v3.25.4

Leases | 12 Months Ended
--- | ---
Dec. 31, 2025
Leases [Abstract] |
Leases | Leases Facilities, Energy Server Systems, and Vehicles We lease our facilities, the Energy Server systems, and vehicles under operating and finance leases that expire at various dates through November 2037. We lease various manufacturing facilities in California and Delaware. We lease additional office space as field offices in the U.S. and around the world. Some of the lease arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2025, 2024 and 2023, rent expenses for all occupied facilities were $21.2 million, $22.4 million and $23.0 million, respectively. At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, the Energy Server systems, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles. Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised. Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus unamortized initial direct costs and prepaid (accrued) lease payments less unamortized balance lease incentives received. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its IBR. In computing our lease liabilities, we use the IBR based on the information available on the commencement date using an estimate of company-specific rate in the U.S. on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2025 and 2024, were as follows (in thousands):
|  | Years Ended December 31,
|  | 2025 |  | 2024
Operating Leases: |  |  |  |
Operating lease right-of-use assets, net 1, 2 |  | $ | 108,541 |  |  | $ | 122,489 |
Current operating lease liabilities |  | (22,000) |  |  | (19,642) |
Non-current operating lease liabilities |  | (106,935) |  |  | (124,523) |
Total operating lease liabilities |  | (128,935) |  |  | (144,165) |
Finance Leases: |  |  |  |
Finance lease right-of-use assets, net 2, 3, 4 |  | 4,932 |  |  | 3,214 |
Current finance lease liabilities 5 |  | (1,370) |  |  | (981) |
Non-current finance lease liabilities 6 |  | (3,848) |  |  | (2,450) |
Total finance lease liabilities |  | (5,218) |  |  | (3,431) |
Total lease liabilities |  | $ | (134,153) |  |  | $ | (147,596) |
1 These assets primarily include leases for facilities, the Energy Server systems, and vehicles. 2 Net of accumulated amortization. 3 These assets primarily include leases for vehicles. 4 Included in property, plant and equipment, net in the consolidated balance sheets. 5 Included in accrued expenses and other current liabilities in the consolidated balance sheets. 6 Included in other long-term liabilities in the consolidated balance sheets. The components of our lease costs for the years ended December 31, 2025, 2024 and 2023, were as follows (in thousands):
|  |  |  | Years Ended December 31,
|  |  |  |  |  | 2025 |  | 2024 |  | 2023
Operating lease costs |  |  |  |  |  | $ | 31,994 |  |  | $ | 35,814 |  |  | $ | 33,190 |
Financing lease costs: |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  |  | 665 |  |  | 675 |  |  | 891 |
Interest on lease liabilities |  |  |  |  |  | 359 |  |  | 263 |  |  | 273 |
Total financing lease costs |  |  |  |  |  | 1,024 |  |  | 938 |  |  | 1,164 |
Short-term lease costs |  |  |  |  |  | 2,460 |  |  | 98 |  |  | 517 |
Total lease costs |  |  |  |  |  | $ | 35,478 |  |  | $ | 36,850 |  |  | $ | 34,871 |
Weighted average remaining lease terms and discount rates for our leases as of December 31, 2025 and 2024, were as follows:
|  | December 31,
|  | 2025 |  | 2024
Weighted average remaining lease term: |  |  |  |
Operating leases |  | 6 years |  | 6.7 years
Finance leases |  | 3.8 years |  | 3.7 years
Weighted average discount rate: |  |  |  |
Operating leases |  | 10.5 | % |  | 10.6 | %
Finance leases |  | 9.0 | % |  | 9.2 | %
Future lease payments under lease agreements as of December 31, 2025, were as follows (in thousands):
|  | Operating Leases |  | Finance Leases
2026 |  | $ | 34,031 |  |  | $ | 1,779 |
2027 |  | 33,477 |  |  | 1,629 |
2028 |  | 28,062 |  |  | 1,300 |
2029 |  | 21,425 |  |  | 982 |
