Townsquare Media Q4 revenue falls on broadcast advertising weakness

Overview

• U.S. digital and broadcast media firm's Q4 revenue fell 9.6% yr/yr, slightly beating estimates

• Adjusted EBITDA for Q4 dropped 30.9% yr/yr, reflecting declines in broadcast and digital segments

• Company reduced debt by $22.6 mln since the february 2025 refinancing and maintained dividend at $0.20 per share

Outlook

• Company expects Q1 net revenue between $96 mln and $98 mln

• Townsquare Media sees full-year 2026 net revenue between $420 mln and $440 mln

• Company anticipates remnant revenue headwinds from search engine traffic to ease in H2 2026

Result Drivers

• BROADCAST ADVERTISING WEAKNESS - Q4 broadcast advertising revenue fell due to lower client advertising purchases and a drop in political revenue

• DIGITAL ADVERTISING PRESSURE - Q4 digital advertising revenue declined, mainly due to lower remnant digital advertising revenue and reduced search engine referral traffic

• LOWER SALES HEADCOUNT - Subscription Digital Marketing Solutions revenue decreased due to reduced sales velocity from lower sales headcount

Company press release: ID:nGNX7XgbjC

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advertising & marketing peer group is "buy."

• Wall Street's median 12-month price target for Townsquare Media Inc is $13.50, about 93.4% above its March 13 closing price of $6.98

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.