Townsquare Media (TSQ) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenue was $115.4 million, nearly flat year-over-year, with digital advertising up 11% and digital now comprising 57% of net revenue and 59% of segment profit for the first half.

• Net loss for Q2 was $41.8 million, or $(2.36) per diluted share, primarily due to $26.6 million in non-cash FCC license impairment charges and $18 million income tax expense.

• Media Partnership business expanded to 16 partners and 115 markets, with revenue expected to more than double from $6 million in 2025 to over $12 million in 2026.

• Board approved a quarterly dividend of $0.20 per share, reflecting a 13% yield as of August 2026.

• Townsquare Interactive delivered record segment profit margins, with operational improvements and healthy customer retention.

Financial highlights

• Q2 net revenue was $115.4 million, flat year-over-year and above the midpoint of guidance.

• Adjusted EBITDA was $24.8 million, above guidance midpoint but down 6.2% year-over-year.

• Q2 net loss was $41.8 million, or $(2.36) per diluted share, due to $26.6 million in non-cash FCC license impairment charges and $18 million income tax expense.

• Adjusted Net Income per share was $0.21, compared to $0.22 in the prior year.

• Cash flow from operations was $7.8 million in the first six months of 2026.

Outlook and guidance

• Q3 2026 net revenue expected between $108–$110 million; Adjusted EBITDA between $22.5–$23.5 million.

• Full-year 2026 net revenue guidance narrowed to $425–$431 million; Adjusted EBITDA to $87–$90 million.

• Political revenue forecasted at $8 million for the year, in line with 2022.

• Digital advertising revenue growth expected to accelerate further in Q3, exceeding Q2's 11%.

• Management expects continued economic uncertainty due to inflation, interest rates, and tariffs, which may impact advertising and digital marketing demand.