Group 1 - Townsquare Media, Inc. will participate in Noble Capital Markets' Twenty First Annual Emerging Growth Equity Conference on December 3, 2025, at 1:30 PM Eastern Time [1] - Interested investors can attend the conference at a discounted rate using the code TSQNOBLECON [2] - A high-definition video webcast of the presentation will be available the following day on Townsquare's investor relations page and will be archived for 90 days [3] Group 2 - Townsquare Media is a community-focused digital and broadcast media and digital marketing solutions company, primarily targeting markets outside the top 50 in the U.S. [4] - The company operates Townsquare Ignite, a digital advertising division that utilizes proprietary technology and a portfolio of over 400 local news and entertainment websites [4] - Townsquare Interactive provides subscription digital marketing services to small and medium-sized businesses, offering a range of digital services including website design and search engine optimization [4] Group 3 - Noble Capital Markets, established in 1984, is a full-service broker-dealer providing investment and advisory services, with a focus on middle-market expertise [5] - Noble has raised billions of dollars for companies and published over 45,000 equity research reports [5] - Channelchek, launched by Noble in 2018, is an investor community dedicated to public emerging growth companies, offering free access to institutional-quality research [6]

Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $106.8 million, within the guidance range of $106.5-$108.5 million, reflecting a decline of 7.4% year-over-year [23] - Adjusted EBITDA for Q3 2025 was $22 million, also within the guidance range of $22-$23 million, representing a decline of 13.6% year-over-year [24] - Adjusted EBITDA margins, excluding political revenue, improved slightly from 20% in Q3 2024 to 20.5% in Q3 2025 [26] Business Line Data and Key Metrics Changes - Digital advertising revenue declined by 1.6% year-over-year in Q3 2025, impacted by weakness in remnant indirect digital advertising revenue [24][26] - Townsquare Interactive's revenue decreased approximately 2.3% year-over-year in Q3 2025, but segment profit increased by 21% year-over-year, with profit margins at 33% [25][26] - Broadcast advertising net revenue, excluding political, declined by 8.1% year-over-year in Q3 2025, but profit margins increased from 25% in Q3 2024 to 28% in Q3 2025 [19][26] Market Data and Key Metrics Changes - Digital revenue grew by 2% year-over-year in the first nine months of 2025, contributing to 55% of total net revenue [6] - The digital segment profit margin was 26%, up slightly year-over-year, with digital's contribution to total segment profits growing to 55% [6] - The company is experiencing significant declines in search traffic, with 45 of the top 50 U.S. news websites seeing year-over-year declines in search traffic [13] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, with plans to invest heavily in digital solutions and markets outside the top 50 in the U.S. [7] - Townsquare Ignite, the digital advertising business, is expected to continue as the primary growth driver, despite current challenges in indirect revenue [8] - The company aims to grow its third-party media partnership model, which is expected to contribute approximately $6 million in revenue this year at a 20% profit margin [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and the impact of AI on audience trends, which have negatively affected remnant revenue [15] - The company expects Q4 digital advertising revenue to be muted due to ongoing headwinds, but remains confident in the strength of its programmatic business [15] - Full-year revenue guidance has been revised down due to declines in search engine traffic and lower-than-expected political revenue [31] Other Important Information - The company generated $18 million of cash flow from operations in the first nine months of 2025, with a net loss of $5.5 million in Q3 2025 [28][26] - The board approved a quarterly dividend of $0.20 per share, equating to an annualized payment of approximately $13 million [30] - The company has reduced its outstanding debt by $17 million since February 2025, with a net leverage of 4.71 times [29] Q&A Session Summary Question: When will core advertising stabilize? - Management noted that core advertising is currently in a secular decline, but expects slight improvement in Q4 and stabilization in 2026, projecting low to mid-single-digit declines [40][42] Question: Is there room for margin cuts given high margins? - Management confirmed that there are opportunities for further