The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. The operating leases are reflected within the consolidated balance sheet as Operating leases right of use asset with the related liability presented as Operating lease liabilities and Long-term operating lease liabilities. Lease expense is recognized on a straight-line basis over the lease term. Generally, lease terms include options to renew or extend the lease. Unless the renewal option is considered reasonably certain, the exercise of any such options has been excluded from the calculation of lease liabilities.


(in thousands)
Remainder of 2025	$	5,290
2026		9,436
2027		7,422
2028		6,528
2029		6,072
Thereafter		24,358
Total minimum payments	$	59,106
Less amounts representing interest		(11,748	)
Present value of minimum lease payments		47,358
Less current operating lease liabilities		(7,648	)
Long-term operating lease liabilities	$	39,710

The Company’s existing leases have remaining terms of less than one year up to 25 years. The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of June 30, 2025 were 8.5 years and 6.3%, respectively. The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of December 31, 2024 were 8.4 years and 6.3%, respectively.

The Company’s corporate headquarters and main operational offices for its audio operations are currently located in Burbank, California. The Company's corporate headquarters and main operational offices for its audio operations were previously located in Santa Monica, California. The Company occupied approximately 38,000 square feet of space in the building housing its previous corporate headquarters under a lease, as amended, that was scheduled to expire on January 31, 2034. The Company's management decided to vacate the facility in February 2025 and cease making further lease payments. As a result, during the first quarter of 2025 the Company recorded a loss on lease abandonment charges of $16.1 million related to the right of use asset associated with this lease, and $9.1 related to leasehold improvements associated with this lease. As of June 30, 2025, the Company's condensed consolidated balance sheet included $1.6 million of operating lease liabilities and $21.4 million of long-term operating lease liabilities related to this lease.

The following table summarizes lease payments and supplemental non-cash disclosures:


	Six-Month Period Ended June 30,
(in thousands)	2025		2024
Cash paid for amounts included in lease liabilities:

Operating cash flows from operating leases	$	4,490	$	5,647
Non-cash additions to operating lease assets	$	513	$	3,625

The following table summarizes the components of lease expense:


	Three-Month Period				Six-Month Period
	Ended June 30,				Ended June 30,
(in thousands)	2025		2024		2025		2024
Operating lease cost	$	1,977	$	2,325	$	4,316	$	4,708
Variable lease cost		115		404		216		683
Short-term lease cost		467		251		869		484
Total lease cost	$	2,559	$	2,980	$	5,401	$	5,875

For the three-month period ended June 30, 2025, lease cost of $1.4 million, $1.1 million and $0.1 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the six-month period ended June 30, 2025, lease cost of $2.9 million, $2.3 million and $0.2 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.

For the three-month period ended June 30, 2024, lease cost of $1.4 million, $1.3 million and $0.3 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the six-month period ended June 30, 2024, lease cost of $2.8 million, $2.6 million and $0.5 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.

As discussed above, in February 2025 the Company's management decided to vacate its previous corporate headquarters in Santa Monica, California and cease making further payments under the lease, as amended, which lease was scheduled to expire June 30, 2034. On April 18, 2025, the landlord notified the Company that the landlord was terminating the lease pursuant to its terms. The

Company and the landlord have begun discussions regarding this matter. The Company is currently unable to estimate the actual costs and other expenses or charges that may be incurred by the Company as a result of the termination. See Note 8.