Saga Communications Reports Decline in Q2 2026 Revenue and Net Income

Saga Communications, Inc. reported a decline in financial performance for the second quarter of 2026, with net operating revenue decreasing to $26.4 million, down 6.5% from $28.2 million in the same period last year. The company attributed this decline primarily to a drop in gross national and local advertising revenues, which fell by $635,000 and $2.1 million, respectively. However, the company saw an increase in political advertising revenue of $400,000 and a rise in digital revenue of $700,000, reflecting a shift towards digital advertising solutions. For the first half of 2026, net operating revenue totaled $49.3 million, a decrease of 6% compared to $52.4 million in the first half of 2025.

Operating expenses for the second quarter increased by 5.4% to $23.4 million, driven by higher digital service expenses and compensation costs. The company reported an operating income of $623,000, a significant drop from $1.4 million in the prior year, leading to a net income of $960,000, or $0.15 per share, compared to $1.1 million, or $0.18 per share, in the same quarter of 2025. For the first half of 2026, Saga recorded a net loss of $1.4 million, or $0.23 per share, compared to a loss of $447,000, or $0.07 per share, in the first half of 2025.

In terms of strategic developments, Saga Communications has been actively selling non-core assets as part of its capital allocation plan. The company sold properties in Sarasota, Florida, and Springfield, Massachusetts, generating gains of approximately $1.1 million and $80,000, respectively. Additionally, the company entered into a joint sales agreement with the University of Florida to sell advertising for its radio stations, further expanding its operational footprint.

As of June 30, 2026, Saga's total assets stood at $196.8 million, a decrease from $201.3 million at the end of 2025. The company reported current liabilities of $20.6 million, up from $16.2 million, primarily due to the current portion of long-term debt. Shareholders' equity also declined to $148.2 million from $151.5 million. The company continues to maintain a strong focus on digital advertising, which accounted for approximately 19% of gross revenue in the first half of 2026, up from 14% in the same period last year.

Looking ahead, Saga Communications anticipates continued challenges in the advertising market, particularly in local and national revenues. The company plans to leverage its digital strategy to enhance revenue streams and improve operational efficiencies. However, the termination of its credit agreement in August 2026 may impact future liquidity and capital allocation initiatives. The company remains committed to maintaining its dividend policy, having declared $3.2 million in dividends for the first half of 2026, consistent with the previous year.