2030 |  | 19,203 |  |  | 447 |
Thereafter |  | 41,117 |  |  | — |
Total minimum lease payments |  | 177,315 |  |  | 6,137 |
Less: amounts representing interest or imputed interest |  | (48,380) |  |  | (919) |
Present value of lease liabilities |  | $ | 128,935 |  |  | $ | 5,218 |
Managed Services Financing Certain of our customers enter into Managed Services Financing to finance their lease of Bloom Energy Server systems. Customer arrangements under Managed Services Financing entered into after January 1, 2020, do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements. Lease agreements under our Managed Services Financing include non-cancellable lease terms, during which terms the majority of our investment in the Energy Server systems under lease are typically recovered. We mitigate the remaining residual value risk of the Energy Server systems through provision of maintenance on the Energy Server systems during the lease term and through insurance which proceeds are payable in the event of theft, loss, damage, or destruction. Our Managed Services Financing with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of the Energy Server systems under successful sale-and-leaseback transactions are also accounted for as financing obligations. These financing obligations are included in each agreement’s contract value and are recognized as short-term or long-term financing obligations based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we record operating lease right-of-use assets and operating lease liabilities and record operating lease expenses over the lease term. We recognized $9.4 million and $28.7 million of product revenue, and $4.5 million and $8.4 million of installation revenue from successful sale-and-leaseback transactions for the years ended December 31, 2024 and 2023, respectively. There were no successful sale-and-leaseback transactions for the year ended December 31, 2025. The recognized operating lease expense from successful sale-and-leaseback transactions for the years ended December 31, 2025, 2024 and 2023, was $13.4 million, $12.8 million, and $9.7 million, respectively. Operating lease right-of-use assets from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, were $39.0 million and $47.2 million, respectively. Operating lease liability from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, was $42.2 million and $50.4 million, including long-term operating lease liability of $32.9 million and $42.1 million, respectively. Financing obligations from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, were $8.9 million and $11.0 million, including long-term financing obligations of $6.5 million and $8.9 million, respectively. At December 31, 2025, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):
|  | Financing Obligations |  |
2026 |  | $ | 23,793 |  |  |
2027 |  | 17,930 |  |  |
2028 |  | 12,270 |  |  |
2029 |  | 7,642 |  |  |
2030 |  | 5,889 |  |  |
Thereafter |  | 14,008 |  |  |
Total minimum lease payments |  | 81,532 |  |  |
Less: imputed interest |  | (38,275) |  |  |
Present value of net minimum lease payments |  | 43,257 |  |  |
Less: current financing obligations |  | (10,196) |  |  |
Long-term financing obligations |  | $ | 33,061 |  |  |
The total financing obligations, as reflected in our consolidated balance sheets, were $243.8 million and $255.8 million as of December 31, 2025 and 2024, respectively. We expect the difference between these obligations and the principal obligations in the table above to be offset against the carrying value of the related Energy Server systems at the end of the lease and the remainder recognized as either a net gain or net loss at that point. For the years ended December 31, 2025, 2024 and 2023, we recognized a $0.8 million net gain, $17.4 million net gain, and $0.4 million net loss on failed sale-and-leaseback transactions in Other income (expense), net on our consolidated statements of operations, respectively.
