LEASES

3 Months Ended

Mar. 31, 2025

LEASES

LEASES

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
	March 31, 2025		March 31, 2024
Operating lease cost:
Operating lease cost	$	5,906	$	5,479
Short-term lease cost		1,332		691
Variable lease cost		1,955		1,429
Total operating lease cost	$	9,193	$	7,599
Finance lease cost:
Amortization of right-of-use asset	$	1,879	$	612
Variable costs		287		198
Interest costs		88		100
Total finance lease cost	$	2,254	$	910

During the three months ended March 31, 2025 and 2024, the Company paid $6.3 million and $4.8 million, respectively, for operating lease liabilities. During the three months ended March 31, 2025 and 2024, the Company recorded $5.2 million and $2.3 million, respectively, of operating lease liabilities arising from right of use assets.

At March 31, 2025, finance leases with a net book value of $27.5 million were included in fixed assets, net. During the three months ended March 31, 2025, the Company paid $0.5 million of financing cash flows and $0.1 million of operating cash flows for finance lease liabilities. During the three months ended March 31, 2024, the Company paid $0.4 million of financing cash flows and $0.1 million of operating cash flows for finance lease liabilities. At March 31, 2025, finance leases had a lease liability of $4.3 million, of which $1.0 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 March 31, 2025 and December 31, 2024 are noted in the table below:

	March 31, 2025		December 31, 2024
Weighted-average remaining lease term
Operating leases		12.6 years		12.6 years
Financing leases		3.9 years		11.5 years
Weighted-average discount rate
Operating leases		6.8%		6.8%
Financing leases		7.5%		7.4%

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

	Operating Leases		Financing Leases
2025 (excluding the three months ended March 31, 2025)	$	17,474	$	1,135
2026		15,799		848
2027		13,029		812
2028		9,867		620
2029		7,080		516
Thereafter		79,553		1,658
Total lease payments		142,802		5,589
Less imputed interest		(56,013)		(1,304)
Total	$	86,789	$	4,285

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 March 31, 2025, the Company did not have any material operating or finance leases that have 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 three months ended March 31, 2025 and 2024, the Company recorded $2.0 million and $2.1 million, respectively, of lease income from agreements in 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 three months ended March 31, 2025)	$	5,895
2026		7,634
2027		6,309
2028		5,626
2029		4,924
Thereafter		4,204
Total future lease payments	$	34,592