Xometry, Inc. Leases Disclosure
(6) Leases
The Company leases its offices under non-cancelable lease agreements which expire between 2026 and 2032. Certain of these arrangements have free rent, escalating rent payment provisions, lease renewal options and tenant allowances. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and the associated
potential option payments are excluded from the lease payments. Under such arrangements, the Company recognizes an ROU asset and lease liability on the Consolidated Balance Sheets. Variable rent may include items such as common area maintenance and real estate taxes.
From December 2021, through December 2025, the Company subleased a portion of its office in New York City to three other companies (the “Sublessees”). The Sublessees paid the Company a portion of the rent under the existing lease with the landlord (the “Head Lease”), the Company was not relieved from its legal obligation to the landlord under the Head Lease. Accordingly, an operating lease liability and an operating lease ROU asset is reflected on the Company’s Consolidated Balance Sheets related to the Head Lease. The Head Lease terminated on December 31, 2025 and therefore no remaining operating lease liability and operating lease ROU asset exist on the balance sheet related to the Head Lease as of this date.
The Company periodically assesses its lease portfolio. During 2023, the Company abandoned certain leases and/or portions of its leases in New York, NY, Horsham, PA, Culver City, CA, Doraville, GA and Gaithersburg, MD. As a result of abandoning these leases, the Company ceased its use of these locations and accelerated the amortization of the ROU assets to reduce the ROU assets carrying values to zero. The Company recognized a one-time charge of $8.7 million of additional operating lease expense during 2023 in general and administrative expense on our Consolidated Statements of Operations and Comprehensive Loss. The Company will continue to pay the rent owed under the existing lease agreements. No additional lease abandonments were identified in 2024 or 2025.
Operating lease expense for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cost of revenue |
|
$ |
79 |
|
|
$ |
72 |
|
|
$ |
72 |
|
General and administrative |
|
|
5,149 |
|
|
|
5,120 |
|
|
|
15,008 |
|
Total operating lease expense |
|
$ |
5,228 |
|
|
$ |
5,192 |
|
|
$ |
15,080 |
|
Our lease costs for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Lease costs: |
|
|
|
|
|
|
|
|
|
|||
Operating lease costs |
|
$ |
4,618 |
|
|
$ |
4,536 |
|
|
$ |
5,725 |
|
Variable lease costs |
|
|
1,316 |
|
|
|
1,501 |
|
|
|
1,315 |
|
Short-term lease costs |
|
|
200 |
|
|
|
212 |
|
|
|
133 |
|
Amortization of in-place lease intangible assets |
|
|
357 |
|
|
|
365 |
|
|
|
364 |
|
Amortization of in place lease asset - below market |
|
|
720 |
|
|
|
720 |
|
|
|
949 |
|
Lease abandonment cost |
|
|
— |
|
|
|
— |
|
|
|
8,706 |
|
Sublease income |
|
|
(1,983 |
) |
|
|
(2,142 |
) |
|
|
(2,112 |
) |
Total operating lease cost |
|
$ |
5,228 |
|
|
$ |
5,192 |
|
|
$ |
15,080 |
|
The following table includes supplemental cash and non-cash information related to the Company’s leases during 2025, 2024 and 2023 (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|||
Operating cash flows from operating leases |
|
$ |
7,348 |
|
|
$ |
7,512 |
|
|
$ |
6,460 |
|
Right of use assets obtained in exchange for lease obligations |
|
|
7,450 |
|
|
|
673 |
|
|
|
852 |
|
Reduction to right of use assets resulting from reductions to lease obligations |
|
|
— |
|
|
|
— |
|
|
|
(69 |
) |
The Company’s aggregate annual lease obligations at December 31, 2025 are as follows (in thousands):
|
|
Operating Leases |
|
|
2026 |
|
$ |
2,979 |
|
2027 |
|
|
3,177 |
|
2028 |
|
|
2,920 |
|
2029 |
|
|
2,516 |
|
2030 |
|
|
1,322 |
|
Thereafter |
|
|
1,496 |
|
Total undiscounted lease obligations |
|
|
14,410 |
|
Less imputed interest |
|
|
(2,502 |
) |
Net lease obligations |
|
$ |
11,908 |
|
The following are the remaining weighted average lease terms and discount rates for the Company’s leases as of December 31, 2025 and 2024:
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Weighted average remaining lease term (in years) |
|
|
5.00 |
|
|
|
2.81 |
|
Weighted average discount rate |
|
|
7.28 |
% |
|
|
5.77 |
% |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 18, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.