Revenue Performance - Net revenue for the three months ended September 30, 2025, was approximately $92.7 million, a decrease of 16.0% from $110.4 million in the same period of 2024[156]. - Revenue from the Radio Broadcasting segment decreased to approximately $34.7 million in Q3 2025 from $39.7 million in Q3 2024, primarily due to weaker market demand and non-returning political revenues[156]. - The Digital segment generated approximately $12.7 million in revenue for Q3 2025, down from $18.3 million in Q3 2024, reflecting a decrease in direct revenue streams and political revenue[156]. - The Cable Television segment reported revenue of approximately $39.8 million in Q3 2025, compared to $42.8 million in Q3 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]. - Total 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 Expenses - Operating expenses totaled approximately $90.2 million for Q3 2025, a decrease of 34.0% from $136.6 million in Q3 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]. - Selling, general and administrative expenses decreased to approximately $148.6 million for the nine months ended September 30, 2025, down from approximately $169.2 million in 2024, primarily due to lower headcount and reduced costs[171]. - 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]. - Stock-based compensation expense decreased by 55.3% to approximately $1.6 million for the nine months ended September 30, 2025, compared to approximately $3.6 million in 2024, due to no executive grants during 2025[172]. Net Loss and Profitability - The company reported a net loss attributable to common stockholders of approximately $2.8 million for Q3 2025, a significant improvement from a net loss of $31.8 million in Q3 2024, reflecting 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]. - Adjusted EBITDA for the three months ended September 30, 2025, was $14.2 million, down 44% from $25.4 million in the prior year[187]. - Broadcast and digital operating income decreased to approximately $68.6 million for the nine months ended September 30, 2025, a decrease of 32.5% from approximately $101.6 million in 2024, with declines across most segments[185]. 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 reassessed from indefinite-lived to finite-lived, resulting in an amortization expense of $3.8 million for the three months ended September 30, 2025[226]. - The useful life of the TV One Trade Name was also reassessed to a finite-lived intangible asset, leading to an amortization expense of $0.6 million for the three months ended September 30, 2025[228]. - The company recognized an impairment loss of approximately $3.9 million for the Radio Broadcasting reporting units during the nine months ended September 30, 2025, indicating a continued decline in revenues[231]. - The iOne reporting unit also experienced a decline in revenues, leading to an impairment loss of approximately $4.9 million recognized during the nine months ended September 30, 2025[237]. Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash balance was approximately $79.8 million as of September 30, 2025, 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 investing activities were approximately $7.3 million for the nine months ended September 30, 2025, up from $1.7 million in 2024, primarily due to capital expenditures of approximately $6.9 million[215]. - 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]. - Cash flows from operations and other sources of liquidity are expected to be sufficient to meet foreseeable cash requirements[214]. Debt and Financing - The company repurchased approximately $96.7 million of its 2028 Notes during the nine months ended September 30, 2025, at an average price of approximately 53.6% of par, resulting in a net gain on retirement of debt of approximately $44.0 million[204]. - The total outstanding aggregate principal amount of the senior secured notes due 2028 was approximately $487.8 million as of September 30, 2025[205]. - The Company closed on an asset-backed credit facility providing up to $50.0 million in revolving loan borrowings, with no balance outstanding as of September 30, 2025[206]. - The Current ABL Facility matures five years from its effective date or 91 days prior to the maturity of the Company's 2028 Notes[212]. - The Current ABL Facility provides for up to $50.0 million in revolving loan borrowings, with no balance outstanding as of September 30, 2025[254]. Market Conditions and Risks - Macroeconomic conditions, including tariffs, inflation, and interest rates, may adversely affect the company's revenues[192]. - Key assumptions for the Radio Market reporting units included a discount rate of 9.5%, a revenue growth rate range of (34.5)% to 53.1%, and an operating profit margin range of (4.9)% to 43.1%[233].
Urban One(UONEK) - 2025 Q3 - Quarterly Report