Townsquare Media (TSQ) Q4 2024 earnings summary

Executive summary

• 2024 net revenue was $451 million, down 0.7% year-over-year, with Adjusted EBITDA of $100.4 million, up 0.4%, both meeting guidance.

• Digital businesses contributed 52% of total net revenue and 50% of segment profit, with digital advertising revenue up 5.5% for the year and 15.5% in Q4.

• Townsquare Interactive returned to growth in Q4 (+1.9% YoY), though full-year revenue declined 8.4%; a new SaaS Business Management Platform was launched.

• $49 million in operating cash flow enabled $36 million in debt and $24 million in equity repurchases, plus a dividend increase.

• Debt was refinanced with a new $490 million credit agreement maturing in 2030.

Financial highlights

• Q4 2024 net revenue was $117.8 million (+2.6% YoY); Adjusted EBITDA was $31.2 million (+25.8% YoY); net income was $25 million ($1.42 per diluted share).

• Full-year 2024 net revenue was $451 million (-0.7% YoY); Adjusted EBITDA was $100.4 million (+0.4% YoY); net loss was $10.9 million (vs. $43 million loss in 2023).

• Digital segment: $234 million revenue (+0.6% YoY), $62.1 million profit (-10.2% YoY), 27% margin.

• Broadcast segment: $209 million revenue (-1.3% YoY), $61.8 million profit (+11.1% YoY), 30% margin.

• Cash balance at year-end was $33 million; net leverage improved to 4.33x.

Outlook and guidance

• Q1 2025 net revenue expected between $98–$100 million; Adjusted EBITDA between $17–$18 million.

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

• Digital revenue expected to offset $10–$11 million loss in political revenue in 2025.

• Dividend increased to $0.80 per share annualized, a 1.3% year-over-year increase, yielding ~10%.