Townsquare Media(TSQ) - 2025 Q3 - Quarterly Results

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]