Company Overview & Financial Highlights - Townsquare is a community-focused digital and broadcast media company primarily operating outside the top 50 US markets[12] - As of LTM 9/30/25, net revenue was $439 million and adjusted EBITDA was $98 million[16] - Digital net revenue reached $238 million, contributing 54% of total net revenue and 53% of segment profit as of LTM 9/30/25[18] - Digital subscription solutions (Townsquare Interactive) accounted for 18% of total revenue and 27% of adjusted EBITDA as of LTM 9/30/25[18] - The company offers a quarterly dividend of $020 per share, or $080 per share on an annualized basis, representing approximately a 13% dividend yield as of November 7, 2025[17] Digital Segment Performance - Digital advertising revenue for LTM 9/30/25 was $162 million with a segment profit of $39 million and a 24% profit margin[24, 64] - Subscription digital marketing solutions generated $76 million in net revenue and $24 million in segment profit for LTM 9/30/25[24] - September YTD 2025, total digital revenue was $176 million, accounting for 55% of total revenue, with a segment profit of $461 million, also representing 55% of total segment profit[32] Broadcast & Future Outlook - Broadcast advertising net revenue was $185 million ex-political, with a segment profit of $50 million and a 27% profit margin for LTM 9/30/25[27] - The company's Q3 2025 net revenue was $1068 million, a 7% decrease year-over-year, but only a 45% decrease excluding political revenue[133] - Q4 2025 net revenue is guided to be between $105 million and $109 million, compared to $1178 million in Q4 2024[138]

Financial Data and Key Metrics Changes - In Q2 2025, total net revenue declined approximately 2% year over year, aligning with the guidance of negative 2% to negative 4% [6][25] - Adjusted EBITDA increased by 1% year over year, exceeding the guidance of negative 1% to negative 5% [6][25] - Net leverage decreased to 4.58 times [6][29] Business Line Data and Key Metrics Changes - Digital solutions accounted for approximately 55% of total net revenue in the first half of 2025, with digital revenue growing 4% year over year [7][8] - Townsquare Interactive's segment profit increased by 19% year over year, with profit margins expanding to 33% [16][26] - Broadcast advertising net revenue declined by 8% year over year, consistent with previous expectations [20][27] Market Data and Key Metrics Changes - The company reported a decline in broadcast revenue due to shifts in advertising from traditional to digital platforms, with local market spot share increasing to an all-time high of 39% [21][27] - Digital advertising revenue grew by 2% year over year despite challenges in the advertising marketplace [9][10] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, emphasizing the growth of its digital platforms as the primary growth engine [8][20] - A new media partnership model was launched to expand digital advertising solutions without acquiring additional assets, with expectations of significant revenue growth in the coming years [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the digital advertising growth trajectory despite current challenges, citing strong direct sales performance [40][42] - The company anticipates continued strength in programmatic and direct sales, with expectations for Q3 revenue to align with Q2 performance [23][32] Other Important Information - The company plans to use excess cash flow for debt reduction and to support a high-yielding dividend, with a quarterly dividend of $0.20 per share approved [31][29] - The company has repaid $10 million of debt in Q2 2025, contributing to a total of $13 million repaid since February [29][30] Q&A Session Summary Question: Can you provide more color on the search engine referral traffic trends? - Management noted that search engine referral traffic has declined significantly, impacting indirect revenue, but direct sales remain strong [40][41] Question: Is the Q3 guidance softer than expected due to advertiser hesitance? - Management confirmed that advertisers are cautious but still spending, with a shift towards short-term placements [45][46] Question: How does the current referral traffic decline compare to past social media algorithm changes? - Management indicated that the current decline is similar to past changes in social media algorithms, but they expect traffic to plateau and grow again over time [55][56] Question: What is the outlook for Townsquare Interactive's revenue growth? - Management expressed confidence in returning to revenue growth in 2026, supported by strong profit performance in 2025 [63][66] Question: How is the Phoenix office performing in terms of staffing and growth? - Management reported positive progress in the Phoenix office, with around 40 employees and a focus on recruiting talent to support West Coast operations [76][78]