Option Care Health, Inc.OPCH

Option Care Health, Inc. Leases Disclosure

10-KFiled Feb 24, 20261 min read
LEASES
During the years ended December 31, 2025, 2024, and 2023, the Company incurred operating lease expenses of $35.1 million, $32.7 million, and $30.6 million, respectively, including short-term lease expenses, which were included as a component of selling, general and administrative expenses in the consolidated statements of comprehensive income. As of December 31, 2025 and 2024, the weighted-average remaining lease term was 6.5 years and the weighted-average discount rate was 6.97% and 6.56%, respectively.
Operating leases mature as follows (in thousands):
Fiscal Year Ended December 31,Minimum Payments
2026$30,992 
202725,828 
202819,042 
202914,248 
203011,061 
Thereafter41,711 
Total lease payments142,882 
Less: interest(30,367)
Present value of lease liabilities$112,515 
During the years ended December 31, 2025, 2024, and 2023, the Company commenced new leases, extensions and amendments, resulting in non-cash operating activities in the consolidated statements of cash flows of $27.1 million, $25.0 million, and $30.5 million, respectively, related to the increases in the operating lease ROU asset and operating lease liabilities. As of December 31, 2025, the Company did not have any significant operating or financing leases that had not yet commenced.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 26, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 23, 2022
2020Mar 11, 2021
2019Mar 5, 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.

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