Townsquare Media (TSQ) Q4 2024 earnings summary

Executive summary

• 2024 results met guidance, with net revenue of $451 million (down 0.7% YoY) and adjusted EBITDA of $100.4 million (up 0.4% YoY), driven by digital segment strength and reduced non-cash impairment charges.

• Digital businesses contributed 52% of total net revenue and 50% of total segment profit in 2024, with digital advertising revenue up 5.5% for the year and 15.5% in Q4.

• Townsquare Interactive returned to subscriber and revenue growth in Q4 (+1.9% YoY), though full-year revenue declined 8.4%.

• Completed $490 million debt refinancing, extending maturities to 2030, and repurchased $36 million in bonds and $24 million in shares.

• Continued focus on digital-first strategy, with digital advertising and SaaS solutions as primary growth engines.

Financial highlights

• Q4 2024 net revenue was $117.8 million (+2.6% YoY); full-year net revenue was $451 million (-0.7% YoY).

• Q4 adjusted EBITDA grew 25.8% YoY to $31.2 million; full-year adjusted EBITDA was $100.4 million (+0.4% YoY).

• Q4 net income was $25 million ($1.42 per diluted share) vs. a net loss per share of $0.14 prior year; full-year net loss narrowed to $10.9 million.

• Generated $49 million in operating cash flow in 2024; ended year with $33 million in cash.

• Unlevered free cash flow conversion was 83% in 2024.

Outlook and guidance

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

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

• Digital advertising expected to grow high single digits in 2025; Townsquare Interactive revenue to grow 4% in Q1.

• Broadcast revenue (ex-political) expected to decline ~6% in 2025, in line with 2024.

• Announced a 1% increase to quarterly dividend ($0.20/share), representing ~10% yield as of March 2025.