SBA COMMUNICATIONS CORP 10-Q

ITEM 1: FINANCIAL STATEMENTS SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except par values) March 31, December 31, 2026 2025 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 269,064 $ 264,568 Restricted cash 58,773 167,804 Accounts receivable, net 161,474 171,256 Costs and estimated earnings in excess of billings on uncompleted contracts 23,326 28,152 Prepaid expenses and other current assets 254,856 141,651 Total current assets 767,493 773,431 Property and equipment, net 3,415,936 3,401,799 Intangible assets, net 2,880,040 2,882,117 Operating lease right-of-use assets, net 2,678,715 2,540,229 Acquired and other right-of-use assets, net 1,332,453 1,325,443 Other assets 646,207 651,993 Total assets $ 11,720,844 $ 11,575,012 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' DEFICIT Current liabilities: Accounts payable $ 63,549 $ 73,034 Accrued expenses 85,444 93,502 Current maturities of long-term debt 2,683,531 1,935,802 Deferred revenue 103,650 117,309 Accrued interest 38,753 65,036 Current lease liabilities 304,960 299,604 Other current liabilities 65,803 94,014 Total current liabilities 3,345,690 2,678,301 Long-term liabilities: Long-term debt, net 10,276,200 10,964,466 Long-term lease liabilities 2,151,367 2,119,258 Other long-term liabilities 613,488 588,244 Total long-term liabilities 13,041,055 13,671,968 Redeemable noncontrolling interests 85,744 78,262 Shareholders' deficit: Preferred stock - par value $ 0.01 , 30,000 shares authorized, no shares issued or outstanding — — Common stock - Class A, par value $ 0.01 , 400,000 shares authorized, 106,063 shares and 105,666 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 1,061 1,057 Additional paid-in capital 3,084,883 3,059,427 Accumulated deficit ( 7,200,856 ) ( 7,249,905 ) Accumulated other comprehensive loss, net ( 636,733 ) ( 664,098 ) Total shareholders' deficit ( 4,751,645 ) ( 4,853,519 ) Total liabilities, redeemable noncontrolling interests, and shareholders' deficit $ 11,720,844 $ 11,575,012 The accompanying condensed notes are an integral part of these consolidated financial statements. 1 Table of Contents SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts) For the three months ended March 31, 2026 2025 Revenues: Site leasing $ 656,149 $ 616,209 Site development 47,289 48,039 Total revenues 703,438 664,248 Operating expenses: Cost of revenues (exclusive of depreciation, accretion, and amortization shown below): Cost of site leasing 131,912 115,478 Cost of site development 39,424 38,188 Selling, general, and administrative expenses (1) 70,548 66,219 Acquisition and new business initiatives related adjustments and expenses 8,090 7,379 Asset impairment and decommission costs 29,300 37,026 Depreciation, accretion, and amortization 81,316 65,048 Total operating expenses 360,590 329,338 Operating income 342,848 334,910 Other income (expense): Interest income 5,207 10,780 Interest expense ( 128,529 ) ( 104,148 ) Non-cash interest expense ( 772 ) ( 8,348 ) Amortization of deferred financing fees ( 5,259 ) ( 5,434 ) Other income, net 22,519 32,165 Total other expense, net ( 106,834 ) ( 74,985 ) Income before income taxes 236,014 259,925 Provision for income taxes ( 51,112 ) ( 42,019 ) Net income 184,902 217,906 Net (gain) loss attributable to noncontrolling interests ( 72 ) 2,826 Net income attributable to SBA Communications Corporation $ 184,830 $ 220,732 Net income per common share attributable to SBA Communications Corporation: Basic $ 1.75 $ 2.05 Diluted $ 1.74 $ 2.04 Weighted-average number of common shares Basic 105,815 107,744 Diluted 106,111 108,140 (1) Includes non-cash compensation of $ 18,286 and $ 15,075 for the three months ended March 31, 2026 and 2025, respectively. The accompanying condensed notes are an integral part of these consolidated financial statements. 2 Table of Contents SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (in thousands) For the three months ended March 31, 2026 2025 Net income $ 184,902 $ 217,906 Adjustments related to interest rate swaps 11,106 ( 34,860 ) Foreign currency translation adjustments 15,543 57,591 Comprehensive income 211,551 240,637 Comprehensive loss attributable to noncontrolling interests 644 3,758 Comprehensive income attributable to SBA Communications Corporation $ 212,195 $ 244,395 The accompanying condensed notes are an integral part of these consolidated financial statements. ‎ 3 Table of Contents SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS ’ DEFICIT (unaudited) (in thousands) Accumulated Class A Additional Other Total Common Stock Paid-In Accumulated Comprehensive Shareholders' Shares Amount Capital Deficit Loss, Net Deficit BALANCE, December 31, 2025 105,666 $ 1,057 $ 3,059,427 $ ( 7,249,905 ) $ ( 664,098 ) $ ( 4,853,519 ) Net income attributable to SBA Communications Corporation — — — 184,830 — 184,830 Common stock issued in connection with equity awards and stock purchase plans, offset by the impact of net share settlements 409 4 14,398 — — 14,402 Non-cash stock compensation — — 19,184 — — 19,184 Adjustments related to interest rate swaps — — — — 11,106 11,106 Repurchase and retirement of common stock ( 12 ) — — ( 2,245 ) — ( 2,245 ) Foreign currency translation adjustments attributable to SBA Communications Corporation — — — — 16,259 16,259 Dividends and dividend equivalents on common stock — — — ( 133,536 ) — ( 133,536 ) Adjustment to redemption amount related to noncontrolling interests — — ( 8,126 ) — — ( 8,126 ) BALANCE, March 31, 2026 106,063 $ 1,061 $ 3,084,883 $ ( 7,200,856 ) $ ( 636,733 ) $ ( 4,751,645 ) Accumulated Class A Additional Other Total Common Stock Paid-In Accumulated Comprehensive Shareholders' Shares Amount Capital Deficit Loss, Net Deficit BALANCE, December 31, 2024 107,561 $ 1,076 $ 2,975,455 $ ( 7,326,189 ) $ ( 760,280 ) $ ( 5,109,938 ) Net income attributable to SBA Communications Corporation — — — 220,732 — 220,732 Common stock issued in connection with equity awards and stock purchase plans, offset by the impact of net share settlements 467 4 11,710 — — 11,714 Non-cash stock compensation — — 16,115 — — 16,115 Adjustments related to interest rate swaps — — — — ( 34,860 ) ( 34,860 ) Foreign currency translation adjustments attributable to SBA Communications Corporation — — — — 58,523 58,523 Dividends and dividend equivalents on common stock — — — ( 120,759 ) — ( 120,759 ) Adjustment to redemption amount related