TSQ

This article first appeared on GuruFocus. Michael Dell (Trades, Portfolio), the visionary founder of Dell Technologies, recently submitted his 13F filing for the second quarter of 2026, offering a rare glimpse into the strategic maneuvers of his family's investment vehicle, MSD Capital. Established in 1998, MSD Capital exclusively manages the assets of Michael Dell (Trades, Portfolio) and his family, operating with the flexibility to invest across a broad spectrum of asset classes from offices in New York, Santa Monica, and West Palm Beach. The firm's philosophy, as stated on its website, emphasizes generating "superior absolute risk-adjusted returns over the long-term" through disciplined, independent thinking and a relentless pursuit of excellence. This quarter, the most impactful move in his concentrated portfolio was a significant reduction in Townsquare Media Inc (NYSE:TSQ), a decision that underscores a strategic shift in his communication services holdings. Warning! GuruFocus has detected 6 Warning Signs with SAFE. Is SAFE fairly valued? Test your thesis with our free DCF calculator. During the second quarter of 2026, Michael Dell (Trades, Portfolio) did not initiate any new positions in his portfolio. This absence of new buys suggests a period of consolidation and focus on managing existing stakes rather than expanding into new territories. For value investors, this could indicate a cautious approach, prioritizing the optimization of current holdings over seeking fresh opportunities in a potentially volatile market environment. Similarly, the filing reveals that Michael Dell (Trades, Portfolio) did not increase his stake in any of the existing portfolio companies during this period. The decision to hold steady on all other positions, while actively reducing one, highlights a selective and deliberate investment strategy. This lack of additions may reflect a belief that the current portfolio composition is already well-aligned with the firm's long-term investment theses, or it could signal a wait-and-see approach regarding future market directions. Notably, the 13F filing indicates that Michael Dell (Trades, Portfolio) did not completely exit any of his positions during the second quarter. The portfolio remains concentrated in its three core holdings, with no outright liquidations. This stability, apart from the one significant reduction, suggests a high conviction in the remaining assets and a long-term perspective that avoids hasty exits, even when trimming specific positions for portfolio management purposes. Michael Dell (Trades, Portfolio) reduced his position in 1 stock during the quarter. The most significant change was in Townsquare Media Inc (NYSE:TSQ), where he sold 111,745 shares. This transaction resulted in a -15.37% decrease in his total shares of the company and had a -0.69% impact on his overall portfolio. The stock traded at an average price of $6.45 during the quarter. Despite this reduction, the stock has shown resilience, returning -8.74% over the past 3 months but boasting a robust 22.04% year-to-date return. This move could be interpreted as profit-taking or a rebalancing effort, especially given the stock's strong performance earlier in the year. At the end of the second quarter of 2026, Michael Dell (Trades, Portfolio)'s portfolio was highly concentrated, comprising just 3 stocks. The top holdings were led by Safehold Inc (NYSE:SAFE) at 89.19%, followed by Hayward Holdings Inc (NYSE:HAYW) at 6.53%, and Townsquare Media Inc (NYSE:TSQ) at 4.27%. This concentration indicates a significant bet on the real estate sector, with Safehold dominating the portfolio's value. The holdings are primarily concentrated in 3 of the 11 industries: Real Estate, Industrials, and Communication Services. This sector allocation reflects a strategic focus on asset-heavy and infrastructure-related businesses, which may offer stable, long-term growth prospects. For value investors tracking the moves of influential figures like Michael Dell (Trades, Portfolio), this filing provides a clear signal of his current risk appetite and strategic direction. The decision to trim Townsquare Media, while maintaining a massive position in Safehold, suggests a preference for stability and income-generating assets over more speculative growth plays. As always, it is essential to consider these moves within the broader context of your own investment strategy and risk tolerance.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:00 a.m. ET Executive Vice President - Claire Yenicay Chief Executive Officer - Bill Wilson Chief Financial Officer and Executive Vice President - Stuart Rosenstein Operator: Good morning, and welcome to Townsquare Media's Second Quarter 2026 Conference Call. As a reminder, today's call is being recorded, and your participation implies consent to such recording. [Operator Instructions] And with that, I would like to introduce the first speaker for today's call, Claire Yenicay, Executive Vice President. Claire Messner: Thank you, operator, and good morning to everyone. Thank you for joining us today. With me on the call are Bill Wilson, our CEO; and Stuart Rosenstein, our CFO and Executive Vice President. Please note that during this call, we may make statements that provide information other than historical information, including statements relating to the company's future expectations, plans and prospects. These statements are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from these statements. These statements reflect the company's beliefs based on current conditions that are subject to certain risks and uncertainties, including those that are detailed in the company's annual report on Form 10-K filed with the SEC. During this call, we may discuss certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. Such non-GAAP financial measures should be used in conjunction with all the information contained in the quarterly, year-end and current reports available on our website. I would also encourage all participants to go to our corporate website and download our investor presentation, as Bill will reference some of those slides during our discussion this morning. At this time, I would like to turn the call over to Bill Wilson. Bill Wilson: Thank you, Claire, and good morning, everyone. Thank you for joining us today. We are very pleased to share that our second quarter performed as we anticipated and telegraphed on our last earnings call. In Q2, we met the total net revenue and adjusted EBITDA guidance we provided, reflecting the continued execution of our digital-first local media strategy, the strength of our differentiated digital platform and the disciplined way our teams continue to manage the business. In the second quarter, Digital Advertising revenue accelerated meaningfully from Q1. Our media partnership business continued its impressive growth, Townsquare Interactive delivered another quarter of record-setting profitability and our broadcast business continued to generate significant cash flow while outperforming the industry. For many years, we've talked about transforming Townsquare from a traditional broadcast company into a digital-first local media company. Today, that transformation is no longer aspirational. It's simply who we are. Digital now represents approximately 59% of our total segment profit and approximately 57% of our total net revenue on a year-to-date basis. Levels we believe remain unmatched among our local media peers. As highlighted on Slide 10, our competitors have only, on average, 31% of their revenue coming from digital sources. That differentiation is the result of more than a decade of strategic decisions and investment in our technology, products, people and proprietary platforms rather than simply relying on third-party vendors and traditional media assets. Those investments are increasingly translating into stronger operating performance and expanding competitive advantages for us. As we've consistently said for many years, digital is Townsquare's growth engine, but I think it's fair to say today that we have evolved beyond a single digital growth engine. We now have multiple scalable digital businesses, each serving different customer needs, each generating attractive margins and each contributing to the long-term growth of our company. Our Digital Advertising business, Townsquare Ignite, continues to lead that growth. Second quarter Digital Advertising revenue increased plus 11% year-over-year, representing a meaningful acceleration from Q1's plus 7% year-over-year growth and one of the strongest quarterly performances we've delivered in recent years. This growth was driven by strategic execution across our numerous specialized verticals as well as our media partnership business. It represented a full funnel strategy that captured greater share from our large client base and a concentrated effort to maximize owned and operated opportunities with our most engaged audiences. As we've discussed previously, we believe our Digital Advertising platform is differentiated because we're much more than a digital reseller. We operate as a full-service digital marketing partner for local businesses, combining campaign strategy, creative development, sophisticated audience targeting, campaign optimization and omnichannel reporting into a single solution for our customers. Just as importantly, our local sales teams continue to execute at an exceptionally high level. Their ability to combine the trusted relationships they've built in our local markets with an increasingly sophisticated suite of digital products continues to differentiate Townsquare from both traditional local competitors and national digital platforms. Our customers aren't simply buying Digital Advertising inventory. They're buying measurable business outcomes, and that continues to drive healthy client retention, larger average customer spend and continued market