LEASES

3 Months Ended

Mar. 31, 2026

5. LEASES

Lessee Disclosure

The Company has operating and financing leases for towers, land, corporate offices, retail facilities, and data transport capacity. The lease terms are generally between three (3) and ten (10) years, some of which include additional renewal options.

Supplemental lease information

The components of lease expense were as follows (in thousands):


	Three Months Ended
	March 31, 2026			March 31, 2025
Operating lease cost:
Operating lease cost	$	6,074		$	5,906
Short-term lease cost		1,661			1,332
Variable lease cost		1,603			1,955
Total operating lease cost	$	9,338		$	9,193

Finance lease cost:
Amortization of right-of-use asset	$	575		$	1,879
Variable costs		108			287
Interest costs		80			88
Total finance lease cost	$	763		$	2,254

During the three months ended March 31, 2026 and 2025, the Company paid $5.4 million and $6.3 million, respectively, for operating lease liabilities. During the three months ended March 31, 2026 and 2025, the Company recorded $3.3 million and $5.2 million, respectively, of operating lease liabilities arising from right of use assets.

At March 31, 2026, finance leases with a net book value of $23.6 million were included in fixed assets, net. During the three months ended March 31, 2026, the Company paid $0.2 million of financing cash flows and $0.1 million of operating cash flows for finance lease liabilities. During the three months ended March 31, 2025, the Company paid $0.5 million of financing cash flows and $0.1 million of operating cash flows for finance lease liabilities. At March 31, 2026, finance leases had a lease liability of $3.7 million, of which $0.7 million was current.

At December 31, 2025, finance leases with a net book value of $24.2 million were included in fixed assets, net.

The weighted average remaining lease terms and discount rates as of March 31, 2026 and December 31, 2025 are set forth in the table below:


	March 31, 2026		December 31, 2025
Weighted-average remaining lease term
Operating leases		11.7 years		11.8 years
Financing leases		5.5 years		5.6 years

Weighted-average discount rate
Operating leases		7.3%		7.8%
Financing leases		8.8%		8.7%

Maturities of lease liabilities as of March 31, 2026 were as follows (in thousands):


	Operating Leases		Financing Leases
2026 (excluding the three months ended March 31, 2026)		14,459		775
2027		16,657		1,006
2028		12,510		737
2029		9,027		537
2030		7,579		527
Thereafter		73,714		1,130
Total lease payments		133,946		4,712
Less imputed interest		(52,574)		(1,054)
Total	$	81,372	$	3,658

Maturities of lease liabilities as of December 31, 2025 were as follows (in thousands):


	Operating Leases		Financing Leases
2026	$	18,712	$	668
2027		17,143		996
2028		13,051		727
2029		9,395		527
2030		7,133		516
Thereafter		72,553		1,548
Total lease payments		137,987		4,982
Less imputed interest		(52,667)		(1,134)
Total	$	85,320	$	3,848

As of March 31, 2026, the Company did not have any material operating or finance leases that had not yet commenced.

Lessor Disclosure

The Company is the lessor in agreements to lease the use of its network assets including its wireless cell sites and buildings. For the three months ended March 31, 2026 and 2025, the Company recorded $2.5 million and $2.0 million, respectively, of lease income from agreements for which the Company is the lessor. Lease income is classified as Carrier Services revenue in the statement of operations.

The following table presents the maturities of future undiscounted lease payments for the periods indicated (in thousands):


2026 (excluding the three months ended March 31, 2026)	$	6,486
2027		7,244
2028		6,532
2029		4,863
2030		2,808
Thereafter		6,594
Total future lease payments	$	34,527