to noncontrolling interests — — ( 12,230 ) — — ( 12,230 ) BALANCE, March 31, 2025 108,028 $ 1,080 $ 2,991,050 $ ( 7,226,216 ) $ ( 736,617 ) $ ( 4,970,703 ) The accompanying condensed notes are an integral part of these consolidated financial statements. ‎ 4 Table of Contents SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) For the three months ended March 31, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 184,902 $ 217,906 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, accretion, and amortization 81,316 65,048 Gain on remeasurement of U.S. denominated intercompany loans ( 16,260 ) ( 54,641 ) Non-cash compensation expense 18,936 15,713 Non-cash asset impairment and decommission costs 26,934 35,726 Deferred and non-cash income tax provision 25,445 35,682 Loss on sale of assets 38 18,785 Other non-cash items reflected in the Statements of Operations 13,957 19,998 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts, net 15,958 10,399 Prepaid expenses and other assets ( 740 ) ( 4,642 ) Operating lease right-of-use assets, net 39,053 33,080 Accounts payable and accrued expenses ( 13,056 ) ( 8,537 ) Accrued interest ( 25,701 ) ( 26,941 ) Long-term lease liabilities ( 35,053 ) ( 32,787 ) Other liabilities ( 60,644 ) ( 23,614 ) Net cash provided by operating activities 255,085 301,175 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions ( 143,496 ) ( 63,388 ) Capital expenditures ( 48,397 ) ( 46,173 ) Purchase of investments ( 725,129 ) ( 228,376 ) Proceeds from sale of investments 618,000 415,840 Repayment of loan from unconsolidated joint venture — 115,000 Proceeds from sale of assets 2,176 40,428 Other investing activities 75 4,935 Net cash (used in) provided by investing activities ( 296,771 ) 238,266 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under Revolving Credit Facility 900,000 — Repayments under Revolving Credit Facility ( 90,000 ) — Repayment of Term Loans ( 5,750 ) ( 5,750 ) Repayment of Tower Securities ( 750,000 ) ( 1,165,000 ) Payment of dividends on common stock ( 135,195 ) ( 122,275 ) Proceeds from employee stock purchase/stock option plans 34,017 36,002 Payments related to taxes on stock options and restricted stock units ( 19,615 ) ( 24,288 ) Other financing activities ( 3,071 ) ( 824 ) Net cash used in financing activities ( 69,614 ) ( 1,282,135 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 6,791 6,143 NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH ( 104,509 ) ( 736,551 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: Beginning of period 437,021 1,400,657 End of period $ 332,512 $ 664,106 The accompanying condensed notes are an integral part of these consolidated financial statements. 5 Table of Contents SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) For the three months ended March 31, 2026 2025 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 155,285 $ 132,221 Income taxes $ 44,730 $ 7,452 SUPPLEMENTAL CASH FLOW INFORMATION OF NON-CASH ACTIVITIES: Right-of-use assets obtained in exchange for new operating lease liabilities $ 11,428 $ 28,098 Operating lease modifications and reassessments $ 51,433 $ 31,417 Right-of-use assets obtained in exchange for new finance lease liabilities $ 338 $ 879 The accompanying condensed notes are an integral part of these consolidated financial statements. ‎ 6 Table of Contents SBA COMMUNICATIONS CORPORATION AND SUBSIDIARIES CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. BASIS OF PRESENTATION The accompanying consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for SBA Communications Corporation and its subsidiaries (the “Company”). These financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States. In the opinion of the Company’s management, all adjustments (consisting of normal recurring accruals and deferrals) considered necessary for fair financial statement presentation have been made. The results of operations for an interim period may not give a true indication of the results for the full year. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The significant estimates made by management relate to the allowance for doubtful accounts, the costs and revenue relating to the Company’s construction contracts, stock-based compensation assumptions, valuation allowance related to deferred tax assets, fair value of long-lived assets, the useful lives of towers and intangible assets, anticipated property tax assessments, incremental borrowing rate for lease accounting, fair value of investments, asset retirement obligations, uncertain tax positions, and accounting for acquisitions of assets. Management develops estimates based on historical experience and on various assumptions about the future that are believed to be reasonable based on the information available. These estimates ultimately may differ from actual results and such differences could be material. Foreign Currency Translation All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end exchange rates, while revenues and expenses are translated at monthly average exchange rates during the period. Unrealized translation gains and losses are reported as foreign currency translation adjustments through Accumulated other comprehensive loss, net in the Consolidated Statements of Shareholders’ Deficit. For foreign subsidiaries where the U.S. dollar is the functional currency, monetary assets and liabilities of such subsidiaries, which are not denominated in U.S. dollars, are remeasured at exchange rates in effect at the balance sheet date, and revenues and expenses are remeasured at monthly average rates prevailing during the year. Remeasurement gains and losses are reported as Other income, net in the Consolidated Statements of Operations . Intercompany Loans Subject to Remeasurement In accordance with ASC 830, Foreign Currency Matters , the Company remeasures foreign denominated intercompany loans with the corresponding change in the balance being recorded in Other income, net in the Consolidated Statements of Operations as settlement is anticipated or planned in the foreseeable future. The Company recorded a $ 10.1 million gain and a $ 36.0 million gain, net of taxes, on the remeasurement of intercompany loans for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026, the Company made no repayments under its intercompany loan agreements. As of March 31, 2026 and December 31, 2025, the aggregate amount outstanding under the intercompany loan agreements subject to remeasurement with the Company’s foreign subsidiaries was $ 917.4 million and $ 917.3 million, respectively. Accounting Standards Updates Recently Adopted Accounting Pronouncements In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , modernizing the accounting for costs related to internal-use software. The standard removed the development stage model and requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project and when it is probable that the project will be completed and the software will be used for its intended purposes. The standard is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company has elected to adopt the standard as of 7 Table of Contents January 1, 2026. