Leases

12 Months Ended

Dec. 31, 2025

6. Leases

The Company has entered into various operating lease agreements for office space and finance lease agreements for automobiles.

The Company primarily leases facilities for office space under non-cancelable operating leases for its U.S. and international locations. As of December 31, 2025, non-cancelable leases expire on various dates between 2026 and 2043, some of which include options to extend the leases for up to 20 years.

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


	Year ended December 31,
		2025		2024		2023

		(In thousands)
Operating lease cost		$	22,843	$	23,106	$	15,655





Sublease income		(2,199)		—		—
Total net lease cost		$	20,644	$	23,106	$	15,655

During the years ended December 31, 2025, 2024 and 2023, short-term operating lease expense was $0.7 million, $0.7 million, and $0.6 million, respectively.

Operating lease assets are recorded net of accumulated amortization of $5.5 million and $7.3 million as of December 31, 2025 and 2024, respectively.

Other supplemental information related to operating leases were as follows:


	Year ended December 31,
		2025		2024		2023








Weighted average remaining lease term (in years)		17.25		18.29		19.30



Weighted average discount rate		8.75	%	8.76	%	8.76	%

Maturities of operating lease liabilities were as follows:


	As of December 31,
	2025


	(In thousands)


2026	$	23,267
2027	23,364
2028	23,616
2029	24,042
2030	24,425
Thereafter	333,344
Total lease payments	452,058
Less: imputed interest	(227,092)

Total lease obligations	224,966
Less: current obligations	(3,947)
Long-term lease obligations	$	221,019

Corporate Headquarters

On August 1, 2023, the Company commenced a lease for a new corporate headquarters in Raleigh, North Carolina. The lease term will continue for a period of twenty (20) years (the “Initial Term”). The Company has the option to renew the Initial Term for two ten-year periods at a rental rate equal to 100% of the then-prevailing market rental rate for comparable buildings in the Raleigh, North Carolina, market. The Company relocated its corporate headquarters to the leased property during the third quarter of 2023.

Upon commencement of the lease, the Company recognized ROU assets of $156.0 million and operating lease liabilities of $223.1 million, both of which do not include the two ten-year renewal options. The operating lease liabilities include $67.8 million of incentives provided by the landlord throughout development of the new corporate headquarters. Assets obtained through lease incentives are reported in property, plant and equipment, net, on the consolidated balance sheets. The Company also recorded $2.5 million in security deposits and $1.0 million in escrow deposits to fund additional improvements. As of December 31, 2024, there is no balance remaining on the escrow deposits to fund additional improvements.

Related Party

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 year ended December 31, 2025, the Company received approximately $1.0 million in rental payments from Relay under the sublease. As of December 31, 2025, total future minimum rent payments to the Company under this sublease were $10.0 million.