efficiency improvements through AI solutions, maintaining healthy profit margins despite revenue declines [43][45] Question: Impact of government-related advertising? - Management indicated that there has been no positive impact from government shutdown-related advertising, with some cancellations noted [48][50] Question: Progress of the Phoenix office and Townsquare Interactive? - Management expressed satisfaction with the Phoenix office's performance and the overall growth in profit for Townsquare Interactive, expecting continued strong profit margins [52][54] Question: Long-term profitability expectations for Interactive? - Management expects to maintain low 30% margins over the next couple of years, with potential for expansion in 2027 and beyond [60][61] Question: Trends in Ignite's digital advertising? - Management confirmed that excluding remnant revenue, digital advertising increased by 5% in Q3, with owned and operated platforms up 10% [64][70]

Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $106.8 million, within the guidance range of $106.5-$108.5 million, reflecting a decline of 7.4% year-over-year [24] - Adjusted EBITDA for Q3 2025 was $22 million, also within the guidance range of $22-$23 million, representing a decline of 13.6% year-over-year [24] - Adjusted EBITDA margins, excluding political revenue, improved slightly from 20% in Q3 2024 to 20.5% in Q3 2025 [24] Business Line Data and Key Metrics Changes - Digital revenue grew by 2% year-over-year in the first nine months of 2025, accounting for 55% of total net revenue [6] - Townsquare Ignite, the digital advertising segment, experienced a slight revenue decline of 1.6% year-over-year in Q3 2025 [24] - Townsquare Interactive, the subscription-based digital marketing solution, saw a revenue decrease of 2.3% year-over-year in Q3 2025, but segment profit increased by 21% year-over-year [25][17] Market Data and Key Metrics Changes - Broadcast advertising net revenue, excluding political, declined by 8.1% year-over-year in Q3 2025 [26] - The company gained local and national broadcast market share despite overall declines in the industry [20] - The digital advertising market is facing significant headwinds due to declines in search engine traffic, impacting remnant inventory revenue [14] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, with plans to invest heavily in digital solutions and markets outside the top 50 in the U.S. [7] - The digital advertising segment is expected to continue as the primary growth driver, with a strong emphasis on programmatic advertising [10] - The company aims to maintain a high-yielding dividend while reducing debt and investing in digital growth [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in the digital-first strategy and long-term growth potential [33] - The company expects continued strength in programmatic and direct sales, despite ongoing headwinds from declining search referral traffic [21] - Full-year revenue guidance was revised down due to unexpected declines in search engine traffic and political revenue [31] Other Important Information - The company generated $18 million in cash flow from operations in the first nine months of 2025, with a net loss of $5.5 million in Q3 2025 [26][28] - The company has reduced outstanding debt by $17 million since February 2025 [28] - The board approved a quarterly dividend of $0.20 per share, equating to an annualized payment of approximately $13 million [30] Q&A Session Summary Question: Stabilization of Core Advertising - Management noted that core advertising is experiencing a secular decline, but slight improvements are expected in Q4 2025 and into 2026, with projections of low to mid-single-digit declines [39][40] Question: Profit Margins and Cost Management - Management confirmed that there are opportunities for further cost reductions and efficiency improvements, particularly through AI solutions [41] Question: Government-Related Advertising Impact - Management indicated that there has been no positive impact from government-related advertising due to the shutdown, with some clients reporting canceled orders [42][43] Question: Townsquare Interactive's West Coast Expansion - Management expressed satisfaction with the progress of the Phoenix office and the performance of Townsquare Interactive, highlighting significant profit growth despite stagnant revenue [44][46] Question: Future Profitability Expectations for Interactive - Management expects Townsquare Interactive to maintain low to mid-30% profit margins over the next couple of years, with potential for expansion thereafter [49]