Leases | Leases Facilities, Energy Server Systems, and Vehicles We lease our facilities, the Energy Server systems, and vehicles under operating and finance leases that expire at various dates through November 2037. We lease various manufacturing facilities in California and Delaware. We lease additional office space as field offices in the U.S. and around the world. Some of the lease arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2025, 2024 and 2023, rent expenses for all occupied facilities were $21.2 million, $22.4 million and $23.0 million, respectively. At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, the Energy Server systems, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles. Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised. Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus unamortized initial direct costs and prepaid (accrued) lease payments less unamortized balance lease incentives received. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its IBR. In computing our lease liabilities, we use the IBR based on the information available on the commencement date using an estimate of company-specific rate in the U.S. on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2025 and 2024, were as follows (in thousands):
|  | Years Ended December 31,
|  | 2025 |  | 2024
Operating Leases: |  |  |  |
Operating lease right-of-use assets, net 1, 2 |  | $ | 108,541 |  |  | $ | 122,489 |
Current operating lease liabilities |  | (22,000) |  |  | (19,642) |
Non-current operating lease liabilities |  | (106,935) |  |  | (124,523) |
Total operating lease liabilities |  | (128,935) |  |  | (144,165) |
Finance Leases: |  |  |  |
Finance lease right-of-use assets, net 2, 3, 4 |  | 4,932 |  |  | 3,214 |
Current finance lease liabilities 5 |  | (1,370) |  |  | (981) |
Non-current finance lease liabilities 6 |  | (3,848) |  |  | (2,450) |
Total finance lease liabilities |  | (5,218) |  |  | (3,431) |
Total lease liabilities |  | $ | (134,153) |  |  | $ | (147,596) |
1 These assets primarily include leases for facilities, the Energy Server systems, and vehicles. 2 Net of accumulated amortization. 3 These assets primarily include leases for vehicles. 4 Included in property, plant and equipment, net in the consolidated balance sheets. 5 Included in accrued expenses and other current liabilities in the consolidated balance sheets. 6 Included in other long-term liabilities in the consolidated balance sheets. The components of our lease costs for the years ended December 31, 2025, 2024 and 2023, were as follows (in thousands):
|  |  |  | Years Ended December 31,
|  |  |  |  |  | 2025 |  | 2024 |  | 2023
Operating lease costs |  |  |  |  |  | $ | 31,994 |  |  | $ | 35,814 |  |  | $ | 33,190 |
Financing lease costs: |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  |  | 665 |  |  | 675 |  |  | 891 |
Interest on lease liabilities |  |  |  |  |  | 359 |  |  | 263 |  |  | 273 |
Total financing lease costs |  |  |  |  |  | 1,024 |  |  | 938 |  |  | 1,164 |
Short-term lease costs |  |  |  |  |  | 2,460 |  |  | 98 |  |  | 517 |
Total lease costs |  |  |  |  |  | $ | 35,478 |  |  | $ | 36,850 |  |  | $ | 34,871 |
Weighted average remaining lease terms and discount rates for our leases as of December 31, 2025 and 2024, were as follows:
|  | December 31,
|  | 2025 |  | 2024
Weighted average remaining lease term: |  |  |  |
Operating leases |  | 6 years |  | 6.7 years
Finance leases |  | 3.8 years |  | 3.7 years
Weighted average discount rate: |  |  |  |
Operating leases |  | 10.5 | % |  | 10.6 | %
Finance leases |  | 9.0 | % |  | 9.2 | %
Future lease payments under lease agreements as of December 31, 2025, were as follows (in thousands):
|  | Operating Leases |  | Finance Leases
2026 |  | $ | 34,031 |  |  | $ | 1,779 |
2027 |  | 33,477 |  |  | 1,629 |
2028 |  | 28,062 |  |  | 1,300 |
2029 |  | 21,425 |  |  | 982 |
2030 |  | 19,203 |  |  | 447 |
Thereafter |  | 41,117 |  |  | — |
Total minimum lease payments |  | 177,315 |  |  | 6,137 |
Less: amounts representing interest or imputed interest |  | (48,380) |  |  | (919) |
Present value of lease liabilities |  | $ | 128,935 |  |  | $ | 5,218 |
Managed Services Financing Certain of our customers enter into Managed Services Financing to finance their lease of Bloom Energy Server systems. Customer arrangements under Managed Services Financing entered into after January 1, 2020, do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements. Lease agreements under our Managed Services Financing include non-cancellable lease terms, during which terms the majority of our investment in the Energy Server systems under lease are typically recovered. We mitigate the remaining residual value risk of the Energy Server systems through provision of maintenance on the Energy Server systems during the lease term and through insurance which proceeds are payable in the event of theft, loss, damage, or destruction. Our Managed Services Financing with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of the Energy Server systems under successful sale-and-leaseback transactions are also accounted for as financing obligations. These financing obligations are included in each agreement’s contract value and are