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , requiring improved expense disclosures, in the notes to the financial statements, of public business entities to provide more detailed information about certain costs and expenses. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the effect of this standard on its consolidated financial statements and related disclosures . 2. FAIR VALUE MEASUREMENTS Items Measured at Fair Value on a Recurring Basis — The Company’s asset retirement obligations are measured at fair value on a recurring basis using Level 3 inputs and are recorded in Other long-term liabilities in the Consolidated Balance Sheets. The fair value of the asset retirement obligations is calculated using a discounted cash flow model . Refer to Note 16 for discussion of the Company’s redeemable noncontrolling interests. Items Measured at Fair Value on a Nonrecurring Basis — The Company estimates the fair value of assets subject to impairment using a discounted cash flow (“DCF”) (Level 3 input) analysis. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, long-term growth rates, discount rates and relevant comparable earnings and trading multiples. The cash flows employed in the DCF analysis are based on estimates of future revenues, earnings, and cash flows after considering factors such as tower location demographics, timing of additions of new tenants, lease rates, rate and term of renewal, attrition, ongoing cash requirements, and market multiples. Each of the assumptions are applied based on the specific facts and circumstances of the identified assets at the lowest level of identifiable cash flows. The DCF analysis used an average discount rate ranging from 6.9 % - 8.0 %. Asset impairment and decommission costs for all periods presented and the related impaired assets primarily relate to the Company’s site leasing operating segment. The following summarizes the activity of asset impairment and decommission costs: For the three months ended March 31, 2026 2025 (in thousands) Asset impairment (1) $ 22,427 $ 30,466 Write-off of carrying value of decommissioned towers 3,490 2,561 Other (including tower and equipment decommission costs) 3,383 3,999 Total asset impairment and decommission costs $ 29,300 $ 37,026 (1) Represents impairment charges resulting from the Company’s regular analysis of whether the anticipated future cash flows from certain towers are sufficient to recover the carrying value of the investment in those towers . The Company’s long-term investments were $ 21.7 million and $ 21.1 million as of March 31, 2026 and December 31, 2025, respectively, and are recorded in Other assets on the Consolidated Balance Sheets. The estimation of the fair value of its investments involves the use of Level 3 inputs. The Company evaluates these investments for indicators of impairment. The Company considers impairment indicators such as negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. If indicators exist and the fair value of the investment is less than the carrying amount, an impairment charge will be recorded. The Company did no t recognize any impairment loss associated with its investments during the three months ended March 31, 2026 or 2025. Fair Value of Financial Instruments — The carrying values of cash and cash equivalents, accounts receivable, restricted cash, accounts payable, and short-term investments approximate their estimated fair values due to the short maturity of these instruments. The Company’s estimate of its short-term investments is based primarily upon Level 1 reported market values. As of March 31, 2026 and December 31, 2025, the Company had $ 112.1 million and $ 6.6 million of short-term investments, respectively. For the three months ended March 31, 2026, the Company purchased $ 723.4 million and sold $ 618.0 million of short-term 8 Table of Contents investments. For the three months ended March 31, 2025, the Company purchased $ 227.0 million and sold $ 415.8 million of short-term investments. The Company determines fair value of its debt instruments utilizing various Level 2 sources including quoted prices and indicative quotes (non-binding quotes) from brokers that require judgment to interpret market information including implied credit spreads for similar borrowings on recent trades or bid/ask prices. The fair value of the Revolving Credit Facility is considered to approximate the carrying value because the Company does not believe its credit risk has changed materially from the date the applicable Term SOFR Rate was set for the Revolving Credit Facility ( 112.5 to 150.0 basis points). Refer to Note 10 for the principal balances, fair values, and carrying values of the Company’s debt instruments. For discussion of the Company’s derivatives and hedging activities, refer to Note 17. 