Leases

9 Months Ended

Sep. 30, 2025

5. Leases

The Company primarily leases facilities for office space under non-cancelable operating leases for its U.S. and international locations. As of September 30, 2025, non-cancelable leases expire on various dates between 2025 and 2043, some of which include options to extend the leases for up to 20 years.

On April 20, 2015, the Company created a wholly owned subsidiary, Relay, Inc., a Delaware corporation (f/k/a Republic Wireless, Inc.) (“Relay”). On November 30, 2016, the Company completed a pro-rata distribution of the common stock of Relay to its stockholders of record as of the close of business. Due to equity ownership in Relay by certain members of Bandwidth’s Board of Directors, Relay is considered a related party to the Company. On January 1, 2025, the Company commenced a sublease of a portion of its corporate headquarters to Relay. The sublease expires on December 31, 2029 and does not include any option to renew or purchase, nor does it include any residual value guarantees. During the three and nine months ended September 30, 2025, the Company received approximately $0.2 million and $0.7 million, respectively, in rental payments from Relay under the sublease. As of September 30, 2025, total future minimum rent payments to the Company under this sublease were $10.2 million. For the three and nine months ended September 30, 2025, sublease income was $0.5 million and $1.6 million, respectively, and was recorded as an offset to operating lease expense in the Company’s condensed consolidated financial statements.

The components of operating lease expense recorded in the condensed consolidated statements of operations were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024

	(In thousands)
Operating lease cost	$	5,752	$	5,609	$	17,200	$	17,378





Sublease income	(545)		—		(1,635)		—
Total net lease cost	$	5,207	$	5,609	$	15,565	$	17,378

Other supplemental information related to operating leases were as follows:


	Nine months ended September 30,
		2025		2024









Weighted average remaining lease term (in years)		17.53		18.71



Weighted average discount rate		8.75	%	8.77	%

Maturities of operating lease liabilities were as follows:


	As of September 30,
	2025


	(In thousands)

2025 (remaining)	$	5,706
2026	23,123
2027	23,219
2028	23,399
2029	23,818

Thereafter	357,115
Total lease payments	456,380
Less: imputed interest	(231,666)

Total lease obligations	224,714
Less: current obligations	(3,655)
Long-term lease obligations	$	221,059