recognized as short-term or long-term financing obligations based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we record operating lease right-of-use assets and operating lease liabilities and record operating lease expenses over the lease term. We recognized $9.4 million and $28.7 million of product revenue, and $4.5 million and $8.4 million of installation revenue from successful sale-and-leaseback transactions for the years ended December 31, 2024 and 2023, respectively. There were no successful sale-and-leaseback transactions for the year ended December 31, 2025. The recognized operating lease expense from successful sale-and-leaseback transactions for the years ended December 31, 2025, 2024 and 2023, was $13.4 million, $12.8 million, and $9.7 million, respectively. Operating lease right-of-use assets from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, were $39.0 million and $47.2 million, respectively. Operating lease liability from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, was $42.2 million and $50.4 million, including long-term operating lease liability of $32.9 million and $42.1 million, respectively. Financing obligations from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, were $8.9 million and $11.0 million, including long-term financing obligations of $6.5 million and $8.9 million, respectively. At December 31, 2025, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):
|  | Financing Obligations |  |
2026 |  | $ | 23,793 |  |  |
2027 |  | 17,930 |  |  |
2028 |  | 12,270 |  |  |
2029 |  | 7,642 |  |  |
2030 |  | 5,889 |  |  |
Thereafter |  | 14,008 |  |  |
Total minimum lease payments |  | 81,532 |  |  |
Less: imputed interest |  | (38,275) |  |  |
Present value of net minimum lease payments |  | 43,257 |  |  |
Less: current financing obligations |  | (10,196) |  |  |
Long-term financing obligations |  | $ | 33,061 |  |  |
The total financing obligations, as reflected in our consolidated balance sheets, were $243.8 million and $255.8 million as of December 31, 2025 and 2024, respectively. We expect the difference between these obligations and the principal obligations in the table above to be offset against the carrying value of the related Energy Server systems at the end of the lease and the remainder recognized as either a net gain or net loss at that point. For the years ended December 31, 2025, 2024 and 2023, we recognized a $0.8 million net gain, $17.4 million net gain, and $0.4 million net loss on failed sale-and-leaseback transactions in Other income (expense), net on our consolidated statements of operations, respectively.
Leases | Leases Facilities, Energy Server Systems, and Vehicles We lease our facilities, the Energy Server systems, and vehicles under operating and finance leases that expire at various dates through November 2037. We lease various manufacturing facilities in California and Delaware. We lease additional office space as field offices in the U.S. and around the world. Some of the lease arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2025, 2024 and 2023, rent expenses for all occupied facilities were $21.2 million, $22.4 million and $23.0 million, respectively. At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, the Energy Server systems, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles. Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised. Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus unamortized initial direct costs and prepaid (accrued) lease payments less unamortized balance lease incentives received. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its IBR. In computing our lease liabilities, we use the IBR based on the information available on the commencement date using an estimate of company-specific rate in the U.S. on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2025 and 2024, were as follows (in thousands):
|  | Years Ended December 31,
|  | 2025 |  | 2024
Operating Leases: |  |  |  |
Operating lease right-of-use assets, net 1, 2 |  | $ | 108,541 |  |  | $ | 122,489 |
Current operating lease liabilities |  | (22,000) |  |  | (19,642) |
Non-current operating lease liabilities |  | (106,935) |  |  | (124,523) |
Total operating lease liabilities |  | (128,935) |  |  | (144,165) |
Finance Leases: |  |  |  |
Finance lease right-of-use assets, net 2, 3, 4 |  | 4,932 |  |  | 3,214 |
Current finance lease liabilities 5 |  | (1,370) |  |  | (981) |
Non-current finance lease liabilities 6 |  | (3,848) |  |  | (2,450) |
Total finance lease liabilities |  | (5,218) |  |  | (3,431) |
Total lease liabilities |  | $ | (134,153) |  |  | $ | (147,596) |
1 These assets primarily include leases for facilities, the Energy Server systems, and vehicles. 2 Net of accumulated amortization. 3 These assets primarily include leases for vehicles. 4 Included in property, plant and equipment, net in the consolidated balance sheets. 5 Included in accrued expenses and other current liabilities in the consolidated balance sheets. 6 Included in other long-term liabilities in the consolidated balance sheets. The components of our lease costs for the years ended December 31, 2025, 2024 and 2023, were as follows (in thousands):
|  |  |  | Years Ended December 31,
