Broadcast Licenses, Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2025

Broadcast Licenses, Goodwill and Other Intangible Assets

Broadcast Licenses, Goodwill and Other Intangible Assets

3.    Broadcast Licenses, Goodwill and Other Intangible Assets

We evaluate our FCC licenses for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We operate our broadcast licenses in each market as a single asset and determine the fair value by relying on a discounted cash flow approach assuming a start-up scenario in which the only assets held by an investor are broadcast licenses. The fair value calculation contains assumptions incorporating variables that are based on past experiences and judgments about future operating performance using industry normalized information for an average station within a market. These variables include, but are not limited to: (1) the forecasted growth rate of each radio market, including population, household income, retail sales and other expenditures that would influence advertising expenditures; (2) the estimated available advertising revenue within the market and the related market share and profit margin of an average station within a market; (3) estimated capital start-up costs and losses incurred during the early years; (4) risk-adjusted discount rate; (5) the likely media competition within the market area; and (6) terminal values. If the carrying amount of FCC licenses is greater than their estimated fair value in a given market, the carrying amount of FCC licenses in that market is reduced to its estimated fair value. The FCC license valuations are Level 3 non-recurring fair value measurements.

We also evaluate goodwill for impairment annually, or more frequently if certain circumstances are present. The Company has one reporting unit for purposes of goodwill impairment testing. The income approach was used and it is based upon a discounted cash flow analysis incorporating significant assumptions such as projected revenues including a projected long-term growth rate, projected operating margins, projected general and administrative expenses, and a discount rate appropriate for the industry. Under the income approach, if the fair value of our reporting unit is less than the carrying amount, the Company will recognize an impairment charge for the amount by which the carrying amount exceeds our reporting unit’s fair value. The loss recognized will not exceed the total amount of goodwill allocated to our reporting unit. The goodwill valuations are Level 3 non-recurring fair value measurements.

We evaluate amortizable intangible assets for recoverability when circumstances indicate impairment may have occurred, using an undiscounted cash flow methodology. If the future undiscounted cash flows for the intangible asset are less than net book value, then the net book value is reduced to the estimated fair value. Amortizable intangible assets are included in other intangibles, deferred costs and investments in the consolidated balance sheets.

Broadcast Licenses

We have recorded the changes to broadcast licenses for the years ended December 31, 2025 and 2024 as follows:

	Total
	(in thousands)
Balance at January 1, 2024	$	90,240
Acquisitions		2,150
Disposals		(893)
Balance at December 31, 2024	$	91,497
Impairment Charge		(1,168)
Disposals		(18)
Balance at December 31, 2025	$	90,311

2025 Impairment Test

We completed our impairment annual impairment test of broadcast licenses during the fourth quarter of 2025. We elected to bypass the qualitative assessment on five of our markets that as of our last annual impairment testing had the least amount of variance between the estimated fair value and the carrying value and perform quantitative testing. We performed a qualitative assessment on all of our remaining markets (reporting units). As a result of the quantitative tests performed in the fourth quarter of 2025, the Company determined that the fair value of broadcast license was less than the carrying amount on the balance sheet and recorded non-cash impairment charges of $1,168,000 related to the FCC license at our Ithaca, New York market. We determined that the fair value of the broadcast licenses was greater than the carrying value recorded for each of our other markets tested and, accordingly, no impairment was recorded in any other market tested.

The following table reflects certain key estimates and assumptions used in the impairment tests during the fourth quarter ended 2025 and the fourth quarter of 2024. The ranges for operating profit margin and market long-term revenue growth rates vary by market. In general, when comparing between 2025 and 2024: (1) the market specific operating profit margin range declined; (2) the market long-term revenue growth rates decreased slightly; (3) the discount rate decreased from 2024; and (4) current year revenue projections decreased with amounts previously projected for 2025 for

the five markets quantitatively tested. The impairment loss in our Ithaca, New York market was primarily due to a decrease in projected revenue.

	Fourth		Fourth
	Quarter		Quarter
	2025		2024
Discount rates	8.5	%	9.0	%
Operating profit margin ranges	21.6%-24.8	%	17.8% - 36.4	%
Market long-term revenue growth rates	-0.5	%	0.5% - 1.5	%

If actual market conditions are less favorable than those estimated by us or if events occur or circumstances change that would reduce the fair value of our broadcast licenses below the carrying value, we may be required to recognize additional impairment charges in future periods. Such a charge could have a material effect on our consolidated financial statements. We will continue to monitor potential triggering events and perform the appropriate analysis when deemed necessary.

2024 Impairment Test

During the fourth quarter of 2024, we completed our annual impairment test of broadcast and determined that the fair value of the broadcast licenses was greater than the carrying value recorded for each of our markets and, accordingly, no impairment was recorded.

Goodwill

During the fourth quarter of 2025, the Company performed its annual test of goodwill in accordance with ASC 350 and determined that the fair value of goodwill was less than the carrying amount on the balance sheet and recorded a non-cash impairment charge of $19,229,000, representing the full carrying value of goodwill associated with the reporting unit. The impairment was driven by lower than expected revenue growth seen in the fourth quarter of 2025 for our radio advertising revenue and the radio industry as a whole which resulted in less than favorable market projections and operating profit margins used in our annual impairment calculation performed in the fourth quarter. Following the impairment charge, no goodwill remains recorded for the reporting unit.

The following table reflects certain key estimates and assumptions used in the impairment tests during the fourth quarter of 2025:

Discount rate	8.5	%
Operating profit margin ranges	13.4 %-19.5	%
Long-term revenue growth rate	0.2%-1.1	%

During the fourth quarter of 2024, the Company performed its annual impairment test of goodwill in accordance with ASC 350 and determined that the fair value was in excess of its carrying value and, accordingly, no impairment was recorded.

The following table reflects certain key estimates and assumptions used in the impairment tests during the fourth quarter of 2024:

Discount rate	9.0	%
Operating profit margin ranges	19.7 % - 27.0	%
Long-term revenue growth rate	1.2	%

We have recorded the changes to goodwill for each of the years ended December 31, 2025 and 2024 as follows:

	Total
	(in thousands)
Balance at January 1, 2024	$	19,236
Acquisitions		76
Disposals		(83)
Balance at December 31, 2024	$	19,229
Impairment Charge		(19,229)
Balance at December 31, 2025	$	—

Other Intangible Assets

We have recorded amortizable intangible assets at December 31, 2025 as follows:

	Gross
	Carrying		Accumulated		Net
	Amount		Amortization		Amount
	(In thousands)
Non-competition agreements	$	3,861	$	3,861	$	—
Favorable lease agreements		5,965		5,706		259
Customer relationships		5,560		5,160		400
Other intangibles		2,013		1,918		95
Total amortizable intangible assets	$	17,399	$	16,645	$	754

We have recorded amortizable intangible assets at December 31, 2024 as follows:

	Gross
	Carrying		Accumulated		Net
	Amount		Amortization		Amount
	(In thousands)
Non-competition agreements	$	3,861	$	3,861	$	—
Favorable lease agreements		5,965		5,679		286
Customer relationships		5,560		4,860		700
Other intangibles		2,001		1,857		144
Total amortizable intangible assets	$	17,387	$	16,257	$	1,130

Aggregate amortization expense for these intangible assets for the years ended December 31, 2025 and 2024, was $350,000 and $270,000, respectively. Our estimated annual amortization expense for the years ending December 31, 2026, 2027, 2028, 2029 and 2030 is $355,000, $106,000, $28,000, $24,000 and $14,000, respectively.