Tempus AI, Inc. Leases Disclosure
The Company has entered into various non-cancelable operating lease agreements, primarily for the rent of office and lab space, with expirations at various dates through 2036. Lease cost is recognized on a straight-line basis over the lease term. Variable lease costs, which include items such as real estate taxes, common area maintenance, utilities, and storage are not included in the calculation of the right-of-use assets and are recognized as incurred.
The components of total lease costs for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands):
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost |
$ |
11,554 |
|
|
$ |
6,047 |
|
|
$ |
6,760 |
|
Variable lease cost |
|
8,054 |
|
|
|
6,067 |
|
|
|
4,641 |
|
Short-term lease costs |
|
1,148 |
|
|
|
688 |
|
|
|
441 |
|
Sublease income |
|
(630 |
) |
|
|
(90 |
) |
|
|
(52 |
) |
Finance lease cost |
|
|
|
|
|
|
|
|
|||
Amortization of right-of-use assets |
|
— |
|
|
|
— |
|
|
|
283 |
|
Interest on lease liabilities |
|
— |
|
|
|
— |
|
|
|
5 |
|
Total lease costs |
$ |
20,126 |
|
|
$ |
12,712 |
|
|
$ |
12,078 |
|
Lease term and discount rate as of December 31, 2025 and 2024 are as follows:
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
Weighted-average remaining lease term (in years) |
|
|
|
|
|
||
Operating leases |
|
7.0 |
|
|
|
5.1 |
|
Weighted-average discount rate |
|
|
|
|
|
||
Operating leases |
|
6.1 |
% |
|
|
6.8 |
% |
As of December 31, 2025, the future payments under operating leases for each of the next five years and thereafter are as follows (in thousands):
|
Operating Leases |
|
|
2026 |
|
13,328 |
|
2027 |
|
17,823 |
|
2028 |
|
16,570 |
|
2029 |
|
14,970 |
|
2030 |
|
12,504 |
|
Thereafter |
|
34,890 |
|
Total minimum lease payments |
|
110,085 |
|
Less: Amount representing interest |
|
22,458 |
|
Present value of net minimum lease payments |
|
87,627 |
|
Less: Current portion of lease liabilities |
|
13,355 |
|
Total long-term lease liabilities |
$ |
74,272 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
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.