share gains. One area I'm especially excited about is the continued momentum of our media partnership business. Just over 2 years ago, this business did not exist. Today, we have 16 media partners, contributing 41 incremental markets beyond our owned and operated footprint of 74 markets. And thus, we now provide digital programmatic advertising in 115 markets across the United States. We expect that media partnership revenue, which was approximately $6 million in 2025, will more than double in 2026. One major point of differentiation for this business is that our best-in-class sales talent integrates directly into our partners' local markets, leading 4-legged calls, mentoring sales teams by leveraging more than a decade of proven sales strategies to drive incremental digital revenue while simultaneously protecting our high-margin radio business. We also manage campaign strategy, creative development, media buying, optimization and customer support. Notably, this strategy has delivered 100% retention rate of our media partners client base over the past 2 years. Key of this model is that it allows us to expand well beyond our own market footprint with very little incremental capital investment while generating attractive returns for shareholders and importantly, attractive returns for our media company partners. Perhaps most importantly, it validates something we believe for many years that the capabilities that we've built internally are valuable not only to our own advertisers, but increasingly to other local media companies as well. I'm also very excited to report that we've completed our first licensing deal for our proprietary technology with one of our media partners, SummitMedia, further demonstrating that our partners see substantial value in our tech platform to the point of licensing it for their own use. SummitMedia's decision to adopt our in-house developed CRM software for their own sales team is strong third-party validation of our innovation and further differentiates us from the competition. Beyond creating a new recurring revenue stream, this deepens our integration into our partners' operations, making us an even more strategic and indispensable partner through a true 360-degree relationship. In addition to our current 16 partners, we expect that number to grow in the coming years as more and more media companies reach out to us to discuss replacing their current third-party solutions with our more comprehensive digital platform. We believe our media partnership business has a long runway for growth, and we continue to target $50 million of revenue at a 20% profit margin within the next 4 years. Given the growth and scale we've achieved to date and the significant long-term opportunity we see ahead, we've added a slide to our investor presentation highlighting our media partnership business, which you can now find on Slide 12. Our team's performance in the second quarter demonstrates just how resilient and diversified our Digital Advertising platform has become. Our programmatic revenue, which now represents approximately 70% of our year-to-date Digital Advertising revenue, increased by plus 27% year-over-year in the second quarter. In addition, the direct sales of our local owned and operated digital websites and mobile apps increased at a high single-digit year-over-year growth rate, just as we expected. Another positive note, which we have outlined on previous calls is that our digital audience and, therefore, our digital revenue, which is only approximately 6% of our year-to-date Digital Advertising revenue, has sequentially stabilized in 2026. And in Q3, we'll begin to lap the dramatic year-over-year audience and associated revenue declines that started last August 2025. Due to the moderation of this headwind, but more importantly, given the continued strength of our Digital Advertising solutions directly sold by our local sales teams, we expect Q3 Digital Advertising revenue will accelerate yet again with growth expected to be stronger than Q2's plus 11%. Let me now turn to our second digital business, Townsquare Interactive, our subscription-based digital marketing solutions SaaS-based business. As we've discussed over the past several quarters, our focus at Townsquare Interactive has been on building a business capable of delivering durable, profitable long-term growth rather than simply maximizing short-term revenue. I'm pleased to report that those efforts continue to produce strong profit results. During the second quarter, Townsquare Interactive performed exactly as I telegraphed on our last call and once again delivered record segment profit margins, reaching nearly 38% profit margins, reflecting the operational improvements we've made over the past several years. While revenue has sequentially stabilized, yet remained below where we ultimately expect it to be as we continue rebuilding our sales organization over the next 12 months, the quality of the business has never been stronger. We spent considerable time restructuring our customer service organization and leveraging artificial intelligence throughout the business to improve operational efficiency. At the same time, we've intentionally increased productivity expectations across our sales organization, creating a stronger and more efficient, although temporarily smaller sales force. The result is a business that is generating meaningfully higher profitability while positioning itself for future revenue growth. Importantly, customer retention remains healthy. Our service offering continues to resonate with small- and medium-sized businesses as evidenced by our current churn returning to historically low levels, and we continue to see a significant long-term addressable market. We remain very confident that Townsquare Interactive is well positioned to return to sustainable revenue growth while maintaining substantially stronger profitability than we've historically produced. And we still continue to expect to return to sequential monthly revenue growth by the end of the year and potentially as early as Q3. Together, Townsquare Ignite and Townsquare Interactive continue to demonstrate the strength of our digital-first strategy. One business is delivering strong top line and profit acceleration in 2026, while the other continues to improve profitability and operating efficiency, and we expect to return to revenue growth later this year. Both are benefiting from the investments we've made in technology, automation and AI over the past several years. Turning to Broadcast. It too performed exactly as we expected and shared on our last call. As we've consistently said, we continue to view local radio as an extremely valuable strategic asset. It delivers unmatched local reach, deep relations with our audiences and trusted partnerships with thousands of local advertisers across our markets. While we continue to expect advertising dollars to gradually shift from traditional media towards digital, our strategy has never been to simply defend broadcast. Instead, our objective has been to leverage the strength of our local brands and sales relationships to capture the share shift ourselves. Although Broadcast continues to operate in a challenging advertising environment, we once again outperformed the industry, according to Miller Kaplan estimates, in the year-to-date period, and our teams remain highly disciplined in managing expenses. And as a result, we continue to generate strong Broadcast profitability and meaningful cash flow despite ongoing industry headwinds. The combination of a durable broadcast cash flow business and multiple growing digital businesses creates a financial profile that we believe is unique within local media. As we look ahead to the balance of 2026, I remain very optimistic about our outlook. Digital Advertising has accelerated meaningfully during the first half of the year and will continue to do so in Q3. Townsquare Interactive is delivering record profitability while positioning itself for future sequential revenue growth. Broadcast continues to generate healthy margins and cash flow despite a challenging secular environment. Most importantly, I believe the investments we've made over the past decade are producing exactly the type of business we set out to build, a diversified digital-first local media company with multiple scalable growth platforms, recurring revenue, strong cash generation and significant opportunities to create long-term shareholder value. With that, I'll turn the call over to Stu to review our financial results and our outlook in more detail. All yours, Stu, take it away. Stuart Rosenstein: Thank you, Bill, and good morning everyone. It's great to speak to you today. We are very pleased to report that our second quarter results met our revenue and adjusted EBITDA guidance. Second quarter net revenue was approximately flat year-over-year at $115.4 million, above the midpoint of our guidance range of $114 million to $116 million. Political revenue was $1.3 million in the second quarter and $2 million in the year-to-date period. Through June, 2026's political revenue is 2% greater than 2022's political revenue of $1.9 million. Second quarter adjusted EBITDA was also above the midpoint of our guidance range of $24 million to $25 million, coming in at $24.8 million. This represented a year-over-year decline of 6.2%. We had another very impressive quarter at Townsquare Ignite, our Digital Advertising segment, where revenue growth rates meaningfully strengthened from 6.8% year-over-year in Q1 of 2026 to strong year-over-year revenue growth of 11% in Q2 of 2026. As Bill noted, looking ahead to the third quarter, we expect Digital Advertising revenue growth to further strengthen and be even higher than Q2's growth rate. As expected and previously projected, Townsquare Interactive, our subscription Digital Marketing Solutions segment's Q2 net revenue declined 8.5% year-over-year