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LEASES

9 Months Ended

Sep. 30, 2025

4. 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 and 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				Nine months ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Operating lease cost:
Operating lease cost	$	6,371	$	5,884	$	18,351	$	16,989
Short-term lease cost		1,629		657		4,262		2,105
Variable lease cost		1,865		1,415		5,639		4,539
Total operating lease cost	$	9,865	$	7,956	$	28,252	$	23,633

Finance lease cost:
Amortization of right-of-use asset	$	1,369	$	1,647	$	5,149	$	3,235
Variable costs		108		170		530		538
Interest costs		88		87		262		287
Total finance lease cost	$	1,565	$	1,904	$	5,941	$	4,060

During the nine months ended September 30, 2025 and 2024, the Company paid $18.7 million and $14.8 million, respectively, for operating lease liabilities. During the nine months ended September 30, 2025 and 2024, the Company recorded $16.9 million and $11.5 million, respectively, of operating lease liabilities arising from right of use assets.

At September 30, 2025, finance leases with a net book value of $24.8 million were included in fixed assets, net. During the nine months ended September 30, 2025, the Company paid $1.3 million of financing cash flows and $0.3 million of operating cash flows for finance lease liabilities. During the nine months ended September 30, 2024, the Company paid $1.4 million of financing cash flows and $0.3 million of operating cash flows for finance lease liabilities. At September 30, 2025, finance leases had a lease liability of $4.1 million, of which $0.8 million was current.

At December 31, 2024, finance leases with a net book value of $29.6 million were included in fixed assets, net.

The weighted average remaining lease terms and discount rates as of September 30, 2025 and December 31, 2024 are set forth in the table below:


	September 30, 2025		December 31, 2024
Weighted-average remaining lease term
Operating leases		11.8 years		12.6 years
Financing leases		5.7 years		11.5 years

Weighted-average discount rate
Operating leases		7.8%		6.8%
Financing leases		8.6%		7.4%

Maturities of lease liabilities as of September 30, 2025 were as follows (in thousands):


	Operating Leases		Financing Leases
2025 (excluding the nine months ended September 30, 2025)	$	5,864	$	311
2026		19,325		1,043
2027		16,756		1,006
2028		12,827		737
2029		9,181		537
Thereafter		81,082		1,658
Total lease payments		145,035		5,292
Less imputed interest		(55,121)		(1,219)
Total	$	89,914	$	4,073

Maturities of lease liabilities as of December 31, 2024 were as follows (in thousands):


	Operating Leases		Financing Leases
2025	$	20,764	$	1,649
2026		15,881		847
2027		12,949		825
2028		9,901		632
2029		7,134		516
Thereafter		79,843		1,630
Total lease payments		146,472		6,099
Less imputed interest		(57,512)		(1,402)
Total	$	88,960	$	4,697

As of September 30, 2025, 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 nine months ended September 30, 2025 and 2024, the Company recorded $6.5 million and $6.3 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):


2025 (excluding the nine months ended September 30, 2025)	$	2,065
2026		7,984
2027		6,648
2028		5,939
2029		5,260
Thereafter		5,227
Total future lease payments	$	33,123