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.

The following table summarizes the expected future payments related to lease liabilities as of September 30, 2025:


(in thousands)
Remainder of 2025	$	2,608
2026		9,550
2027		7,477
2028		6,554
2029		6,099
Thereafter		24,371
Total minimum payments	$	56,659
Less amounts representing interest		(10,223	)
Present value of minimum lease payments		46,436
Less current operating lease liabilities		(7,494	)
Long-term operating lease liabilities	$	38,942

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 September 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 million related to leasehold improvements associated with this lease. As of September 30, 2025, the Company's condensed consolidated balance sheet included $1.7 million of operating lease liabilities and $21.6 million of long-term operating lease liabilities related to this lease.

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


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



Operating cash flows from operating leases	$	6,389	$	7,939
Non-cash additions to operating lease assets	$	712	$	4,192

The following table summarizes the components of lease expense:


	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
(in thousands)	2025		2024		2025		2024
Operating lease cost	$	1,930	$	2,526	$	6,246	$	7,234
Variable lease cost		319		195		535		878
Short-term lease cost		497		313		1,366		797
Total lease cost	$	2,746	$	3,034	$	8,147	$	8,909

For the three-month period ended September 30, 2025, lease cost of $1.4 million, $1.2 million and $0.1 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the nine-month period ended September 30, 2025, lease cost of $4.3 million, $3.5 million and $0.3 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.

For the three-month period ended September 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 nine-month period ended September 30, 2024, lease cost of $4.2 million, $3.9 million and $0.8 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. On or about July 22, 2025, the Company’s now former landlord commenced litigation against the Company in Los Angeles County Superior Court. The plaintiff alleges the Company breached its lease and the plaintiff seeks at least $31,450,000 in damages. The plaintiff filed an amended complaint on or about August 26, 2025 and the Company filed an answer on or about September 25, 2025, denying the plaintiff's allegations. The litigation is in an early phase during which the Company is continuing to evaluate the plaintiff’s allegations and determine how the Company will proceed. 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 lease termination.

Additionally, as noted in Note 2, as a result of beginning to implement the Plan during the third quarter of 2025, the Company abandoned five leased facilities. These leases had a total combined ROU assets of approximately $2.4 million that were expensed. The expenses are included within Restructuring costs in the Company's Condensed Consolidated Statements of Operations.