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Leases | 12 Months Ended
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Dec. 31, 2025
Leases [Abstract] |
Leases | Leases The Company leases real estate for office and lab space as well as equipment used in research and development activities under operating and finance leases. The Company’s real estate leases have initial lease terms ranging from 1.4 years to 15.3 years and are all classified as operating. Real estate leases may contain periods of free rent, tenant improvement incentives, expansion options, rent escalation clauses at pre-determined rates or at the prevailing market rates at the time of the increase, and options to extend or terminate the lease without cause at the option of either party during the lease term. The Company is not reasonably certain to exercise these options at the commencement of the lease. Equipment leases have initial lease terms ranging from 2.2 years to 5 years and are classified as operating or finance if the lease contains bargain purchase options which the Company is reasonably certain to exercise. Variable lease cost for real estate leases primarily consists of certain non-lease components such as real estate taxes, insurance and common area maintenance charges. These non-lease components are typically variable in nature and are recognized as lease expense in the period in which they arise. None of the Company's lease agreements contain material restrictive covenants or residual value guarantees. The Company's headquarters are located in the Seaport district of Boston, Massachusetts and comprise a set of non-cancellable operating leases within a facility totaling over 320,000 square feet of office and laboratory space. These leases expire on dates ranging from 2030 to 2036 and each contain one option to extend the lease for a five-year period at then-market rates. In April 2021, the Company entered into a lease, as amended, consisting of approximately 260,000 rentable square feet of new office and laboratory space being developed in Boston, Massachusetts near the Company's headquarters. The lease commenced on April 11, 2024, with rent payments beginning in June 2024, and it will expire on the fifteenth anniversary of the rent commencement date. The lease includes an option to extend for an additional ten years at then-market rates, as well as an expansion option if the owner constructs an additional building on the property. The Company has a substantial amount of excess space and is seeking to sublease excess space consistent with its restructuring plan. The leased facilities continue to be included in the Cell Engineering asset group as they have not been abandoned and do not have separately identifiable cash flows. If the Company enters into subleases at rates that are below the existing lease minimum payments, terminates or amends existing leases, or abandons the leased facilities, the right-of-use lease assets and any associated leasehold improvements would be evaluated for potential impairment and impairment charges could be material. In September 2023, the Company’s former subsidiary, Zymergen, ceased the use of and exited a leased facility consisting of approximately 300,000 square feet of office and laboratory space in Emeryville, California. The facility was used pursuant to an operating lease with a minimum term expiring in August 2033. Zymergen’s exit resulted in an impairment loss of $96.2 million, including $36.6 million for the right-of-use asset and $59.6 million for the related leasehold improvements. The impairment loss represents the amount by which the carrying value of the assets exceed their estimated fair values, as determined using a discounted cash flow model under the income approach. The fair value measurements are based on significant inputs not observable in the market and therefore represent Level 3 fair value measurements. The key inputs used in the valuation were estimated sublease rental income and a discount rate of 8.5%. The impairments are presented as impairment of lease assets in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2023. The following table presents the components of total lease cost (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Operating lease cost | $ | 63,470 |  |  | $ | 57,996 |  |  | $ | 59,588 |
Finance lease cost: |  |  |  |  |
Amortization of ROU assets | 708 |  |  | 655 |  |  | 1,047 |
Interest on lease liabilities | 4 |  |  | 29 |  |  | 79 |
Finance lease cost | 712 |  |  | 684 |  |  | 1,126 |
Variable lease cost | 19,701 |  |  | 19,421 |  |  | 15,862 |
Sublease income | (7,600) |  |  | (5,177) |  |  | (11,170) |
Total lease cost | $ | 76,283 |  |  | $ | 72,924 |  |  | $ | 65,406 |
Supplemental cash flow information related to the Company’s operating leases were as follows (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 61,178 |  |  | $ | 45,019 |  |  | $ | 44,051 |
Operating cash flows from finance leases | 4 |  |  | 32 |  |  | 83 |
Financing cash flows from finance leases | 354 |  |  | 897 |  |  | 1,295 |
Supplemental balance sheet information related to operating leases were as follows:
| As of December 31,
| 2025 |  | 2024
Weighted average remaining lease term - operating leases (in years) | 11.3 |  | 11.8
Weighted average remaining lease term - finance leases (in years) | 0.9 |  | 0.6
Weighted average discount rate - operating leases | 7.6 | % |  | 7.5 | %
Weighted average discount rate - finance leases | 3.9 | % |  | 3.8 | %
The following table summarizes the maturity of the Company’s lease liabilities (in thousands):
Years Ending December 31, | Operating Leases |  | Finance Leases
2026 | $ | 56,302 |  |  | $ | 20 |
2027 | 56,745 |  |  | — |
2028 | 58,498 |  |  | — |
2029 | 60,271 |  |  | — |
2030 | 59,301 |  |  | — |
Thereafter | 371,682 |  |  | — |
Total undiscounted payments | 662,799 |  |  | 20 |
Less: imputed interest | (222,934) |  |  | — |
Total lease liability | 439,865 |  |  | 20 |
Less: current portion of lease liability | (22,787) |  |  | (20) |
Lease liabilities, non-current | $ | 417,078 |  |  | $ | — |
The Company previously subleased a portion of its office and lab space to certain of its equity method investees, which are considered related parties. These lease agreements ended in 2025. Related party sublease income for the years ended December 31, 2025, 2024 and 2023 was $2.1 million, $2.0 million and $2.1 million, respectively, included within operating expenses in 2025 and within other income, net in the consolidated statements of operations and comprehensive loss in prior years.
