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

Quarterly report [Sections 13 or 15(d)]

Leases

Leases

9 Months Ended

Sep. 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 2041. The agreements include provisions for renewal at the then prevailing market rate or other terms specified in the respective lease agreements. 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.

In May 2026, the Company entered into a lease for an approximately 289,000-square-foot production and manufacturing facility in Livermore, California. The lease commenced on July 1, 2026, and has an initial contractual term of 124 months, with an option to extend the lease for an additional five-year period. The Company concluded that it is reasonably certain to exercise the extension option and, accordingly, included the optional renewal period in the lease term. Upon commencement, the Company recognized an operating lease liability of approximately $57.9 million and a corresponding right-of-use asset of approximately $58.4 million. In conjunction with the lease, the Company provided the landlord with a letter of credit of approximately $3.3 million as security for its obligations under the lease. The letter of credit is subject to annual renewal and may be reduced upon satisfaction of certain conditions specified in the lease.

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


	September 30,		December 31,
	2026		2025
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	78,408	$	7,633
Operating lease liabilities:
Current (Accrued expenses and other current liabilities)	$	—	$	1,917
Noncurrent (Other noncurrent liabilities)		81,277		6,970
Total operating lease liabilities		81,277		8,887
Financing lease liabilities:
Current (Accrued expenses and other current liabilities)	$	77	$	182
Noncurrent (Other noncurrent liabilities)		92		145
Total financing lease liabilities	$	169	$	327
Total lease liabilities	$	81,446	$	9,214

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

Information about lease-related balances were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
	(In thousands, except years and percentages)
Operating lease expense	$	1,854	$	739	$	3,392	$	1,895
Financing lease expense		47		39		159		119
Short-term lease expense		775		39		1,675		125
Total lease expense	$	2,676	$	817	$	5,226	$	2,139
Cash paid for leases	$	921	$	700	$	1,890	$	1,890

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


	As of September 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		9.1	%		9.0	%
Weighted — average remaining lease term — financing leases (years)		2.2			2.2
Weighted — average discount rate — financing leases		3.8	%		5.6	%

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


	Operating Leases			Financing Leases			Total
Year Ending December 31,	(In thousands)
Remainder of 2026	$	(858	)	$	25		$	(833	)
2027		6,884			75			6,959
2028		8,986			75			9,061
2029		9,325			—			9,325
2030		9,677			—			9,677
Thereafter		118,504			—			118,504
Total operating lease payments	$	152,518		$	175		$	152,693
Less: Portion representing imputed interest		(71,241	)		(6	)		(71,247	)
Total operating lease liabilities	$	81,277		$	169		$	81,446
Less: Current portion		—			77			77
Long-term portion	$	81,277		$	92		$	81,369

Undiscounted lease payments for the 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. Undiscounted lease payments for 2027 are net of approximately $1.0 million of tenant improvement and other landlord allowances associated with the Livermore facility lease.