to $17.2 million. Importantly, TSI revenue stabilized in the quarter at approximately $5.7 million of revenue in each month of Q2. We expect Q3's revenue to be roughly flat on a sequential basis and expect to return to month-over-month revenue growth by year-end. We're pleased to share that Townsquare Interactive segment profit margins increased year-over-year to 37.6%, representing the strongest profit margin in Townsquare Interactive's history. We're very confident that our profit margins will exceed 2025's record-setting profit margins for the remainder of 2026 due to the efficiencies and cost savings, including those enabled by AI that have been implemented. Broadcast advertising net revenue declines moderated slightly as compared to 2025 with and without political. In the second quarter, total Broadcast revenue declined 5.5% and 7.2% excluding political revenue, each as compared to the prior year. We believe that Broadcast ex political declines will be in line with this result in the third quarter as well. As a reminder, this is compared to the consistent 8% ex political broadcast revenue declines we experienced in each quarter of 2025. Broadcast segment profit margins were 30% in the third quarter. We expect that our Broadcast segment profit margins will be in the high 20s for the remainder of the year, averaging out to the mid-20s for the full year, which is consistent with 2025 profit margins. In the second quarter of 2026, we had non-cash impairment charges of $26.6 million related to our FCC licenses and $35.2 million in the year-to-date period. The impairments in the first quarter were caused by an increase in the discount rate used in our calculations due to rising debt yields of our broadcasting peers. While the impairments in the second quarter were driven by decreases in third-party industry broadcast revenue forecast. Given the way that these non-cash impairments are mathematically determined, we expect the value of our FCC licenses to continue to be written down regularly over time. These write-downs of decade-old purchase price calculations have no bearing on our cash position, our operating revenue, operating expenses, our profitability or the company's future prospects. They are nothing more than non-cash accounting charges affecting only the historically recorded purchase price allocations made when we bought our radio station assets roughly a decade or more ago. Our second quarter net loss was $41.8 million or $2.36 per diluted share. The loss was primarily driven by the FCC non-cash impairment charges of $26.6 million and an $18 million income tax expense taken for financial statement purposes only. Adjusted net income per share was $0.21 per share as compared to adjusted net income per share of $0.22 in the prior year period. We'd like to remind you that any benefit or provision for income taxes included on the face of the income statement is for GAAP financial statement purposes only. We maintain significant tax attributes, including approximately $121 million of federal NOL carryforwards and other substantial tax shields related to the tax amortization of our intangible assets. We continue to believe that we will not be a material cash taxpayer until approximately the end of 2028. One of our business model's strongest attributes is our consistent cash flow generation. In the first 6 months of 2026, we generated $7.8 million of cash flow from operations. We ended the quarter with $462 million of debt outstanding. As of June 30, our net leverage was 5.44x. We anticipate our net leverage will tick back down in the second half of 2026 as EBITDA returns to year-over-year growth. As always, our #1 priority is to invest in our local businesses through organic internal investments that support our revenue and profit growth, particularly our digital growth engine. We plan to continue to invest in our digital product technology, sales, content and support teams, specifically in our Townsquare Interactive and Townsquare Ignite businesses to maintain our strong competitive advantage in our markets outside the top 50 cities. In addition, we plan to use our excess cash flow to reduce our debt through both mandatory and voluntary debt repayments and, of course, support our high-yielding dividend. Our Board has approved our next quarterly dividend payable on November 2 to shareholders of record as of October 26. The dividend of $0.20 per share equates to $0.80 per share on an annualized basis and implies an annual payment of approximately $14 million based on our current share count and a dividend yield of approximately 13% based on our current share price. As we mentioned on our last earnings call, it's both management's and the Board's belief that our current share price does not reflect the inherent value of Townsquare. Therefore, we are not concerned about the implied dividend yield as we believe it will come down as and when our business is better understood by investors and our business returns to consistent profit growth. Turning now to the third quarter. We expect third quarter net revenue to be between $108 million and $110 million, which at the midpoint represents low single-digit year-over-year growth. We expect third quarter adjusted EBITDA to be between $22.5 million and $23.5 million, which at the midpoint represents mid-single-digit year-over-year growth. For the full year, we are narrowing our guidance range to be more precise now that we are at the halfway point. We expect net revenue will be between $425 million and $431 million, and we expect adjusted EBITDA will be between $87 million and $90 million. Importantly, this guidance is within the ranges we provided at the start of the year. As a reminder, embedded in this guidance is forecasted political revenue of approximately $8 million, which is in line with the $7.5 million of political revenue we received during the 2022 election cycle. And with that, I will now turn the call back over to Bill. Bill Wilson: Thank you, Stu. Great job. Before we open the line for questions, I'd like to leave you with a few final thoughts. At Townsquare, we've spent more than a decade transforming this company into a digital-first local media business. Quarter after quarter, that strategy continues to deliver results. Today, digital represents the majority of our profit and the majority of our revenue and the driver of our future growth. At the same time, our Broadcast business continues to generate meaningful cash flow and strengthen the local relationships that remain at the core of our company. Together, these businesses create a differentiated model that we believe positions Townsquare exceptionally well for the future. I'm particularly encouraged by the momentum we're seeing across our digital platform. Digital Advertising accelerated again in the second quarter. Our media partnership business continues to expand into new markets through a highly scalable capital-light model, further increasing our confidence of our Partnership division growing to $50 million in revenue and $10 million in profits within 4 years and then growing meaningfully from there. And Townsquare Interactive is delivering record profitability while positioning itself for the next phase of growth. These are all businesses that we believe have substantial runway ahead of them. Just as importantly, our disciplined approach to expense management, capital allocation and balance sheet improvement continues to provide us with the flexibility to invest in our highest return opportunities while creating long-term value for our shareholders. Our strategy is working. Our competitive position continues to strengthen. And I remain incredibly proud of the execution, passion and commitment of our Townsquare teammates across the country, whose dedication make these results possible every quarter. We believe our best days remain ahead of us, and we remain focused on executing our strategy, strengthening our competitive position and creating sustainable long-term shareholder value. With that, operator, please open the line for all questions. Operator: [Operator Instructions] Your first question comes from the line of Michael Kupinski from NOBLE Capital Markets. Michael Kupinski: Congratulations on a good quarter. A couple of things. Bill, I know that you talked a little bit in the past about AI and you gave some guidance and thoughts about Q3. I was just wondering, can you give us an update on how AI search is now that it's at an all-time high? How that might look like as we kind of go not just through Q3, but going forward? Bill Wilson: Yes, Michael. Thank you for that. As we detailed in great detail, I think, on our year-end call back in March and then reiterated it on our May call. The great news is that our audience has actually grown from Q4 of 2025 into the first half of the year. That's because we're getting more and more traffic from either direct sources like our newsletters and our mobile apps that people have downloaded as well as through social traffic, including Facebook and X and other means. So we feel great. As I shared on the call as well, the remnant piece of our Digital Advertising is now just 6% of our total Digital Advertising, while our programmatic Digital Advertising, which grew 27% in the quarter, is now 70% approximately of our Digital Advertising. So we see sequentially now stability in our audience after having declined because of that AI search hit that a lot of at-scale publishers faced, but we also see some modest growth overall. So search volumes continue to come down, but our other sources of traffic, including what I just outlined in terms of direct and social continue to climb. And as an end result, we're seeing audience growth. We're seeing stability in our remnant revenue, which will lap in August. And that's one of the reasons that our Q3 Digital Advertising outlook is even stronger than our plus 11% in Q2. So a lot