Urban One (UONE) investor relations material

Executive summary

• Q1 2026 net revenue was $77.7 million, down 15.8% year-over-year, with declines across all segments due to weaker advertising demand and subscriber churn.

• Net loss narrowed to $3.1 million ($0.69/share) from $11.7 million ($2.64/share) in Q1 2025, reflecting lower operating expenses and a tax benefit.

• Adjusted EBITDA was $4.7 million, down 63.8% from $12.9 million in Q1 2025, primarily due to lower revenues.

• Focused on balance sheet management, debt reduction, and accretive M&A, including the acquisition of Service Broadcasting in Dallas and dispositions in Dallas and Charlotte.

• Cost controls and improved cash collections supported stronger-than-expected operating cash flow.

Financial highlights

• Operating expenses (excluding D&A, stock comp, and impairments) were $73.5 million, down from $80.7 million.

• Interest expense dropped to $4.4 million from $10.9 million year-over-year.

• Gain on retirement of debt was $2.1 million, down from $11.6 million in Q1 2025.

• Cash and equivalents at quarter-end were $28.0 million, with $10.0 million outstanding on the asset-backed credit facility.

• Cash flow from operations increased to $22.1 million, up from $2.1 million in Q1 2025, mainly due to timing of interest payments post-refinancing.

Outlook and guidance

• 2026 EBITDA guidance updated to $60 million, including $2 million from recent transactions.

• Year-end leverage expected below 5x, with $40 million free cash flow projected for the year.

• Anticipate repaying $20 million ABL balance in H2 2026.

• Digital segment expected to improve in Q2 and optimism for H2 2026 based on sales pipeline.

• Management expects continued macroeconomic headwinds, including inflation and advertising market softness, to impact revenue.