Group 1 - Townsquare Media, Inc. will participate in Noble Capital Markets' Twenty First Annual Emerging Growth Equity Conference on December 3, 2025, at 1:30 PM Eastern Time [1] - Interested investors can attend the conference at a discounted rate using the code TSQNOBLECON [2] - A high-definition video webcast of the presentation will be available the following day on Townsquare's investor relations page and will be archived for 90 days [3] Group 2 - Townsquare Media is a community-focused digital and broadcast media and digital marketing solutions company, primarily targeting markets outside the top 50 in the U.S. [4] - The company operates Townsquare Ignite, a digital advertising division that utilizes proprietary technology and a portfolio of over 400 local news and entertainment websites [4] - Townsquare Interactive provides subscription digital marketing services to small and medium-sized businesses, offering a range of digital services including website design and search engine optimization [4] Group 3 - Noble Capital Markets, established in 1984, is a full-service broker-dealer providing investment and advisory services, with a focus on middle-market expertise [5] - Noble has raised billions of dollars for companies and published over 45,000 equity research reports [5] - Channelchek, launched by Noble in 2018, is an investor community dedicated to public emerging growth companies, offering free access to institutional-quality research [6]

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Townsquare Media, Inc. (NYSE:TSQ) is included among the 15 Stocks with Highest Dividend to Invest in. Noble Capital Cuts Townsquare Media (TSQ) Price Target After Soft Q3 Results Photo by nathan dumlao on Unsplash On November 11, Noble Capital cut its price ta‌rget o​n Townsquare Media, Inc. (NYSE:TSQ) to $1​5 from $21 while mainta‌ining‍ an Outperform rating. The firm adjusted i‍ts​ out‍look after the c‍ompa⁠ny​’s Q3 res⁠ults a​nd it‌s updated guidance for Q4, w‍hich led to l‍ower expect⁠ations for 202 ...

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Core Insights - Townsquare Media reported a revenue of $106.76 million for the quarter ended September 2025, reflecting a year-over-year decline of 7.4% and an EPS of $0.05, down from $0.35 a year ago, with a revenue surprise of -1.11% compared to the Zacks Consensus Estimate of $107.96 million [1] Financial Performance Metrics - Subscription Digital Marketing Solutions generated net revenue of $18.65 million, slightly below the two-analyst average estimate of $18.79 million, marking a year-over-year decline of 2.3% [4] - Other revenue sources reported net revenue of $0.89 million, significantly lower than the two-analyst average estimate of $1.21 million, representing a year-over-year decrease of 14.9% [4] - Broadcast Advertising net revenue was $47 million, exceeding the average estimate of $46.29 million from two analysts, but still showing a year-over-year decline of 13.5% [4] - Digital Advertising net revenue stood at $40.23 million, below the estimated $41.39 million by two analysts, with a year-over-year change of -1.6% [4] Stock Performance - Townsquare's shares have returned -1% over the past month, contrasting with the Zacks S&P 500 composite's increase of +0.3%, and the stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $106.8 million, within the guidance range of $106.5-$108.5 million, reflecting a decline of 7.4% year-over-year [23] - Adjusted EBITDA for Q3 2025 was $22 million, also within the guidance range of $22-$23 million, representing a decline of 13.6% year-over-year [24] - Adjusted EBITDA margins, excluding political revenue, improved slightly from 20% in Q3 2024 to 20.5% in Q3 2025 [26] Business Line Data and Key Metrics Changes - Digital advertising revenue declined by 1.6% year-over-year in Q3 2025, impacted by weakness in remnant indirect digital advertising revenue [24][26] - Townsquare Interactive's revenue decreased approximately 2.3% year-over-year in Q3 2025, but segment profit increased by 21% year-over-year, with profit margins at 33% [25][26] - Broadcast advertising net revenue, excluding political, declined by 8.1% year-over-year in Q3 2025, but profit margins increased from 25% in Q3 2024 to 28% in Q3 2025 [19][26] Market Data and Key Metrics Changes - Digital revenue grew by 2% year-over-year in the first nine months of 2025, contributing to 55% of total net revenue [6] - The digital segment profit margin was 26%, up slightly year-over-year, with digital's contribution to total segment profits growing to 55% [6] - The company is experiencing significant declines in search traffic, with 45 of the top 50 U.S. news websites seeing year-over-year declines in search traffic [13] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, with plans to invest heavily in digital solutions and markets outside the top 50 in the U.S. [7] - Townsquare Ignite, the digital advertising business, is expected to continue as the primary growth driver, despite current challenges in indirect revenue [8] - The company aims to grow its third-party media partnership model, which is expected to contribute approximately $6 million in revenue this year at a 20% profit margin [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and the impact of AI on audience trends, which have negatively affected remnant revenue [15] - The company expects Q4 digital advertising revenue to be muted due to ongoing headwinds, but remains confident in the strength of its programmatic business [15] - Full-year