Financial Data and Key Metrics Changes - For Q3 2025, the company reported an operating income of $6,000 without the music licensing settlement, compared to $1,600,000 for the same period last year [4] - Station operating income for the quarter was $3,500,000, which would have been $5,600,000 without the settlement, down from $6,000,000 last year [4] - Net revenue for the nine-month period ended September 30, 2025, decreased by $3,100,000 or 3.7% to $80,600,000 compared to $83,700,000 last year [5] - Total interactive revenue increased by 32.6% for the quarter and 17.1% for the nine-month period, with a profit margin of 54% [7] Business Line Data and Key Metrics Changes - Gross broadcast revenue, including nontraditional revenue (NTR), decreased by $1,800,000 or 6.8%, while gross interactive revenue increased by $1,100,000 or 32.6% [4] - Political revenue for the quarter was $73,000, down from $677,000 last year [4] - The increase in interactive revenue offset almost the entire decrease in broadcast revenue when adjusted for political [5][26] Market Data and Key Metrics Changes - The company is currently pacing down approximately 11% for the fourth quarter, including political revenue, and 4.7% when excluding political [7] - Local pacing remains consistent, while digital pacing is up 32% for the quarter [31] Company Strategy and Development Direction - The company is focused on a blended digital strategy aiming to double gross revenue, primarily through digital channels, within 18 to 24 months [14] - Strategic investments in R&D and resources are being made to support this digital transformation [14] - The company plans to utilize proceeds from the sale of telecommunications towers for stock buybacks and to maintain a robust quarterly dividend strategy [9][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the local advertising market is overdue for disruption, with businesses increasingly investing in digital advertising [22] - The company believes that its digital transformation is gaining momentum, with measurable returns already being observed [24][26] - Management acknowledged the challenges of the digital transformation but expressed confidence in the team's commitment and capabilities [27] Other Important Information - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1,600,000 [8] - As of November 3, 2025, the company had $26,300,000 in cash and short-term investments [10] - The company expects capital expenditures between $3,250,000 and $3,750,000 for 2025 [11] Q&A Session Summary Question: Can you provide insights on market tone and pacing into the upcoming quarter? - Management indicated that national advertising is weak, impacting forward pacing, while local pacing is consistent and digital pacing is up 32% [30][31] Question: Why is there no concrete plan for a buyback post-tower sale? - Management explained that complexities related to the tower sale and real estate transfer issues delayed clarity on final sale proceeds, which are necessary for buyback planning [35][36]

Financial Data and Key Metrics Changes - For Q3 2025, net revenue decreased by $528,000, or 1.8%, to $28.2 million compared to $28.7 million last year [2] - Station operating expense increased by $2 million to $24.7 million for the three-month period, primarily due to an industry-wide settlement with music licensing organizations [2][3] - The company reported an operating loss of $626,000 for the quarter, which would have been an operating income of $1.5 million without the settlement [3] - Gross broadcast revenue decreased by $1.8 million, or 6.8%, while gross interactive revenue increased by $1.1 million, or 32.6% [4] - For the nine-month period ended September 30, 2025, net revenue decreased by $3.1 million, or 3.7%, to $80.6 million compared to $83.7 million last year [5] Business Line Data and Key Metrics Changes - Station operating income for Q3 2025 was reported at $3.5 million, which would have been $5.6 million without the settlement [3][4] - Total interactive revenue increased by 32.6% for the quarter and 17.1% for the nine-month period, with a 54% profit margin [7] - Political revenue for Q3 2025 was $73,000, down from $677,000 in the same period last year [4] Market Data and Key Metrics Changes - Current pacing for the fourth quarter is down approximately 11%, including political revenue, and 4.7% when excluding political [7] - Local pacing remains consistent, while digital pacing is up 32% for the quarter [24] Company Strategy and Development Direction - The company is focused on a blended digital strategy aiming to double gross revenue, primarily from digital sources, within 18-24 months [12] - Strategic investments in R&D and resources are being made to support this digital transformation [12] - The company plans to utilize proceeds from the sale of telecommunications towers for stock buybacks and to maintain a robust quarterly dividend strategy [9][13] Management's Comments on Operating Environment and Future Outlook - Management indicated that the national advertising market is weak, impacting forward pacing, while local and digital markets show different trends [24] - The company believes the decline in spot radio is more related to macroeconomic factors rather than interest rate cuts [25] - Management expressed confidence in the digital transformation efforts, noting measurable returns from local direct advertisers [19][21] Other Important Information - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1.6 million [8] - As of September 30, 2025, the balance sheet reflected $26.3 million in cash and short-term investments [10] Q&A Session Summary Question: Can you provide insights on market tone and pacing into the upcoming quarter? - Management noted that national advertising is weak, local pacing is consistent, and digital pacing is up 32% for the quarter [24] Question: Why is there a lack of concrete buyback plans post-tower sale? - Management explained complexities related to the tower sale and real estate transfer issues, which delayed clarity on final sale proceeds [27][29]

Core Insights - Saga Communications reported a quarterly loss of $0.08 per share, missing the Zacks Consensus Estimate of $0.21, and compared to earnings of $0.20 per share a year ago, representing an earnings surprise of -138.10% [1] - The company posted revenues of $28.17 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.47%, and showing a marginal increase from year-ago revenues of $28.12 million [2] - The stock has gained approximately 11.7% since the beginning of the year, underperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $28.5 million, and for the current fiscal year, it is $0.30 on revenues of $109.24 million [7] - The estimate revisions trend for Saga was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Broadcast Radio and Television industry, to which Saga belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Townsquare Media, is expected to report quarterly earnings of $0.05 per share, reflecting a year-over-year decline of -85.7%, with revenues anticipated to be $107.96 million, down 6.4% from the previous year [9][10]