Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2026

Goodwill and Intangible Assets Disclosure [Abstract]

Indefinite-lived intangible assets

Indefinite-lived assets consist of FCC broadcast licenses and goodwill.

FCC Broadcast Licenses

FCC licenses represent a substantial portion of the Company’s total assets. The FCC licenses are renewable in the ordinary course of business, generally for a maximum of eight years. The fair value of FCC licenses is primarily dependent on the future cash flows of the radio markets and other assumptions, including, but not limited to, forecasted revenue growth rates, profit margins and a risk-adjusted discount rate. The Company has selected December 31st as the annual testing date.

The Company evaluates its FCC licenses for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. Due to an increase in the weighted average cost of capital, the Company quantitatively evaluated the fair value of its FCC licenses at March 31, 2026.

The key assumptions used in applying the direct valuation method are summarized as follows:


	March 31, 2026
Discount Rate	13.7%
Long-term Revenue Growth Rate	(2.5)%
	Low	High
Mature Market Share*	18.7%	71.2%
Operating Profit Margin	27.3%	47.7%

* Market share assumption used when reliable third-party data is available. Otherwise, Company results and forecasts are utilized.

Based on the results of the interim impairment assessments of our FCC licenses, the Company incurred $8.6 million of impairment charges for FCC licenses in 14 of our 74 local markets for the three months ended March 31, 2026, and incurred no impairment charges for FCC licenses for the three months ended March 31, 2025, respectively. The impairment charge realized during the three months ended March 31, 2026 was primarily driven by changes in the market data utilized in determining the discount rate applied in the valuation of our FCC licenses, which drove an increase in the weighted average cost of capital. The changes in data were primarily driven by an increase in industry bond yields.

The assumptions used to estimate the fair value of our FCC licenses are dependent upon the expected performance and growth of our traditional broadcast radio operations. In the event broadcast radio revenue experiences actual or anticipated declines in excess of these assumptions, such declines will have a negative impact on the estimated fair value of our FCC licenses, and the Company could recognize additional impairment charges, which could be material.

Unfavorable changes in key assumptions utilized in the impairment assessment of our FCC licenses may affect future testing results. For example, keeping all other assumptions constant, a 100-basis point increase in the weighted average cost of capital as of the date of our last quantitative assessment would cause the estimated fair values of our FCC licenses to decrease by $19.9 million which would have resulted in an incremental impairment charge of $10.3 million as of March 31, 2026. Further, a 100-basis point decline in the long-term revenue growth rate would cause the estimated fair values of our FCC licenses to further decrease by $11.3 million which would have resulted in an incremental impairment charge of $8.9 million as of March 31, 2026. Finally, a 100-basis point decline in operating profit margins would result in a decrease in the estimated fair values of our FCC licenses of $8.9 million which would result in an incremental impairment charge of $7.2 million.

Goodwill

For goodwill impairment testing, the Company has selected December 31st as the annual testing date. In addition to the annual impairment test, the Company regularly assesses whether a triggering event has occurred, which would require interim impairment testing. As of December 31, 2025, the fair values of our National Digital, Townsquare Ignite, and Townsquare Interactive reporting units were in excess of their respective carrying values by approximately 47%, 106%, and 152%, respectively. The Local Advertising, Amped, Analytical Services and Live Events reporting units had no goodwill as of December 31, 2025.

The Company considered whether any events have occurred or circumstances have changed from the last quantitative analysis performed as of December 31, 2025 that would indicate that the fair value of the Company's reporting units may be below their carrying amounts. Based on such analysis the Company determined that there have been no indicators that the fair value of its reporting units may be below their carrying amounts as of March 31, 2026.

Definite-lived intangible assets

The Company’s definite-lived intangible assets were acquired primarily in various acquisitions as well as in connection with the acquisition of software and music licenses.

The following tables present details of our intangible assets as of March 31, 2026 and December 31, 2025, respectively (in thousands):


	March 31, 2026
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	138,295	$	—	$	138,295

Content rights and other intangible assets	1 - 7	22,430		(15,119)		7,311







Total		$	160,725	$	(15,119)	$	145,606


	December 31, 2025
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	146,883	$	—	$	146,883

Content rights and other intangible assets	1 - 7	22,430		(14,266)		8,164






Total		$	169,313	$	(14,266)	$	155,047

Amortization of definite-lived intangible assets was $0.9 million and $0.9 million for the three months ended March 31, 2026 and 2025, respectively.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of March 31, 2026 is as follows (in thousands):


2026 (remainder)	$	2,342
2027	1,978
2028	1,880
2029	646
2030	152
Thereafter	313
	$	7,311