revenue guidance has been revised down due to declines in search engine traffic and lower-than-expected political revenue [31] Other Important Information - The company generated $18 million of cash flow from operations in the first nine months of 2025, with a net loss of $5.5 million in Q3 2025 [28][26] - The board approved a quarterly dividend of $0.20 per share, equating to an annualized payment of approximately $13 million [30] - The company has reduced its outstanding debt by $17 million since February 2025, with a net leverage of 4.71 times [29] Q&A Session Summary Question: When will core advertising stabilize? - Management noted that core advertising is currently in a secular decline, but expects slight improvement in Q4 and stabilization in 2026, projecting low to mid-single-digit declines [40][42] Question: Is there room for margin cuts given high margins? - Management confirmed that there are opportunities for further efficiency improvements through AI solutions, maintaining healthy profit margins despite revenue declines [43][45] Question: Impact of government-related advertising? - Management indicated that there has been no positive impact from government shutdown-related advertising, with some cancellations noted [48][50] Question: Progress of the Phoenix office and Townsquare Interactive? - Management expressed satisfaction with the Phoenix office's performance and the overall growth in profit for Townsquare Interactive, expecting continued strong profit margins [52][54] Question: Long-term profitability expectations for Interactive? - Management expects to maintain low 30% margins over the next couple of years, with potential for expansion in 2027 and beyond [60][61] Question: Trends in Ignite's digital advertising? - Management confirmed that excluding remnant revenue, digital advertising increased by 5% in Q3, with owned and operated platforms up 10% [64][70]

Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $106.8 million, a decline of 7.4% year-over-year, but within the guidance range of $106.5 million to $108.5 million [23] - Adjusted EBITDA for Q3 2025 was $22 million, down 13.6% year-over-year, also within the guidance range of $22 million to $23 million [24] - Adjusted EBITDA margins, excluding political revenue, improved slightly from 20% in Q3 2024 to 20.5% in Q3 2025 [24] Business Line Data and Key Metrics Changes - Digital revenue grew by 2% year-over-year in the first nine months of 2025, accounting for 55% of total net revenue [6] - Townsquare Ignite, the digital advertising segment, experienced a slight revenue decline of 1.6% year-over-year in Q3 2025 [24] - Townsquare Interactive, the subscription-based digital marketing solution, saw a profit increase of 21% year-over-year in Q3 2025, with profit margins at 33% [25][16] - Broadcast advertising net revenue, excluding political, declined by 8.1% year-over-year in Q3 2025 [26] Market Data and Key Metrics Changes - The company reported that 45 of the top 50 U.S. news websites experienced year-over-year declines in search traffic, impacting overall digital inventory [13] - Remnant inventory revenue declined by 50% year-over-year in Q3 2025, significantly affecting digital advertising revenue [14] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, with plans to invest heavily in digital solutions and markets outside the top 50 U.S. cities [7] - The digital advertising segment is expected to continue as the primary growth driver, with a strong emphasis on programmatic advertising and direct sales [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant headwinds in the advertising environment due to macroeconomic factors and competition from AI-driven content [15] - The company expects Q4 2025 digital advertising revenue to be muted due to ongoing declines in search referral traffic [15] - Full-year revenue guidance for 2025 has been revised down due to unexpected declines in search engine traffic and political revenue [31] Other Important Information - The company generated $18 million in cash flow from operations in the first nine months of 2025, with a net leverage of 4.71 times [28][29] - The board approved a quarterly dividend of $0.20 per share, implying an annual payment of approximately $13 million [30] Q&A Session Summary Question: When will core advertising stabilize? - Management indicated slight improvement in Q4 2025, with expectations for stabilization in 2026, projecting low to mid-single-digit declines [41][42] Question: Is there room for margin cuts given high margins? - Management confirmed there are opportunities for further efficiency improvements through AI solutions, maintaining healthy profit margins despite revenue declines [44][45] Question: Impact of government-related advertising during the shutdown? - Management reported no positive impact from government shutdown-related advertising, noting cancellations and softness in national advertising [48][50] Question: Progress of the Phoenix office and Townsquare Interactive? - Management expressed satisfaction with the Phoenix office's performance and the overall growth in profit for Townsquare Interactive, expecting continued strong profit margins [52][54] Question: Long-term profitability expectations for Interactive? - Management expects to maintain low 30% margins over the next couple of years, with potential for expansion in 2027 and beyond [60][61] Question: Trends in Ignite's digital advertising? - Management noted that excluding remnant revenue, digital advertising increased by 5% in Q3 2025, with owned and operated platforms up 10% [64][66]

Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $106.8 million, within the guidance range of $106.5-$108.5 million, reflecting a decline of 7.4% year-over-year [24] - Adjusted EBITDA for Q3 2025 was $22 million, also within the guidance range of $22-$23 million, representing a decline of 13.6% year-over-year [24] - Adjusted EBITDA margins, excluding political revenue, improved slightly from 20% in Q3 2024 to 20.5% in Q3 2025 [24] Business Line Data and Key Metrics Changes - Digital revenue grew by 2% year-over-year in the first nine months of 2025, accounting for 55% of total net revenue [6] - Townsquare Ignite, the digital advertising segment, experienced a slight revenue decline of 1.6% year-over-year in Q3 2025 [24] - Townsquare Interactive, the subscription-based digital marketing solution, saw a revenue decrease of 2.3% year-over-year in Q3 2025, but segment profit increased by 21% year-over-year [25][17] Market Data and Key Metrics Changes - Broadcast advertising net revenue, excluding political, declined by 8.1% year-over-year in Q3 2025 [26] - The company gained local and national broadcast market share despite overall declines in the industry [20] - The digital advertising market is facing significant headwinds due to declines in search engine traffic, impacting remnant inventory revenue [14] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, with plans to invest heavily in digital solutions and markets outside the top 50 in the U.S. [7] - The digital advertising segment is expected to continue as the primary growth driver, with a strong emphasis on programmatic advertising [10] - The company aims to maintain a high-yielding dividend while reducing debt and investing in digital growth [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in the digital-first strategy and long-term growth potential [33] - The company expects continued strength in programmatic and direct sales, despite ongoing headwinds from declining search referral traffic [21] - Full-year revenue guidance was revised down due to unexpected declines in search engine traffic and political revenue [31] Other Important Information - The company generated $18 million in cash flow from operations in the first nine months of 2025, with a net loss of $5.5 million in Q3 2025 [26][28] - The company has reduced outstanding debt by $17 million since February 2025 [28] - The board approved a quarterly dividend of $0.20 per share, equating to an annualized payment of approximately $13 million [30] Q&A Session Summary Question: Stabilization of Core Advertising - Management noted that core advertising is experiencing a secular decline, but slight improvements are expected in Q4 2025 and into 2026, with projections of low to mid-single-digit declines [39][40] Question: Profit Margins and Cost Management - Management confirmed that there are opportunities for further cost reductions and efficiency improvements, particularly through AI solutions [41] Question: Government-Related Advertising Impact - Management indicated that there has been no positive impact from government-related advertising due to the shutdown, with some clients reporting canceled orders [42][43] Question: Townsquare Interactive's West Coast Expansion - Management expressed satisfaction with the progress of the Phoenix office and the performance of Townsquare Interactive, highlighting significant profit growth despite stagnant revenue [44][46] Question: Future Profitability Expectations for Interactive - Management expects Townsquare Interactive to maintain low to mid-30% profit margins over the next couple of years, with potential for expansion thereafter [49]

Company Overview & Financial Highlights - Townsquare is a community-focused digital and broadcast media company primarily operating outside the top 50 US markets[12] - As of LTM 9/30/25, net revenue was $439 million and adjusted EBITDA was $98 million[16] - Digital net revenue reached $238 million, contributing 54% of total net revenue and 53% of segment profit as of LTM 9/30/25[18] - Digital subscription solutions (Townsquare Interactive) accounted for 18% of total revenue and 27% of adjusted EBITDA as of LTM 9/30/25[18] - The company offers a quarterly dividend of $020 per share, or $080 per share on an annualized basis, representing approximately a 13% dividend yield as of November 7, 2025[17] Digital Segment Performance - Digital advertising revenue for LTM 9/30/25 was $162 million with a segment profit of $39 million and a 24% profit margin[24, 64] - Subscription digital marketing solutions generated $76 million in net revenue and $24 million in segment profit for LTM 9/30/25[24] - September YTD 2025, total digital revenue was $176 million, accounting for 55% of total revenue, with a segment profit of $461 million, also representing 55% of total segment profit[32] Broadcast & Future Outlook - Broadcast advertising net revenue was $185 million ex-political, with a segment profit of $50 million and a 27% profit margin for LTM 9/30/25[27] - The company's Q3 2025 net revenue was $1068 million, a 7% decrease year-over-year, but only a 45% decrease excluding political revenue[133] - Q4 2025 net revenue is guided to be between $105 million and $109 million, compared to $1178 million in Q4 2024[138]

