Roivant Sciences Ltd.ROIV

Roivant Sciences Ltd. Leases Disclosure

10-KFiled May 29, 20252 min read
Note 11—Leases


The Company’s operating leases consist primarily of real estate leases, including those entered into by certain wholly owned and majority-owned or controlled subsidiaries of RSL.


In September 2024, the Company’s subsidiary, Roivant Sciences, Inc. (“RSI”), entered into a lease agreement with One Penn Plaza LLC for office space in New York, NY to serve as the future U.S. corporate headquarters of RSI (the “One Penn Lease”). The One Penn Lease commenced in December 2024 and will expire in August 2041. The lease contains an option to early terminate in August 2036 and an option to extend the term for one additional period of 5 years or 10 years at then-market rates in August 2041. The options to early terminate or extend the lease term were not included in the lease term as it was not reasonably certain that they would be exercised at lease commencement. The lease is classified as an operating lease and includes a period of free rent and tenant improvement incentives. Upon lease commencement, the Company recognized an operating right-of-use asset and lease liability of approximately $49.1 million, net of lease incentives received.


The components of operating lease expense for the Company were as follows (in thousands):

   
Years Ended March 31,
  
    2025
   
2024
    
2023
  
Operating lease cost
   $
11,632    
$
10,648
    
$
10,879
  
Short-term lease cost
     514      
64
      
193
  
Variable lease cost
     1,344      
1,107
      
2,099
  
Total operating lease cost
   $
 13,490
    
$
11,819
    
$
13,171
  


Information related to the Company’s operating lease right-of-use assets and lease liabilities was as follows (in thousands, except periods and percentages):

   
Years Ended March 31,
  
     2025
  
2024
  
2023
  
Cash paid for operating lease liabilities
   $
10,263
  
$
11,561
  
$
11,684
  
Operating lease right-of-use assets obtained in exchange for operating lease liabilities
   $
 51,364
  
$
719
  
$
4,224
  

    March 31, 2025    
March 31, 2024
    
March 31, 2023
  
Weighted average remaining lease term (in years)
     11.7
       8.0       8.7  
Weighted average discount rate
     7.4 %     7.1 %     7.7 %


As of March 31, 2025, maturities of operating lease liabilities were as follows (in thousands):


Years Ending March 31,
  
 
2026
  
$
10,321
  
2027
    
11,345
  
2028
    
15,140
  
2029
    
15,564
  
2030
    
14,834
  
Thereafter
    
109,402
  
Total lease payments
    
176,606
  
Less: present value adjustment
    
(67,119
)
Less: tenant improvement allowance
    
(9,317
)
Total lease liabilities
  
$
100,170
  
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Historical Timeline

Fiscal YearFiled
2025May 29, 2025Showing above
2024May 30, 2024

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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