|  |  |  |  |  | 2025 |  | 2024 |  | 2023
Operating lease costs |  |  |  |  |  | $ | 31,994 |  |  | $ | 35,814 |  |  | $ | 33,190 |
Financing lease costs: |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  |  | 665 |  |  | 675 |  |  | 891 |
Interest on lease liabilities |  |  |  |  |  | 359 |  |  | 263 |  |  | 273 |
Total financing lease costs |  |  |  |  |  | 1,024 |  |  | 938 |  |  | 1,164 |
Short-term lease costs |  |  |  |  |  | 2,460 |  |  | 98 |  |  | 517 |
Total lease costs |  |  |  |  |  | $ | 35,478 |  |  | $ | 36,850 |  |  | $ | 34,871 |
Weighted average remaining lease terms and discount rates for our leases as of December 31, 2025 and 2024, were as follows:
|  | December 31,
|  | 2025 |  | 2024
Weighted average remaining lease term: |  |  |  |
Operating leases |  | 6 years |  | 6.7 years
Finance leases |  | 3.8 years |  | 3.7 years
Weighted average discount rate: |  |  |  |
Operating leases |  | 10.5 | % |  | 10.6 | %
Finance leases |  | 9.0 | % |  | 9.2 | %
Future lease payments under lease agreements as of December 31, 2025, were as follows (in thousands):
|  | Operating Leases |  | Finance Leases
2026 |  | $ | 34,031 |  |  | $ | 1,779 |
2027 |  | 33,477 |  |  | 1,629 |
2028 |  | 28,062 |  |  | 1,300 |
2029 |  | 21,425 |  |  | 982 |
2030 |  | 19,203 |  |  | 447 |
Thereafter |  | 41,117 |  |  | — |
Total minimum lease payments |  | 177,315 |  |  | 6,137 |
Less: amounts representing interest or imputed interest |  | (48,380) |  |  | (919) |
Present value of lease liabilities |  | $ | 128,935 |  |  | $ | 5,218 |
Managed Services Financing Certain of our customers enter into Managed Services Financing to finance their lease of Bloom Energy Server systems. Customer arrangements under Managed Services Financing entered into after January 1, 2020, do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements. Lease agreements under our Managed Services Financing include non-cancellable lease terms, during which terms the majority of our investment in the Energy Server systems under lease are typically recovered. We mitigate the remaining residual value risk of the Energy Server systems through provision of maintenance on the Energy Server systems during the lease term and through insurance which proceeds are payable in the event of theft, loss, damage, or destruction. Our Managed Services Financing with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of the Energy Server systems under successful sale-and-leaseback transactions are also accounted for as financing obligations. These financing obligations are included in each agreement’s contract value and are recognized as short-term or long-term financing obligations based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we record operating lease right-of-use assets and operating lease liabilities and record operating lease expenses over the lease term. We recognized $9.4 million and $28.7 million of product revenue, and $4.5 million and $8.4 million of installation revenue from successful sale-and-leaseback transactions for the years ended December 31, 2024 and 2023, respectively. There were no successful sale-and-leaseback transactions for the year ended December 31, 2025. The recognized operating lease expense from successful sale-and-leaseback transactions for the years ended December 31, 2025, 2024 and 2023, was $13.4 million, $12.8 million, and $9.7 million, respectively. Operating lease right-of-use assets from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, were $39.0 million and $47.2 million, respectively. Operating lease liability from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, was $42.2 million and $50.4 million, including long-term operating lease liability of $32.9 million and $42.1 million, respectively. Financing obligations from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, were $8.9 million and $11.0 million, including long-term financing obligations of $6.5 million and $8.9 million, respectively. At December 31, 2025, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):
|  | Financing Obligations |  |
2026 |  | $ | 23,793 |  |  |
2027 |  | 17,930 |  |  |
2028 |  | 12,270 |  |  |
2029 |  | 7,642 |  |  |
2030 |  | 5,889 |  |  |
Thereafter |  | 14,008 |  |  |
Total minimum lease payments |  | 81,532 |  |  |
Less: imputed interest |  | (38,275) |  |  |
Present value of net minimum lease payments |  | 43,257 |  |  |
Less: current financing obligations |  | (10,196) |  |  |
Long-term financing obligations |  | $ | 33,061 |  |  |
The total financing obligations, as reflected in our consolidated balance sheets, were $243.8 million and $255.8 million as of December 31, 2025 and 2024, respectively. We expect the difference between these obligations and the principal obligations in the table above to be offset against the carrying value of the related Energy Server systems at the end of the lease and the remainder recognized as either a net gain or net loss at that point. For the years ended December 31, 2025, 2024 and 2023, we recognized a $0.8 million net gain, $17.4 million net gain, and $0.4 million net loss on failed sale-and-leaseback transactions in Other income (expense), net on our consolidated statements of operations, respectively.
