Velo3D, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Leases

Leases

6 Months Ended

Jun. 30, 2026

Note 8. Leases

The Company leases its office and manufacturing facilities under four non-cancellable operating and financing leases, including options to extend, which expire between 2026 to 2040. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease. On April 16, 2026, the Company amended its headquarters and manufacturing facility lease to extend the non-cancellable lease term through July 31, 2035. The amended lease also includes an option to extend the lease for an additional five-year period through July 31, 2040. The Company concluded that it is reasonably certain to exercise the extension option and, accordingly, included the optional renewal period in the lease term when remeasuring the related operating lease right-of-use asset and lease liability.

Total right-of-use (“ROU”) assets and lease liabilities are as follows:


	June 30,		December 31,
	2026		2025
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	20,921	$	7,633
Operating lease liabilities:
Current (Accrued expenses and other current liabilities)	$	—	$	1,917
Noncurrent (Other noncurrent liabilities)		22,428		6,970
Total operating lease liabilities		22,428		8,887
Financing lease liabilities:
Current (Accrued expenses and other current liabilities)	$	107	$	182
Noncurrent (Other noncurrent liabilities)		110		145
Total financing lease liabilities	$	217	$	327
Total lease liabilities	$	22,645	$	9,214

There were no impairments recorded related to these assets as of June 30, 2026 and December 31, 2025.

Information about lease-related balances were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(In thousands, except years and percentages)
Operating lease expense	$	864	$	578	$	1,539	$	1,156
Financing lease expense		56		40		113		80
Short-term lease expense		45		45		488		86
Total lease expense	$	965	$	663	$	2,140	$	1,322
Cash paid for leases	$	740	$	595	$	1,480	$	1,190

'Other information related to lease terms and discount rates is as follows:


	As of June 30, 2026			As of December 31, 2025
Weighted — average remaining lease term — operating leases (years)		14.1			6.3
Weighted — average discount rate — operating leases		9.2	%		9.0	%
Weighted — average remaining lease term — financing leases (years)		2.1			2.2
Weighted — average discount rate — financing leases		4.6	%		5.6	%

Maturity of operating lease liabilities as of June 30, 2026 are as follows:


	Operating Leases			Financing Leases			Total
Year Ending December 31,	(In thousands)
Remainder of 2026	$	(874	)	$	75		$	(799	)
2027		1,864			75			1,939
2028		2,712			75			2,787
2029		2,824			—			2,824
2030		2,941			—			2,941
Thereafter		35,503			—			35,503
Total operating lease payments	$	44,970		$	225		$	45,195
Less: Portion representing imputed interest		(22,542	)		(8	)		(22,550	)
Total operating lease liabilities	$	22,428		$	217		$	22,645
Less: Current portion		—			107			107
Long-term portion	$	22,428		$	110		$	22,538

Undiscounted lease payments for remainder of 2026 are net of a $2.0 million tenant improvement allowance receivable from the landlord pursuant to the Lakeview Second Lease Amendment executed in April 2026.

In May 2026, the Company entered into a lease for an approximately 289,000-square-foot production and manufacturing facility in Livermore, California, with a lease term of 124 months. The lease commenced on July 1, 2026, subsequent to the end of the period covered by this Quarterly Report, and accordingly no right-of-use asset or lease liability related to this lease is reflected in the condensed consolidated balance sheet as of June 30, 2026. Total undiscounted minimum base rent payments over the initial term are approximately $57.9 million, subject to a base rent credit provided under the lease. The Company will recognize the associated operating lease right-of-use asset and lease liability upon commencement in the third quarter of 2026. In conjunction with the new lease, the Company issued a one-year letter of credit for $3.3 million to the landlord to secure the agreement, which automatically renews for another annual period, through the life of the lease.