Beasley Revenue Falls 12% in Fiscal Q2

Key Points

• Net revenue (GAAP) fell 12.3% to $53.0 million in Q2 2025, reflecting continued declines in traditional audio advertising.

• Digital segment revenue rose 1.3%, comprising 25% of total revenue and achieving a 27% segment margin.

• No formal financial guidance was provided; the company reported a net loss of $0.2 million (GAAP), an improvement from a $0.3 million (GAAP) loss in Q2 2024.

• These 10 stocks could mint the next wave of millionaires ›

Beasley Broadcast Group (NASDAQ:BBGI), which operates radio stations and digital media businesses across the United States, reported its second quarter 2025 earnings on August 12, 2025. The most significant news from the release was a notable year-over-year decline in overall revenue, which dropped to $53.0 million (GAAP), and an ongoing decline in traditional audio advertising. However, digital segment revenues saw moderate growth, now accounting for 25% of total revenue, Net loss per diluted share (GAAP) was $(0.09), compared to $(0.18) in Q2 2024. With no published analyst estimates available for comparison, the period reflected company expectations of ongoing industry softness and provided an incremental improvement in bottom-line results. The quarter underscored continued challenges in legacy broadcast advertising, offset only partially by growth in digital and cost-saving initiatives.

About Beasley Broadcast Group: Business Model and Focus

Beasley Broadcast Group owns and operates a portfolio of 55 local AM and FM radio stations, alongside digital media assets serving a range of U.S. markets. The core of its business has traditionally been selling advertising spots to local and national businesses, providing access to large regional audiences through its stations. This advertising revenue from on-air spots has long been its main earnings source, but is now declining in relevance due to industry-wide shifts in consumer habits and technology advances.

In recent years, Beasley has focused on pivoting its business model by expanding its digital product suites, including owned-and-operated streaming platforms, programmatic advertising, and digital marketing solutions. Success also relies on maintaining strong local audience ratings, innovating around advertising effectiveness, and keeping pace with changes in federal regulation and technology adoption.

Quarter in Review: Revenue Trends, Margin Shifts, and Portfolio Actions

Overall net revenue (GAAP) fell 12.3% as traditional audio advertising contracted further. Audio segment sales, which include radio ad spots and sponsorships, dropped 16.1% on a same-station basis. Digital segment performance stood out, with revenues up 1.3% year over year and 8.1% on a same-station basis. Digital now composes 25% of company-wide net revenue, supported by a robust segment operating margin of 27%. but the dollar growth in digital revenue was too small to offset the larger, continuing decline in the core audio segment.

Management highlighted local revenue as an ongoing strategic point, with 76% of company-wide net revenue now from local sources. Still, local and national ad sales both struggled, and new business (advertisers not active in the past 13 months) made up only 14% of total net revenue—down from 17% in Q2 2024. This suggests intensified competitive pressure for new advertising clients and slower business pipeline development.

Expense controls remain a visible part of management’s response. Total operating, corporate, and depreciation/amortization expenses declined by $5.0 million compared to Q2 2024. Debt repayment also reduced interest expense (GAAP) from $6.1 million to $3.3 million. These structural improvements helped shrink the net loss (GAAP) from $0.3 million in Q2 2024 to $0.2 million. However, the revenue drop still outpaced these savings, as reflected in the 46.6% decline in adjusted EBITDA (non-GAAP) compared to Q2 2024.

Key structural moves included the announcement of pending sales of WPBB in Tampa and five Fort Myers stations. These divestitures are part of a portfolio rationalization strategy intended to streamline assets and reinforce the company’s balance sheet. Cash and working capital levels were stable but tight, with cash at $13.7 million and working capital at $7.4 million as of June 30, 2025, down from $16.3 million as of December 31, 2024. First-half 2025 operating cash flow turned negative year to date, a clear sign that top-line weakness is affecting cash generation.

Technology, Digital Innovation, and Market Position

The company continued to invest in digital infrastructure and proprietary content. Owned-and-operated digital platforms took a larger role, most notably through a unified streaming product called “audio plus,” built to maximize advertising yield and audience engagement. The upcoming launch of a new self-serve platform in the third quarter is intended to capture emerging opportunities and deliver sustainable value to stockholders.

Management noted a continued push toward direct digital sales (ads sold without intermediaries), designed to deliver more scalable and profitable results. Aggregate pricing for digital ad inventory has improved on company-owned streaming properties, and the mix of high-margin digital is growing. All these moves are positioned as essential for keeping pace with audience shifts to streaming, podcasts, and digital-first listening habits. Beasley also continues to emphasize its competitive strength in localized content, targeting markets and demographics underserved by national streaming brands—a point underscored by recent launches of new bilingual and sports-focused formats.

It remains focused on meeting Federal Communications Commission (FCC) licensing, content, and ownership requirements. Regulatory discipline is especially important in broadcast, where compliance failures can threaten licenses or lead to penalties.

Regarding capital structure and strategic direction, the company’s long-term debt dropped by $8.1 million from December 31, 2024, to June 30, 2025, demonstrating incremental deleveraging efforts. However, with ongoing negative cash generation and a shrinking pipeline of new advertisers, there remain clear risks if revenue trends do not stabilize. There are no recurring dividends paid out on the shares at present.

Looking Ahead: Guidance and Priorities

Management offered no explicit quantitative guidance for the next quarter or fiscal year in its latest release. Leadership instead reiterated a commitment to digital-first growth, discipline on operating expenses, and ongoing investment in direct sales automation and proprietary content. The launch of the self-serve ad platform and further digital product upgrades are listed as critical next steps, but there was no forecast offered for revenue or profit metrics.

For investors and observers, the next quarters will hinge on whether digital can scale fast enough to offset erosion in the traditional core. Key watch areas include advertiser pipeline trends, digital segment growth rates, and evidence of improved cash generation. Given ongoing macroeconomic uncertainty and softer ad markets, visible progress in digital adoption will be key for recovery in both top-line and bottom-line performance.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,060%* — a market-crushing outperformance compared to 182% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of August 11, 2025

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.