Townsquare Media Conference Call Summary Company Overview - **Company**: Townsquare Media - **Stock Symbol**: TSQ - **Current Rating**: Outperform with a price target of $21, indicating significant upside potential from current stock levels [1][1][1] - **Dividend Yield**: 12.7% annualized, considered one of the best total return opportunities in the coverage universe [1][1][1] Industry Insights - **Market Focus**: Townsquare Media operates in small markets outside the top 50 in the U.S., which are often underserved in terms of local news and entertainment [3][3][3] - **Market Penetration**: The company reaches 50% of adults weekly through AM/FM broadcasts and 77% when including online audiences [4][4][4] - **Competition**: There is less competition in digital marketing solutions in these smaller markets, allowing Townsquare Media to build a competitive moat [4][4][4] Digital Business Growth - **Revenue Composition**: Digital revenue now constitutes over 50% of total revenues and cash flow [6][6][6] - **Townsquare Interactive**: This subscription-based service provides digital marketing solutions for small and medium-sized businesses (SMBs) [8][8][8] - **Historical Growth**: From 2013 to 2023, revenue grew by $7 million to $10 million annually, with profits increasing by $2.5 million to $3 million [9][9][9] - **Recent Challenges**: The company faced disruptions due to a return-to-office mandate and a shift to a call center service model, resulting in a loss of approximately $7 million in cash flow over two years [12][12][12][13][13][13] - **Future Outlook**: Expected profit growth of over $3 million in 2025, with a return to historical revenue growth levels anticipated by 2026 [13][13][13] Service Offerings and Innovations - **CRM Adoption**: 100% of Townsquare Interactive's customers are now using the CRM, which was not available four to five years ago [16][16][16] - **Pricing Strategy**: The average revenue per user (ARPU) is approximately $300 per month, with a focus on maintaining current pricing while improving efficiency and profit margins [17][17][17] - **AI Integration**: AI tools are being deployed to enhance service efficiency and customer insights, expected to significantly aid margin expansion in the coming years [19][19][19][20][20][20] Townsquare Ignite - **Digital Advertising Segment**: Townsquare Ignite is experiencing rapid growth, particularly in programmatic advertising and streaming TV [21][21][21][22][22][22] - **Market Trends**: The digital advertising market in the U.S. is growing at a high single-digit CAGR, with streaming TV and social media advertising growing at double-digit rates [22][22][22][23][23][23] - **Partnerships**: The company is expanding its white-label digital advertising partnerships, projecting $50 million in revenue from this segment within five years [26][26][26][27][27][27] Radio Business Insights - **Industry Reach**: Radio remains the number one reach medium in the U.S., with 93% of Americans listening weekly [31][31][31] - **Current Performance**: The radio industry is facing challenges, with Townsquare Media's performance slightly declining but still outperforming the broader industry [32][32][32][34][34][34] - **Future Projections**: Expected moderation of industry decline, with potential for low single-digit declines over the next five years [34][34][34][35][35][35] Financial Health and Capital Management - **Debt Management**: The company has a gross debt of $470 million, with plans to pay down $20 million to $30 million annually [39][39][39][40][40][40] - **Interest Rate Sensitivity**: Each quarter-point reduction in interest rates equates to approximately $1.2 million in interest expense savings [40][40][40][41][41][41] - **Share Buybacks**: Townsquare Media has repurchased 16.6 million shares since 2021, with a focus on opportunistic buybacks and maintaining a high dividend yield [46][46][46] Conclusion - **Growth Strategy**: Townsquare Media is focused on expanding its digital business while managing its traditional radio segment effectively. The company is well-positioned for future growth, particularly in digital advertising and marketing solutions, while maintaining a strong commitment to shareholder returns through dividends and share buybacks [50][50][50]

