14. Leases

The Company entered into an operating lease agreement in February 2022 to lease office space in Bedford, Massachusetts (“Existing Premises”), under a lease agreement expiring in June 2031 (the “Existing Premises Lease”), and on May 4, 2023, the Company modified the Existing Premises Lease. The lease modification includes a lease of additional office and laboratory space at the Bedford location (the “Additional Premises”) for a term of 15 years and 4 months and extends the term of the lease for the Existing Premises to be coterminous with the term of the lease for the Additional Premises. On October 7, 2024, the Company executed a second amendment to the Existing Premises Lease for additional space resulting in one additional operating lease, and as of December 31, 2025, this additional operating lease has not yet commenced. On February 14, 2025, the Company executed a third amendment to the Existing Premises Lease which included finalizing the conversion of the rent schedule from gross to triple net, resulting in a reduction of the Existing Premises Lease ROU asset and lease liability by $5.8 million. The future lease payments for this lease are approximately $17.0 million. The lease is expected to commence in 2026 and has a noncancellable lease term of 13.3 years.

On March 1, 2024, the Company transferred the sublease and completed the asset sale of the Somerset Facility. See Note 7, “Property, Plan and Equipment, Net” to these consolidated financial statements for further discussion on the sublease transfer.

Operating and finance lease assets and liabilities are as follows:

 

(in thousands)

Classification

 

December 31, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

 

Operating

Other long-term assets

 

$

30,975

 

 

$

36,083

 

Finance

Property, plant and equipment, net

 

 

1,260

 

 

 

1,564

 

Total leased assets

 

 

$

32,235

 

 

$

37,647

 

Liabilities

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

Operating

Accrued expenses and other current liabilities

 

$

3,804

 

 

$

1,867

 

Finance

Current portion of long-term debt and other borrowings

 

 

738

 

 

 

974

 

Noncurrent

 

 

 

 

 

 

 

Operating

Other long-term liabilities

 

 

50,016

 

 

 

53,185

 

Finance

Long-term debt and other borrowings, net of current portion

 

 

511

 

 

 

671

 

Total leased liabilities

 

 

$

55,069

 

 

$

56,697

 

 

 

 

 

 

 

 

 

The components of lease expense were as follows:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

 

2023

 

Operating lease expense

 

$

6,138

 

 

$

6,391

 

 

$

4,627

 

Finance lease expense

 

 

 

 

 

 

 

 

 

Amortization of ROU assets

 

 

1,103

 

 

 

962

 

 

 

795

 

Interest on lease liabilities

 

 

85

 

 

 

96

 

 

 

81

 

Total lease expense

 

$

7,326

 

 

$

7,449

 

 

$

5,503

 

 

Other information related to leases is as follows:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Weighted-average remaining lease term (years):

 

 

 

 

 

 

Operating leases

 

 

11.2

 

 

 

13.1

 

Finance leases

 

 

1.8

 

 

 

1.9

 

Weighted-average discount rate:

 

 

 

 

 

 

Operating leases

 

 

7.5

%

 

 

7.5

%

Finance leases

 

 

5.5

%

 

 

6.0

%

 

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

2,289

 

 

$

4,540

 

Operating cash flows from finance leases

 

$

85

 

 

$

96

 

Financing cash flows from finance leases

 

$

1,106

 

 

$

318

 

Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows:

 

(in thousands)

 

Operating Leases

 

 

Finance Leases

 

2026

 

$

7,163

 

 

$

782

 

2027

 

 

8,565

 

 

 

424

 

2028

 

 

7,986

 

 

 

100

 

2029

 

 

7,205

 

 

 

 

2030

 

 

6,544

 

 

 

 

Thereafter

 

 

48,686

 

 

 

 

Total future minimum lease payments

 

 

86,149

 

 

 

1,306

 

Less: interest

 

 

32,330

 

 

 

57

 

Total

 

$

53,819

 

 

$

1,249

 

 

 

 

 

 

 

 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 26, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 25, 2020

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.