of positives on the Digital Advertising front. We're selling our owned and operated websites and mobile apps incredibly well. And I think it just speaks to the benefits of having at-scale publisher, tremendous amount of first-party data and just a full funnel solution set that we believe is quite differentiated vis-a-vis others in the marketplace. And it's really -- I mean, we obviously pivoted based on the AI search issues that all publishers face and I couldn't be more proud of the team leaning in, really throwing out the old playbook, generating a new playbook and executing at a very high level. And then as we talked about, on the flip side of the challenge of AI in terms of search volumes, the team has really embraced building AI tools internally as well as utilizing AI tools externally that are available to create tremendous efficiency throughout our organization and to be able to target customers better, to be able to serve customers better just to operate much more efficiently. So the negative, I think, is much more outweighed by the positive of what we've come. And I think we've proven that we've got a different playbook to maintain, if not grow, our audience over time. I couldn't be more proud of the team, but I'll turn it back to you, Michael. Michael Kupinski: Obviously, on Ignite, that business is scaling nationwide. I think you mentioned 115 markets, which is just incredible. What is the percent of Ignite? And I'm sure that it's kind of transitioning. What percentage of customers are originating through relationships by the broadcast operations? I would assume that it's kind of moving beyond just the broadcast now at this juncture. Bill Wilson: Yes. So I mean, I couldn't be more proud. We added Slide 12 to the investor deck just because the size and scale of this business and what we expect over the next decade is quite substantial. Couldn't be more proud of the partners that we've already partnered with. We're honored to be partners with them. As a recap for everybody on the call, this division really started in the beginning of '24. So we're just literally just over 2 years old. We have $1 million in revenue in 2024, $6 million in revenue through our media partners last year. And as I've shared since the beginning of the year, our expectation is that we've more than doubled that $6 million to over $12 million, and we're on that trajectory to do so. Probably more importantly than the revenue piece is our partners are scaling incredibly quickly beyond my expectation, not because of the appetite from others, just I think we've been able to scale this quicker than I thought internally. So we're now at 16 partners. We with this capital-light model, where we're entering, in essence, 41 incremental markets to Townsquare's own footprint of 74. So as you just said, we're now in 115 markets, providing very sophisticated, differentiated digital programmatic solutions. So as I shared on our last call, the inbound interest in partnering with Townsquare from other companies to help their digital advertising couldn't be more strong. I mean we're literally fielding dozens and dozens of new inquiries on a monthly basis. So that's just continuing to validate our own beliefs and how differentiated this is for ourselves. But we're seeing each partner that we had in 2025 has doubled or more than doubled their own digital advertising revenue partnering with us. So it's great for our partners, and it's great for us. The other thing I'd highlight, we mentioned it very briefly on the call, but I think it's a significant development that will really help us and our partners over the next 5 years. We entered into our first software licensing deal with SummitMedia. They licensed our CRM that we utilized and built in-house for our own sales team. It's called Blueprint. And they're now -- they had a CRM to a third-party. Once they saw our CRM and all of the things it can do, not only in terms of managing the customer database, but things like lead flow, we're able to provide our AEs leads automatically based on geo, based on ZIP code, so forth and so on, including marketing spend. It's a very sophisticated CRM and prospecting tool. So it's really nice that we've got partners now interested in licensing our tech stack. So I couldn't be more proud of the entire Townsquare team. As you said, Ignite itself is literally on fire, our Digital Advertising overall and then programmatic growing 27% in the quarter. Expecting that similar type of growth in Q3 on the programmatic side and then continued strength in the Media Partnership division. So mostly radio companies, to your point, we are speaking to television operators currently. We haven't announced any deals on that front. We are also talking to some outdoor and smaller newspaper companies. So time will tell who else we partner with, but we're honored by those who've chosen to partner with us to date, and we look forward to scaling the number of partners over the next several years, Michael. Michael Kupinski: Bill, is there any gating factors in terms of the capacity or anything like that, in terms of those media partnerships? Bill Wilson: The greatest gating factor is our own internal team members and how many people we can deploy and dedicate to our partners. The model is quite unique because we treat these partners as if they're another market of Townsquare like we're integrated into their operation quite extensively. Our salespeople are the people who do all the sales calls with our partners. So there -- we're doing 4-legged calls in these 41 markets right alongside the partners' AEs. So really, it's about how many salespeople that we have internally who perfected the solution set that we can deploy against partners. It's other personnel like media buyers, our data scientists, our reporting team. So it's simply just adding people to our team, but when we deploy to our partners, we're really utilizing what I would call the SEAL team, just the best of the best. So the only gating factor is how quickly we can scale and build our team, which we're doing quite aggressively right now. I'm quite proud of the team. So that's really the gating factor. It simply -- there's not -- the investment on our side is into people. So that's a real capital-light model that allows us to scale and give us confidence that within 4 years, we'll be at $50 million in revenue through this division at a 20% profit margin, so $10 million in incremental profit. But more importantly, we think that's just the starting point. We see this continuing to scale from there. That was just the initial goal that we set a year ago. So the gating factor, Michael, is just how quickly we can add to our team, which we're doing quite aggressively right now and couldn't be more proud of that. Michael Kupinski: And just a couple of quick questions here. SiriusXM said in their Q2 that they see opportunities in media and local markets and are looking to expand there. I was just wondering any concerns, any thoughts about their plans? Bill Wilson: I didn't hear the name of the company. Can you say it again? Michael Kupinski: SiriusXM. Bill Wilson: No, no concern. I saw some of the things that happened with Audacy licensing some of their stations. But I think that speaks to Sirius is obviously a real national play. Our bread and butter and one of the reasons we love radio and we embrace radio as the highest reach medium in the United States. The emotional connection is unparalleled. We believe our brands and the strength of our brands is one of the reasons our digital business is as differentiated and strong as it is. So we are hyperlocal. We're hyperlocal if you go to any one of our mobile apps or websites, and we're hyperlocal on our radio station broadcast. And as we've talked about in great detail over the last several years, from just a pure radio standpoint; a, we're gaining share; b, we're reaching on average in our 74 markets, 50%, 5-0, of the adult population just through our AM/FM signal. So that is incredibly powerful. Obviously, SiriusXM has nowhere near that type of reach and it would be inconsequential reach in our markets. So not concerned at all. I couldn't be more proud of our content contributors, what we call the original social influencers. We talked about our Broadcast performance ex political is moderating slightly from last year. Each quarter, as Stu mentioned, we were down last year, negative 8%. We're now in the first 2 quarters, negative 7%. I think what's not evident based on those numbers is the strength we're seeing in our local direct, selling broadcast traditional advertising to local clients. That is actually getting close to, I'd say, even on the year. We're right now down low single digits year-over-year. What really -- the reason that we're at negative 7% versus mid to low single digits is our national network business was down high teens and our agency business was down as well pretty aggressively. So those pieces of our Broadcast business specifically, our national network and local agency are now the minority of our business, where 3 years ago, they were the majority of our Broadcast business. So we're quite -- as we look out over the next 3 to 5 years and the strength of our local direct, the strength of our local brands and the strength of the reach in radio, we think we're again, we treat it as a cash cow business. We love radio, and we love the cash characteristics. We love the emotional connection, but we're not concerned by SiriusXM. It's kind of similar to Spotify, right? Spotify is a great music service, but that's not the value proposition that we're providing over our AM/FM signals to our local communities, particularly, as you know, Michael, but for the benefit of everybody on the call, in our markets, what I would classify the majority of them at their news deserts. Newspapers have literally stopped serving these communities. So we've moved in. We've