Phathom Pharmaceuticals, Inc. Leases Disclosure
4. Lease Commitments
As of December 31, 2025, the Company had operating leases for office space in both Buffalo Grove, Illinois and Florham Park, New Jersey, with weighted average remaining lease terms of 4.5 years and 5.2 years, respectively. In September 2025, the Company entered into amendments to its lease agreements for the New Jersey office space to extend the terms of the leases through February 2031. All operating leases contain an option to extend the term for one additional five year period, which was not considered in the determination of the right-of-use asset or lease liability as the Company did not consider it reasonably certain that it would exercise such options.
The total rent expense for the years ended December 31, 2025 and 2024 was approximately $1.0 million and $1.1 million, respectively. Total short-term lease costs relating to leased vehicles was approximately $6.9 million and $8.8 million for the years ended December 31, 2025 and 2024, respectively.
As of December 31, 2025, the future minimum annual lease payments under the operating leases were as follows (in thousands):
Year ending December 31: |
|
|
|
|
2026 |
|
$ |
686 |
|
2027 |
|
|
719 |
|
2028 |
|
|
736 |
|
2029 |
|
|
753 |
|
2030 |
|
|
702 |
|
Thereafter |
|
|
100 |
|
Total minimum lease payments |
|
|
3,696 |
|
Less: amount representing interest |
|
|
(983 |
) |
Present value of operating lease liabilities |
|
|
2,713 |
|
Less: operating lease liabilities, current |
|
|
(648 |
) |
Operating lease liabilities, non-current |
|
$ |
2,065 |
|
|
|
|
|
|
Weighted-average remaining lease term (in years) |
|
|
4.99 |
|
Weighted-average incremental borrowing rate |
|
|
13.83 |
% |
Operating cash flows for the years ended December 31, 2025 and 2024 included cash payments for operating leases of $0.7 million and $1.0 million, respectively, of which $0.1 million as of December 31, 2024 were prepaid lease payments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | Mar 19, 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.