Leases | Leases The Company leases real estate for office and lab space as well as equipment used in research and development activities under operating and finance leases. The Company’s real estate leases have initial lease terms ranging from 1.4 years to 15.3 years and are all classified as operating. Real estate leases may contain periods of free rent, tenant improvement incentives, expansion options, rent escalation clauses at pre-determined rates or at the prevailing market rates at the time of the increase, and options to extend or terminate the lease without cause at the option of either party during the lease term. The Company is not reasonably certain to exercise these options at the commencement of the lease. Equipment leases have initial lease terms ranging from 2.2 years to 5 years and are classified as operating or finance if the lease contains bargain purchase options which the Company is reasonably certain to exercise. Variable lease cost for real estate leases primarily consists of certain non-lease components such as real estate taxes, insurance and common area maintenance charges. These non-lease components are typically variable in nature and are recognized as lease expense in the period in which they arise. None of the Company's lease agreements contain material restrictive covenants or residual value guarantees. The Company's headquarters are located in the Seaport district of Boston, Massachusetts and comprise a set of non-cancellable operating leases within a facility totaling over 320,000 square feet of office and laboratory space. These leases expire on dates ranging from 2030 to 2036 and each contain one option to extend the lease for a five-year period at then-market rates. In April 2021, the Company entered into a lease, as amended, consisting of approximately 260,000 rentable square feet of new office and laboratory space being developed in Boston, Massachusetts near the Company's headquarters. The lease commenced on April 11, 2024, with rent payments beginning in June 2024, and it will expire on the fifteenth anniversary of the rent commencement date. The lease includes an option to extend for an additional ten years at then-market rates, as well as an expansion option if the owner constructs an additional building on the property. The Company has a substantial amount of excess space and is seeking to sublease excess space consistent with its restructuring plan. The leased facilities continue to be included in the Cell Engineering asset group as they have not been abandoned and do not have separately identifiable cash flows. If the Company enters into subleases at rates that are below the existing lease minimum payments, terminates or amends existing leases, or abandons the leased facilities, the right-of-use lease assets and any associated leasehold improvements would be evaluated for potential impairment and impairment charges could be material. In September 2023, the Company’s former subsidiary, Zymergen, ceased the use of and exited a leased facility consisting of approximately 300,000 square feet of office and laboratory space in Emeryville, California. The facility was used pursuant to an operating lease with a minimum term expiring in August 2033. Zymergen’s exit resulted in an impairment loss of $96.2 million, including $36.6 million for the right-of-use asset and $59.6 million for the related leasehold improvements. The impairment loss represents the amount by which the carrying value of the assets exceed their estimated fair values, as determined using a discounted cash flow model under the income approach. The fair value measurements are based on significant inputs not observable in the market and therefore represent Level 3 fair value measurements. The key inputs used in the valuation were estimated sublease rental income and a discount rate of 8.5%. The impairments are presented as impairment of lease assets in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2023. The following table presents the components of total lease cost (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Operating lease cost | $ | 63,470 |  |  | $ | 57,996 |  |  | $ | 59,588 |
Finance lease cost: |  |  |  |  |
Amortization of ROU assets | 708 |  |  | 655 |  |  | 1,047 |
Interest on lease liabilities | 4 |  |  | 29 |  |  | 79 |
Finance lease cost | 712 |  |  | 684 |  |  | 1,126 |
Variable lease cost | 19,701 |  |  | 19,421 |  |  | 15,862 |
Sublease income | (7,600) |  |  | (5,177) |  |  | (11,170) |
Total lease cost | $ | 76,283 |  |  | $ | 72,924 |  |  | $ | 65,406 |
Supplemental cash flow information related to the Company’s operating leases were as follows (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 61,178 |  |  | $ | 45,019 |  |  | $ | 44,051 |
Operating cash flows from finance leases | 4 |  |  | 32 |  |  | 83 |
Financing cash flows from finance leases | 354 |  |  | 897 |  |  | 1,295 |
Supplemental balance sheet information related to operating leases were as follows:
| As of December 31,
| 2025 |  | 2024
Weighted average remaining lease term - operating leases (in years) | 11.3 |  | 11.8
Weighted average remaining lease term - finance leases (in years) | 0.9 |  | 0.6
Weighted average discount rate - operating leases | 7.6 | % |  | 7.5 | %
Weighted average discount rate - finance leases | 3.9 | % |  | 3.8 | %
The following table summarizes the maturity of the Company’s lease liabilities (in thousands):
Years Ending December 31, | Operating Leases |  | Finance Leases
2026 | $ | 56,302 |  |  | $ | 20 |
2027 | 56,745 |  |  | — |
2028 | 58,498 |  |  | — |
2029 | 60,271 |  |  | — |
2030 | 59,301 |  |  | — |
Thereafter | 371,682 |  |  | — |
Total undiscounted payments | 662,799 |  |  | 20 |
Less: imputed interest | (222,934) |  |  | — |
Total lease liability | 439,865 |  |  | 20 |
Less: current portion of lease liability | (22,787) |  |  | (20) |
Lease liabilities, non-current | $ | 417,078 |  |  | $ | — |
The Company previously subleased a portion of its office and lab space to certain of its equity method investees, which are considered related parties. These lease agreements ended in 2025. Related party sublease income for the years ended December 31, 2025, 2024 and 2023 was $2.1 million, $2.0 million and $2.1 million, respectively, included within operating expenses in 2025 and within other income, net in the consolidated statements of operations and comprehensive loss in prior years.

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