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]

Revenue Performance - Townsquare reported a net revenue of $106.8 million for Q3 2025, a decrease of 7.4% compared to $115.3 million in Q3 2024[9] - Net revenue for Q3 2025 was $106.759 million, a decrease of 7.3% from $115.311 million in Q3 2024[32] - Net revenue for the nine months ended September 30, 2025, was $320,882, a decrease of 3.7% compared to $333,169 in 2024[38] - Total net revenue for the three months ended September 30, 2025, was $106,759,000, a decrease from $115,311,000 in the same period of 2024[43] - For the nine months ended September 30, 2025, net revenue reached $320,882,000, compared to $333,169,000 for the same period in 2024[43] Digital Revenue - Digital net revenue increased by 2.1% year-over-year, representing 55% of total net revenue for the first nine months of 2025[2] - Digital Advertising revenue streams increased by 7% year-over-year in Q3 2025, partially offsetting declines in other areas[2] - Digital Advertising revenue for the nine months ended September 30, 2025, increased by 2.6% to $119,517 from $116,541 in 2024[38] - Digital Advertising segment revenue decreased by 1.5% to $40,228,000 for the three months ended September 30, 2025, from $40,861,000 in 2024[39] - The company experienced a 90.3% decline in political revenue from Digital Advertising, falling to $14,000 from $145,000 year-over-year[39] Profitability and Loss - Adjusted EBITDA for Q3 2025 decreased by 13.5% to $22.0 million, compared to $25.5 million in Q3 2024[13] - Operating income for Q3 2025 was $5.936 million, down from $15.097 million in Q3 2024, reflecting a decline of 60.7%[32] - Net loss for Q3 2025 was $5.5 million, a decrease of $16.8 million from a net income of $11.3 million in Q3 2024[12] - Adjusted Net Income for the three months ended September 30, 2025, was $855,000, down from $6,080,000 in 2024[40] - Segment Profit for the three months ended September 30, 2025, was $28,001,000, compared to $31,517,000 for the same period in 2024, reflecting a decline of approximately 11%[43] Expenses and Costs - The company incurred transaction and business realignment costs of $6.891 million in Q3 2025, compared to $645,000 in Q3 2024[32] - Total operating costs and expenses for the nine months ended September 30, 2025, decreased by 13.8% to $286,763 from $332,802 in 2024[38] - Direct operating expenses for the three months ended September 30, 2025, were $78,758,000, up from $83,794,000 in the same period of 2024[43] Debt and Financial Position - The company reduced its outstanding debt by $17 million since the February 2025 refinancing, including a $6 million repurchase of Term Loans at a discount in Q3[2] - As of September 30, 2025, the company had $3.2 million in cash and $463.4 million in outstanding indebtedness, resulting in a gross leverage ratio of 4.74x[18] - Total liabilities were $573.197 million as of September 30, 2025, compared to $608.856 million at the end of 2024, showing a reduction in liabilities[30] - Cash and cash equivalents decreased significantly to $3.211 million from $32.990 million at the end of 2024[30] - Interest expense for the nine months ended September 30, 2025, increased by 29.5% to $35,497 from $27,418 in 2024[38] Future Projections - For Q4 2025, net revenue is expected to be between $105 million and $109 million, with Adjusted EBITDA projected between $21.5 million and $23.5 million[8]

Core Insights - Townsquare Media reported a net revenue decrease of 7.4% year-over-year for Q3 2025, with a total net revenue of $106.8 million, meeting previously issued guidance [2][5][9] - The company achieved a Digital net revenue increase of 2.1% year-over-year, representing 55% of total net revenue, and a Digital Segment Profit increase of 3.6% year-over-year [2][5][9] - Townsquare reduced its outstanding debt by $17 million since the February 2025 refinancing, including a $6 million repurchase of Term Loans at a discount [2][11] Financial Performance - Q3 2025 net loss was $5.5 million, a decrease of $16.8 million from a net income of $11.3 million in Q3 2024 [2][11] - Adjusted EBITDA for Q3 2025 decreased 13.5% to $22.0 million, while Adjusted EBITDA excluding political revenue decreased 2.0% to $21.9 million [2][13] - Year-to-date net revenue for 2025 decreased 3.7% to $320.9 million compared to the same period in 2024 [16] Segment Performance - Digital Advertising net revenue decreased 1.5% in Q3 2025, while Subscription Digital Marketing Solutions net revenue decreased 2.3% [5][37] - Broadcast Advertising net revenue decreased 13.8% in Q3 2025, attributed to reduced advertising purchases by clients [9][37] - Townsquare Interactive, part of Subscription Digital Marketing Solutions, reported a Segment Profit growth of 21% year-over-year in Q3 2025 [2][11] Future Guidance - For Q4 2025, net revenue is expected to be between $105 million and $109 million, and Adjusted EBITDA is expected to be between $21.5 million and $23.5 million [8] - For the full year 2025, net revenue is projected to be between $426 million and $430 million, with Adjusted EBITDA expected between $88 million and $90 million [8] Dividend Announcement - The Board of Directors approved a quarterly cash dividend of $0.20 per share, payable on February 2, 2026 [3]

