LeasesAll of the Company's facilities, including office, laboratory and manufacturing space, are occupied under long-term non-cancelable lease arrangements with various expiration dates through 2038, some of which include options to extend up to 20 years. The Company does not have any leases that include residual value guarantees.
The following table presents supplemental balance sheet information related to the Company's leases as of the periods presented below (in thousands):
| | | | | | | | | | | | | | | | | |
| Line Item in the Consolidated Balance Sheets | | December 31, 2025 | | December 31, 2024 |
| Right-of-use assets | | | | | |
| Finance leases | Property and equipment, net | | $ | 64,740 | | | $ | 70,061 | |
| Operating leases | Other assets | | 39,260 | | | 52,551 | |
| Total right-of-use assets | | $ | 104,000 | | | $ | 122,612 | |
| | | | | |
| Current lease liabilities | | | | | |
| Finance leases | Accrued expenses and other current liabilities | | $ | 966 | | | $ | 792 | |
| Operating leases | Accrued expenses and other current liabilities | | 7,795 | | | 7,481 | |
| Total current lease liabilities | | $ | 8,761 | | | $ | 8,273 | |
| | | | | |
| Non-current lease liabilities | | | | | |
| Finance leases | Finance lease liabilities, less current portion | | $ | 30,141 | | | $ | 31,106 | |
| Operating leases | Other long-term liabilities | | 34,035 | | | 41,381 | |
| Total non-current lease liabilities | | $ | 64,176 | | | $ | 72,487 | |
The components of the net lease costs reflected in the Company's consolidated statements of operations were as follows for the periods presented (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Finance lease costs: | | | | | |
| Depreciation of leased assets | $ | 5,320 | | | $ | 5,321 | | | $ | 3,217 | |
| Interest on lease liabilities | 2,636 | | | 2,695 | | | 1,696 | |
| Total finance lease costs | 7,956 | | | 8,016 | | | 4,913 | |
| | | | | |
| Operating lease costs | 12,108 | | | 12,003 | | | 12,417 | |
| Variable lease costs | 3,965 | | | 3,709 | | | 3,940 | |
| Total lease costs | $ | 24,029 | | | $ | 23,728 | | | $ | 21,270 | |
The weighted average remaining lease term and weighted average discount rate related to the Company's ROU assets and lease liabilities for its leases were as follows as of the periods presented below:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted average remaining lease term (in years): | | | |
| Finance leases | 12.2 | | 13.2 |
| Operating leases | 5.9 | | 6.6 |
| | | |
| Weighted average discount rate: | | | |
| Finance leases | 8.4 | % | | 8.4 | % |
| Operating leases | 6.7 | % | | 6.8 | % |
Supplemental information concerning the cash flow impact arising from the Company's leases recorded in the Company's consolidated statements of cash flows is detailed in the following table for the periods presented (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in lease liabilities: | | | | | |
| Financing cash flows used for finance leases | $ | 791 | | | $ | 633 | | | $ | 332 | |
| Operating cash flows used for finance leases | 2,636 | | | 2,695 | | | 1,696 | |
| Operating cash flows used for operating leases | 10,637 | | | 10,224 | | | 10,306 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
As of December 31, 2025, the Company expects that its future minimum lease payments will become due and payable as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Finance Leases | | Operating Leases | | Total |
| 2026 | $ | 3,530 | | | $ | 10,474 | | | $ | 14,004 | |
| 2027 | 3,636 | | | 9,010 | | | 12,646 | |
| 2028 | 3,745 | | | 9,128 | | | 12,873 | |
| 2029 | 3,857 | | | 9,489 | | | 13,346 | |
| 2030 | 3,973 | | | 5,246 | | | 9,219 | |
| Thereafter | 32,527 | | | 11,321 | | | 43,848 | |
| Total minimum lease payments | 51,268 | | | 54,668 | | | 105,936 | |
| Less: interest | (20,161) | | | (12,838) | | | (32,999) | |
| Total lease liabilities | $ | 31,107 | | | $ | 41,830 | | | $ | 72,937 | |
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.