Townsquare Media, Inc.TSQ
Townsquare Media, Inc. Leases Disclosure
Lease and Other Commitments
Our lease agreements are primarily for facilities, land, radio towers and other equipment used in our operations and contain renewal options through 2124, escalating rent provisions and/or cost of living adjustments. The majority of our leases are operating leases, although we have several finance leases for equipment as the lease
term represents a significant portion of the useful life. In several cases, we have lease arrangements where the lease payment is based upon the consumer price index. Our lease agreements generally do not contain guarantees of the residual value at the end of the lease term or restrictive financial or other covenants.
Total rental expense, including costs incurred for live events such as venue and equipment rentals, for our operating leases was $12.8 million and $13.8 million for the years ended December 31, 2025 and 2024, respectively, and is included in Income from operations.
In September 2015, the Company closed on the sale of 43 towers located on 41 sites in 28 markets to a subsidiary of Vertical Bridge, LLC ("Vertical Bridge") (the "Tower Sale"). The divested towers house antenna that broadcast certain of the Company’s radio stations. As part of this transaction, the Company leased a portion of the space on the sold towers that house certain of the Company's antenna. The lease is for a period of 35 years, including an initial term of twenty years and three optional 5-year renewal periods. The Company pays $41 of rent per annum ($1 per site per annum) to Vertical Bridge for the right to house its existing antenna on the divested towers. In addition, the Company determined that the lease is an operating lease and is amortizing the long-term prepaid rent asset and deferred gain on the sale of towers as offsetting amounts over the lease term. The ending balances of the prepaid rent asset and deferred gain, including the current portion of $0.2 million, as of December 31, 2025 and 2024 were $5.2 million and $5.4 million, respectively. The Company will continue to amortize these balances over the remaining lease term.
Weighted-average remaining lease term (in years) and discount rate related to leases were as follows:
| Weighted Average Remaining Lease Term | December 31, 2025 | December 31, 2024 | |||||||||
| Finance Leases | 29.32 years | 24.12 years | |||||||||
| Operating leases | 7.37 years | 8.38 years | |||||||||
| Weighted Average Discount Rate | |||||||||||
| Finance Leases | 9.91% | 7.41% | |||||||||
| Operating leases | 8.22% | 6.93% | |||||||||
Maturities of lease liabilities for operating leases are as follows as of December 31, 2025 (in thousands):
| 2026 | $ | 10,346 | |||
| 2027 | 8,602 | ||||
| 2028 | 7,736 | ||||
| 2029 | 6,522 | ||||
| 2030 | 4,854 | ||||
| Thereafter | 22,451 | ||||
Total operating lease payments | 60,511 | ||||
| Less: imputed interest | (15,875) | ||||
| Add: deferred gain sale leaseback transaction | 5,153 | ||||
| Total | $ | 49,789 | |||
Maturities of lease liabilities for financing leases are as follows as of December 31, 2025 (in thousands):
| 2026 | $ | 182 | |||
| 2027 | 167 | ||||
| 2028 | 154 | ||||
| 2029 | 146 | ||||
| 2030 | 112 | ||||
| Thereafter | 9,028 | ||||
Total financing lease payments | 9,789 | ||||
| Less: imputed interest | (8,152) | ||||
| Total | $ | 1,637 | |||
Finance leases are included in on our Consolidated Balance Sheets.
The components of lease costs recorded to operating and corporate expenses where the short-term lease measurement and recognition exemption was not applied are as follows (dollars in thousands):
Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||||||
| Operating lease cost | $ | 10,534 | $ | 11,309 | |||||||
| Short-term lease cost | 66 | 5 | |||||||||
| Variable lease cost | 9 | 10 | |||||||||
| Total lease cost | $ | 10,609 | $ | 11,324 | |||||||
Other Commitments: The radio broadcast industry’s principal ratings service is Nielsen Holdings N.V. (“Nielsen”), which publishes surveys for domestic radio markets. The Company’s remaining aggregate fixed obligation under the agreements with Nielsen as of December 31, 2025 is approximately $14.3 million and is expected to be paid in accordance with the agreements through June 2028. In addition, the Company has aggregate commitments of $1.7 million for a business management platform through October 2026.
Future expected payments under these agreements as of December 31, 2025 are as follows (in thousands):
| 2026 | $ | 8,182 | |||
| 2027 | 6,582 | ||||
| 2028 | 1,229 | ||||
| 2029 | — | ||||
| 2030 | — | ||||
| Thereafter | — | ||||
Total purchase obligations | $ | 15,993 | |||
Total payments made under these agreements were $8.5 million and $9.1 million for the years ended December 31, 2025 and 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.