Urban One(US:UONE)2025-11-04 14:10Revenue Performance - For the three months ended September 30, 2025, net revenue was approximately $92.7 million, a decrease of 16.0% from $110.4 million in the same period in 2024[156]. - The Radio Broadcasting segment generated approximately $34.7 million in revenue for the three months ended September 30, 2025, down from $39.7 million in 2024, primarily due to weaker market demand[156]. - The Digital segment reported revenue of approximately $12.7 million for the three months ended September 30, 2025, compared to $18.3 million in 2024, reflecting a decrease of approximately $5.6 million[156]. - The Cable Television segment's revenue was approximately $39.8 million for the three months ended September 30, 2025, down from $42.8 million in 2024, driven by subscriber churn and lower advertising sales[156]. - Net revenue for the nine months ended September 30, 2025, was approximately $276.5 million, a decrease of $56.0 million or 16.8% compared to $332.5 million in the same period of 2024[169]. - Revenue for the nine months ended September 30, 2025, was approximately $148.6 million, a decrease of $20.6 million or 12.2% compared to $169.2 million in the same period of 2024[171]. Operating Income and Expenses - Operating expenses totaled approximately $90.2 million for the three months ended September 30, 2025, a decrease of 34.0% from $136.6 million in 2024[155]. - The company reported an operating income of approximately $2.5 million for the three months ended September 30, 2025, compared to an operating loss of $26.2 million in 2024[155]. - Selling, general and administrative expenses for the three months ended September 30, 2025, were approximately $49.0 million, down $4.5 million or 8.4% from $53.5 million in 2024[158]. - Stock-based compensation expense decreased to approximately $0.4 million for the three months ended September 30, 2025, a reduction of $0.8 million or 68.3% compared to $1.2 million in 2024[159]. - Depreciation and amortization expense increased to approximately $6.1 million for the three months ended September 30, 2025, an increase of $4.9 million compared to $1.2 million in 2024[160]. Net Loss and Improvements - The net loss attributable to common stockholders for the three months ended September 30, 2025, was approximately $2.8 million, a significant improvement from a net loss of $31.8 million in 2024, representing a 91.1% reduction[155]. - Net loss attributable to common stockholders for the nine months ended September 30, 2025, was approximately $92.5 million, an increase of $22.7 million or 32.6% compared to a net loss of $69.7 million in 2024[168]. Advertising Revenue - The percentage of core radio business revenue generated from local advertising increased to 64.0% in Q3 2025, up from 60.5% in Q3 2024[147]. - The company experienced a 94.3% decline in political advertising revenue, dropping to $201,000 in Q3 2025 from $3.5 million in Q3 2024[148]. Cash Flow and Financing Activities - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash of approximately $79.8 million, with no borrowings outstanding on the Current ABL Facility[191]. - Net cash flows provided by operating activities increased to approximately $8.1 million for the nine months ended September 30, 2025, compared to $1.9 million for the same period in 2024[213]. - Net cash flows used in financing activities decreased to approximately $58.6 million for the nine months ended September 30, 2025, from $118.2 million in 2024, with $51.9 million paid to repurchase 2028 Notes[216]. Impairment and Amortization - Impairment of goodwill and intangible assets was $0 for the three months ended September 30, 2025, compared to $46.8 million in 2024, marking a 100% decrease[161]. - The Company recognized an impairment loss of approximately $121.3 million associated with radio broadcasting licenses during the three months ended June 30, 2025[222]. - The useful life of broadcasting licenses was changed from indefinite-lived to finite-lived intangible assets effective June 1, 2025, resulting in amortization expense of $3.8 million for the three months ended September 30, 2025[226]. Debt and Obligations - The total outstanding aggregate principal amount of the senior secured notes due 2028 as of September 30, 2025, is approximately $487.8 million[205]. - The company had approximately $487.8 million of 2028 Notes outstanding as of September 30, 2025, with no other indebtedness reported[244]. - The company’s contractual obligations total approximately $723.5 million as of September 30, 2025, including various operating contracts and lease obligations[252]. Market Conditions and Future Outlook - Macroeconomic conditions, including tariffs, inflation, and interest rates, may adversely affect the company's revenues[192]. - Cash flows from operations and other sources of liquidity are expected to be sufficient to meet foreseeable cash requirements[214].