Leases

6 Months Ended

Jun. 30, 2026

Note 8—Leases

The Company has commitments under operating leases for certain facilities used in its operations. The Company maintains security deposits on certain leases in the amounts of $95 and $403 within security deposits and noncurrent assets in its consolidated balance sheets at June 30, 2026 and December 31, 2025, respectively.

In June 2026, the Company executed a Third Amendment to its lease for office and laboratory space for its headquarters in Philadelphia, Pennsylvania. Under the Third Amendment, effective June 15, 2026, the Company (i) surrendered and terminated its lease of the 11th floor (31,734 rentable square feet), (ii) paid the landlord a termination fee of $451, and (iii) continued to lease the 12th and 13th floors under a revised base rent through March 2034. The Company accounted for the surrender of the 11th floor as partial lease termination and the changes to the 12th and 13th floors as a modification that was not a separate contract, remeasuring the related lease liabilities using discount rates determined at the effective date and adjusting the corresponding right-of-use assets. Pursuant to the lease modification rules, any consideration paid or to be paid in connection with the partial lease termination was allocated to the remaining lease components.

The Company also sold equipment and leasehold improvements to the replacement tenant that signed a separate lease agreement with the landlord for nominal consideration, which resulted in a loss on lease component termination of $11,145 during the second quarter of 2026.

In September 2025, the Company executed a series of lease modifications with the same landlord that resulted in the early termination of its leases in Seattle, WA (“Seattle”) and Boston, MA (“Boston”). Concurrently, the Company entered into a new lease agreement in Watertown, MA (“Watertown”), set to begin upon the termination of the Boston lease. The Seattle lease was terminated on December 31, 2025, while the Boston lease was terminated on January 27, 2026, aligning with the commencement date of the Watertown lease. As a result of these lease modifications, the Company recorded a reduction of its right-of-use assets of $6,455 and lease liabilities totaling $7,850, which resulted in the recognition of a gain of $1,395 in the third quarter of 2025 related to the Seattle lease which had previously been impaired.

The Watertown lease commenced on January 27, 2026 and the Company recognized $5,245 of right-of-use asset and lease liability, upon the commencement of the lease.

The Company’s leases have initial lease terms ranging from 5 to 16 years. Certain lease agreements contain provisions for future rent increases. Variable lease costs generally include common area maintenance and real estate taxes.

Following the reduction in force that occurred in July 2025, the Company is planning to sublease part of its Philadelphia, Pennsylvania headquarters location. The Company evaluated the right-of-use asset for impairment as a result of this change in strategy and recorded an impairment charge of $6,763 during the third quarter of 2025.

The following table reflects the components of lease expense:


	For the		For the		For the		For the
	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Operating lease expense:
Fixed lease cost	$	1,586	$	1,736	$	3,214	$	3,480
Variable lease cost		845		725		1,966		1,389
Total operating lease expense	$	2,431	$	2,461	$	5,180	$	4,869

The following table reflects supplemental balance sheet information related to leases:


			As of			As of
			June 30,			December 31,
	Location in Balance Sheet		2026			2025
Operating lease right-of-use asset, net	Operating lease right-of-use assets		$	13,513		$	16,139
Operating lease liability, current	Accrued expenses and other liabilities			4,040			3,324
Operating lease liability, long-term	Operating lease liability, long-term			34,626			40,241
Total operating lease liability			$	38,666		$	43,565

The following table reflects supplemental lease term and discount rate information related to leases:


		As of June 30, 2026		As of December 31, 2025
Weighted-average remaining lease terms - operating leases		7.3 years		7.0 years
Weighted-average discount rate - operating leases		10.7	%	10.2	%

The following table reflects supplemental cash flow information related to leases as of the periods indicated:


		For the Six Months Ended			For the Six Months Ended
		June 30, 2026			June 30, 2025
Operating cash flows from operating leases		$	(1,775)		$	(4,858)

The following table reflects future minimum lease payments under noncancelable leases as of June 30, 2026:


		Operating Leases
2026		$	4,246
2027			7,392
2028			7,586
2029			7,786
2030			7,991
Thereafter			20,812
Total lease payments			55,813
Less: Imputed interest			(17,147)
Total		$	38,666