Townsquare Media reported its third‑quarter 2025 financial results on November 10 2025, showing a net revenue of $106.8 million, a 7.4% decline year‑over‑year. Excluding political revenue, the figure fell 4.5% to $106.6 million, matching the company’s previously issued guidance for the quarter. The company posted a net loss of $5.5 million, a sharp reversal from the $11.3 million net income reported in Q3 2024. Adjusted EBITDA, excluding political revenue, slipped 2.0% to $21.9 million, while the full Adjusted EBITDA figure fell 13.5% to $22.0 million. Earnings per share were $0.05, a miss of up to $0.12 against the consensus estimate of $0.17, underscoring a significant earnings shortfall relative to analyst expectations.
Revenue decline was driven primarily by a 13.8% drop in broadcast advertising revenue to $46.8 million (excluding political revenue, the decline was 8.1%). Digital advertising revenue fell 1.2% to $40.2 million, a modest contraction that was offset by a 2.6% increase in digital revenue for the nine‑month period, which reached $119.3 million. The weaker broadcast performance reflects intensified competition from streaming platforms and a broader industry shift away from traditional radio advertising, while the slight digital dip is attributed to a temporary slowdown in online audience growth amid macro‑economic headwinds.
Digital segment profit for the nine‑month period ended September 30 rose 3.6% to $66.6 million, representing 55% of total segment profit. This growth is driven by higher margins in Townsquare Interactive and the continued expansion of its digital marketing solutions, which have benefited from a shift in advertiser spend toward data‑driven, performance‑based campaigns. The figure does not apply to the single quarter, but it illustrates the company’s successful pivot to digital‑first operations.
The company reiterated its guidance for the fourth quarter, projecting net revenue between $105 million and $109 million and Adjusted EBITDA between $21.5 million and $23.5 million. For the full year, Townsquare expects net revenue of $426 million to $430 million and Adjusted EBITDA of $88 million to $90 million. The guidance remains unchanged from the prior quarter, indicating management’s confidence that the digital strategy will continue to offset revenue erosion in legacy segments.
CEO Bill Wilson said the company was pleased that Q3 results met its own guidance and highlighted the “strong performance of digital segments and effective expense management.” He noted headwinds from “deterioration in online audience trends” and a “reduced sales velocity” due to lower headcount, underscoring the challenges of sustaining growth in a competitive digital advertising market.
Market reaction was mixed: shares rose 1.47% in pre‑market trading but closed 1.77% lower on the day. Analysts cited the EPS miss and revenue shortfall relative to consensus as key concerns, while acknowledging the resilience of digital revenue and the company’s debt‑reduction progress. The mixed response reflects investor focus on the company’s ability to convert digital growth into earnings while managing leverage and maintaining a high‑yield dividend.
Townsquare has reduced its debt by $17 million since its February 2025 refinancing, improving its financial position. However, the company’s debt‑to‑equity ratio remains high at –16.27 and net leverage is approximately 4.71x, raising questions about long‑term sustainability. The continued payment of a $0.20 quarterly dividend, while attractive to income investors, may strain cash flow if the company’s net loss persists and leverage remains elevated.
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