Leases | Leases Facilities, Energy Server Systems, and Vehicles We lease our facilities, the Energy Server systems, and vehicles under operating and finance leases that expire at various dates through November 2037. We lease various manufacturing facilities in California and Delaware. We lease additional office space as field offices in the U.S. and around the world. Some of the lease arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2025, 2024 and 2023, rent expenses for all occupied facilities were $21.2 million, $22.4 million and $23.0 million, respectively. At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, the Energy Server systems, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles. Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised. Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus unamortized initial direct costs and prepaid (accrued) lease payments less unamortized balance lease incentives received. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its IBR. In computing our lease liabilities, we use the IBR based on the information available on the commencement date using an estimate of company-specific rate in the U.S. on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2025 and 2024, were as follows (in thousands):
|  | Years Ended December 31,
|  | 2025 |  | 2024
Operating Leases: |  |  |  |
Operating lease right-of-use assets, net 1, 2 |  | $ | 108,541 |  |  | $ | 122,489 |
Current operating lease liabilities |  | (22,000) |  |  | (19,642) |
Non-current operating lease liabilities |  | (106,935) |  |  | (124,523) |
Total operating lease liabilities |  | (128,935) |  |  | (144,165) |
Finance Leases: |  |  |  |
Finance lease right-of-use assets, net 2, 3, 4 |  | 4,932 |  |  | 3,214 |
Current finance lease liabilities 5 |  | (1,370) |  |  | (981) |
Non-current finance lease liabilities 6 |  | (3,848) |  |  | (2,450) |
Total finance lease liabilities |  | (5,218) |  |  | (3,431) |
Total lease liabilities |  | $ | (134,153) |  |  | $ | (147,596) |
1 These assets primarily include leases for facilities, the Energy Server systems, and vehicles. 2 Net of accumulated amortization. 3 These assets primarily include leases for vehicles. 4 Included in property, plant and equipment, net in the consolidated balance sheets. 5 Included in accrued expenses and other current liabilities in the consolidated balance sheets. 6 Included in other long-term liabilities in the consolidated balance sheets. The components of our lease costs for the years ended December 31, 2025, 2024 and 2023, were as follows (in thousands):
|  |  |  | Years Ended December 31,
|  |  |  |  |  | 2025 |  | 2024 |  | 2023
Operating lease costs |  |  |  |  |  | $ | 31,994 |  |  | $ | 35,814 |  |  | $ | 33,190 |
Financing lease costs: |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  |  | 665 |  |  | 675 |  |  | 891 |
Interest on lease liabilities |  |  |  |  |  | 359 |  |  | 263 |  |  | 273 |
Total financing lease costs |  |  |  |  |  | 1,024 |  |  | 938 |  |  | 1,164 |
Short-term lease costs |  |  |  |  |  | 2,460 |  |  | 98 |  |  | 517 |
Total lease costs |  |  |  |  |  | $ | 35,478 |  |  | $ | 36,850 |  |  | $ | 34,871 |
Weighted average remaining lease terms and discount rates for our leases as of December 31, 2025 and 2024, were as follows:
|  | December 31,
|  | 2025 |  | 2024
Weighted average remaining lease term: |  |  |  |
Operating leases |  | 6 years |  | 6.7 years
Finance leases |  | 3.8 years |  | 3.7 years
Weighted average discount rate: |  |  |  |
Operating leases |  | 10.5 | % |  | 10.6 | %
Finance leases |  | 9.0 | % |  | 9.2 | %
Future lease payments under lease agreements as of December 31, 2025, were as follows (in thousands):
|  | Operating Leases |  | Finance Leases
2026 |  | $ | 34,031 |  |  | $ | 1,779 |
2027 |  | 33,477 |  |  | 1,629 |
2028 |  | 28,062 |  |  | 1,300 |
2029 |  | 21,425 |  |  | 982 |
2030 |  | 19,203 |  |  | 447 |
Thereafter |  | 41,117 |  |  | — |
