Saga Communications Reports $22.9 Million Revenue in Q1 2026, Faces Increased Operating Loss

Saga Communications, Inc. reported a net operating revenue of $22.9 million for the first quarter of 2026, a decrease of 5.6% from $24.2 million in the same period of 2025. The decline was attributed primarily to reductions in gross local and national advertising revenues, which fell by $1.7 million and $247,000, respectively. However, the company saw an increase in digital advertising revenue, which rose by $879,000, reflecting a growing emphasis on digital services. The overall operating loss for the quarter was $3.3 million, compared to a loss of $2.3 million in the prior year, indicating a worsening financial performance.

In terms of expenses, Saga's station operating expenses increased slightly to $22.0 million from $22.0 million in the previous year, while corporate general and administrative expenses decreased by 6% to $3.0 million. The company also reported a reduction in depreciation and amortization expenses, which fell to $1.2 million from $1.3 million. The increase in operating loss was primarily driven by the decline in net operating revenue, despite a decrease in corporate expenses and depreciation.

During the quarter, Saga continued to implement its strategic initiatives, including a focus on digital advertising and the sale of non-core assets. The company sold a property in Springfield, Massachusetts, generating a gain of approximately $80,000, which was recorded in other operating income. Additionally, Saga has been actively managing its capital structure, maintaining a long-term debt of $5 million and a cash balance of $21.1 million as of March 31, 2026. The company also declared a quarterly cash dividend of $0.25 per share, consistent with its commitment to return value to shareholders.

Looking ahead, Saga Communications is navigating a challenging advertising environment influenced by economic conditions and competition from digital platforms. The company has approximately $35 million of unused borrowing capacity under its credit agreement, which it may utilize to support future acquisitions or operational needs. Management remains focused on enhancing digital service offerings and optimizing operational efficiencies to adapt to evolving market dynamics. The company has also obtained a waiver from lenders regarding a covenant violation related to its fixed charge coverage ratio, allowing it to continue its operations without immediate financial constraints.