Group 1: Sharplink Gaming - Sharplink Gaming Inc. is a sports betting and affiliate marketing firm that has recently made significant investments in the cryptocurrency space, particularly Ethereum [4][5] - The company raised over $2.6 billion to invest in 700,000 ETH, positioning itself as one of the largest publicly traded Ethereum treasury firms [5] - Analysts have set a 12-month stock price forecast for Sharplink at $45, indicating a potential upside of 227.89% from the current price of $13.72 [4][7] Group 2: Townsquare Media - Townsquare Media Inc. operates over 300 radio stations and has pivoted towards digital solutions, which now account for 55% of its revenue [9][10] - The company has a 12-month stock price forecast of $17, representing a 165.42% upside from the current price of $6.41, with a high forecast of $21 [9][11] - Townsquare offers a substantial dividend yield of 12.55% and has a low P/E ratio of 3.14, making it an attractive investment opportunity [10][11] Group 3: Synchronoss Technologies - Synchronoss Technologies Inc. is a microcap firm focusing on cloud-based software solutions, with nearly 93% of its revenue coming from recurring SaaS [12][13] - Analysts project a 12-month stock price forecast of $13, indicating a potential upside of 152.18% from the current price of $5.16 [12][14] - The company is expected to continue growing its client base and aims for sustained profitability, making it a high-risk, high-reward investment [13][14]

Townsquare Media Conference Call Summary Company Overview - **Company**: Townsquare Media - **Stock Symbol**: TSQ - **Current Rating**: Outperform with a price target of $21, indicating significant upside potential from current stock levels [1][1][1] - **Dividend Yield**: 12.7% annualized, considered one of the best total return opportunities in the coverage universe [1][1][1] Industry Insights - **Market Focus**: Townsquare Media operates in small markets outside the top 50 in the U.S., which are often underserved in terms of local news and entertainment [3][3][3] - **Market Penetration**: The company reaches 50% of adults weekly through AM/FM broadcasts and 77% when including online audiences [4][4][4] - **Competition**: There is less competition in digital marketing solutions in these smaller markets, allowing Townsquare Media to build a competitive moat [4][4][4] Digital Business Growth - **Revenue Composition**: Digital revenue now constitutes over 50% of total revenues and cash flow [6][6][6] - **Townsquare Interactive**: This subscription-based service provides digital marketing solutions for small and medium-sized businesses (SMBs) [8][8][8] - **Historical Growth**: From 2013 to 2023, revenue grew by $7 million to $10 million annually, with profits increasing by $2.5 million to $3 million [9][9][9] - **Recent Challenges**: The company faced disruptions due to a return-to-office mandate and a shift to a call center service model, resulting in a loss of approximately $7 million in cash flow over two years [12][12][12][13][13][13] - **Future Outlook**: Expected profit growth of over $3 million in 2025, with a return to historical revenue growth levels anticipated by 2026 [13][13][13] Service Offerings and Innovations - **CRM Adoption**: 100% of Townsquare Interactive's customers are now using the CRM, which was not available four to five years ago [16][16][16] - **Pricing Strategy**: The average revenue per user (ARPU) is approximately $300 per month, with a focus on maintaining current pricing while improving efficiency and profit margins [17][17][17] - **AI Integration**: AI tools are being deployed to enhance service efficiency and customer insights, expected to significantly aid margin expansion in the coming years [19][19][19][20][20][20] Townsquare Ignite - **Digital Advertising Segment**: Townsquare Ignite is experiencing rapid growth, particularly in programmatic advertising and streaming TV [21][21][21][22][22][22] - **Market Trends**: The digital advertising market in the U.S. is growing at a high single-digit CAGR, with streaming TV and social media advertising growing at double-digit rates [22][22][22][23][23][23] - **Partnerships**: The company is expanding its white-label digital advertising partnerships, projecting $50 million in revenue from this segment within five years [26][26][26][27][27][27] Radio Business Insights - **Industry Reach**: Radio remains the number one reach medium in the U.S., with 93% of Americans listening weekly [31][31][31] - **Current Performance**: The radio industry is facing challenges, with Townsquare Media's performance slightly declining but still outperforming the broader industry [32][32][32][34][34][34] - **Future Projections**: Expected moderation of industry decline, with potential for low single-digit declines over the next five years [34][34][34][35][35][35] Financial Health and Capital Management - **Debt Management**: The company has a gross debt of $470 million, with plans to pay down $20 million to $30 million annually [39][39][39][40][40][40] - **Interest Rate Sensitivity**: Each quarter-point reduction in interest rates equates to approximately $1.2 million in interest expense savings [40][40][40][41][41][41] - **Share Buybacks**: Townsquare Media has repurchased 16.6 million shares since 2021, with a focus on opportunistic buybacks and maintaining a high dividend yield [46][46][46] Conclusion - **Growth Strategy**: Townsquare Media is focused on expanding its digital business while managing its traditional radio segment effectively. The company is well-positioned for future growth, particularly in digital advertising and marketing solutions, while maintaining a strong commitment to shareholder returns through dividends and share buybacks [50][50][50]

