Twist Bioscience CorpTWST

Twist Bioscience Corp Leases Disclosure

10-KFiled Nov 17, 20252 min read
Leases
The Company leases certain of its facilities under non-cancellable operating leases expiring at various dates through 2044. The Company is also responsible for utilities, maintenance, insurance, and property taxes under these leases. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms, as well as payments for common-area-maintenance and administrative services. We often receive customary incentives from our landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. We do not have any material financing leases.
Certain leases include options to renew or terminate at the Company’s discretion. The lease terms include periods covered by these options if it is reasonably certain the Company will renew or not terminate. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants.
As part of the sale of DNA data storage business, the Company subleased specific office and lab space to Atlas in South San Francisco (see note 6).
Future minimum lease payments and sublease income under all non-cancelable operating leases as of September 30, 2025 are as follows:
(in thousands)Operating
leases		Sublease income
Years ending September 30:
2026$13,963 $1,918 
20278,4501,975
20288,5102,035
20296,609—
20306,787—
Thereafter74,618—
Total minimum lease payments $118,937 $5,928 
Less: imputed interest(43,365)
Total operating lease liabilities$75,572 
Less: current portion(13,822)
Operating lease liabilities, net of current portion$61,750 
The components of lease expense and supplemental information were as follows:
September 30,
(in thousands except years and percentage)20252024
Operating lease costs$15,127 $15,637 
Variable lease costs8,656 7,724 
Sublease income1,068 — 
Weighted-average remaining lease term (in years) - operating leases15.18 years15.21 years
Weighted-average discount rate - operating leases6.49 %6.52 %
Supplemental cash flow information related to leases are as follows:
September 30,
(in thousands)20252024
Cash payments included in the measurement of operating lease liabilities
$14,853 $14,707 

Historical Timeline

Fiscal YearFiled
2025Nov 17, 2025Showing above
2024Nov 18, 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.

Other Available Disclosures

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