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 a challenging environment.

• Digital revenue comprised 55% of total net revenue and 56% of segment profit in 2025, both up from 2024, with digital performance outpacing industry peers.

• Net revenue for 2025 was $427.4M, down 5.2% year-over-year (2.8% excluding political); Adjusted EBITDA was $88M, down 12.2% (3.0% excluding political).

• Net loss for 2025 improved by $1.2M to $9.8M; Q4 net loss was $4.8M ($0.32 per share).

• Strong cash flow from operations enabled debt reduction, dividend maintenance, and organic investment, with $31M generated in 2025.

Financial highlights

• Q4 2025 net revenue was $106.5M, down 9.6% year-over-year (4.5% excluding political); Adjusted EBITDA was $21.5M, down 30.9% (17% excluding political).

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

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

• Segment profit for digital advertising was $36M (22% margin); subscription digital marketing was $25M (34% margin); broadcast advertising was $47M (26% margin).

• Cash flow from operations was $31M in 2025; unlevered free cash flow conversion was 83%.

Outlook and guidance

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

• Full year 2026 revenue guidance is $420M–$440M, including $8M in political revenue; Adjusted EBITDA expected between $87M and $93M.

• Digital advertising revenue forecasted to grow high single digits in 2026, accelerating from 2025's 1.6% growth.

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

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