Commitments and Contingencies
Operating Leases
The Company leases office and laboratory facilities in the United States, including in South San Francisco and San Diego, California and Austin, Texas, and leases certain equipment under various non-cancelable lease agreements. Effective August 2025, in connection with the restructuring proceeding in Veracyte SAS, the Company is no longer a party to its lease in Marseille, France. The lease terms of the Company’s leases as of December 31, 2025 extend to March 2040 and contain extension of lease term and expansion options. The leases have a weighted average remaining lease term of 11.2 years as of December 31, 2025. The Company had deposits of $1.6 million and $1.5 million included in long-term assets as of December 31, 2025 and 2024, respectively, restricted from withdrawal and held by banks in the form of collateral for irrevocable standby letters of credit held as security for the leases.
The Company determined its operating lease liabilities using payments through their current expiration dates and a weighted average discount rate of 11.4% based on the rate that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment. Operating lease liabilities along with the associated ROU assets are disclosed in the accompanying consolidated balance sheets. After the adoption of ASC 842, Leases,
the Company classified its deferred rent for tenant improvements with its operating lease ROU assets on the consolidated balance sheets.
Future minimum lease payments under non-cancelable operating leases as of December 31, 2025 are as follows (in thousands of dollars):
| | | | | |
| Year Ending December 31, | Amounts |
| 2026 | $ | 4,314 | |
| 2027 | 6,999 | |
| 2028 | 7,173 | |
| 2029 | 6,858 | |
| 2030 | 7,055 | |
| Thereafter | 40,406 | |
| Total future minimum lease payments | 72,805 | |
| Less: amount representing interest | 33,151 | |
| Present value of future lease payments | 39,654 | |
| Less: short-term lease liabilities | 4,051 | |
| Long-term lease liabilities | $ | 35,603 | |
The Company recognizes operating lease expense on a straight-line basis over the non-cancelable lease period. The following table summarizes operating lease expense and cash paid for amounts included in the measurement of lease liabilities (in thousands of dollars):
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Operating lease expense | $ | 8,049 | | | $ | 6,668 | | | $ | 5,265 | |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 7,497 | | | $ | 7,176 | | | $ | 5,365 | |
Supplies Purchase Commitments
The Company had non-cancelable purchase commitments with suppliers to purchase a minimum quantity of supplies within the next twelve months for approximately $44.0 million at December 31, 2025.
Contingencies
From time to time, the Company may be involved in various legal proceedings and claims arising in the ordinary course of business. Although the outcomes of such matters cannot be predicted with certainty, the Company believes there is no litigation pending that could have, either individually or in the aggregate, a material adverse impact on the Company's consolidated financial statements.
On May 1, 2025, the Company filed a complaint in federal court in the Eastern District of Texas alleging that Sonic Healthcare USA, Inc., the healthcare company that is believed to offer ThyroSeq v3, is infringing three of the Company’s patents related to molecular testing of thyroid nodules. The complaint seeks treble damages, attorneys’ fees and costs as well as injunctive relief. On June 4, 2025, the Company filed an amended complaint asserting two additional patents. On July 21, 2025, Sonic Healthcare USA, Inc. filed an answer and a motion to dismiss. The court denied Sonic Healthcare USA, Inc.’s motion to dismiss on January 20, 2026. The jury trial is currently scheduled for January 25, 2027.