Townsquare Media (TSQ) Q1 2025 earnings summary

Executive summary

• Q1 2025 results met or exceeded guidance, with digital revenue comprising 57% of net revenue and 62% of segment profit, driven by a digital-first strategy in local markets outside the top 50.

• Net revenue for Q1 2025 was $98.7 million, down 1% year-over-year, mainly due to declines in broadcast advertising, partially offset by digital and subscription growth.

• Adjusted EBITDA rose 3.5% year-over-year to $18.1 million, with margins expanding to 18.4%.

• Net loss was $1.5 million, or $0.12 per diluted share, compared to net income last year, impacted by higher interest expense and a loss on extinguishment of debt.

• Completed major refinancing in February 2025, entering a $490 million credit agreement and redeeming all outstanding 2026 Notes.

Financial highlights

• Q1 2025 net revenue: $98.7 million, down 1% year-over-year; excluding political, down 0.5%.

• Adjusted EBITDA: $18.1 million, up 3.5% year-over-year; margin improved to 18.4%.

• Net loss: $1.5 million, or $0.12 per diluted share; Adjusted Net Loss per diluted share: $0.05.

• Cash and cash equivalents at quarter-end: $5.5–$6 million; total debt: $448.4–$477 million.

• Digital segment profit margin was 25%; digital advertising margin 21%; subscription digital marketing margin 32%.

Outlook and guidance

• Q2 2025 net revenue expected between $114–$116 million; Adjusted EBITDA between $25–$26 million.

• Full-year 2025 net revenue guidance reaffirmed at $435–$455 million; Adjusted EBITDA at $90–$98 million.

• Excluding political, FY 2025 net revenue expected to be -1% to +3% and Adjusted EBITDA -1% to +8%.

• Digital advertising revenue growth expected to continue in the mid-single digits for Q2.

• Management expects sufficient liquidity to meet obligations for at least the next 12 months.