Leases
Monrovia, California: The Company leases office and laboratory space in Monrovia, California. The lease term was set to expire in December 2025 and provided an option to renew the entire premises for an additional five-year term,
which the Company elected not to exercise. Instead, on August 8, 2025, the Company entered into a seventh amendment to the lease agreement to extend the term for one year, effective January 1, 2026 through December 31, 2026.
The total lease expense associated with this amended lease is approximately $0.9 million.
Pasadena, California: In June 2021, the Company entered into a lease agreement for laboratory and office space in Pasadena, California, with a lease term through July 2035 and no renewal option. The lease includes two phases: Phase 1 commenced on August 1, 2022, and Phase 2 commenced on December 1, 2022.
The lease provides tenant improvement allowances of up to $17.0 million for Phase 1 and $3.3 million for Phase 2. In August 2022, the lease was amended to provide an additional $5.0 million in Phase 1 improvement allowance in exchange for an increase in rent.
On December 18, 2025, the Company entered into a sublease agreement to sublease a portion of its space to a third party. The sublease term commenced on February 1, 2026 and expires on January 31, 2031. The Company remains primarily obligated under the original lease agreement. There is no current impact to the Company’s financial results for the year ended December 31, 2025, as the sublease term does not commence until February 1, 2026.
San Diego, California: In August 2023, the Company entered into a sublease agreement for office space in San Diego, California, with a lease term from September 2023 through December 2027. As part of the sublease, the Company issued a $0.4 million letter of credit to the landlord, secured by a cash collateral account classified as restricted cash on the consolidated balance sheets. The amount of the letter of credit decreases over the lease term.
The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. The components of lease assets and liabilities along with their classification on the Company’s consolidated balance sheets were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, |
| Lease Assets and Liabilities | | Classification | | 2025 | | 2024 |
| | | | (in thousands) |
| Operating lease assets | | Right-of-use assets | | $ | 37,592 | | | $ | 38,341 | |
| Current operating lease liabilities | | Lease liabilities | | $ | 3,263 | | | $ | 3,009 | |
| Non-current operating lease liabilities | | Lease liabilities, net of current portion | | $ | 64,735 | | | $ | 65,338 | |
The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2025:
| | | | | | | | |
| Year | | Amounts |
| | (in thousands) |
| 2026 | | $ | 7,816 | |
| 2027 | | 9,759 | |
| 2028 | | 9,276 | |
| 2029 | | 9,531 | |
| 2030 | | 9,794 | |
| Thereafter | | 48,436 | |
| Total | | 94,612 | |
| Less: Imputed interest | | (26,614) | |
| Total operating lease liabilities (includes current portion) | | $ | 67,998 | |
The following table presents lease costs, supplemental cash flow and other information:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| (in thousands) |
| Operating lease cost | $ | 7,933 | | | $ | 7,525 | | | $ | 8,459 | |
| Variable lease cost | 1,077 | | | 1,272 | | | 906 | |
| Total lease costs | $ | 9,010 | | | $ | 8,797 | | | $ | 9,365 | |
| | | | | |
| Right-of-use assets adjusted in exchange for amended operating lease liabilities | $ | 863 | | | $ | 7,166 | | | $ | 2,462 | |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 8,105 | | | $ | 3,545 | | | $ | 3,253 | |
| | | | | |
| | | December 31, |
| | | 2025 | | 2024 |
| Weighted-average remaining lease term (in years) | | | 9.3 years | | 10.2 years |
| Weighted-average discount rate (%) | | | 7.0 | % | | 7.0 | % |