Virgin Galactic Holdings, Inc Leases Disclosure
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In thousands) | ||||||||||||||
| Operating lease cost | $ | 13,173 | $ | 13,496 | ||||||||||
| Variable lease cost | 2,654 | 3,842 | ||||||||||||
| Short-term lease cost | — | 22 | ||||||||||||
| Finance lease cost: | ||||||||||||||
Amortization of assets under finance leases | 221 | 223 | ||||||||||||
| Interest on finance lease liabilities | 60 | 68 | ||||||||||||
| Total finance lease cost | 281 | 291 | ||||||||||||
| Total lease cost | $ | 16,108 | $ | 17,651 | ||||||||||
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In thousands, except term and rate data) | ||||||||||||||
| Cash Flow Information: | ||||||||||||||
| Operating cash flows for operating leases | $ | 13,719 | $ | 13,215 | ||||||||||
| Operating cash flows for finance leases | $ | 60 | $ | 68 | ||||||||||
Financing cash flows for finance leases | $ | 211 | $ | 193 | ||||||||||
| Non-cash Activity: | ||||||||||||||
| Assets acquired in exchange for lease obligations: | ||||||||||||||
| Operating leases | $ | 3,247 | $ | 5,408 | ||||||||||
| Finance leases | $ | 101 | $ | 51 | ||||||||||
| Adjustment to operating lease right-of-use assets from lease modification | $ | (18,900) | $ | — | ||||||||||
| Other Information: | ||||||||||||||
Weighted-average remaining lease term: | ||||||||||||||
| Operating leases (in years) | 6.9 | 8.7 | ||||||||||||
| Finance leases (in years) | 2.1 | 2.6 | ||||||||||||
Weighted-average discount rates: | ||||||||||||||
| Operating leases | 12.4 | % | 12.2 | % | ||||||||||
| Finance leases | 13.8 | % | 13.3 | % | ||||||||||
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In thousands) | ||||||||||||||
| Operating Leases: | ||||||||||||||
| $ | 36,882 | $ | 58,039 | |||||||||||
| Short-term operating lease liabilities | $ | 8,475 | $ | 5,604 | ||||||||||
| Long-term operating lease liabilities | 42,279 | 67,394 | ||||||||||||
| Total operating lease liabilities | $ | 50,754 | $ | 72,998 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 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.