Saga Communications (SGA) Q3 2025 earnings summary

Executive summary

• Net revenue for Q3 2025 decreased 1.8% year-over-year to $28.2 million, primarily due to a music licensing settlement impacting expenses and operating results.

• Q3 2025 saw a net loss of $532,000 versus net income of $1.3 million in Q3 2024; nine-month net loss was $979,000 compared to $2.2 million net income in 2024.

• Interactive revenue growth offset most of the broadcast revenue decline when adjusted for political revenue.

• Digital transformation and blended strategy are gaining traction, with strong local direct revenue and digital pacing.

• Station operating expenses increased due to a $2.1 million retroactive music licensing settlement.

Financial highlights

• Station operating expense increased by $2 million in Q3, mainly due to retroactive music licensing settlements with ASCAP and BMI.

• Gross broadcast revenue (including NTR) decreased $1.8 million (6.8%), while gross interactive revenue rose $1.1 million (32.6%) year-over-year.

• For the nine months ended September 30, 2025, net revenue fell 3.7% to $80.6 million.

• Q3 2025 net loss: $532,000 (down $1.8 million year-over-year).

• Interactive advertising revenue grew 17.1% year-over-year for the nine months ended September 30, 2025.

Outlook and guidance

• Q4 pacing is down 11% including political, and 4.7% excluding political, but interactive revenue is pacing up 32%.

• Station operating expense expected to be flat for 2025 versus 2024, with a 2–3% decrease possible excluding the settlement.

• Annual corporate G&A expense projected at $12 million for 2025.

• Capital expenditures for 2025 expected between $3.0 million and $3.75 million, funded by operations.

• Company intends to use proceeds from non-core asset sales to fund stock buybacks.