Revenue Performance - Net revenue decreased by $8.6 million, or 7.4%, primarily due to a $7.5 million decrease in Broadcast Advertising net revenue[141] - For the nine months ended September 30, 2025, net revenue decreased by $12.3 million, or 3.7%, driven by a $16.6 million decrease in Broadcast Advertising net revenue[141] - Digital Advertising net revenue increased by $3.2 million, or 2.7%, to $119.3 million for the nine months ended September 30, 2025[141] - Excluding political revenue, net revenue decreased by $7.4 million, or 2.3%, to $319.6 million for the nine months ended September 30, 2025[141] - Net revenue for the three months ended September 30, 2025, decreased by $8.6 million, or 7.4%, compared to the same period in 2024, primarily due to declines in Broadcast Advertising and Digital Advertising revenues[145] - For the nine months ended September 30, 2025, net revenue decreased by $12.3 million, or 3.7%, compared to the same period in 2024[158] - Net revenue for the nine months ended September 30, 2025, decreased by $12.3 million, or 3.7%, compared to the same period in 2024, primarily due to a $16.6 million decrease in Broadcast Advertising revenue[160] Operating Income and Expenses - Operating income decreased by $9.2 million for the three months ended September 30, 2025, primarily due to a $6.2 million increase in transaction and business realignment costs[141] - Broadcast Advertising reported operating income of $12.0 million for the three months ended September 30, 2025, a decrease of $0.9 million compared to the same period in 2024[141] - Total operating costs and expenses for the nine months ended September 30, 2025, decreased by $46.0 million, or 13.8%, compared to the same period in 2024[158] - Direct operating expenses for the three months ended September 30, 2025, decreased by $5.0 million, or 6.0%, with Broadcast Advertising expenses down by $4.9 million, or 12.8%[146] - Direct operating expenses for the nine months ended September 30, 2025, decreased by $8.8 million, or 3.6%, with Broadcast Advertising expenses down by $10.9 million, or 9.7%[161] Profitability and Impairments - Segment profit for the three months ended September 30, 2025, decreased by $3.5 million, or 11.2%, with Broadcast Advertising segment profit down by $2.6 million, or 16.3%[147] - Segment profit for the nine months ended September 30, 2025, decreased by $3.5 million, or 4.0%, with Broadcast Advertising segment profit down by $5.8 million, or 13.5%[162] - The company recognized a non-cash goodwill impairment charge of $3.0 million for the National Digital reporting unit for the three months ended September 30, 2025, due to declines in forecasted revenues[151] - The company incurred $1.5 million in impairment charges related to FCC licenses for four local markets during the nine months ended September 30, 2025, a significant decrease from $29.7 million in the same period in 2024[165] Debt and Financing - The Company entered into a $490 million Credit Agreement, including a $470 million Term Loan Facility and a $20 million Revolving Credit Facility[138] - The Company incurred approximately $5.5 million in fees and expenses related to the Senior Secured Credit Facility, which are being amortized over its term[139] - Interest expense for the three months ended September 30, 2025, increased to $12.6 million, up from $9.2 million in the same period in 2024, representing a 37.4% increase[155] - As of September 30, 2025, the company had $437.6 million of outstanding indebtedness, net of unamortized discount and deferred financing costs[183] - The company expects mandatory debt service requirements to be approximately $53.7 million over the next twelve months[184] Cash Flow and Liquidity - Net cash provided by operating activities was approximately $18.0 million for the nine months ended September 30, 2025, compared to $20.6 million for the same period in 2024[179] - Net cash used in investing activities was $3.4 million for the nine months ended September 30, 2025, a decrease from $7.6 million in the same period in 2024[180] - As of September 30, 2025, the company had $3.2 million in cash and cash equivalents, and $55.5 million in receivables from customers, with an average collection cycle of approximately 50 days[185] - The company anticipates that cash generated from operations will be sufficient to meet liquidity needs for at least the next 12 months, but future performance and cash flow are subject to various economic conditions[187] Strategic Outlook - The company believes its diversified product offering helps mitigate risks associated with advertising revenue dependency[126] - The company is evaluating strategic acquisitions and divestitures to enhance its competitive position and financial performance, which may require additional capital[188] - The company closely monitors capital and credit market conditions, as well as the financial condition of its customers, to assess potential impacts on operations[189] - There are no material off-balance sheet arrangements or transactions reported by the company[190] - The company makes significant estimates and judgments in preparing financial statements, which may change based on new events and information[192] - There have been no material changes to the critical accounting policies and estimates as filed in the 2024 Annual Report[193] Taxation - The effective tax rate for the three months ended September 30, 2025, was approximately 16.2%, a significant decrease from 82.6% in the same period in 2024[156] Stock-Based Compensation - Stock-based compensation expense decreased by $3.0 million, or 21.5%, for the nine months ended September 30, 2025, due to a non-recurring cash settlement of options in 2024[163]