3. CASH, CASH EQUIVALENTS, AND RESTRICTED CASH The cash, cash equivalents, and restricted cash balances on the Consolidated Statements of Cash Flows consist of the following: As of As of March 31, 2026 December 31, 2025 Included on Balance Sheet (in thousands) Cash and cash equivalents $ 269,064 $ 264,568 Cash and cash equivalents Securitization escrow accounts 10,888 9,175 Restricted cash - current asset Payment, performance bonds, and other 47,885 158,629 Restricted cash - current asset Surety bonds and workers compensation 4,675 4,649 Other assets - noncurrent Total cash, cash equivalents, and restricted cash $ 332,512 $ 437,021 Pursuant to the terms of the Tower Securities (see Note 10), the Company is required to establish a securitization escrow account, held by the indenture trustee, into which all rents and other sums due on the towers that secure the Tower Securities are directly deposited by the lessees. These restricted cash amounts are used to fund reserve accounts for the payment of (1) debt service costs, (2) ground rents, real estate and personal property taxes and insurance premiums related to towers, (3) trustee and servicing expenses, and (4) management fees. The restricted cash in the securitization escrow account in excess of required reserve balances is subsequently released to the Borrowers (as defined in Note 10) monthly, provided that the Borrowers are in compliance with their debt service coverage ratio and that no event of default has occurred. All monies held by the indenture trustee are classified as restricted cash on the Company’s Consolidated Balance Sheets. Payment and performance bonds relate primarily to collateral requirements for tower construction currently in process by the Company. Other restricted cash includes $ 47.0 million and $ 155.8 million of cash held by a qualified intermediary for the Company’s like-kind exchange transaction as of March 31, 2026 and December 31, 2025, respectively. Cash is pledged as collateral related to surety bonds issued for the benefit of the Company or its affiliates in the ordinary course of business and primarily related to the Company’s tower removal obligations. As of March 31, 2026 and December 31, 2025, the Company had $ 43.3 million in surety and payment and performance bonds for which no collateral was required to be posted. The Company periodically evaluates the collateral posted for its bonds to ensure that it meets the minimum requirements. As of March 31, 2026 and December 31, 2025, the Company had pledged $ 3.0 million and $ 2.9 million, respectively, as collateral related to its workers’ compensation policy. 4. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS The Company’s costs and estimated earnings on uncompleted contracts are comprised of the following: As of As of March 31, 2026 December 31, 2025 (in thousands) Costs incurred on uncompleted contracts $ 150,545 $ 146,706 Estimated earnings 55,185 53,594 Billings to date ( 188,063 ) ( 179,329 ) $ 17,667 $ 20,971 ‎ 9 Table of Contents These amounts are included in the Consolidated Balance Sheets under the following captions: As of As of March 31, 2026 December 31, 2025 (in thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 23,326 $ 28,152 Billings in excess of costs and estimated earnings on uncompleted contracts (included in Other current liabilities) ( 5,659 ) ( 7,181 ) $ 17,667 $ 20,971 At March 31, 2026 and December 31, 2025, the two largest customers comprised 94.7 % and 95.4 %, respectively, of the costs and estimated earnings in excess of billings on uncompleted contracts, net of billings in excess of costs and estimated earnings on uncompleted contracts. 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS AND OTHER ASSETS The Company’s prepaid expenses and other current assets are comprised of the following: As of As of March 31, 2026 December 31, 2025 (in thousands) Short-term investments $ 112,061 $ 6,648 Short-term loans receivable (1) 63,900 63,779 Prepaid real estate taxes 3,886 3,815 Interest receivable 1,778 611 Prepaid insurance 4,154 1,778 Prepaid taxes 25,887 26,736 Prepaid ground rent 4,761 3,586 Other current assets 38,429 34,698 Total prepaid expenses and other current assets $ 254,856 $ 141,651 The Company’s other assets are comprised of the following: As of As of March 31, 2026 December 31, 2025 (in thousands) Straight-line rent receivable $ 430,368 $ 424,627 Interest rate swap asset (2) 11,362 6,445 Loans receivable 3,590 3,661 Deferred lease costs, net 9,772 9,967 Deferred tax asset - long-term 32,412 35,716 Long-term investments 21,681 21,053 Other 137,022 150,524 Total other assets $ 646,207 $ 651,993 (1) Short-term loans receivable includes a $ 56.6 million third-party loan that matures in November 2026 as of March 31, 2026 and December 31, 2025. (2) Refer to Note 17 for more information on the Company’s interest rate swaps. ‎ ‎ 10 Table of Contents 6. ACQUISITIONS The following table summarizes the Company’s acquisition activity: For the three months ended March 31, 2026 2025 Acquisitions of towers and related assets $ 132,199 $ 54,183 Land buyouts and other assets (1) 11,297 9,205 Total cash acquisition capital expenditures $ 143,496 $ 63,388 (1) Excludes $ 2.0 million and $ 3.2 million spent to extend ground lease terms for the three months ended March 31, 2026 and 2025, respectively. The Company recorded these amounts in prepaid expenses and other assets within the changes in operating assets and liabilities, net of acquisitions section of its Consolidated Statements of Cash Flows. During the three months ended March 31, 2026, the Company acquired 10 towers and related assets and liabilities, as well as the rights to land underneath approximately 3,900 communication sites in Guatemala. During the three months ended March 31, 2025, the Company acquired 344 towers and related assets and liabilities, including 321 sites related to the transaction with Millicom International Cellular S.A. The table below summarizes the Company’s acquisition of towers and related assets and liabilities, by asset class: For the three months ended March 31, 2026 2025 (in thousands) Property and equipment, net $ 4,548 $ 27,110 Intangible assets, net 21,200 30,484 Operating lease right-of-use assets, net 113,730 14,120 Acquisition related holdbacks ( 145 ) ( 129 ) Long-term lease liabilities ( 1,701 ) ( 11,991 ) Other liabilities assumed, net ( 5,433 ) ( 5,411 ) Total acquisitions of towers and related assets and liabilities $ 132,199 $ 54,183 During the three months ended March 31, 2026 , the Company concluded that for each of its acquisitions, substantially all of the value of its tower acquisitions is concentrated in a group of similar identifiable assets . As of March 31, 2026, there were no acquisitions with purchase price allocations that were preliminary. As of the date of this filing, the Company, subsequent to quarter end, purchased or is under contract to purchase 56 communication sites for an aggregate consideration of $ 36.9 million in cash. The Company anticipates that these acquisitions will be closed by the end of the third quarter of 2026. The maximum potential obligation related to contingent consideration for closed acquisitions was $ 63.2 million as of March 31, 2026 and December 31, 2025. No such amounts have been recorded on the Company’s Consolidated Balance Sheets. ‎ 11 Table of Contents 7. