Urban One Q2 2026 earnings: Revenue decline weighs on adjusted EBITDA

Urban One (NASDAQ: UONE, UONEK) reported fiscal Q2 2026 net revenue of $85.8 million, down 6.4% from $91.6 million a year earlier, while basic and diluted EPS was -$1.58 compared with -$17.41. Adjusted EBITDA fell to $11.7 million as revenue declined across all four operating segments, while the GAAP loss narrowed mainly because impairment charges were substantially lower than in Q2 2025.

Core financial results

For the three months ended June 30, revenue-related cost reductions did not fully offset the top-line decline. Operating expenses excluding depreciation and amortization, stock-based compensation and impairment fell 4.1% to approximately $75.0 million, compared with the 6.4% revenue contraction.

The sharp improvement in operating and net losses requires context: impairment charges fell by approximately $115.9 million year over year. In contrast, both adjusted EBITDA and broadcast and digital operating income declined.

¹ Non-GAAP measure. Prior-year per-share amounts were retroactively adjusted for the 1-for-10 reverse stock split completed on January 22, 2026.

Business and segment performance

Revenue declined in Radio Broadcasting, Reach Media, Digital and Cable Television. Cable Television produced the largest segment revenue and adjusted EBITDA declines in dollar terms, while Reach Media recorded the steepest percentage revenue contraction.

Cable Television revenue fell by approximately $3.0 million because of subscriber churn and lower advertising sales. Cable advertising revenue declined 9.6%, while affiliate fees decreased 4.5%. The segment remained Urban One’s largest adjusted EBITDA contributor, but its adjusted EBITDA fell by approximately $3.9 million.

Radio Broadcasting was affected by weaker demand from local and national advertisers. Local radio revenue measured by Miller Kaplan fell 10.1%, compared with a 7.8% market decline, while national revenue decreased 1.5% versus a 4.6% market contraction. Reported political advertising revenue increased to $1.2 million from $0.3 million, partially offsetting the broader advertising weakness.

Reach Media’s decline reflected lower syndicated revenue, a weak market, client attrition and rebuilding of the sales team. Digital revenue was pressured by lower direct advertising, including reduced spending on diversity, equity and inclusion-focused campaigns. Despite their revenue declines, both Reach Media and Digital narrowed their adjusted EBITDA losses.

Portfolio activity

Urban One completed the sales of WLNK-FM and WMXG in Charlotte during the quarter, recognizing a $4.7 million gain. After quarter-end, it completed the $6.0 million sale of KZMJ on July 6 and the $22.0 million acquisition of Service Broadcasting Group on July 17; the KZMJ transaction is expected to produce a $3.2 million gain in Q3 2026.

Lower impairment charges drove the GAAP improvement, not underlying growth

The operating loss narrowed to $11.2 million primarily because impairment charges dropped to $14.2 million from $130.1 million. The current-quarter charge consisted of approximately $13.9 million of goodwill impairment and $0.3 million related to Reach Media long-lived assets, highlighting the continuing challenges in that business.

The net loss also benefited from interest expense declining to $2.1 million from $9.7 million and the $4.7 million business-sale gain. However, Q2 2025 included a $30.3 million gain on debt retirement that did not recur. Because adjusted EBITDA removes impairment, business-sale gains, interest and other non-operating items, its decline from $14.0 million to $11.7 million provides a clearer indication of the weaker underlying quarterly performance.

Profitability, liquidity and debt

Depreciation and amortization rose to $6.2 million from $3.5 million, mainly because Urban One began amortizing its radio broadcasting licenses in June 2025. Capital expenditures increased to $1.7 million from $1.2 million, driven by construction of a studio in the Indianapolis radio market.

The balance sheet showed lower long-term debt principal, but also less cash and increased use of short-term borrowing. The comparisons below are against December 31, 2025 rather than the prior-year quarter.

During Q2, Urban One repurchased approximately $23.5 million of its 2031 Second Lien Notes at an average price of about 42% of par. Management said year-to-date debt reduction generated approximately $4.6 million of annual interest savings. Due to troubled-debt-restructuring accounting, the company recorded no gain on the Q2 repurchase and instead added a $13.6 million premium to reported long-term debt.

Available borrowing capacity under the asset-backed facility was approximately $26.1 million at June 30. Following an additional $7.0 million draw and a $5.0 million repayment after quarter-end, capacity was approximately $24.1 million.

Earnings guidance

Management revised its full-year 2026 adjusted EBITDA outlook to the mid-$50 million range, citing current market conditions. The release did not quantify the previous outlook, so the magnitude of the revision cannot be calculated from the supplied information.

Radio revenue for Q3 was pacing down 2.8% at the time of the earnings release, indicating that near-term revenue pressure had not fully abated.

Risks investors need to watch

• Advertising demand remains weak. Radio, Digital and Cable advertising revenue all declined, and Urban One’s local radio performance trailed the market measure cited by management.
• Cable subscriber churn is affecting two revenue streams. Lower subscribers contributed to declining affiliate fees, while the segment also faced weaker advertising sales and a sizable adjusted EBITDA contraction.
• Reach Media remains in a turnaround. Client attrition, sales-team rebuilding and weaker syndicated revenue contributed to an adjusted EBITDA loss and a $14.2 million impairment charge tied to the business.
• Liquidity remains important despite debt reduction. Cash declined during the first half, short-term borrowing doubled and reported long-term debt remained substantial, even as principal and interest expense fell.
• The revised outlook requires better second-half execution. Q3 radio pacing remained negative, while each operating segment entered the second half with lower year-over-year Q2 revenue.

Summary

Urban One’s Q2 2026 GAAP loss narrowed dramatically, but the improvement was largely attributable to a much smaller impairment charge, lower interest expense and a business-sale gain. The underlying picture was softer: every operating segment reported lower revenue, adjusted EBITDA declined and Cable Television produced the largest earnings drag. The main items to monitor are advertising demand, the Reach Media turnaround, cable subscriber trends, liquidity following recent portfolio transactions and progress toward the revised full-year adjusted EBITDA range.