Saga Communications, Inc. Reports 4th Quarter and Year-End 2025 Results

Core Viewpoint - Saga Communications, Inc. reported a significant decline in net revenue and net income for the fourth quarter and the full year of 2025, primarily due to an impairment charge and lower-than-expected revenue growth in radio advertising [1][2][3]. Financial Performance - Net revenue for Q4 2025 decreased by 9.3% to $26.5 million from $29.2 million in Q4 2024 [1]. - Digital revenue for Q4 2025 increased by 25.8% to $4.3 million compared to $3.5 million in Q4 2024 [1]. - For the full year 2025, net revenue decreased by 5.1% to $107.1 million from $112.9 million in 2024 [3]. - Digital revenue for the full year 2025 increased by 19.1% to $16.9 million from $14.2 million in 2024 [3]. Operating Expenses and Losses - Station operating expenses decreased by 1.9% in Q4 2025 to $22.9 million compared to $23.4 million in Q4 2024 [1]. - The company reported an operating loss of $9.5 million for Q4 2025, compared to an operating income of $1.0 million in Q4 2024 [1]. - For the full year 2025, the operating loss was $11.0 million compared to an operating income of $2.4 million in 2024 [3]. Impairment Charges - An impairment charge of $20.4 million was recorded in Q4 2025, affecting both operating and net income [2][4]. - Without the impairment charge, operating income for Q4 2025 would have been $10.9 million and net income would have been $8.2 million [2]. Capital Expenditures - Capital expenditures for Q4 2025 were $400 thousand, down from $600 thousand in Q4 2024 [1]. - Total capital expenditures for the full year 2025 were $3.0 million compared to $3.8 million in 2024 [3]. Net Income and Earnings Per Share - The company reported a net loss of $6.9 million for Q4 2025, compared to a net income of $1.3 million in Q4 2024 [1]. - For the full year 2025, the net loss was $7.9 million compared to a net income of $3.5 million in 2024 [3]. - Diluted loss per share for Q4 2025 was $1.07, compared to income per share of $0.20 in Q4 2024 [1]. Dividends and Share Repurchases - The company paid a quarterly dividend of $0.25 per share on December 12, 2025, totaling approximately $1.6 million [8]. - During the year ended December 31, 2025, the company repurchased 219,326 shares of its Class A Common Stock for $2.5 million [9]. Balance Sheet and Cash Position - As of December 31, 2025, the company had $31.8 million in cash and short-term investments [10]. - The company expects to spend approximately $3.5 million to $4.5 million on capital expenditures during 2026 [10].