hired a lot of people who used to work in the newspaper to provide on-air content as well as online content that's hyperlocal, and that's serving us quite well. So I'll turn it back to you, Michael, if you have any other questions. Michael Kupinski: I just have one quick question, and I'm sorry for taking so much time here. Political advertising, it seems to be trending a little light. I would have expected it would be kind of competitive races and so forth. Is it just a function of not being in competitive markets? Or do you think that there's a secular issue that maybe dollars are being allocated to other mediums, including digital? Bill Wilson: There's definitely more dollars and more dollars going to digital. I think that's obviously true in political. It's obviously true in advertising in general. Roughly 70% of all local media dollars are being spent in digital. That's why we're quite proud of the fact that we now are a digital-first local media company. I think that's now undeniable with 59% of our profit coming from digital and 57% of our revenue coming from digital. So that, I believe, is a factor in political as it is in the overall advertising. As it relates to our political, as Stu said a few minutes ago, through the first half of the year, we're up about 2% over 2022, which was our benchmark. In 2022, we did about $7.5 million in political. As we've said consistently since the beginning of the year and reiterated by Stu earlier, our expectation is $8 million for the full year. So we don't -- we're actually quite pleased where we sit today. Obviously, a lot of the political dollars are going to be being placed in the future months. Obviously, Michigan, obviously, a lot of headlines this week around the primary there on the Democratic side. So we have great markets in Michigan, Flint, Kalamazoo, Grand Rapids, Battle Creek, Lansing. And we're also in Maine, and there's obviously a tight Senate race with Collins and a lot of disruption in that race. And also Texas, where we have a dozen markets throughout, including El Paso and Tyler and so on. So we're well situated in terms of the map as well as the issue money. And as we sit here today, on August 6, we believe we're on the trajectory of that $8 million goal that we set in the beginning of the year. But we're not seeing any less political or share shift that we didn't anticipate going to digital. And we think we're actually seeing some of -- you may have seen the Supreme Court ruling around lowest average unit rate, which we think will create even more demand over time and have more of a crowd out effect on TV. Obviously, TV continues to get a tremendous amount of political dollars, which is interesting just given how much the audience has declined. But we are well positioned to hit our political goal. Did that answer your question, Michael? Operator: [Operator Instructions] Your next question comes from the line of Patrick Sholl from Barrington Research. Patrick Sholl: If I could first follow-up on the media partnership side. You mentioned providing the CRM product to SummitMedia. Can you just maybe talk about like the overall opportunity in providing kind of software solutions to some of your media partners and if that could be meaningfully incremental to that $50 million target with the existing partner set? Bill Wilson: Did I cut you off, Patrick? Or was that the question? Patrick Sholl: No, go ahead. Bill Wilson: Okay. Great. Thank you, and thanks for joining us this morning. Always appreciate that, Patrick. Yes, as I said, just couldn't be more proud of our Media Partnership division. And although it's obviously scratching the surface with our first software licensing deal with Summit, they've been a tremendous partner from the beginning with us. And as they saw throughout the organization, as their account executives in addition to their executive team were given visibility into all the tool sets we have. The -- quite honestly, I think we talked about this on an earlier call, really blown away by our capabilities and the solutions that our amazing technology team in-house has built. So I believe it can be a meaningful contribution to the overall revenue and profitability because not only are we talking to the other 16 partners about licensing our CRM, but we have other tools that we utilize internally for our sales teams as well as for other aspects of our business including customer service, that are real sophisticated solutions that we provided to our partners, not on a license level, but just given visibility of like, hey, this is how we go to market. This is how we prospect for new clients. This is how we do our client needs assessment. This is how we do our reporting. And a lot of that is now software-based and that we can license to others. So we have great data about our clients that we have built through some AI tools, some third-party attribution as well. So I think over the next 3 to 5 years, the ability to license more and more of our own tech to our partners is a meaningful opportunity that will contribute to that $50 million goal plus some. The other thing I would highlight, Patrick, is putting aside the revenue of this incremental software licensing opportunity is really the -- how intertwined the partners become with us. As I mentioned on the prepared remarks, we're quite proud of the 16 partners who have chosen to partner with us for their digital advertising. But now -- and we haven't had any attrition. We're getting -- quite honestly, one of the greatest referral sources is them telling others in the industry what a great partner we are, and we appreciate and thank them for that. But as we license more and more technology to these partners, they become even more ingrained to our company. So I think it's a double win. There's a revenue opportunity, a profit opportunity. But I would argue even more importantly for the future longevity of this business, we become more intertwined. And our solutions, we believe, are one of the reasons that we're having outpaced digital success, right, at 59% of the total company and the growth rate of growing Digital Advertising plus 11% in Q2 with programmatic up plus 27%. So I think that's the second part of it. I think having these partners more ingrained with us and really looking at us as almost like an extension of their team is also highly differentiated and important. So I'll turn it back to you, Patrick, if you have any other questions. Patrick Sholl: Sure. And on Interactive, could you provide like just a little bit more color on like the subscriber trends, whether within your own markets or outside your own markets and where kind of the restructuring of the sales team is being felt most immediately? Bill Wilson: Yes. Thank you, Patrick. I couldn't be more proud of the Townsquare Interactive team. I continue to be down there in Charlotte. We have an office in Phoenix as well. And just the fact that our profit margin last Q2 of '25, we were roughly 33% profit margin. Now we're sitting at 38% profit margin. And as Stu said, we expect to be in that zone for the entire year, is quite incredible. As I mentioned in the prepared remarks, our churn is back to historically low levels. I couldn't be more proud of attacking -- for the last 2 years, we really attacked our -- how we were serving our customers and rebuilt that entirely from the ground up. And we knew it would be disruptive, and that's why it was a shaky year in 2024 for us, but we added close to $4 million in profit last year. And then our focus this year was really redoing the sales piece of the equation from top to bottom. And that's having great success. We're seeing increased sales velocity in our market. We're seeing increased sales velocity per seller outside of our market. And as Stu mentioned, we had revenue stability in Q2. So after having a long time declining sequentially as well as year-over-year, in Q2, our monthly revenue at Townsquare Interactive was approximately $5.7 million for April, May and June. And as I shared this at the beginning of the year, I said I expected to see sequential revenue growth by the end of the year, and we're still expecting that by the end of 2026 and potentially in Q3, but if not in Q3, by the end of the year. And that's a combination. Really for us, the only reason the revenue is not growing quicker is that -- I know you know this, Patrick, but as a reminder for everybody on the call, our sales force declined by 40% from its highest level, and we're building that back. And we're building it back quite nicely, but we're building it back judiciously, so we're onboarding new people appropriately. So as I shared on our last earnings call, I don't expect to get back to the level of salespeople until 2027 in terms of where we want to be and where we were historically. But as a result, we're seeing stability on the revenue side, and that, in essence, implies stability on the subscriber side and then therefore, growth in the back half of the year as we return to sequential growth. So we're -- I couldn't be more proud of the Townsquare Interactive team. They're doing a tremendous amount of outbound marketing, e-mail marketing, text-based marketing and now digital marketing using data from the CRM that we deployed a few years ago to our Townsquare Interactive clients and doing things like lookalike Digital Advertising targeting for our clients. So more and more value proposition for those clients and churn at a historically low level. And it's just a matter of how quickly we add salespeople, which we're doing quite nicely now, but you'll see sequential revenue growth towards the end of the year and then future revenue growth next year. So let me know if that answered your question, Patrick, on Interactive. Any other questions, Patrick? Operator: Thank you. There are no further questions at this time. I would like to turn the call back to Bill Wilson for closing comments. Sir, please go ahead. Bill Wilson: Thank you, Constantine. Thank you, everybody, for joining this morning to get updated not only on our Q2 results, but importantly, what our outlook is for the rest of the year and onward into 2027. I couldn't be more proud and thankful of the Townsquare team overall, and we look forward to updating everybody in 3 months from now. So I hope everybody has a great day. Thank you for joining this morning. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect. Before you buy stock in Townsquare Media, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Townsquare Media wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. 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Interested in Townsquare Media, Inc.? Here are five stocks we like better. Q2 revenue met guidance at $115.4 million, while Adjusted EBITDA reached $24.8 million, down 6.2% year over year. The company reported a $41.8 million net loss, largely due to non-cash FCC license impairments and a financial-statement tax expense. Digital advertising growth accelerated, with Townsquare Ignite revenue rising 11% year over year and programmatic revenue increasing 27%. The media partnership business is expected to more than double revenue in 2026, while Townsquare Interactive achieved a record 37.6% segment profit margin despite lower revenue. Townsquare forecast Q3 revenue of $108 million to $110 million and Adjusted EBITDA of $22.5 million to $23.5 million, narrowing full-year guidance to $425 million-$431 million in revenue and $87 million-$90 million in Adjusted EBITDA. The company ended Q2 with $462 million in debt and 5.44x net leverage, but expects leverage to decline in the second half. Analysts Think These Stocks Could More Than Double Townsquare Media (NYSE:TSQ) reported second-quarter results that met its revenue and Adjusted EBITDA guidance, as the company pointed to accelerating digital advertising growth, record profitability at its subscription marketing unit and continued cash flow from broadcast operations. Second-quarter net revenue was approximately flat year over year at $115.4 million, above the midpoint of the company’s $114 million to $116 million guidance range. Adjusted EBITDA was $24.8 million, also above the midpoint of guidance, though down 6.2% from a year earlier. → No Hangover: Revisiting Microsoft One Week After Earnings Top Dividend Stocks Analysts Recommend for 2025 The company recorded a net loss of $41.8 million, or $2.36 per diluted share, primarily reflecting $26.6 million in non-cash impairment charges related to FCC licenses and an $18 million income-tax expense for financial-statement purposes. Adjusted net income was $0.21 per share, compared with $0.22 per share in the prior-year period. CEO Bill Wilson said Townsquare’s digital-first strategy continued to reshape the company’s business mix. Digital represented about 59% of total segment profit and 57% of total net revenue on a year-to-date basis, according to the company. → MarketBeat Week in Review – 08/03 - 08/07 Digital advertising revenue at Townsquare Ignite increased 11% year over year during the second quarter, accelerating from 6.8% growth in the first quarter. Programmatic revenue, which accounted for about 70% of year-to-date digital advertising revenue, rose 27% year over year. Direct sales on the company’s owned websites and mobile apps increased at a high-single-digit rate, Wilson said. Wilson said the company expects digital advertising growth in the third quarter to exceed the second quarter’s 11% rate. He attributed the outlook partly to stabilizing digital audiences and remnant revenue, which represented about 6% of year-to-date digital advertising revenue. → Why the Landlord of the AI Boom Could Outlast the Chipmakers During the question-and-answer session, Wilson said Townsquare’s audience had grown from the fourth quarter of 2025 through the first half of 2026 as traffic from direct channels, including newsletters and mobile applications, and social channels increased. Search traffic has continued to decline amid changes associated with artificial-intelligence search, he said, but the company has adjusted its approach and is using AI tools to improve targeting, customer service and internal efficiency. Townsquare’s media partnership business, which provides digital programmatic advertising services to other media companies, had 16 partners and operated in 41 incremental markets beyond Townsquare’s 74 owned-and-operated markets. The company said it now provides digital programmatic advertising in 115 U.S. markets. Wilson said partnership revenue was approximately $6 million in 2025 and is expected to more than double in 2026. The company continues to target $50 million in revenue and a 20% profit margin from the business within four years. The company also completed its first technology licensing agreement with media partner SummitMedia. SummitMedia licensed Townsquare’s internally developed customer relationship management software, Blueprint, for its sales team. Wilson said Townsquare sees opportunities to license additional internally developed tools to partners over the next several years. Wilson said the main constraint on expansion of the partnership model is the pace at which Townsquare can add personnel, including sales representatives, media buyers, data specialists and reporting staff, to support partners. He described the model as capital-light because its principal investment is in personnel rather than physical assets. Townsquare Interactive, the company’s subscription-based digital marketing solutions business, reported an 8.5% year-over-year revenue decline to $17.2 million. However, revenue stabilized sequentially at roughly $5.7 million in each month of the quarter, CFO Stuart Rosenstein said. The unit’s segment profit margin rose to a record 37.6%, supported by cost savings, organizational changes and AI-enabled efficiencies. Wilson said the company had restructured customer service and adjusted sales-force productivity expectations, resulting in a smaller but more efficient sales organization. Townsquare expects Interactive revenue to remain roughly flat sequentially in the third quarter and expects to return to month-over-month revenue growth by year-end, potentially as early as the third quarter. Wilson said the company is rebuilding its sales organization after its sales force declined 40% from its peak level. Broadcast revenue declined 5.5% year over year in the second quarter, or 7.2% excluding political advertising. Rosenstein said the company expects third-quarter broadcast revenue declines excluding political advertising to be in line with that result, compared with consistent 8% declines in each quarter of 2025. Wilson said local direct broadcast advertising was down low single digits, while national network and agency business declined more sharply. He said Townsquare’s broadcast operations remain a source of cash flow and local advertiser relationships that support the broader digital business. The company generated $7.8 million of cash flow from operations in the first six months of 2026 and ended the quarter with $462 million in debt outstanding. Net leverage stood at 5.44 times as of June 30. Rosenstein said Townsquare expects leverage to decline in the second half as EBITDA returns to year-over-year growth. Townsquare declared a quarterly dividend of $0.20 per share, payable Nov. 2 to shareholders of record on Oct. 26. The annualized dividend is $0.80 per share. For the third quarter, Townsquare forecast net revenue of $108 million to $110 million and Adjusted EBITDA of $22.5 million to $23.5 million. For the full year, it narrowed guidance to net revenue of $425 million to $431 million and Adjusted EBITDA of $87 million to $90 million. The outlook includes approximately $8 million in expected political revenue. Townsquare Media, Inc (NYSE: TSQ) is a diversified media and entertainment company that operates primarily in small and mid-sized markets across the United States. The company owns and manages over 300 local radio stations that deliver music, news, sports and community programming to listeners. In addition to its core broadcasting business, Townsquare Media provides digital marketing solutions and advertising services through its proprietary platforms and specialized agencies, helping local businesses connect with consumers via targeted online campaigns. Founded in 2010 and headquartered in Purchase, New York, Townsquare Media has grown its footprint through strategic acquisitions and the development of a broad digital portfolio. