We determine if an arrangement is a lease at inception. We have operating leases for office space, studio space and tower space, expiring at various dates through December 2047 and finance leases for broadcast tower space expiring in March 2029. Some leases have options to extend and some have options to terminate. Operating leases are included in lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities in our consolidated balance sheets. Finance leases are included in lease right-of-use assets, current finance lease liabilities, and noncurrent finance lease liabilities in our consolidated balance sheets.

Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate if it is readily determinable. Our lease terms may include options to extend or terminate the lease, which we treat as exercised when it is reasonably certain and there is a significant economic incentive to exercise that option.

We elected not to apply the recognition requirements of ASC 842, “Leases”, to short-term leases, which are deemed to be leases with a lease term of twelve months or less. Instead, we recognized lease payments in the consolidated statements of operations on a straight-line basis over the lease term and variable payments in the period in which the obligation for these payments was incurred. We elected this policy for all classes of underlying assets. Short-term lease expense for the years ended December 31, 2025 and 2024 were not material.

Operating lease expense for operating lease assets is recognized on a straight-line basis over the lease term. Finance lease expense is composed of the depreciation of the lease asset and accretion of the lease liability and presented as part of Depreciation and amortization expense and Interest expense, respectively, in the consolidated statements of operations. Variable lease payments, which represent lease payments that vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time, are expensed in the period in which the obligation for these payments was incurred. Variable lease payments for the years ended December 31, 2025 and 2024 were not material.

On April 17, 2024, as part of the acquisition of certain assets of Estrella, the Company received favorable leaseholds interests of $7.4 million that were included in the Operating lease right of use assets acquired.


	Year Ended December 31,
	2025			2024
Operating lease cost	$	7,859		$	6,446
Operating cash flows from operating leases	$	6,768		$	4,857
Right-of-use assets obtained in exchange for new operating lease liabilities	$	457		$	—
Weighted average remaining lease term - operating leases (in years)	12.1			12.8
Weighted average discount rate - operating leases	11.7		%	11.6		%


	Year Ended December 31,
	2025			2024
Finance lease cost	$	898		$	667
Cash flows from finance leases	$	768		$	497
Weighted average remaining lease term - finance leases (in years)	3.2			4.2
Weighted average discount rate - finance leases	11.3		%	11.3		%


Year ended December 31,	Operating Leases		Finance Leases
2026	$	7,168	$	799
2027	7,008		831
2028	6,959		864
2029	6,719		218
2030	6,666		—
After 2030	50,350		—
Total lease payments	84,870		2,712
Less: imputed interest	(42,117)		(438)
Total recorded lease liabilities	$	42,753	$	2,274