Townsquare Media Reports $98.7 Million Revenue, Faces Decline in Broadcast Advertising

Townsquare Media, Inc. reported a net revenue of $98.7 million for the three months ended March 31, 2025, a decrease of 1.0% from $99.6 million in the same period of 2024. The decline was primarily attributed to a $4.1 million drop in Broadcast Advertising revenue, which fell to $40.8 million, a decrease of 9.1%. This was partially offset by increases in Digital Advertising revenue, which rose by $2.6 million to $36.7 million, and Subscription Digital Marketing Solutions revenue, which increased by $0.8 million to $19.0 million. The company reported an operating income of $7.1 million, up from $6.6 million a year earlier, driven by reduced operating expenses and a decrease in impairment charges.

In terms of operational metrics, Townsquare Media's direct operating expenses decreased by 1.4% to $75.8 million, reflecting a $2.3 million reduction in Broadcast Advertising expenses. The company also noted a significant increase in stock-based compensation, which rose by 45.9% to $4.2 million, largely due to a new stock bonus program. The net loss attributable to controlling interests was $1.98 million, compared to a profit of $1.14 million in the prior year, resulting in a basic loss per share of $0.12.

Strategically, Townsquare Media entered into a $490 million Credit Agreement on February 19, 2025, which included a $470 million senior secured Term Loan and a $20 million Revolving Credit Facility. The proceeds were used to redeem all outstanding 2026 Notes and cover associated fees. The company reported a total debt of $448.4 million as of March 31, 2025, with an interest rate of 9.32% on the Term Loan. The company remains focused on managing its liquidity amid economic challenges, including high inflation and interest rates, which could impact advertising spending.

Looking ahead, Townsquare Media anticipates that its cash on hand and operational cash flows will be sufficient to meet its working capital and capital expenditure needs for at least the next year. However, the company acknowledges that future performance may be influenced by various factors, including economic conditions and advertising market dynamics. The board of directors has also approved a quarterly dividend of $0.20 per share, reflecting the company's commitment to returning value to shareholders despite the recent financial challenges.