We have operating leases for office space, laboratory operations, research and development facilities, manufacturing locations, warehouses and certain equipment. We determine if a contract contains a lease at inception or modification of a contract. Our leases generally do not provide an implicit interest rate, and we therefore use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. We used the incremental borrowing rates as of January 1, 2019, for operating leases that commenced prior to that date. Many of our leases contain rental escalation, renewal options and/or termination options that are factored into our determination of lease payments as appropriate. Variable lease payment amounts that cannot be determined at the commencement of the lease are not included in the right-to-use assets or liabilities.

We elected the use of permitted practical expedients of not recording leases on our Condensed Consolidated Balance Sheet when the leases have terms of 12 months or less, and we elected not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.

The following table presents the lease balances within the Condensed Consolidated Balance Sheet as of March 31, 2026 and December 31, 2025:

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on our Condensed Consolidated Balance Sheet as of March 31, 2026:


(in thousands)	Operating		Finance
April 1, 2026 through December 31, 2026	$	8,873	$	1,377
2027		10,722		1,111
2028		9,457		259
2029		7,796		252
2030		6,336		248
Thereafter		13,627		1,693
Total undiscounted future minimum lease payments		56,811		4,940
Less: Difference between lease payments and discounted lease liabilities		10,089		410
Total lease liabilities	$	46,722	$	4,530

Expense under operating leases and finance leases was $4.2 million and $0.2 million, respectively, for the three months ended March 31, 2026, which included $0.4 million of variable lease costs. Expense under operating leases and finance leases was $9.0 million and $0.3 million, respectively, for the three months ended March 31, 2025, which included $0.4 million of variable lease costs. Operating lease costs and finance lease costs are included within Operating loss in the Condensed Consolidated Statement of Operations. Short-term lease costs were not material.


	For the three months ended March 31,
(in thousands)	2026		2025
Operating cash out flows from operating leases	$	3,732	$	3,461
Operating cash out flows from finance leases		23		52
Financing cash out flows from finance leases		451		228
Total	$	4,206	$	3,741