Why did ACCS's operating expenses surge in Q4 2024?

The surge in operating expenses for Townsquare Media (ACCS) in Q4 2024 can be attributed to several strategic initiatives and operational changes:

1. **Investment in Digital Growth**: The company saw a 10.8% increase in total digital net revenue and a 15.5% rise in Townsquare Ignite (digital advertising) net revenue for Q4 2024. This growth was driven by strong sequential improvements in their digital businesses. The investment in digital expansion likely led to increased operating expenses to support the growth of these digital platforms.
2. **Debt Refinancing**: ACCS refinanced its debt, extending maturities to 2030. The process of refinancing and possibly restructuring debt can involve significant costs, which could be reflected in the operating expenses for the quarter.
3. **Repurchase of Debt and Equity**: The company repurchased $36 million of debt and $24 million of equity in 2024. The expenses associated with these repurchases would have been incurred within the Q4 2024 period, contributing to the overall increase in operating expenses.

In summary, the surge in operating expenses for Townsquare Media in Q4 2024 is likely a result of strategic investments in digital growth, refinancing activities, and repurchasing debt and equity, which together may have led to a significant increase in operating expenses.