Note 12 - Leases

6 Months Ended

Jun. 30, 2026

NOTE 12. LEASES

We enter into operating lease contracts primarily for land and office space. Agreements are evaluated at inception to determine whether such arrangements contain a lease. Operating leases include land lease contracts and contracts for the use of office space.

Right of use assets, which we refer to as “ROU assets,” represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term.

Certain of our operating lease agreements include rental payments based on a percentage of revenue and others include rental payments adjusted periodically for inflationary changes. Percentage rent contracts, in which lease expense is calculated as a percentage of advertising revenue, and payments due to changes in inflationary adjustments are included within variable rent expense, which is accounted for separately from periodic straight-line lease expense.

Many of our leases entered into in connection with land provide options to extend the terms of the agreements. Generally, renewal periods are included in minimum lease payments when calculating the lease liabilities as, for most leases, we consider exercise of such options to be reasonably certain. As a result, optional terms and payments are included within the lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The implicit rate within our lease agreements is generally not determinable. As such, we use the incremental borrowing rate, which we refer to as “IBR,” to determine the present value of lease payments at the commencement of the lease. The IBR, as defined in ASC 842, is “the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.”

Operating Lease Cost

Operating lease cost is as follows:

	*For the Three Months Ended*				*For the Six Months Ended*
	*June 30,*				*June 30,*
	*2026*		*2025*		*2026*		*2025*		*Statement of Operations Classification*

Lease cost	$	2,149	$	2,121	$	4,272	$	4,215	Cost of billboard revenues, cost of broadband revenues and general and administrative
Variable and short-term lease cost		457		688		987		1,557	Cost of billboard revenues, cost of broadband revenues and general and administrative

Total Lease Cost	$	2,606	$	2,809	$	5,259	$	5,772

Supplemental cash flow information related to operating leases is as follows:

	*For the Three Months Ended*				*For the Six Months Ended*
	*June 30,*				*June 30,*
	*2026*		*2025*		*2026*		*2025*

Cash payments for operating leases	$	2,301	$	2,292	$	4,508	$	4,457
New operating lease assets obtained in exchange for operating lease liabilities	$	956	$	516	$	1,626	$	905

Operating Lease Assets and Liabilities

	*June 30, 2026*		*December 31, 2025*		*Balance Sheet Classification*

Lease assets	$	53,725	$	56,051	Other Assets: Right of use assets

Current lease liabilities	$	4,668	$	5,110	Current Liabilities: Lease liabilities
Noncurrent lease liabilities		49,268		51,975	Long-term Liabilities: Lease liabilities

Total Lease Liabilities	$	53,936	$	57,085

Maturity of Operating Lease Liabilities

	*June 30, 2026*

2027	$	8,099
2028		7,781
2029		7,158
2030		6,483
2031		5,628
Thereafter		48,191

Total lease payments		83,340
Less imputed interest		(29,404	)

Present Value of Lease Liabilities	$	53,936

As of June 30, 2026, our operating leases have a weighted-average remaining lease term of 15.71 years and a weighted-average discount rate of 5.46%.