||||||
| Interest on lease liabilities | 10,388 | 4,665 | 4,867 | ||||||||||||||
| Total finance lease expense | $ | 17,191 | $ | 7,674 | $ | 10,119 | |||||||||||
| Total lease expense | $ | 98,883 | $ | 71,741 | $ | 67,196 | |||||||||||
(1) Excluded short-term leases, which were not material.
Other information related to leases where the Company is the lessee was as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Weighted-average remaining lease term (in years): | |||||||||||
| Operating leases | 5.2 | 6.2 | |||||||||
| Finance leases | 9.9 | 1.6 | |||||||||
| Weighted-average discount rate: | |||||||||||
| Operating leases | 11.50 | % | 11.87 | % | |||||||
| Finance leases | 7.33 | % | 5.73 | % | |||||||
Supplemental cash flow information related to leases where the Company is the lessee was as follows (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 85,544 | $ | 59,131 | $ | 44,965 | |||||||||||
| Operating cash flows from finance leases (interest payments) | $ | 7,707 | $ | 5,261 | $ | 5,430 | |||||||||||
| Financing cash flows from finance leases | $ | 3,510 | $ | 3,166 | $ | 5,425 | |||||||||||
| Leased assets obtained in exchange for new operating lease liabilities | $ | 74,563 | $ | 23,111 | $ | 32,558 | |||||||||||
| Leased assets obtained in exchange for new finance lease liabilities | $ | 109,597 | $ | 1,062 | $ | — | |||||||||||
As of December 31, 2025, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands):
| Operating Leases | Finance Leases | ||||||||||
| 2026 | $ | 92,938 | $ | 94,939 | |||||||
| 2027 | 72,232 | 12,640 | |||||||||
| 2028 | 65,900 | 10,758 | |||||||||
| 2029 | 53,957 | 8,591 | |||||||||
| 2030 | 42,336 | 8,752 | |||||||||
| Thereafter | 63,833 | 179,665 | |||||||||
| Total minimum lease payments | 391,196 | 315,345 | |||||||||
| Less: Interest | (101,591) | (126,564) | |||||||||
| Present value of lease obligations | 289,605 | 188,781 | |||||||||
| Less: Current portion | (64,171) | (84,222) | |||||||||
| Long-term portion of lease obligations | $ | 225,434 | $ | 104,559 | |||||||
As of December 31, 2025, the Company entered into additional leases for facilities that have not yet commenced with undiscounted future lease payments of $27.8 million. The leases are expected to commence in 2026.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 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.