Core Points - Townsquare Media, Inc. will release its third quarter 2025 financial results on November 10, 2025, before the market opens [2] - A conference call to discuss these results will take place on the same day at 8:00 a.m. Eastern Time [2][3] - The company will also participate in Noble Capital Markets' Emerging Growth Virtual Equity Conference on October 8, 2025, at 2:30 PM Eastern Time [5] Company Overview - Townsquare Media is a community-focused digital and broadcast media and digital marketing solutions company, primarily targeting markets outside the top 50 in the U.S. [8] - The company operates Townsquare Ignite, a digital advertising division that utilizes proprietary programmatic advertising technology and a portfolio of over 400 local news and entertainment websites and mobile apps [8] - Townsquare Interactive provides subscription digital marketing services to small and medium-sized businesses (SMBs), offering a SAAS business management platform, website design, and search engine optimization [8] Investor Relations - Interested parties can access a live webcast of the conference call and the press release on the investor relations page of Townsquare's website [3][4] - A telephone replay of the conference call will be available until November 17, 2025 [4] - For the Noble Capital Markets conference, registration is available at no cost, and qualified investors can arrange one-on-one meetings with management [6]

Core Insights - Townsquare Media, Inc. reported a net revenue of $115.4 million for Q2 2025, a decrease of 2.3% year-over-year, while net income improved to $2.0 million from a loss of $48.9 million in the same period last year [2][5][11] - Digital revenue accounted for 55% of total net revenue and 56% of segment profit in the first half of 2025, with a year-over-year increase of 4.1% [2][5][12] - The company has approved a quarterly cash dividend of $0.20 per share, reflecting a yield of approximately 12% based on the last closing price [3] Financial Performance - Total net revenue for the first half of 2025 decreased by 1.7% to $214.1 million compared to $217.9 million in the same period in 2024 [14] - Adjusted EBITDA for Q2 2025 increased by 0.7% to $26.4 million, while for the first half of 2025, it rose by 1.8% to $44.6 million [13][17] - The company repurchased $10 million of debt in Q2 2025 and $13 million since the refinancing in February 2025 [1][12] Segment Analysis - Digital Advertising segment revenue increased by 2.4% to $42.5 million in Q2 2025, while Subscription Digital Marketing Solutions revenue rose by 1.4% to $18.8 million [9][35] - Broadcast Advertising revenue decreased by 9.2% to $48.7 million in Q2 2025, attributed to reduced advertising purchases by clients [9][12] - Total Digital Segment Profit increased by 4.3% in Q2 2025 compared to the previous year [5][12] Guidance and Future Outlook - For Q3 2025, net revenue is expected to be between $106.5 million and $108.5 million, with Adjusted EBITDA projected between $22.0 million and $23.0 million [8] - For the full year 2025, net revenue is anticipated to be between $435 million and $440 million, with Adjusted EBITDA expected between $90 million and $94 million [8] Capital Structure and Liquidity - As of June 30, 2025, the company had $3.2 million in cash and cash equivalents and $467.1 million in outstanding debt, resulting in a gross leverage ratio of 4.62x [18] - The company has maintained financial flexibility due to strong cash generation and successful refinancing earlier in the year [2][12]

Core Insights - Townsquare Media, Inc. reported its financial results for Q1 2025, indicating a slight decline in net revenue but an increase in Adjusted EBITDA, reaffirming its full-year guidance for 2025 [2][6][10]. Financial Performance - Net revenue for Q1 2025 decreased by 1.0% year-over-year to $98.7 million, with a 0.5% decline when excluding political revenue [5][7]. - Adjusted EBITDA increased by 3.5% year-over-year to $18.1 million, exceeding guidance [10][12]. - Net income reported a loss of $1.5 million, a decrease of $3.1 million compared to the previous year [9][24]. Segment Performance - Digital net revenue increased by 6.4% year-over-year, with Digital Advertising net revenue up by 7.6% and Subscription Digital Marketing Solutions net revenue up by 4.2% [12][28]. - Broadcast Advertising net revenue decreased by 9.1% year-over-year [7][28]. Guidance and Future Outlook - For Q2 2025, net revenue is expected to be between $114 million and $116 million, with Adjusted EBITDA projected between $25 million and $26 million [6]. - Full-year 2025 guidance for net revenue remains between $435 million and $455 million, and Adjusted EBITDA between $90 million and $98 million [6]. Capital Structure and Dividends - The Board of Directors approved a quarterly cash dividend of $0.20 per share, reflecting a yield of approximately 12% based on the last closing price [3]. - The company successfully refinanced its debt in February 2025, extending maturities to 2030 and enhancing financial flexibility [2][12].