Saga Communications, Inc. completed a privately negotiated repurchase of 184,215 shares of its common stock on December 15, 2025, for a total of approximately $2.1 million, or $11.50 per share. The transaction represents 2.8 % of the company’s then‑outstanding shares and reduces the share count, which can lift earnings per share and signals management’s confidence in the company’s long‑term valuation.
In its most recent earnings release, Saga reported a net loss of $532,000, or $0.08 per diluted share, for the third quarter of 2025, a sharp decline from the operating income of $1.6 million recorded in the same quarter a year earlier. Over the nine‑month period ending September 30, 2025, the company posted a net loss of $979,000, or $0.15 per diluted share, versus an operating income of $1.4 million in the prior year. The losses were largely driven by a $2.0 million increase in station operating expenses, largely attributable to a retroactive music‑licensing settlement with ASCAP and BMI.
Despite the headline loss, the company’s digital and interactive segment performed strongly. Interactive revenue rose 32.6 % in Q3 2025, and the segment maintained a 54 % profit margin, providing a counterbalance to the decline in traditional broadcast revenue. This growth reflects the company’s “blended” digital strategy aimed at doubling gross revenue in 18–24 months.
CFO Samuel Bush emphasized that the buyback underscores Saga’s disciplined capital allocation strategy. “We are pleased to announce the completion of a privately negotiated stock repurchase transaction, which underscores our ongoing commitment to deliver value to our shareholders,” Bush said. “This transaction reflects our confidence in the company’s long‑term strategy and financial strength, while providing us with greater flexibility to manage our capital structure.”
The repurchase is part of a broader capital‑allocation plan that includes a recent sale of 22 tower sites for approximately $10.7 million, regular quarterly dividends, and a cumulative $141 million returned to shareholders since 2012. The company’s cash‑rich balance sheet and low leverage profile enabled the buyback to be funded entirely from operating cash.
Analyst consensus on the stock remains mixed. While a “Sell” rating dominates the consensus, a “Buy” rating with an $18.00 price target was issued by a separate analyst on December 15. Market reaction to the announcement was muted, with the stock falling 2.97 % on the day of the transaction, suggesting that investors viewed the buyback as a routine capital‑allocation move rather than a catalyst for a significant shift in valuation.
The share repurchase reduces the share count and can lift EPS, but the company continues to face headwinds from the music‑licensing settlement and a decline in broadcast revenue. The strong performance of the digital segment offers a tailwind, and management’s focus on disciplined capital allocation and strategic investments signals confidence in navigating the current challenges while pursuing growth opportunities.
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