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of As of March 31, 2026 December 31, 2025 (in thousands) Towers and related assets $ 6,637,917 $ 6,606,764 Construction-in-process (1) 82,292 72,794 Furniture, equipment, and vehicles 100,070 97,984 Land, buildings, and improvements (2) 990,430 985,019 Total property and equipment 7,810,709 7,762,561 Less: accumulated depreciation ( 4,394,773 ) ( 4,360,762 ) Property and equipment, net $ 3,415,936 $ 3,401,799 (1) Construction-in-process represents costs incurred related to towers and other assets that are under development and will be used in the Company’s site leasing operations. (2) Includes amounts related to the Company’s data centers. Depreciation expense was $ 36.0 million and $ 27.3 million for the three months ended March 31, 2026 and 2025, respectively. At March 31, 2026 and December 31, 2025, unpaid capital expenditures that are included in accounts payable and accrued expenses were $ 11.2 million and $ 12.3 million, respectively. 8. INTANGIBLE ASSETS, NET The following table provides the gross and net carrying amounts for each major class of intangible assets: As of March 31, 2026 As of December 31, 2025 Gross carrying Accumulated Net book Gross carrying Accumulated Net book amount amortization value amount amortization value (in thousands) Current contract intangibles $ 5,734,340 $ ( 3,477,694 ) $ 2,256,646 $ 5,695,073 $ ( 3,438,168 ) $ 2,256,905 Network location intangibles 2,000,776 ( 1,377,382 ) 623,394 1,992,271 ( 1,367,059 ) 625,212 Intangible assets, net $ 7,735,116 $ ( 4,855,076 ) $ 2,880,040 $ 7,687,344 $ ( 4,805,227 ) $ 2,882,117 All intangible assets noted above are included in the Company’s site leasing segment. Amortization expense relating to the intangible assets above was $ 33.5 million and $ 26.8 million for the three months ended March 31, 2026 and 2025, respectively. ‎ 12 Table of Contents 9. ACCRUED EXPENSES The Company’s accrued expenses are comprised of the following: As of As of March 31, 2026 December 31, 2025 (in thousands) Salaries and benefits $ 23,238 $ 32,805 Real estate and property taxes 8,320 7,596 Unpaid capital expenditures 11,166 12,274 Acquisition related holdbacks 3,193 3,196 Other 39,527 37,631 Total accrued expenses $ 85,444 $ 93,502 10. DEBT The principal balances, fair values, and carrying values of debt consist of the following: As of As of March 31, 2026 December 31, 2025 Maturity Date Principal ‎ Balance Fair Value Carrying ‎ Value Principal ‎ Balance Fair Value Carrying ‎ Value (in thousands) Revolving Credit Facility Jan. 25, 2029 $ 1,285,000 $ 1,285,000 $ 1,285,000 $ 475,000 $ 475,000 $ 475,000 2024 Term Loan Jan. 25, 2031 2,254,000 2,259,635 2,235,443 2,259,750 2,271,049 2,240,373 2020-1C Tower Securities (1)(2) Jan. 9, 2026 — — — 750,000 722,460 749,945 2020-2C Tower Securities (1) Jan. 11, 2028 600,000 579,240 598,371 600,000 513,798 598,149 2021-1C Tower Securities (1) Nov. 9, 2026 1,165,000 1,004,929 1,163,470 1,165,000 1,003,356 1,162,858 2021-2C Tower Securities (1) Apr. 9, 2027 895,000 871,999 893,127 895,000 852,022 892,677 2021-3C Tower Securities (1) Oct. 9, 2031 895,000 676,889 889,412 895,000 675,797 889,178 2022-1C Tower Securities (1) Jan. 11, 2028 850,000 868,445 845,908 850,000 867,034 845,373 2024-1C Tower Securities (1) Oct. 9, 2029 1,450,000 1,448,260 1,440,558 1,450,000 1,446,129 1,440,007 2024-2C Tower Securities (1) Oct. 8, 2027 620,000 621,922 617,069 620,000 625,425 616,636 2020 Senior Notes Feb. 15, 2027 1,500,000 1,486,890 1,497,061 1,500,000 1,488,615 1,496,240 2021 Senior Notes Feb. 1, 2029 1,500,000 1,425,000 1,494,312 1,500,000 1,434,375 1,493,832 Total debt $ 13,014,000 $ 12,528,209 $ 12,959,731 $ 12,959,750 $ 12,375,060 $ 12,900,268 Less: current maturities of long-term debt ( 2,683,531 ) ( 1,935,802 ) Total long-term debt, net of current maturities $ 10,276,200 $ 10,964,466 (1) The maturity date represents the anticipated repayment date for each issuance. (2) On January 9, 2026, the Company repaid the aggregate principal amount of the 2020-1C Tower Securities using borrowings from the Revolving Credit Facility. ‎ 13 Table of Contents The table below reflects cash and non-cash interest expense amounts recognized by debt instrument for the periods presented: Interest For the three months ended March 31, Rates as of 2026 2025 March 31, Cash Non-cash Cash Non-cash 2026 Interest Interest Interest Interest (in thousands) Revolving Credit Facility 4.755 % $ 13,838 $ — $ 704 $ — 2024 Term Loan (1) 5.194 % 29,387 187 13,864 6,752 2019-1C Tower Securities 2.836 % — — 1,306 — 2020-1C Tower Securities 1.884 % 567 — 3,598 — 2020-2C Tower Securities 2.328 % 3,540 — 3,540 — 2021-1C Tower Securities 1.631 % 4,846 — 4,846 — 2021-2C Tower Securities 1.840 % 4,196 — 4,196 — 2021-3C Tower Securities 2.593 % 5,873 — 5,873 — 2022-1C Tower Securities 6.599 % 14,093 — 14,093 — 2024-1C Tower Securities 4.831 % 17,635 — 17,635 — 2024-2C Tower Securities (2) 4.654 % 7,977 — 7,977 — 2020 Senior Notes 3.875 % 14,531 102 14,531 98 2021 Senior Notes 3.125 % 11,719 — 11,719 — Other 327 483 266 1,498 Total $ 128,529 $ 772 $ 104,148 $ 8,348 (1) The 2024 Term Loan has a blended rate of 5.194 %, which includes the impact of the interest rate swaps. Excluding the impact of the interest rate swaps, the 2024 Term Loan was accruing interest at 5.420 % as of March 31, 2026. Refer to Note 17 for more information on the Company’s interest rate swaps . (2) The 2024-2C Tower Securities has an all-in fixed rate of 4.654 %, which includes the impact of the Company’s treasury lock agreement which settled upon issuance of the notes. Excluding the impact of the treasury lock agreement, the 2024-2C Tower Securities accrues interest at 5.115 %. Refer to Note 17 for more information on the Company’s treasury lock agreement. Senior Credit Agreement As of March 31, 2026, SBA Senior Finance II was in compliance with the financial covenants contained in the Senior Credit Agreement. Revolving Credit Facility under the Senior Credit Agreement The key terms of the Revolving Credit Facility are as follows: Unused Interest Rate Commitment as of Fee as of March 31, 2026 (1) March 31, 2026 (2) Revolving Credit Facility 4.755 % 0.140 % (1) The rate reflected includes a 0.050 % reduction in the applicable spread as a result of meeting certain sustainability-linked targets as of December 31, 2025. (2) The rate reflected