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):

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During the six months ended June 30, 2026 and 2025, the Company paid $11.3 million and $13.2 million, respectively, for operating lease liabilities. During the six months ended June 30, 2026 and 2025, the Company recorded $51.0 million and $13.1 million, respectively, of operating lease liabilities arising from right of use assets. The increase during the six months ended June 30, 2026 includes $43.8 million of operating lease liabilities arising from the Tower Portfolio Transaction for the Company’s continued use of the Tower Portfolio.

At June 30, 2026, finance leases with a net book value of $23.0 million were included in fixed assets, net. During the six months ended June 30, 2026, the Company paid $0.4 million of financing cash flows and $0.2 million of operating cash flows for finance lease liabilities. During the six months ended June 30, 2025, the Company paid $1.0 million of financing cash flows and $0.2 million of operating cash flows for finance lease liabilities. At June 30, 2026, finance leases had a lease liability of $3.5 million, of which $0.8 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 June 30, 2026 and December 31, 2025 are set forth in the table below:

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Maturities of lease liabilities as of June 30, 2026 were as follows (in thousands):

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

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As of June 30, 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 six months ended June 30, 2026 and 2025, the Company recorded $4.6 million and $4.0 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):

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