In 2021, the Company entered into a noncancelable operating lease for approximately 100,000 square feet in Fremont, California used for laboratory operations and its corporate headquarters. The lease term is 13.5 years and commenced in October 2022. The Company gained early access to the premises for the purpose of constructing and installing tenant improvements, for which the landlord contributed $15.1 million. Such contributions were accounted for as lease incentives and are recognized as reductions to lease expense over the lease term. The lease expires at the end of March 2036 and includes two options to extend the term for a period of five-years per option at market rates. The Company determined the extension options are not reasonably certain to be exercised. The lease includes escalating rent payments.

The Company has a noncancelable operating lease expiring in November 2027 for 31,280 square feet in Menlo Park, California previously used for laboratory operations and its former corporate headquarters. The lease includes escalating rent payments. The Company moved all laboratory operations to the Fremont facility during the third quarter of 2023, resulting in a lease impairment charge at that time. The Company is actively marketing the vacated Menlo Park space for sublease.

The Company has noncancelable operating leases for data center space expiring between 2025 and 2026. The leases include renewal options that the Company determined are not reasonably certain to be exercised. Separately, the Company also has various other short-term leases.

As of September 30, 2025, operating leases had a weighted-average remaining lease term of 9.5 years and a weighted-average discount rate of 10.6%. Discount rates are based on estimates of the Company's incremental borrowing rate, as the discount rates implicit in the leases cannot be readily determined. Future lease payments under operating leases as of September 30, 2025 were as follows (in thousands):


	Amount
2025 (remaining three months)	$	1,832
2026		7,230
2027		7,189
2028		5,215
2029		5,371
2030 and thereafter		37,426
Total future minimum lease payments		64,263
Less: imputed interest		(24,705	)
Present value of future minimum lease payments		39,558
Less: current portion of operating lease liability (included in accrued and other current liabilities)		(6,900	)
Long-term operating lease liabilities	$	32,658

Cash paid for operating lease liabilities, included in cash flows from operating activities in the consolidated statements of cash flows, for the nine months ended September 30, 2025 and 2024, was $6.2 million and $6.1 million, respectively.

Components of lease costs were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Lease cost
Operating lease cost	$	1,460	$	1,503	$	4,409	$	4,535
Short-term lease cost		1		1		3		197
Variable lease cost		537		513		1,444		1,539
Total lease cost	$	1,998	$	2,017	$	5,856	$	6,271

In September 2025, the Company entered into an agreement to lease lab equipment for 36 months with 33 monthly payments of $71,479, commencing in January 2026. The Company classified this lease as a finance lease as the agreement contains an early buyout option which the Company is reasonably certain to exercise. Pursuant to the early buyout option, the Company can purchase the equipment and simultaneously terminate the agreement by paying the purchase price of $2.1 million in January 2026. The purchase price was recognized as part of right-of-use ("ROU") finance lease assets and finance lease liabilities. As of September 30, 2025, finance lease ROU assets and ROU liabilities were $3.3 million and $3.2 million, respectively. As of December 31, 2024, the Company had no finance leases. Finance lease ROU assets are classified as long-term assets and are reported within the other long-term assets line in the consolidated balance sheets. Finance lease ROU liabilities with payments due within one year are classified as short-term liabilities and reported within the accrued and other current liabilities line in the consolidated balance sheets. Finance lease ROU liabilities with payments due beyond one year are classified as long-term liabilities and reported with the other long-term liabilities line in the consolidated balance sheets.