Leases

12 Months Ended

Dec. 31, 2025

LEASES:

The Company determines whether an arrangement is a lease at inception. The Company has operating and finance leases for corporate offices, warehouse space and equipment (including vehicles). As of December 31, 2025, the Company is the lessee in all lease agreements. The Company's leases have remaining lease terms of one to eight years, some of which include options to extend the leases based on agreed upon terms, and some of which include options to terminate the leases within one year.

The Company also subleased two of its leased corporate offices. One of the subleases was terminated during the third quarter of 2025 as the Company exited the head lease agreement. The Company's remaining sublease has a remaining term of approximately one year. The Company presents the operating right-of-use asset amortization and the change in operating lease liabilities on the other non-cash amortization line item of the consolidated statements of cash flows.

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments.

The Company has lease agreements that contain both lease and non-lease components (e.g., common-area maintenance). For these agreements, the Company accounts for lease components separately from non-lease components.

During the first quarter of 2024, the Company identified a triggering event to test for the recoverability of all the ROU assets of both the Diversigen and Novosanis subsidiaries, given the Company's decision to initiate a strategic plan to transition away from the microbiome molecular sequencing services business and close its Belgian operations. The Company performed an undiscounted cash flow analysis and determined the carrying values of the ROU assets could not be recovered through the sum of the undiscounted future cash flows and were impaired. During the year ended December 31, 2024 the Company recognized aggregate pre-tax impairment charges of $1.2 million and $0.3 million to its operating and finance ROU assets, respectively. These charges are reported in the Company's consolidated statement of operations.

The components of lease expense are as follows:


	For the Years Ended December 31,
	2025		2024		2023
Operating lease cost	$	2,285	$	1,729	$	2,407
Variable and short-term lease cost	37		549		381
Sublease income	(161)		(151)		(155)
Finance lease cost:
Amortization of right-of use assets	61		331		1,091
Interest on lease liabilities	8		22		51
Total finance lease cost	69		353		1,142
Total lease cost	$	2,230	$	2,480	$	3,775

Supplemental cash flow information related to leases is as follows:


	For the Years Ended December 31,
	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,156	$	1,901	$	1,863
Operating cash flows from financing leases	8		22		51
Financing cash flows from financing leases	61		842		1,345
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	169		4,086		4,363
Right-of-use assets obtained in exchange for finance lease obligations	62		193		334

Supplemental balance sheet information related to leases is as follows:


	December 31,
	2025		2024














Weighted Average Remaining Lease Term
Weighted-average remaining lease term — operating leases	6.70 years		7.57 years
Weighted-average remaining lease term — finance leases	2.70 years		3.74 years

Weighted Average Discount Rate
Weighted-average discount rate — operating leases	4.48	%	4.44	%
Weighted-average discount rate — finance leases	5.10	%	4.82	%

As of December 31, 2025, minimum lease payments by period are expected to be as follows:


	Finance		Operating
2026	$	70	$	2,548
2027	65		2,287
2028	34		2,157
2029	6		2,097
2030	—		2,106
Thereafter	—		3,778
Total minimum lease payments	175		14,973
Less: imputed interest	(12)		(1,939)
Present value of lease liabilities	$	163	$	13,034

ORASURE TECHNOLOGIES INC 10-K