GeneDx Holdings Corp.WGS
GeneDx Holdings Corp. Leases Disclosure
Leases
The Company’s leases primarily consist of office and lab space, and equipment for use in its operations. Its leases generally have lease agreements which expire in 2026 to 2036, some with the option to extend. The Company includes extension options that are reasonably certain to be exercised as part of the lease terms. As of December 31, 2025, none of the Company’s lease terms included the extension option as the Company has determined that it is unlikely to exercise the extension option.
Operating Leases
The Company’s primary operating lease arrangements include leased properties for its corporate office and headquarters located in Stamford, Connecticut, its primary operating laboratory located in Gaithersburg, Maryland, a corporate office in Oakland, California, and a satellite meeting space located in New York City. The lease agreements for these properties expire in 2034, 2031, 2029, and 2026, respectively.
The Company’s operating leases also include laboratories in Branford, Connecticut and Stamford, Connecticut have ceased operations as part of the Company’s announced exits in 2022 from reproductive health and somatic tumor testing. The lease agreements for these properties expire in 2030 and 2036, respectively. These facilities as well as a portion of its headquarters located in Stamford, Connecticut are actively being marketed for sublet; however, the outstanding lease obligations remain obligations. At inception of the lease for the laboratory in Stamford, Connecticut, the value of the land was determined to be more than 25% of the total value and therefore the building is accounted for as a finance lease and the land as an operating lease.
Finance Leases
In addition to its leased laboratory building in Stamford, Connecticut noted above, the Company routinely enters into various finance lease agreements to obtain laboratory equipment that contain bargain purchase commitments at the end of the lease term. The leases are secured by the underlying equipment.
The tables below present financial information associated with the Company’s operating and finance leases as of, and for the year ended, December 31, 2025 and 2024:
| December 31, | |||||||||||||||||
| Classification | 2025 | 2024 | |||||||||||||||
| Assets | |||||||||||||||||
| Operating lease assets | Operating lease right-of-use assets | $ | 23,412 | $ | 25,613 | ||||||||||||
| Finance lease assets | 2,905 | 3,173 | |||||||||||||||
| Total lease assets | $ | 26,317 | $ | 28,786 | |||||||||||||
| Liabilities | |||||||||||||||||
| Current | |||||||||||||||||
| Operating | $ | 3,881 | $ | 2,608 | |||||||||||||
| Finance | 523 | 728 | |||||||||||||||
| Non-current | |||||||||||||||||
| Operating | $ | 38,778 | $ | 42,698 | |||||||||||||
| Finance | 17,268 | 18,221 | |||||||||||||||
| Total lease liabilities | $ | 60,450 | $ | 64,255 | |||||||||||||
| Year ended December 31, | ||||||||||||||||||||
| Lease cost | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating lease cost | ||||||||||||||||||||
| Operating lease cost | $ | 5,953 | $ | 5,637 | $ | 5,806 | ||||||||||||||
| Short-term lease cost | 330 | 314 | 745 | |||||||||||||||||
| Variable lease cost | 1,784 | 1,140 | 659 | |||||||||||||||||
| Total operating lease cost | $ | 8,067 | $ | 7,091 | $ | 7,210 | ||||||||||||||
| Finance lease cost | ||||||||||||||||||||
| Depreciation and amortization of leased assets | $ | 398 | $ | 647 | $ | 1,970 | ||||||||||||||
| Interest on lease liabilities | 1,345 | 1,460 | 1,041 | |||||||||||||||||
| Total finance lease cost | $ | 1,743 | $ | 2,107 | $ | 3,011 | ||||||||||||||
| Total lease cost | $ | 9,810 | $ | 9,198 | $ | 10,221 | ||||||||||||||
For the years ended December 31, 2025, 2024, and 2023, cash paid for operating leases included in operating cash flows was $6.1 million, $5.2 million, and $5.5 million, respectively. For the years ended December 31, 2025, 2024, and 2023, cash paid for finance leases included in financing cash flows was $2.5 million, $2.7 million, and $3.6 million, respectively. Cash paid for finance leases included in operating cash flows were immaterial for each of the years ended December 31, 2025, 2024, and 2023.
Future minimum lease payments under non-cancellable leases as of December 31, 2025 are as follows:
| Maturity of lease liabilities | Operating lease | Finance lease | Total | |||||||||||||||||
| 2026 | $ | 6,566 | $ | 1,992 | $ | 8,558 | ||||||||||||||
| 2027 | 6,545 | 2,045 | 8,590 | |||||||||||||||||
| 2028 | 6,737 | 2,107 | 8,844 | |||||||||||||||||
| 2029 | 6,825 | 2,170 | 8,995 | |||||||||||||||||
| 2030 | 6,250 | 2,235 | 8,485 | |||||||||||||||||
| Thereafter | 24,288 | 18,642 | 42,930 | |||||||||||||||||
| Total | 57,211 | 29,191 | $ | 86,402 | ||||||||||||||||
| Less: imputed interest | (14,552) | (11,400) | (25,952) | |||||||||||||||||
| Present value of lease liabilities | $ | 42,659 | $ | 17,791 | $ | 60,450 | ||||||||||||||
Other information related to leases as of and for the year ended December 31, 2025, 2024 and 2023 are as follows:
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Weighted-average remaining lease term (years) | |||||||||||||||||
| Operating leases | 8.1 | 9.0 | 10.0 | ||||||||||||||
| Finance leases | 10.8 | 11.4 | 11.8 | ||||||||||||||
| Weighted-average discount rate | |||||||||||||||||
| Operating leases | 6.7% | 6.4% | 6.4% | ||||||||||||||
| Finance leases | 8.5% | 8.4% | 8.1% | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Mar 16, 2023 | |
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.