Note 15. Leases
During the year ended December 31, 2025, the Company acquired certain leases through the acquisition of Akoya and did not enter into any material leases. At December 31, 2025, the Company had no additional leases which had not yet commenced. Substantially all of the Company’s leases are located in North America.
The Company has leased facilities, including leases acquired in acquisitions, that are vacant and are not used in its operations. At the point a decision is made to stop use of a leased facility, the Company moves the related ROU asset and leasehold improvements into their own asset group and performs quarterly impairment assessments. The impairment analyses evaluate the present value of net cash flows under the original leases and the estimated cash flows under an estimated sublease and considered industry and economic factors such as rental rates, interest rates, and recent real estate activities to estimate the net cash flows analysis and impairment amount. These assessments indicated the ROU asset for certain facilities were fully impaired, which resulted in the Company recording an impairment charge of $1.4 million during the year ended December 31, 2025. During the year ended December 31, 2024, the Company did not record any
lease related impairments. During the year ended December 31, 2023, the Company recorded a $1.3 million impairment charge related to unused ROU assets and leasehold improvements.
The components of the lease costs and supplemental cash flow information relating to the Company's leases were as follows (in thousands): | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 5,970 | | | $ | 4,949 | | | $ | 5,209 | |
| Short-term and variable lease cost | 5,692 | | | 4,359 | | | 3,996 | |
| Total operating lease cost | $ | 11,662 | | | $ | 9,308 | | | $ | 9,205 | |
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 9,887 | | | $ | 8,554 | |
| Weighted average remaining lease term - operating leases (in years) | 4.4 | | 5.8 |
| Weighted average discount rate - operating leases | 7.71 | % | | 7.92 | % |
The undiscounted future lease payments for non-cancelable operating leases as of December 31, 2025 were as follows (in thousands):
| | | | | |
| Maturity of lease liabilities as of December 31, 2025 | Operating Leases |
| 2026 | $ | 10,205 | |
| 2027 | 8,952 | |
| 2028 | 8,395 | |
| 2029 | 8,570 | |
| 2030 | 7,028 | |
| Thereafter | 695 | |
| Total lease payments | 43,845 | |
| Less imputed interest | (6,606) | |
| Total operating lease liabilities | $ | 37,239 | |
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.