Urban One (UONE) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was $77.7 million, down 15.8% year-over-year, with declines across all divisions, especially Cable Television and Digital, due to weaker advertising demand and subscriber churn.

• Adjusted EBITDA was $4.7 million, down from $12.9 million in Q1 2025, primarily due to lower revenues and segment profitability.

• Net loss narrowed to $3.1 million ($0.69/share) from $11.7 million ($2.64/share) year-over-year, reflecting lower operating expenses and a tax benefit.

• Cost controls and improved cash collections supported stronger-than-expected operating cash flow.

• Focused on balance sheet management, debt reduction, and accretive M&A, including the acquisition of Service Broadcasting in Dallas and dispositions in Dallas and Charlotte.

Financial highlights

• Operating expenses decreased 8.9% to $73.5 million, mainly due to lower variable and headcount-related costs.

• Interest expense for the quarter was $4.4 million, down from $10.9 million last year, reflecting lower debt balances and effective rates.

• Cash flow from operations increased to $22.1 million, up from $2.1 million in Q1 2025, mainly due to timing of interest payments post-refinancing.

• Cash and equivalents at quarter-end were $28.0 million, with $10.0 million outstanding on the asset-backed credit facility.

• Broadcast and digital operating income fell 35.4% to $14.9 million.

Outlook and guidance

• 2026 EBITDA guidance updated to $60 million, including $2 million from recent transactions.

• Year-end net leverage expected to be below 5x, with plans to repay $20 million ABL balance in the second half.

• Digital segment expected to rebound in Q2 after a weak Q1, with optimism for meeting annual targets.

• Management expects continued macroeconomic headwinds, including inflation and advertising market softness, to impact revenue.

• Sufficient liquidity is expected to meet foreseeable cash requirements.