Vanda Pharmaceuticals Inc.VNDA
Vanda Pharmaceuticals Inc. Leases Disclosure
Leases
The Company’s long-term leases primarily include operating leases and subleases for office space in Washington, D.C. and London, England and vehicle finance leases for its fleet program. The Company recognized ROU assets and lease
liabilities related to fixed payments for these long-term leases in its Consolidated Balance Sheets as of December 31, 2025 and 2024. The Company also has short-term leases, including office space in Berlin, Germany.
In June 2011, the Company entered into an operating lease agreement under which it leases 33,534 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. Subject to the prior rights of other tenants, the Company has the right to renew the lease for five years following its expiration in July 2028. As of December 31, 2025, the renewal period has not been included in the lease term. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. The lease may be terminated early by the Company or the landlord under certain circumstances.
In June 2016, the Company entered into a sublease agreement under which it subleases an additional 9,928 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. The sublease term began in January 2017 and ends in July 2026 but may be terminated earlier by either party under certain circumstances. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. Following the expiration of the sublease in July 2026, the Company will lease this space under a separate lease arrangement with a different counterparty, which was signed in June 2025. This lease term will commence in August 2026 upon expiration of the sublease for that space for a period of two years. The lease may be terminated early by the Company or the landlord under certain circumstances.
In May 2016, the Company entered into an operating lease agreement under which it leases 2,880 square feet of office space in London, England, which will end in 2026.
In August 2024, the Company entered into a master lease agreement for vehicles to be utilized by the Company’s sales force. The individual car leases commence upon delivery of the vehicles, which began in the fourth quarter of 2024, and were determined to be finance leases upon lease commencement. The contractual period of each lease is three years. The Company continued to lease additional cars under the master lease agreement during 2025. Total fixed payments for the vehicle leases that had not yet commenced as of December 31, 2025 are estimated to be $1.5 million, payable over initial term of three years, and subject to change upon finalization of each vehicle lease contract.
The following is a summary of the Company’s ROU assets and lease liabilities as of December 31, 2025 and 2024:
| (in thousands) | Classification on the Balance Sheet | December 31, 2025 | December 31, 2024 | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Operating lease assets | Operating lease right-of-use assets | $ | 3,923 | $ | 5,602 | |||||||||||||||
Finance lease assets | Finance lease right-of-use assets | 7,343 | 4,943 | |||||||||||||||||
Total lease assets | $ | 11,266 | $ | 10,545 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Operating lease current liabilities | $ | 2,152 | $ | 2,456 | ||||||||||||||||
Finance lease current liabilities | 3,403 | 1,814 | ||||||||||||||||||
| Operating lease non-current liabilities | Operating lease non-current liabilities | 2,991 | 4,944 | |||||||||||||||||
Finance lease non-current liabilities | Finance lease non-current liabilities | 4,076 | 3,146 | |||||||||||||||||
| Total lease liabilities | $ | 12,622 | $ | 12,360 | ||||||||||||||||
Weighted average remaining lease term, operating leases | 2.5 | 3.3 | ||||||||||||||||||
Weighted average discount rate, operating leases | 8.2 | % | 8.2 | % | ||||||||||||||||
Weighted average remaining lease term, finance leases | 2.4 | 2.9 | ||||||||||||||||||
Weighted average discount rate, finance leases | 6.2 | % | 6.4 | % | ||||||||||||||||
The components of lease expense for the years ended December 31, 2025, 2024 and 2023 was as follows:
| Year Ended December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
Operating lease cost: | |||||||||||||||||
Fixed lease cost | $ | 2,231 | $ | 2,223 | $ | 2,216 | |||||||||||
Short-term lease cost | 451 | 426 | 396 | ||||||||||||||
Finance lease cost: | |||||||||||||||||
Amortization | 2,110 | 171 | — | ||||||||||||||
Interest | 343 | 32 | — | ||||||||||||||
Total lease costs | $ | 5,135 | $ | 2,852 | $ | 2,612 | |||||||||||
Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023 was as follows:
| Year Ended December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash paid for amounts included in measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 2,809 | $ | 2,723 | $ | 2,659 | |||||||||||
| Operating cash flows from finance leases | 343 | 32 | — | ||||||||||||||
| Financing cash flows from finance leases | 1,991 | 155 | — | ||||||||||||||
| Right-of-use assets obtained in exchange for lease obligations: | |||||||||||||||||
| Finance leases | 4,510 | 5,114 | — | ||||||||||||||
The table below reconciles the Company’s future cash obligations to lease liabilities recorded on the balance sheet as of December 31, 2025:
| (in thousands) | Operating Leases | Finance Leases | ||||||||||||
| 2026 | $ | 2,412 | $ | 3,518 | ||||||||||
| 2027 | 2,159 | 3,344 | ||||||||||||
| 2028 | 1,099 | 1,218 | ||||||||||||
| Total minimum lease payments | 5,670 | 8,080 | ||||||||||||
| Less: amount of lease payments representing interest | (527) | (601) | ||||||||||||
| Present value of future minimum lease payments | 5,143 | 7,479 | ||||||||||||
| Less: current obligations under leases | (2,152) | (3,403) | ||||||||||||
Lease non-current liabilities | $ | 2,991 | $ | 4,076 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 26, 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.