LEASES

6 Months Ended

Jun. 30, 2026

The Company leases all of its facilities, including its EXPAREL and iovera° handpiece manufacturing and research facilities at its Science Center Campus in San Diego, California. In April 2025, the Company moved its principal executive offices and corporate headquarters to Brisbane, California and in June 2026, the Company entered into a new lease in Brisbane, California to retain this office through 2036. The Company also has two embedded leases with Thermo Fisher Scientific Pharma Services, or Thermo Fisher, for the use of their manufacturing facility in Swindon, U.K. for the production of EXPAREL and ZILRETTA. A portion of the associated monthly base fees have been allocated to the lease components based on a relative fair value basis. As part of the GQ Bio Acquisition in February 2025, the Company assumed GQ Bio’s European offices that include a research and development lab and offices in Luckenwalde, Germany.

Between February 2023 and April 2025, the Company had been recognizing sublease income for a portion of office space leased in Burlington, Massachusetts that was assumed as part of the Flexion Acquisition.

In June 2026, the Company entered into the Purchase Agreement with Zimmer to divest iovera°. The Transaction closed on July 31, 2026, upon which the Company also entered into a sublease agreement through 2028. For more information, see Note 3, Assets and Liabilities Held for Sale.

The operating lease costs for the facilities include lease and non-lease components, such as common area maintenance and other common operating expenses, along with executory costs such as insurance and real estate taxes. Total operating lease expense, net is as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Fixed lease costs	$	3,188	$	3,232	$	6,323	$	6,534
Variable lease costs	620		576		1,180		1,115
Sublease income	—		(19)		—		(76)
Total	$	3,808	$	3,789	$	7,503	$	7,573

Supplemental cash flow information related to operating leases is as follows (in thousands):


	Six Months Ended
	June 30,
	2026		2025
Cash paid for operating lease liabilities, net of lease incentives	$	6,466	$	6,458
Right-of-use assets recorded in exchange for lease obligations	$	7,962	$	1,875

The Company has elected to net the reduction of the right-of-use asset and the reduction of the lease liability principal in other liabilities in the condensed consolidated statements of cash flows.

The Company has measured its operating lease liabilities at an estimated discount rate at which it could borrow on a collateralized basis over the remaining term for each operating lease. The weighted average remaining lease terms and the weighted average discount rates are summarized as follows:


	June 30,
	2026		2025
Weighted average remaining lease term	4.94 years		4.79 years
Weighted average discount rate	6.98	%	6.91	%

Maturities of the Company’s operating lease liabilities are as follows (in thousands):


Year	Aggregate Minimum Payments Due
2026 (remaining six months)	$	6,284
2027	13,268
2028	12,239
2029	12,159
2030	6,995
Thereafter	8,020
Total future lease payments	58,965
Less: imputed interest	(9,972)
Total operating lease liabilities	$	48,993