BEYOND MEAT, INC.
For the period ended Mar 28, 2026. Filed May 7, 2026.
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Mar 28, 2026 · Filed May 7, 2026
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Part II. Other Information
Note 4. Leases
See Note 10.
Campus Lease
On January 14, 2021, the Company entered into a lease (as amended from time to time, the “Campus Lease”) with HC Hornet Way, LLC, a Delaware limited liability company (the “Landlord”), a 12-year lease withtwo 5-year extension options to house its corporate headquarters, lab and innovation space (“Campus Headquarters”) in El Segundo, California. Although the Company is involved in the design of the tenant improvements of the Campus Headquarters, the Company does not have title or possession of the assets during construction. In addition, the Company does not obtain control of the leased space at the Campus Headquarters until the tenant improvements for the applicable phase in which the leased space is located have been completed and that phase has been delivered to the Company. The Campus Lease was initially classified as an operating lease.
The Company paid $0.9 million and $8.3 million in rent prepayments and payments towards construction costs of the Campus Headquarters in the three months ended March 28, 2026 and the year ended December 31, 2025, respectively. The rent prepayments and payments towards construction costs are initially recorded in Prepaid lease costs, non-current in the Company’s unaudited condensed consolidated balance sheets and will ultimately be reclassified as a component of a right-of-use asset upon lease commencement for each phase of the lease.
On May 9, 2025, the Company surrendered to the Landlord approximately 61,556 rentable square feet of the existing premises (the “Surrendered Premises”). Termination costs related to the Surrendered Premises in the year ended December 31, 2025 were $32.6 million, consisting of $31.1 million in prepaid rent related to the Surrendered Premises, a $1.0 million one-time termination fee and $0.5 million in brokers’ fees. The termination costs are being recognized over the remaining initial term and first extension term of the Campus Lease. These costs are reflected in the tables below.
Concurrent with the Company’s execution of the Campus Lease, the Company delivered to the Landlord a letter of credit in the amount of $12.5 million as security for the performance of its obligations under the Campus Lease. In the fourth quarter of 2025, and in connection with the Varda Sublease, the Company and the Landlord entered into an amendment to the Campus Lease whereby the parties agreed to amend the schedule for reduction of the Company’s letter of credit to: (i) $8.25 million on November 9, 2026; (ii) $6.25 million on November 9, 2027; and (iii) $3.125 million on November 9, 2028; provided the Company is not then in default of its obligations under the Campus Lease.
Varda Sublease
Effective as of July 22, 2025, the Company entered into a Sublease Agreement (the “Varda Sublease”) with Varda Space Industries, Inc., a Delaware corporation (the “Subtenant”), pursuant to which the Company subleased to the Subtenant approximately 54,749 rentable square feet of the Remaining Premises.
Sublease income in the three months ended March 28, 2026 and March 29, 2025 was $0.3 million and $0, respectively. Sublease income is recognized on a straight-line basis and included in the Company’s unaudited condensed consolidated statements of operations as a credit to Research and development expenses.
Lease costs for operating and finance leases were as follows:
| Three Months Ended | ||||
|---|---|---|---|---|
| (in thousands) · Statement of Operations Location · March 28, 2026 · March 29, 2025 | ||||
| Operating lease cost: | ||||
| Lease cost | Cost of goods sold | $457 | $396 | |
| Lease cost | Research and development expenses | — | 2,387 | |
| Lease cost | SG&A expenses | 104 | 623 | |
| Variable lease cost(1) | Cost of goods sold | 194 | 32 | |
| Variable lease cost(1) | Research and development expenses | — | — | |
| Variable lease cost(1) | SG&A expenses | — | 1,099 | |
| Operating lease cost | $755 | $4,537 | ||
| Short- term lease cost: | ||||
| Short-term lease cost | Cost of goods sold | $60 | $77 | |
| Short-term lease cost | Research and development expenses | 4 | 14 | |
| Short-term lease cost | SG&A expenses | 63 | 135 | |
| Short-term lease cost | 127 | 226 | ||
| Finance lease cost: | ||||
| Amortization of right-of use assets | Cost of goods sold | $177 | $255 | |
| Amortization of right-of use assets | Research and development expenses | 1,761 | 3 | |
| Amortization of right-of use assets | SG&A expenses | 692 | — | |
| Interest on lease liabilities | Interest expense | 1,680 | 40 | |
| Variable lease cost(1) | Cost of goods sold | 1 | 12 | |
| Variable lease cost(1) | Research and development expenses | 1 | — | |
| Variable lease cost(1) | SG&A expenses | 617 | — | |
| Finance lease cost | $4,929 | $310 | ||
| Total lease cost | $5,811 | $5,073 | ||
(1) Variable lease cost primarily consists of common area maintenance, such as cleaning and repairs.
Supplemental balance sheet information related to leases:
| (in thousands) | Balance Sheet Location | March 28, 2026 | December 31, 2025 |
|---|---|---|---|
| Assets | |||
| Operating leases | Operating lease right-of-use assets | $5,173 | $5,661 |
| Finance leases, net | Property, plant and equipment, net | 113,912 | 103,849 |
| Total lease assets | $119,085 | $109,510 | |
| Liabilities | |||
| Current: | |||
| Operating lease liabilities | Current portion of operating lease liabilities | $2,124 | $2,132 |
| Finance lease liabilities | Accrued expenses and other current liabilities | 4,245 | 4,385 |
| Long-term: | |||
| Operating lease liabilities | Operating lease liabilities, net of current portion | 3,526 | 4,059 |
| Finance lease liabilities | Finance lease liabilities | 75,699 | 76,590 |
| Total lease liabilities | $85,594 | $87,166 | |
The following is a schedule by year of the maturities of lease liabilities with original terms in excess of one year, as of March 28, 2026:
| (in thousands) | Operating Leases | Finance Leases |
|---|---|---|
| Remainder of 2026 | $1,697 | $8,268 |
| 2027 | 2,004 | 9,601 |
| 2028 | 923 | 9,176 |
| 2029 | 630 | 9,264 |
| 2030 | 505 | 9,519 |
| Thereafter | 295 | 86,045 |
| Total undiscounted future minimum lease payments | 6,054 | 131,873 |
| Less imputed interest | (404) | (51,929) |
| Total discounted future minimum lease payments | $5,650 | $79,944 |
Weighted average remaining lease terms and weighted average discount rates were:
| Operating Leases | Finance Leases | |
|---|---|---|
| Weighted average remaining lease term (years) | 3.5 | 12.4 |
| Weighted average discount rate | 4.8% | 8.4% |
Supplemental cash flow information:
| Three Months Ended | ||
|---|---|---|
| (in thousands) | March 28, 2026 | March 29, 2025 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $613 | $2,255 |
| Cash paid for interest on finance lease liabilities | $1,680 | $40 |
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