Total minimum lease payments |  | 177,315 |  |  | 6,137 |
Less: amounts representing interest or imputed interest |  | (48,380) |  |  | (919) |
Present value of lease liabilities |  | $ | 128,935 |  |  | $ | 5,218 |
Managed Services Financing Certain of our customers enter into Managed Services Financing to finance their lease of Bloom Energy Server systems. Customer arrangements under Managed Services Financing entered into after January 1, 2020, do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements. Lease agreements under our Managed Services Financing include non-cancellable lease terms, during which terms the majority of our investment in the Energy Server systems under lease are typically recovered. We mitigate the remaining residual value risk of the Energy Server systems through provision of maintenance on the Energy Server systems during the lease term and through insurance which proceeds are payable in the event of theft, loss, damage, or destruction. Our Managed Services Financing with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of the Energy Server systems under successful sale-and-leaseback transactions are also accounted for as financing obligations. These financing obligations are included in each agreement’s contract value and are recognized as short-term or long-term financing obligations based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we record operating lease right-of-use assets and operating lease liabilities and record operating lease expenses over the lease term. We recognized $9.4 million and $28.7 million of product revenue, and $4.5 million and $8.4 million of installation revenue from successful sale-and-leaseback transactions for the years ended December 31, 2024 and 2023, respectively. There were no successful sale-and-leaseback transactions for the year ended December 31, 2025. The recognized operating lease expense from successful sale-and-leaseback transactions for the years ended December 31, 2025, 2024 and 2023, was $13.4 million, $12.8 million, and $9.7 million, respectively. Operating lease right-of-use assets from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, were $39.0 million and $47.2 million, respectively. Operating lease liability from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, was $42.2 million and $50.4 million, including long-term operating lease liability of $32.9 million and $42.1 million, respectively. Financing obligations from successful sale-and-leaseback transactions as of December 31, 2025 and 2024, were $8.9 million and $11.0 million, including long-term financing obligations of $6.5 million and $8.9 million, respectively. At December 31, 2025, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):
|  | Financing Obligations |  |
2026 |  | $ | 23,793 |  |  |
2027 |  | 17,930 |  |  |
2028 |  | 12,270 |  |  |
2029 |  | 7,642 |  |  |
2030 |  | 5,889 |  |  |
Thereafter |  | 14,008 |  |  |
Total minimum lease payments |  | 81,532 |  |  |
Less: imputed interest |  | (38,275) |  |  |
Present value of net minimum lease payments |  | 43,257 |  |  |
Less: current financing obligations |  | (10,196) |  |  |
Long-term financing obligations |  | $ | 33,061 |  |  |
The total financing obligations, as reflected in our consolidated balance sheets, were $243.8 million and $255.8 million as of December 31, 2025 and 2024, respectively. We expect the difference between these obligations and the principal obligations in the table above to be offset against the carrying value of the related Energy Server systems at the end of the lease and the remainder recognized as either a net gain or net loss at that point. For the years ended December 31, 2025, 2024 and 2023, we recognized a $0.8 million net gain, $17.4 million net gain, and $0.4 million net loss on failed sale-and-leaseback transactions in Other income (expense), net on our consolidated statements of operations, respectively.

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