includes a 0.010 % reduction in the applicable commitment fee as a result of meeting certain sustainability-linked targets as of December 31, 2025. ‎ 14 Table of Contents The table below summarizes the Company’s Revolving Credit Facility activity during the three months ended March 31, 2026 and 2025: For the three ended March 31, 2026 2025 (in thousands) Beginning outstanding balance $ 475,000 $ — Borrowings 900,000 — Repayments ( 90,000 ) — Ending outstanding balance $ 1,285,000 $ — Subsequent to March 31, 2026, the Company repaid $ 205.0 million under the Revolving Credit Facility, and as of the date of this filing, $ 1.1 billion was outstanding. Term Loan under the Senior Credit Agreement 2024 Term Loan During the three months ended March 31, 2026, the Company repaid an aggregate of $ 5.8 million of principal on the 2024 Term Loan. As of March 31, 2026, the 2024 Term Loan had a principal balance of $ 2.3 billion. Secured Tower Revenue Securities On January 9, 2026, the Company repaid the entire aggregate principal amount of the 2020-1C Tower Securities ($ 750.0 million) and on January 30, 2026, the Company repaid $ 39.5 million of the principal amount of the 2020-2R Tower Securities. The remaining balance of the 2020-2R Tower Securities is $ 31.6 million. As of March 31, 2026, the entities that are borrowers on the mortgage loan (the “Borrowers”) met the debt service coverage ratio required by the mortgage loan agreement and were in compliance with all other covenants as set forth in the agreement. The sole asset of the Trust consists of a non-recourse mortgage loan made in favor of the Borrowers . 11. SHAREHOLDERS’ EQUITY Common Stock Equivalents The Company has outstanding time-based restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), and stock options which were considered in the Company’s diluted earnings per share calculation (see Note 15). Stock Repurchases The Company’s Board of Directors authorizes the Company to purchase, from time to time, outstanding Class A common stock through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements, and other factors. Once authorized, the repurchase plan has no time deadline and will continue until otherwise modified or terminated by the Company’s Board of Directors at any time in its sole discretion. Shares repurchased are retired. On April 27, 2025, the Company’s Board of Directors authorized a $ 1.5 billion share repurchase plan. As of the date of this filing, the Company had $ 1.1 billion of authorization remaining under this plan. ‎ 15 Table of Contents Dividends For the three months ended March 31, 2026, the Company paid the following cash dividends: Payable to Shareholders of Record at the Close Cash Paid Aggregate Amount Date Declared of Business on Per Share Paid Date Paid February 25, 2026 March 13, 2026 $ 1.25 $ 135.2 million (1) March 27, 2026 (1) Amount reflected includes the payment of $ 2.6 million in dividend equivalents. Dividends paid in 2026 were ordinary taxable dividends. Subsequent to March 31, 2026, the Company declared the following cash dividends: Payable to Shareholders Cash to of Record at the Close be Paid Date Declared of Business on Per Share Date to be Paid April 28, 2026 May 22, 2026 $ 1.25 June 17, 2026 12. STOCK-BASED COMPENSATION Restricted Stock Units and Performance-Based Restricted Stock Units The following table summarizes the Company’s RSU and PSU activity for the three months ended March 31, 2026: RSUs PSUs (1) Weighted-Average Weighted-Average Number of Grant Date Fair Number of Grant Date Fair Shares Value per Share Shares Value per Share (in thousands) (in thousands) Outstanding at December 31, 2025 480 $ 221.37 206 $ 245.29 Granted 308 $ 195.75 76 $ 209.37 PSU adjustment (2) — $ — 5 $ 262.67 Vested ( 206 ) $ 225.99 ( 93 ) $ 256.19 Forfeited/canceled ( 14 ) $ 209.39 — $ — Outstanding at March 31, 2026 568 $ 206.08 194 $ 222.65 (1) PSUs represent the target number of shares granted that are issuable at the end of the three year performance period. Fair value for a portion of the PSUs was calculated using a Monte Carlo simulation model. (2) PSU adjustment represents the net PSUs awarded above or below their target grants resulting from the achievement of performance targets established at the grant date. ‎ 16 Table of Contents Stock Options The following table summarizes the Company’s activities with respect to its stock option plans for the three months ended March 31, 2026 as follows (dollars and shares in thousands, except for per share data): Weighted- Weighted-Average Average Remaining Number Exercise Price Contractual Aggregate of Shares Per Share Life (in years) Intrinsic Value Outstanding at December 31, 2025 546 $ 187.07 Exercised ( 509 ) $ 182.30 Outstanding at March 31, 2026 37 $ 251.22 5.4 $ — Exercisable at March 31, 2026 23 $ 258.29 4.5 $ — Unvested at March 31, 2026 14 $ 239.20 7.0 $ — The total intrinsic value for options exercised during the three months ended March 31, 2026 was $ 7.0 million. 13. INCOME TAXES The primary reason for the difference between the Company’s effective tax rate and the U.S. statutory rate is the Company’s REIT status. A tax provision is recognized because U.S. taxable REIT subsidiary and certain foreign subsidiaries of the Company have profitable operations or are in a net deferred tax liability position. The Company elected to be taxed as a REIT commencing with its taxable year ended December 31, 2016. As a REIT, the Company generally will be entitled to a deduction for dividends that it pays, and therefore, not subject to U.S. federal corporate income tax on that portion of its net income that it distributes to its shareholders. As a REIT, the Company will continue to pay U.S. federal income tax on earnings, if any, from assets and operations held through its U.S. taxable REIT subsidiary. These assets and operations currently consist primarily of the Company’s site development services and its international operations. The Company’s international operations continue to be subject, as applicable, to foreign taxes in the jurisdictions in which those operations are located. The Company may also be subject to a variety of taxes, including payroll taxes and state, local, and foreign income, property, and other taxes on its assets and operations. The Company’s determination as to the timing and amount of future dividend distributions will be based on a number of factors, including REIT distribution