LEASES

9 Months Ended

Sep. 30, 2025

The Company has entered into operating leases for facilities and equipment used for research and development. Operating leases have remaining lease terms which range from approximately 1 to 8 years, and often include one or more options to renew. These renewal terms can extend the lease term from 5 to 15 years and are included in the lease term when it is reasonably certain that the option will be exercised. The exercise of lease renewal and termination options are at the sole discretion of the Company. The Company also has variable lease payments that are primarily comprised of common area maintenance and utility charges.

The Company’s weighted average remaining lease term was approximately 7.0 years and 7.3 years as of September 30, 2025 and December 31, 2024, respectively. The Company’s weighted average discount rate for operating leases was 2.6% and 2.5% as of September 30, 2025, and December 31, 2024, respectively.

The components of lease costs are as follows:


	Three Months Ended				Nine Months Ended
(in thousands)	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Operating lease costs	$	4,427	$	4,563	$	13,338	$	14,436

Variable lease costs	1,003		1,124		3,058		3,618
Total lease costs	$	5,430	$	5,687	$	16,396	$	18,054

Future undiscounted lease payments under operating leases as of September 30, 2025 were as follows:


(in thousands)	Amount
Remainder of 2025	$	2,871
2026	14,921
2027	8,442
2028	8,232
2029	8,448
2030 and thereafter	32,132
Total undiscounted lease payments	75,046
Less: Imputed interest	(6,726)
Less: Tenant improvement allowance*	(9,730)
Total operating lease liabilities	$	58,590

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*Tenant improvement allowance is estimated to be received as follows: approximately $0.4 million in the next twelve months and $9.3 million thereafter.

Excluded from the lease obligation table above is a commercial lease agreement (the “Lease”) entered into by and between the Company and Sunnyvale Office Acquisition, LLC, as of September 11, 2025, pursuant to which the Company agreed to lease an aggregate of approximately 75,556 rentable square feet for a new corporate headquarters in Sunnyvale, California, which will be recognized as an operating lease upon the lease commencement date. The actual timing of lease commencement for accounting purposes, as well as the Company’s obligation to begin making payments and recognizing rental and other expenses, is dependent upon when the space is made available to the Company and the Company obtains control of the underlying asset. The Company’s current estimate of the total estimated aggregate base rent payments, excluding the renewal option and option to expand into additional space, for this leased office space are approximately $62.1 million.