RECURSION PHARMACEUTICALS, INC.RXRX

RECURSION PHARMACEUTICALS, INC. Leases Disclosure

10-KFiled Feb 25, 20263 min read
Leases
The Company has entered into various long-term real estate operating leases primarily related to office, research and development, operating activities and an equipment financing lease related to the supercomputer. The Company’s leases have remaining terms from under one year to seven years and some of those leases include options that provide Recursion with the ability to extend the lease term, generally for five years. The options are included in the lease term when it is reasonably certain that the option will be exercised.

For the year ended December 31, 2025, Recursion entered into lease modifications and terminations resulting in a decrease to the right-of-use asset and lease liability of $10.1 million. The modifications had no impact to the Consolidated Statements of Operations. This impact included the lease surrender of the Vienna facilities of Exscientia GmbH in March 2025, which resulted in a $5.2 million reduction to both the right-of-use asset and lease liability. In connection with this surrender, the Company also incurred a lease termination fee of $5.2 million, which was classified as “Other income (loss), net” on the Consolidated Statement of Operations. Additionally, the Company entered into a lease modification related to the Schrodinger leases to decrease the lease terms, which now ended during the second quarter of 2025. This resulted in a decrease to both the right-of-use asset and lease liability by $4.9 million. As a part of the lease modifications and termination, Recursion recorded leasehold impairments of $6.0 million.

For the year ended December 31, 2024, Recursion entered into lease modifications resulting in a decrease to the right-of-use assets and lease liabilities of $3.1 million. The modifications had no impact to the Consolidated Statements of Operations. For the year ended December 31, 2024, Recursion entered into finance lease additions resulting in an increase to the right-of-use asset and lease liability of $30.3 million.

The components of the lease cost were as follows:

Years ended December 31,
(in thousands)202520242023
Operating lease cost
$16,086 $12,078 $8,144 
Finance lease cost:
Amortization of leased assets
6,063 4,042 — 
Interest on lease liabilities
1,744 1,487 — 
Variable lease cost
3,936 3,330 2,116 
Short-term lease cost
249 208 139 
Total lease cost
$28,078 $21,145 $10,399 
Supplemental balance sheet information related to leases were:

(in thousands)
December 31, 2025December 31, 2024
Assets
Operating lease right-of-use assets$45,339$65,877
Financing lease right-of-use assets20,21026,273
Total lease right-of-use assets
$65,549$92,150
Liabilities
Current liabilities
Financing lease liabilities$8,967$8,311
Operating lease liabilities
12,66313,795
Total current lease liabilities
21,63022,106
Non-current liabilities
Financing lease liabilities, non-current9,37118,338
Operating lease liabilities, non-current46,64767,250
Total non-current lease liabilities
56,01885,588
Total lease liabilities$77,648$107,694

Supplemental cash flow information related to leases were:

Years ended December 31,
(in thousands)
202520242023
Cash paid for amount included in the measurement of lease liabilities:
Operating cash flows from operating leases
$18,244 $14,095 $9,862 
Operating cash flows from financing leases
1,744 1,487 — 
Financing cash flows from financing leases
8,311 3,666 — 
Right-of-use assets additions, modifications and terminations:
Operating leases
$(10,084)$19,455 $4,968 
Financing leases
— 30,315 — 

Lease term and discount rates were:

Years ended December 31,
(in thousands)
20252024
Operating leases
Weighted-average remaining lease term (years)4.15.3
Weighted-average discount rate7.9%7.7%
Finance leases
Weighted-average remaining lease term (years)1.62.6
Weighted-average discount rate7.6 %7.6 %
Maturities of operating lease liabilities as of December 31, 2025 were:


(in thousands)
Operating leases
Finance leases
202617,467 10,055 
202717,827 9,707 
202815,171 — 
20298,201 — 
2030
6,315 
Thereafter7,702 — 
Total lease payments72,683 19,762 
Less: imputed interest(13,373)(1,424)
Present value of lease liabilities$59,310 $18,338 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Feb 27, 2023

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.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsCommitmentsStock CompensationNew StandardsPay vs Performance