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Townsquare Media Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Digital Represents 57% of 1H'26 Net Revenue and 59% of 1H'26 Segment ProfitMedia Partnerships on Pace to More Than Double Revenue in 2026; Now Serving 16 Partners PURCHASE, N.Y. , Aug. 06, 2026 (GLOBE NEWSWIRE) -- Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the “Company,” “we,” “us” or “our”) announced today its financial results for the second quarter ended June 30, 2026. “I am pleased to share that Townsquare once again delivered results in line with the net revenue and Adjusted EBITDA guidance we previously provided, reflecting the continued execution of our Digital First Local Media Strategy,” commented Bill Wilson, Chief Executive Officer of Townsquare Media, Inc. “Digital Advertising delivered another quarter of accelerating growth, our Media Partnerships business continued to scale rapidly, Townsquare Interactive achieved record profitability, and our Broadcast business generated meaningful cash flow while outperforming the industry. Together, these businesses drove second quarter net revenue of $115.4 million. For the second quarter, we reported a net loss of $41.8 million, which included significant non-cash impairment charges related to FCC licenses, as well as Adjusted EBITDA of $24.8 million and Adjusted Net Income of $3.7 million.” “Our Digital Advertising business, Townsquare Ignite, grew revenue 11% year-over-year, accelerating meaningfully from 7% year-over-year growth in the first quarter (and 2025’s growth rate of 2%), and we expect that momentum to further strengthen in the third quarter. Our Media Partnerships business, which did not exist just over two years ago, now extends our Digital Advertising platform into 41 incremental markets through 16 media partners (and growing). Together with Townsquare’s 74 owned markets, we have a digital programmatic advertising presence in 115 markets across the United States. Importantly, Media Partnership revenue is expected to more than double in 2026. Townsquare Interactive, our Subscription Digital Marketing Solutions business, delivered another quarter of record Segment Profit margins of nearly 38% while revenue stabilized sequentially in the quarter. As a result, our Digital businesses represented 57% of Townsquare’s net revenue and 59% of Segment Profit in the first six months of the year.” “We believe the combination of multiple scalable, high-margin digital growth platforms and a durable Broadcast cash flow business creates a differentiated company with significant long-term opportunities to drive shareholder value through sustained net revenue, Adjusted EBITDA and cash flow growth, net leverage reduction, and future dividend payments,” concluded Mr. Wilson. The Company announced today that its Board of Directors approved a quarterly cash dividend of $0.20 per share. The dividend will be payable on November 2, 2026 to shareholders of record as of the close of business on October 26, 2026. As of the last closing price, this reflects a dividend yield of approximately 13%. Segment ReportingWe have three reportable operating segments, Digital Advertising, Subscription Digital Marketing Solutions, and Broadcast Advertising. The Digital Advertising segment, marketed externally as Townsquare Ignite, includes digital advertising on our digital programmatic advertising platform and our owned and operated digital properties, and our first party data digital management platform. The Subscription Digital Marketing Solutions segment includes our subscription digital marketing solutions business, Townsquare Interactive. The Broadcast Advertising segment includes our local, regional, and national advertising products and solutions delivered via terrestrial radio broadcast, and other miscellaneous revenue that is associated with our broadcast advertising platform. The remainder of our business is reported in the Other category, which includes our live events business. Second Quarter Results* As compared to the second quarter of 2025: Net loss per diluted share was $(2.36) and Adjusted Net Income per diluted share was $0.21 Year-to-Date Highlights* As compared to the six months ended June 30, 2025: Net loss per diluted share was $(2.26) and Adjusted Net Income per diluted share was $0.06 *See below for discussion of non-GAAP measures. GuidanceFor the third quarter of 2026, net revenue is expected to be between $108 million and $110 million, and Adjusted EBITDA is expected to be between $22.5 million and $23.5 million. For the full year 2026, net revenue is expected to be between $425 million and $431 million, and Adjusted EBITDA is expected to be between $87 million and $90 million, both within our original guidance ranges. Quarter Ended June 30, 2026 Compared to the Quarter Ended June 30, 2025 Net RevenueNet revenue for the three months ended June 30, 2026 decreased $0.1 million, or 0.1%, as compared to the same period in 2025. Broadcast Advertising net revenue decreased $2.7 million, or 5.5%, due to decreases in the purchases of advertising by our clients, Subscription Digital Marketing Solutions net revenue decreased $1.6 million, or 8.5%, due to reduced sales velocity as a result of lower sales headcount, and Other net revenue decreased $0.5 million, or 9.9%. These decreases were largely offset by an increase in Digital Advertising net revenue of $4.7 million, or 11.0%, due to increases in the purchases of advertising by our clients. Excluding political revenue of $1.3 million and $0.6 million for the three months ended June 30, 2026 and 2025, net revenue decreased $0.9 million, or 0.8%, to $114.0 million, Broadcast Advertising net revenue decreased $3.5 million, or 7.2%, to $45.3 million, and Digital Advertising net revenue increased $4.7 million, or 11.1%, to $47.1 million. Net (Loss) IncomeFor the three months ended June 30, 2026, we reported net loss of $41.8 million, a decrease of $43.8 million, as compared to net income of $2.0 million in the same period in 2025. The decrease was primarily due to a $25.1 million increase in non-cash impairment charges related to FCC licenses, an $11.7 million increase in the income tax provision driven by the valuation allowance for interest expense carryforwards resulting from higher non-cash impairment charges and non-deductible compensation, a $6.0 million decrease in net gain on sales and retirement of assets and a $1.7 million increase in direct operating expenses, partially offset by a $1.2 million decrease in interest expense. Adjusted Net Income increased $0.1 million to $3.7 million, as compared to $3.6 million for the second quarter of 2025. Adjusted EBITDAAdjusted EBITDA for the three months ended June 30, 2026 decreased $1.6 million, or 6.2%, to $24.8 million, as compared to $26.4 million for the same period last year. Adjusted EBITDA (Excluding Political) decreased $2.3 million, or 8.8%, to $23.7 million, as compared to $25.9 million in the same period in 2025. Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025 Net RevenueNet revenue for the six months ended June 30, 2026 decreased $2.0 million, or 0.9%, as compared to the same period in 2025. Broadcast Advertising net revenue decreased $5.4 million, or 6.0%, due to decreases in the purchases of advertising by our clients, Subscription Digital Marketing Solutions net revenue decreased $3.1 million, or 8.2%, due to reduced sales velocity, and Other net revenue decreased $0.6 million, or 10.0%, due to the performance of certain events in 2026 as compared to 2025. These decreases were partially offset by an increase in Digital Advertising net revenue of $7.2 million, or 9.1%. Excluding political revenue of $2.0 million and $1.1 million for the six months ended June 30, 2026 and 2025, respectively, net revenue decreased $2.9 million, or 1.3% to $210.1 million, Broadcast Advertising net revenue decreased $6.3 million, or 7.1%, to $83.3 million, and Digital Advertising net revenue increased $7.2 million, or 9.2%, to $86.4 million. Net (Loss) IncomeFor the six months ended June 30, 2026, we reported net loss of $38.8 million, a decrease of $39.3 million as compared to net income of $0.5 million in the same period last year. The decrease in net income was due to a $33.7 million increase in non-cash impairment charges related to FCC licenses, a $5.6 million decrease in gain on sale and retirement of assets, the $2.0 million decrease in net revenue discussed above, and a $1.4 million increase in direct operating expenses. These amounts were partially offset by a $1.5 million loss on the early extinguishment of debt recognized in 2025 due to the repurchase of our 2026 Notes. Adjusted Net Income decreased $1.8 million to $1.0 million, as compared to $2.8 million for the same period last year. Adjusted EBITDAAdjusted EBITDA for the six months ended June 30, 2026 decreased $3.4 million, or 7.6%, to $41.2 million, as compared to $44.6 million in the same period last year. Adjusted EBITDA (Excluding Political) decreased $4.1 million, or 9.4%, to $39.5 million, as compared to $43.6 million in the same period in 2025. Liquidity and Capital ResourcesAs of June 30, 2026, we had a total of $1.2 million of cash and cash equivalents and $462.2 million of outstanding indebtedness, representing 5.46x and 5.44x gross and net leverage, respectively, based on Adjusted EBITDA for the twelve months ended June 30, 2026 of $84.7 million. The table below presents a summary, as of August 3, 2026, of our outstanding common stock (net of treasury shares). Conference CallTownsquare Media, Inc. will host a conference call to discuss certain second quarter 2026 financial results and 2026 guidance on Thursday, August 6, 2026 at 8:00 a.m. Eastern Time. The conference call dial-in number is 1-800-717-1738 (U.S. & Canada) or 1-646-307-1865 (International) and the conference ID is “Townsquare.” A live webcast of the conference call will also be available on the investor relations page of the Company’s website at www.townsquaremedia.com. A replay of the conference call will be available through August 13, 2026. To access the replay, please dial 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (International) and enter confirmation code 1196403. A web-based archive of the conference call will also be available at the above website. About Townsquare Media, Inc.Townsquare is a community-focused digital and broadcast media and digital marketing solutions company principally focused outside the top 50 markets in the U.S. Townsquare Ignite, our robust digital advertising division, specializes in helping businesses of all sizes connect with their target audience through data-driven, results-based strategies, by utilizing a) our proprietary digital programmatic advertising technology stack with an in-house demand and data management platform and b) our owned and operated portfolio of more than 400 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data. Townsquare Interactive, our subscription digital marketing services business, partners with SMBs to help manage their digital presence by providing a SAAS business management platform, website design, creation and hosting, search engine optimization and other digital services. And through our