requirements, its existing federal net operating losses (“NOLs”) of approximately $ 366.2 million as of December 31, 2025, the Company’s financial condition, earnings, debt covenants, and other possible uses of such funds. The Company may use these NOLs to offset its REIT taxable income, and thus any required distributions to shareholders may be reduced or eliminated until such time as the NOLs have been fully utilized . The Company is subject to income tax and other taxes in the geographic areas where it holds assets or operates, and the Company periodically receives notifications of audits, assessments, or other actions by taxing authorities. In certain jurisdictions, taxing authorities may issue notices and assessments that may not be reflective of the actual tax liability for which the Company will ultimately be liable. In the process of responding to assessments of taxes that the Company believes are not reflective of the Company’s actual tax liability, the Company avails itself of both administrative and judicial remedies. The Company evaluates the circumstances of each notification or assessment based on the information available and, in those instances in which the Company does not anticipate a successful defense of positions taken in its tax filings, a liability is recorded in the appropriate amount based on the underlying assessment. In connection with a current assessment in Brazil, the taxing authorities have issued income tax deficiencies related to purchase accounting adjustments for tax years 2017 through 2020. In addition, the taxing authorities have issued income tax deficiencies related to the deductibility of foreign exchange losses on the Company’s intercompany loan for the 2020 tax year. The Company disagrees with these assessments and is appealing with the higher appellate taxing authorities. The Company estimates that there is a more likely than not probability that the Company’s position will be sustained upon appeal. Accordingly, no liability has been recorded. The Company will continue to vigorously contest the adjustments and expects to exhaust all administrative and judicial remedies necessary to resolve the matters, which could be a lengthy process. There can be no assurance that these matters will be resolved in the Company’s favor, and an adverse outcome, or any future tax examinations involving similar assertions, could have a material effect on the Company’s results of operations or cash flows in any one period. As of March 31, 2026, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued to be between zero and $ 114.1 million, excluding penalties and interest of $ 184.4 millio n. 17 Table of Contents 14. SEGMENT DATA The Company operates principally in two business segments: site leasing and site development. The Company’s site leasing business includes two reportable segments, domestic site leasing and international site leasing. The Company’s business segments are strategic business units that offer different services. They are managed separately based on the fundamental differences in their operations. The site leasing segment includes results of the managed and sublease businesses. The site development segment includes the results of both consulting and construction related activities. The Company’s Chief Operating Decision Maker (“CODM”) is the Company’s Chief Executive Officer. The Company’s CODM utilizes segment operating profit and operating income as his two measures of segment profit in assessing performance and allocating resources at the reportable segment level. The Company has applied the aggregation criteria to operations within the international site leasing segment on a basis that is consistent with management’s review of information and performance evaluations of the individual markets in this region. Revenues, cost of revenues (exclusive of depreciation, accretion and amortization), capital expenditures (including assets acquired through the issuance of shares of the Company’s Class A common stock) and identifiable assets pertaining to the segments in which the Company continues to operate are presented below. Domestic Site Int'l Site Site Leasing Leasing Development Other Total For the three months ended March 31, 2026 (in thousands) Revenues (1) $ 450,301 $ 205,848 $ 47,289 $ — $ 703,438 Cost of revenues (2) 70,621 61,291 39,424 — 171,336 Operating profit 379,680 144,557 7,865 — 532,102 Selling, general, and administrative expenses 31,357 18,309 3,579 17,303 70,548 Acquisition and new business initiatives related adjustments and expenses 5,530 2,560 — — 8,090 Asset impairment and decommission costs 26,971 2,131 198 — 29,300 Depreciation, amortization and accretion 37,618 41,154 903 1,641 81,316 Operating income (loss) 278,204 80,403 3,185 ( 18,944 ) 342,848 Other expense, net (principally interest expense and other income) ( 106,834 ) ( 106,834 ) Income before income taxes 236,014 Cash capital expenditures (3) 59,575 129,305 432 2,919 192,231 For the three months ended March 31, 2025 Revenues (1) $ 460,994 $ 155,215 $ 48,039 $ — $ 664,248 Cost of revenues (2) 68,272 47,206 38,188 — 153,666 Operating profit 392,722 108,009 9,851 — 510,582 Selling, general, and administrative expenses 31,007 17,424 3,215 14,573 66,219 Acquisition and new business initiatives related adjustments and expenses 5,861 1,518 — — 7,379 Asset impairment and decommission costs 15,164 21,318 — 544 37,026 Depreciation, amortization and accretion 36,744 25,523 857 1,924 65,048 Operating income (loss) 303,946 42,226 5,779 ( 17,041 ) 334,910 Other expense, net (principally interest expense and other income) ( 74,985 ) ( 74,985 ) Income before income taxes 259,925 Cash capital expenditures (3) 42,379 66,340 826 895 110,440 ‎ 18 Table of Contents Domestic Site Int'l Site Site Leasing Leasing Development Other (4) Total Assets (in thousands) As of March 31, 2026 $ 6,198,460 $ 5,221,248 $ 78,104 $ 223,032 $ 11,720,844 As of December 31, 2025 $ 6,178,526 $ 5,183,588 $ 98,072 $ 114,826 $ 11,575,012 (1) For the three months ended March 31, 2026 and 2025, site leasing revenue in Brazil was $ 88.9 million and $ 85.0 million, respectively. Other than Brazil, no foreign country represented more than 5 % of the Company’s total site leasing revenue in any of the periods presented. (2) Excludes depreciation, amortization, and accretion. Cost of revenues is primarily comprised of rent expense related to the Company’s ground