Townsquare Media (TSQ) Q4 2025 earnings summary

Executive summary

• Q4 and full-year 2025 results met net revenue and Adjusted EBITDA guidance, reflecting strong execution of a digital-first strategy and market share gains despite industry headwinds.

• Digital business accounted for 55% of total net revenue and 56% of segment profit in 2025, positioning the company as an industry leader in digital transformation.

• Net revenue for 2025 was $427.4 million, down 5.2% year-over-year (2.8% excluding political); Adjusted EBITDA was $88.1 million, down 12.2% (3.0% excluding political).

• Net loss for 2025 improved by $1.2 million year-over-year to $9.8 million.

• Strong cash flow from operations enabled debt reduction, continued dividend payments, and organic investment in digital growth.

Financial highlights

• Q4 2025 net revenue was $106.5 million, down 9.6% year-over-year (4.5% excluding political), and Adjusted EBITDA was $21.5 million.

• 2025 digital advertising revenue grew 1.6% year-over-year to $161 million; subscription digital marketing revenue declined 0.7% to $75 million.

• Broadcast advertising revenue fell 12.6% year-over-year to $183 million.

• Cash flow from operations was $31 million in 2025; before cash interest payments, $83 million.

• Unlevered free cash flow conversion remained strong at 83% in 2025.

Outlook and guidance

• Q1 2026 net revenue expected between $96–98 million; Adjusted EBITDA between $16–17 million.

• Full year 2026 revenue guidance is $420–440 million, with Adjusted EBITDA of $87–93 million; includes $8 million in forecasted political revenue.

• Digital advertising revenue expected to grow high single digits in 2026, accelerating from 2025's 2% growth.

• Management expects digital audience stabilization and remnant revenue headwinds to abate in H2 2026.

• Townsquare Interactive revenue expected to decline short-term but return to sequential growth by Q3 2026, with profit margins remaining strong.