Core Points - Townsquare Media, Inc. will release its third quarter 2025 financial results on November 10, 2025, before the market opens [2] - A conference call to discuss these results will take place on the same day at 8:00 a.m. Eastern Time [2][3] - The company will also participate in Noble Capital Markets' Emerging Growth Virtual Equity Conference on October 8, 2025, at 2:30 PM Eastern Time [5] Company Overview - 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. [8] - The company operates Townsquare Ignite, a digital advertising division that utilizes proprietary programmatic advertising technology and a portfolio of over 400 local news and entertainment websites and mobile apps [8] - Townsquare Interactive provides subscription digital marketing services to small and medium-sized businesses (SMBs), offering a SAAS business management platform, website design, and search engine optimization [8] Investor Relations - Interested parties can access a live webcast of the conference call and the press release on the investor relations page of Townsquare's website [3][4] - A telephone replay of the conference call will be available until November 17, 2025 [4] - For the Noble Capital Markets conference, registration is available at no cost, and qualified investors can arrange one-on-one meetings with management [6]

Financial Data and Key Metrics Changes - In Q2 2025, total net revenue declined approximately 2% year over year, aligning with the guidance of negative 2% to negative 4% [6][25] - Adjusted EBITDA increased by 1% year over year, exceeding the guidance of negative 1% to negative 5% [6][25] - Net leverage decreased to 4.58 times [6][29] Business Line Data and Key Metrics Changes - Digital solutions accounted for approximately 55% of total net revenue in the first half of 2025, with digital revenue growing 4% year over year [7][8] - Townsquare Interactive's segment profit increased by 19% year over year, with profit margins expanding to 33% [16][26] - Broadcast advertising net revenue declined by 8% year over year, consistent with previous expectations [20][27] Market Data and Key Metrics Changes - The company reported a decline in broadcast revenue due to shifts in advertising from traditional to digital platforms, with local market spot share increasing to an all-time high of 39% [21][27] - Digital advertising revenue grew by 2% year over year despite challenges in the advertising marketplace [9][10] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, emphasizing the growth of its digital platforms as the primary growth engine [8][20] - A new media partnership model was launched to expand digital advertising solutions without acquiring additional assets, with expectations of significant revenue growth in the coming years [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the digital advertising growth trajectory despite current challenges, citing strong direct sales performance [40][42] - The company anticipates continued strength in programmatic and direct sales, with expectations for Q3 revenue to align with Q2 performance [23][32] Other Important Information - The company plans to use excess cash flow for debt reduction and to support a high-yielding dividend, with a quarterly dividend of $0.20 per share approved [31][29] - The company has repaid $10 million of debt in Q2 2025, contributing to a total of $13 million repaid since February [29][30] Q&A Session Summary Question: Can you provide more color on the search engine referral traffic trends? - Management noted that search engine referral traffic has declined significantly, impacting indirect revenue, but direct sales remain strong [40][41] Question: Is the Q3 guidance softer than expected due to advertiser hesitance? - Management confirmed that advertisers are cautious but still spending, with a shift towards short-term placements [45][46] Question: How does the current referral traffic decline compare to past social media algorithm changes? - Management indicated that the current decline is similar to past changes in social media algorithms, but they expect traffic to plateau and grow again over time [55][56] Question: What is the outlook for Townsquare Interactive's revenue growth? - Management expressed confidence in returning to revenue growth in 2026, supported by strong profit performance in 2025 [63][66] Question: How is the Phoenix office performing in terms of staffing and growth? - Management reported positive progress in the Phoenix office, with around 40 employees and a focus on recruiting talent to support West Coast operations [76][78]

Company Overview & Strategy - Townsquare is a community-focused digital and broadcast media and digital marketing solutions company, primarily focusing on underserved small and mid-sized local markets outside the Top 50 markets in the U S[12] - The company has transformed into a Digital First Local Media Company, with over 55% of profit and revenue in the first half of 2025 sourced from digital advertising divisions and subscription digital marketing solutions[12] - The company's digital audience is approximately 5 times the size of its terrestrial radio audience[12] Financial Performance & Metrics - As of June 30, 2025, the Last Twelve Months (LTM) net revenue was $447 million and adjusted EBITDA was $101 million[16] - LTM digital net revenue reached $239 million, contributing to 53% of total net revenue and 52% of segment profit[18] - Digital subscription solutions (Townsquare Interactive) accounted for 18% of LTM total revenue and 26% of adjusted EBITDA as of June 30, 2025[18] - The company announced a quarterly dividend of $0 20 per share, representing an approximate 12% dividend yield as of August 5, 2025[17] Digital Segment Details - Digital Advertising segment's LTM net revenue was $162 million with a segment profit of $41 million, representing a 26% profit margin[24,63] - Subscription Digital Marketing Solutions segment's LTM net revenue was $76 million with a segment profit of $23 million[24,69] Broadcast Segment Details - Broadcast Advertising segment's LTM net revenue was $189 million with a segment profit of $49 million, representing a 26% profit margin[27] - The company's AM/FM terrestrial broadcast reaches 50% of adults in its local markets[42]