LifeStance Health Group, Inc. Leases Disclosure
NOTE 5 LEASES
The Company leases its office facilities and office equipment which are accounted for as operating leases. Some leases contain clauses for renewal at the Company's option with renewal terms that generally extend the lease term from to seven years.
The components of lease expense for the Company's operating leases in its consolidated statements of operations and comprehensive income (loss) were as follows:
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|
Year Ended December 31, |
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2025 |
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|
2024 |
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|
2023 |
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Operating lease costs |
|
$ |
56,923 |
|
|
$ |
55,070 |
|
|
$ |
56,677 |
|
Variable lease costs and short-term lease costs were not material.
The weighted-average remaining lease term and discount rate for operating lease liabilities included in the consolidated balance sheets are as follows:
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December 31, |
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|
|
2025 |
|
|
2024 |
|
||
Weighted-average remaining lease term (in years) |
|
|
4.2 |
|
|
|
4.1 |
|
Weighted-average discount rate |
|
|
7.76 |
% |
|
|
7.50 |
% |
Supplemental cash flow information related to operating leases was as follows:
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|
Year Ended December 31, |
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|
|
2025 |
|
|
2024 |
|
|
2023 |
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|||
Cash paid for amounts included in the measurement of |
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|
|
|
|
|
|
|
|
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Operating cash flows from operating leases |
|
$ |
66,532 |
|
|
$ |
64,851 |
|
|
$ |
63,363 |
|
Noncash lease activity |
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|
|
|
|
|
|
|
|
|||
Right-of-use lease assets obtained in exchange for new |
|
$ |
44,208 |
|
|
$ |
17,018 |
|
|
$ |
16,020 |
|
The future minimum lease payments under noncancellable operating leases as of December 31, 2025 are as follows:
Year Ended December 31, |
|
Amount |
|
|
2026 |
|
$ |
58,911 |
|
2027 |
|
|
57,832 |
|
2028 |
|
|
45,197 |
|
2029 |
|
|
29,877 |
|
2030 |
|
|
19,214 |
|
Thereafter |
|
|
19,484 |
|
Total lease payments |
|
$ |
230,515 |
|
Less: imputed interest |
|
|
(36,418 |
) |
Total lease liabilities |
|
$ |
194,097 |
|
Real Estate Optimization and Restructuring Charges
In 2023, the Company announced a strategic re-focus, to prioritize resources and close certain centers as a direct result of changes to the Company's business model driven by a shift to more virtual visits initiated by the COVID-19 pandemic. During the year ended December 31, 2023, the Company substantially completed a significant reduction in physical space and exited several underoccupied offices by both negotiating terminations of and abandoning certain real estate leases. The Company accounts for real estate optimization restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations and ASC 360-10, Property, Plant, and Equipment. The costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive income (loss).
During the year ended December 31, 2023, the Company recorded $10,970 of office space reductions, including primarily of $4,734 of right-of-use asset impairment, $4,618 of property and equipment disposal and impairment costs, and $2,419 of gains related to early lease terminations. The portion of these amounts to be settled by cash disbursements was accounted for as an exit cost liability within other current liabilities and other noncurrent liabilities within the consolidated balance sheets and are not material as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 9, 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.