leases. (3) Includes cash paid for capital expenditures, acquisitions, and right-of-use assets. (4) Assets in Other consist primarily of general corporate assets and short-term investments. Long-lived assets include property and equipment, net, intangible assets, net, operating lease right-of-use assets, net, and acquired and other right-of-use assets, net. The Company’s long-lived assets by geographic areas representing more than 5 % of the Company’s total long-lived assets is presented below: As of As of March 31, 2026 December 31, 2025 (in thousands) Domestic $ 5,749,826 $ 5,737,975 Brazil 1,855,955 1,799,578 Guatemala 749,680 636,476 Other international 1,951,683 1,975,560 Total $ 10,307,144 $ 10,149,589 15. EARNINGS PER SHARE B asic earnings per share was computed by dividing net income attributable to SBA Communications Corporation by the weighted-average number of shares of Class A common stock outstanding for each respective period. Diluted earnings per share was calculated by dividing net income attributable to SBA Communications Corporation by the weighted-average number of shares of Class A common stock outstanding adjusted for any dilutive Class A common stock equivalents, including unvested RSUs, PSUs, and shares issuable upon exercise of stock options as determined under the Treasury Stock method . The following table sets forth basic and diluted net income per common share attributable to common shareholders for the three months ended March 31, 2026 and 2025: For the three months ended March 31, 2026 2025 Numerator: Net income attributable to SBA Communications Corporation $ 184,830 $ 220,732 Denominator: Basic weighted-average shares outstanding 105,815 107,744 Dilutive impact of stock options, RSUs, and PSUs 296 396 Diluted weighted-average shares outstanding 106,111 108,140 Net income per common share attributable to SBA Communications Corporation: Basic $ 1.75 $ 2.05 Diluted $ 1.74 $ 2.04 19 Table of Contents For the three months ended March 31, 2026 and 2025, the diluted weighted-average number of common shares outstanding excluded an immaterial number of shares issuable related to the Company’s RSUs, PSUs, and stock options because the impact would be anti-dilutive. 16. REDEEMABLE NONCONTROLLING INTERESTS The Company allocates income and losses to its redeemable noncontrolling interest holders based on the applicable membership interest percentage. At each reporting period, the redeemable noncontrolling interest is recognized at the greater of (1) the initial carrying amount of the noncontrolling interest as adjusted for accumulated income or loss attributable to the noncontrolling interest holder or (2) the redemption value as of the balance sheet date. Adjustments to the carrying amount of redeemable noncontrolling interest are charged against retained earnings (or additional paid-in capital if there are no retained earnings ). The fair value of the redeemable noncontrolling interest is estimated using Level 3 inputs. The components of redeemable noncontrolling interests as of March 31, 2026 and December 31, 2025 are as follows: March 31, December 31, 2026 2025 (in thousands) Beginning balance $ 78,262 $ 54,132 Net income attributable to noncontrolling interests 72 824 Foreign currency translation adjustments ( 716 ) ( 89 ) Purchase of noncontrolling interests — 146 Adjustment to redemption amount 8,126 23,249 Ending balance $ 85,744 $ 78,262 17. DERIVATIVES AND HEDGING ACTIVITIES The Company enters into interest rate swaps to hedge the future interest expense from variable rate debt and reduce the Company’s exposure to fluctuations in interest rates. As of March 31, 2026, the Company has interest rate swap agreements on its 2024 Term Loan which swap $ 2.0 billion of notional value accruing interest at one month Term SOFR plus 175 basis points for a blended all-in fixed rate of 5.165 % per annum through April 11, 2028. On September 11, 2024, the Company entered into a treasury lock agreement to fix the three-year treasury rate at 3.3985 % for $ 620.0 million of notional value related to the 2024-2C Tower Securities issued on October 11, 2024. The treasury lock agreement was terminated and settled upon issuance of the 2024-2C Tower Securities, and the Company recognized an $ 8.2 million gain in other comprehensive income (loss) which is being amortized to interest expense over the life of the 2024-2C Tower Securities. After consideration of the treasury lock agreement, the all-in fixed rate on the 2024-2C Tower Securities is 4.654 % per annum. As of March 31, 2026, all hedges remain highly effective; therefore, changes in fair value are recorded in Accumulated other comprehensive loss, net. The table below outlines the effects of the Company’s interest rate swaps on the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025. Fair Value as of Balance Sheet March 31, December 31, Location 2026 2025 Derivatives Designated as Hedging Instruments (in thousands) Interest rate swap agreements in a fair value asset position Other assets $ 11,362 $ 6,445 Interest rate swap agreement in a fair value liability position Other long-term liabilities $ 5,392 $ 12,265 Accumulated other comprehensive loss, net includes an aggregate $ 10.1 million gain and a $ 1.0 million loss as of March 31, 2026 and December 31, 2025, respectively. The Company is exposed to counterparty credit risk to the extent that a counterparty fails to meet the terms of a contract. The Company’s exposure is limited to the current value of the contract at the time the counterparty fails to perform. 20 Table of Contents The cash flows associated with these activities are reported in Net cash provided by operating activities on the Consolidated Statements of Cash Flows . The table below outlines the effects of the Company’s derivatives on the Consolidated Statements of Operations and Consolidated Statements of Shareholders’ Deficit for the three months ended March 31, 2026 and 2025. For the three months ended March 31, 2026 2025 Cash Flow Hedge - Interest Rate Swap Agreement (in thousands) Change in fair value recorded in Accumulated other comprehensive loss, net $ 11,790 $ ( 40,755 ) Gain reclassified from Accumulated other comprehensive loss, net into earnings $ ( 684 ) $ ( 684 ) Derivatives Not Designated as Hedges - Interest Rate Swap Agreements Amount reclassified from Accumulated other comprehensive loss, net into Non-cash interest expense $ — $ 6,579