Saga Communications (SGA) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 declined 5.0% year-over-year to $28.2 million, with six-month revenue down 4.7% to $52.4 million.

• Q2 net income was $1.1 million, down from $2.5 million last year; six-month net loss was $447,000 versus prior year net income of $924,000.

• Digital and interactive revenues are growing, now 15.6% of total net revenue, up from 13.6% quarter-over-quarter.

• Revenue declines were primarily due to lower local, national, and political advertising, partially offset by digital growth.

• Management is focused on digital transformation, operational efficiency, and leveraging new technology, including AI.

Financial highlights

• Q2 2025 net revenue was $28.2 million (down 5.0% year-over-year); six months: $52.4 million (down 4.7%).

• Q2 2025 net income: $1.1 million ($0.18 per diluted share), down from $2.5 million ($0.40 per share) in Q2 2024.

• Six-month 2025 net loss: $447,000 (–$0.07 per share) vs. net income of $924,000 ($0.15 per share) in 2024.

• Station operating expenses decreased 4.6% in Q2 and 3.4% for the six months.

• Interactive advertising revenue grew 9.9% year-over-year for the six months, reaching $8.1 million.

Outlook and guidance

• Capital expenditures for 2025 expected to be $3.0–$3.5 million, funded by operations.

• Q3 pacing is down 1%, but September is pacing up 1.5%; interactive revenue is pacing up 40%.

• Station operating expenses expected to decrease 2%-3% for 2025; corporate G&A expected at $12 million.

• Management expects political revenue to decrease in 2025 due to fewer elections.

• Company intends to continue regular quarterly cash dividends and may resume stock buybacks, depending on results and asset sales.