Townsquare Media(TSQ) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Presents Townsquare Media's unaudited consolidated financials for Q2 2025 and FY2024, covering key statements and notes Consolidated Balance Sheets Summarizes Townsquare Media's financial position, detailing total assets, liabilities, and stockholders' deficit | Metric | Dec 31, 2024 (in Thousands) | Jun 30, 2025 (in Thousands) | Change (in Thousands) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | :------- | | Total Assets | $580,414 | $545,729 | $(34,685) | (6.0)% | | Total Liabilities | $608,856 | $572,821 | $(36,035) | (5.9)% | | Total Stockholders' Deficit | $(28,442) | $(27,092) | $1,350 | 4.7% | Consolidated Statements of Operations Details Townsquare Media's financial performance, including net revenue, operating income, net income, and EPS | Metric (in Thousands) | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change | % Change | | :------------------------------------------------ | :-------------------------- | :-------------------------- | :----- | :------- | | Net revenue | $115,448 | $118,225 | $(2,777) | (2.3)% | | Operating income (loss) | $21,050 | $(21,370) | $42,420 | N/A | | Net income (loss) | $2,009 | $(48,858) | $50,867 | N/A | | Basic income (loss) per share | $0.10 | $(3.26) | $3.36 | N/A | | Diluted income (loss) per share | $0.09 | $(3.26) | $3.35 | N/A | | Metric (in Thousands) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change | % Change | | :------------------------------------------------ | :-------------------------- | :-------------------------- | :----- | :------- | | Net revenue | $214,123 | $217,858 | $(3,735) | (1.7)% | | Operating income (loss) | $28,183 | $(14,730) | $42,913 | N/A | | Net income (loss) | $498 | $(47,305) | $47,803 | N/A | | Basic income (loss) per share | $(0.03) | $(3.04) | $3.01 | N/A | | Diluted income (loss) per share | $(0.03) | $(3.04) | $3.01 | N/A | Consolidated Statements of Stockholders' (Deficit) Equity Outlines changes in Townsquare Media's stockholders' deficit, reflecting net income, dividends, and stock compensation | Metric (in Thousands) | Jan 1, 2025 | Jun 30, 2025 | Change | | :-------------------------------- | :---------- | :----------- | :----- | | Total Stockholders' Deficit | $(28,442) | $(27,092) | $1,350 | - Net income of $2.0 million for the three months ended June 30, 2025, contributed positively to equity, while dividends declared ($0.20 per share) resulted in a $3.5 million reduction[13][99] - Stock-based compensation added $2.6 million to additional paid-in capital during the three months ended June 30, 2025[13] Consolidated Statements of Cash Flows Presents Townsquare Media's cash flows from operating, investing, and financing activities for H1 2025 and 2024 | Metric (in Thousands) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change | | :------------------------------------ | :-------------------------- | :-------------------------- | :----- | | Net cash provided by operating activities | $10,129 | $10,684 | $(555) | | Net cash used in investing activities | $(1,906) | $(3,993) | $2,087 | | Net cash used in financing activities | $(37,707) | $(39,222) | $1,515 | | Net decrease in cash, cash equivalents and restricted cash | $(29,484) | $(32,531) | $3,047 | - Cash payments for interest increased to $29.3 million in H1 2025 from $18.2 million in H1 2024[19] Notes to Unaudited Consolidated Financial Statements Explains accounting policies, revenue recognition, asset valuations, debt, income taxes, equity, and segment reporting Note 1. Organization and Basis of Presentation Describes Townsquare Media's business, operating segments, and macroeconomic impacts on financial performance - Townsquare operates in digital advertising (Townsquare Ignite), subscription digital marketing solutions (Townsquare Interactive), and local radio stations, primarily outside the top 50 U.S. markets[21] - Current economic challenges (inflation, interest rates) pose risks of advertising/subscription cancellations, revenue declines, and increased operating expenses[22] Note 2. Summary of Significant Accounting Policies Outlines the company's accounting policies and evaluation of recently issued accounting standards - No significant changes in accounting policies since December 31, 2024[27] - ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation Disclosures) are not expected to have a significant impact on financial statements, as they primarily require additional disclosures[28][29] Note 3. Revenue Recognition Details revenue disaggregation by segment and political sources, with recognition policies for digital, broadcast, and subscription | Revenue Segment (in Thousands) | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change | % Change | | :----------------------------- | :-------------------------- | :-------------------------- | :----- | :------- | | Digital Advertising | $42,538 | $41,524 | $1,014 | 2.4% | | Subscription Digital Marketing Solutions | $18,767 | $18,515 | $252 | 1.4% | | Broadcast Advertising | $48,684 | $53,633 | $(4,949) | (9.2)% | | Other | $5,459 | $4,553 | $906 | 19.9% | | Political Revenue | $556 | $1,459 | $(903) | (61.9)% | | Revenue Segment (in Thousands) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change | % Change | | :----------------------------- | :-------------------------- | :-------------------------- | :----- | :------- | | Digital Advertising | $79,289 | $75,680 | $3,609 | 4.8% | | Subscription Digital Marketing Solutions | $37,789 | $36,768 | $1,021 | 2.8% | | Broadcast Advertising | $89,999 | $99,088 | $(9,089) | (9.2)% | | Other | $7,046 | $6,322 | $724 | 11.5% | | Political Revenue | $1,123 | $2,519 | $(1,396) | (55.4)% | - Contract liabilities (deferred revenue) decreased from $9.9 million at December 31, 2024, to $8.6 million at June 30, 2025, primarily due to revenue recognition[38][39] Note 4. Property and Equipment, net Summarizes net property and equipment, depreciation, and gains/losses from asset sales, including a major land sale | Metric (in Thousands) | Dec 31, 2024 | Jun 30, 2025 | Change | | :-------------------- | :----------- | :----------- | :----- | | Total property and equipment, net | $110,269 | $110,273 | $4 | | Metric (in Thousands) | 3 Months Ended Jun 30, 20