portfolio of local radio stations strategically situated outside the Top 50 markets in the United States, we provide effective advertising solutions for our clients and relevant local content for our audiences. For more information, please visit www.townsquaremedia.com,  www.townsquareinteractive.com and www.townsquareignite.com. Forward-Looking StatementsExcept for the historical information contained in this press release, the matters addressed are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “believe,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by us include the impact of general economic conditions in the United States, or in the specific markets in which we currently do business including supply chain disruptions, inflation, labor shortages and the effect on advertising activity, industry conditions, including existing competition, artificial intelligence and future competitive technologies, the popularity of radio as a broadcasting and advertising medium, cancellations, disruptions or postponements of advertising schedules in response to national or world events, our ability to develop and maintain digital technologies (including artificial intelligence) and hire and retain technical and sales talent, our dependence on key personnel, our capital expenditure requirements, our continued ability to identify suitable acquisition targets, and consummate and integrate any future acquisitions, legislative or regulatory requirements, risks and uncertainties relating to our leverage and changes in interest rates, our ability to obtain financing at times, in amounts and at rates considered appropriate by us, our ability to access the capital markets as and when needed and on terms that we consider favorable to us and other factors discussed in this section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report and under “Risk Factors” in our 2025 Annual Report on Form 10-K, for the year ended December 31, 2025, filed with the SEC on March 16, 2026, as well as other risks discussed from time to time in our filings with the SEC. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. The cautionary statements referred to in this section also should be considered in connection with any subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf. The forward-looking statements included in this report are made only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures and DefinitionsIn this press release, we refer to Adjusted EBITDA, Adjusted EBITDA (Excluding Political), Adjusted Net Income and Adjusted Net Income Per Share which are financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). We define Adjusted EBITDA as net (loss) income before the deduction of income taxes, interest expense, net, (gain) loss on repurchases and extinguishment of debt, transaction and business realignment costs, depreciation and amortization, stock-based compensation, impairments, net (gain) loss on sale and retirement of assets and other expense (income), net. We define Adjusted EBITDA (Excluding Political) as Adjusted EBITDA less political net revenue, net of a fifteen percent deduction to account for estimated national representative firm fees, music licensing fees and sales commissions expense. Adjusted Net Income is defined as net income before the deduction of transaction and business realignment costs, impairments, net (gain) loss on sale and retirement of assets, (gain) loss on repurchases and extinguishment of debt and net income attributable to non-controlling interest, net of income taxes stated at the Company's applicable statutory effective tax rate. Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the weighted average shares outstanding. We define Net Leverage as our total outstanding indebtedness, net of our total cash balance as of June 30, 2026, divided by our Adjusted EBITDA for the twelve months ended June 30, 2026. These measures do not represent, and should not be considered as alternatives to or superior to, financial results and measures determined or calculated in accordance with GAAP. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. You should be aware that in the future we may incur expenses or charges that are the same as or similar to some of the adjustments in the presentation, and we do not infer that our future results will be unaffected by unusual or nonrecurring items. In addition, these non-GAAP measures may not be comparable to similarly-named measures reported by other companies. We use Adjusted EBITDA and Adjusted EBITDA (Excluding Political) to facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in capital structures (affecting interest expense), taxation and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for different companies for reasons unrelated to operating performance, and to facilitate year over year comparisons, by backing out the impact of political revenue which varies depending on the election cycle and may be unrelated to operating performance. We use Adjusted Net Income and Adjusted Net Income Per Share to assess total company operating performance on a consistent basis. We use Net Leverage to measure the Company’s ability to handle its debt burden. We believe that these measures, when considered together with our GAAP financial results, provide management and investors with a more complete understanding of our business operating results, including underlying trends, by excluding the effects of net, (gain) loss on repurchases and extinguishment of debt, transaction costs, net (gain) loss on sale and retirement of assets, business realignment costs and impairments. Further, while discretionary bonuses for members of management are not determined with reference to specific targets, our board of directors may consider Adjusted EBITDA, Adjusted EBITDA (Excluding Political), Adjusted Net Income, Adjusted Net Income Per Share, and Net Leverage when determining discretionary bonuses. Investor RelationsClaire Yenicay(203) [email protected] (1) Represents total advertising services provided by the Company in exchange for property and equipment during each of the six months ended June 30, 2026 and 2025, respectively. ** not meaningful The following table presents Net revenue by segment and Segment Profit for the three and six months ended June 30, 2026, and 2025, respectively (in thousands): ** not meaningful The following table reconciles Net revenue to Net revenue, excluding political revenue on a GAAP basis by segment for the three and six months ended June 30, 2026, and 2025, respectively (in thousands): The following table reconciles net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted Net Income for the three and six months ended June 30, 2026, and 2025, respectively (in thousands, except per share data): (1) Income tax provision for the three and six months ended June 30, 2026 and 2025, respectively, was calculated using the Company's statutory effective tax rate. The following table reconciles net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA, Adjusted EBITDA (Excluding Political), and Adjusted EBITDA Less Interest, Capex and Taxes for the three and six months ended June 30, 2026, and 2025, respectively (dollars in thousands): (a) Other includes net loss (gain) on sales and retirements of assets and other expense (income), net. The following table reconciles net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA on a quarterly basis for the twelve months ended June 30, 2026 (dollars in thousands): (a) Other includes net loss (gain) on sales and retirements of assets and other expense (income), net. The following tables provide the calculation of Segment Profit for the three months ended June 30, 2026, and 2025 (in thousands). Segment Profit (Loss) represents net revenue less direct operating expenses, excluding depreciation, amortization, and stock-based compensation: The following tables provide the calculation of Segment Profit (Loss) for the six months ended June 30, 2026, and 2025 (in thousands). Segment Profit (Loss) represents net revenue less direct operating expenses, excluding depreciation, amortization, and stock-based compensation:

Townsquare Media (TSQ) reported $115.35 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 0.1%. EPS of $0.21 for the same period compares to $0.22 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $114.71 million, representing a surprise of +0.56%. The company delivered an EPS surprise of +10.53%, with the consensus EPS estimate being $0.19. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Townsquare performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Subscription Digital Marketing Solutions: $17.17 million versus the two-analyst average estimate of $17.59 million. The reported number represents a year-over-year change of -8.5%. Net Revenue- Digital Advertising: $47.22 million versus $45.83 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11% change. Net Revenue- Other: $4.46 million compared to the $5.11 million average estimate based on two analysts. The reported number represents a change of -18.4% year over year. Net Revenue- Digital: $64.39 million compared to the $64.52 million average estimate based on two analysts. Net Revenue- Broadcast Advertising: $46.51 million versus $45.94 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -4.5% change. View all Key Company Metrics for Townsquare here>>> Shares of Townsquare have returned -4.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Townsquare Media, Inc. (TSQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Townsquare Media (TSQ) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.53%. A quarter ago, it was expected that this operator of radio stations in small and mid-sized markets would post a loss of $0.12 per share when it actually produced a loss of $0.16, delivering a surprise of -33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Townsquare, which belongs to the Zacks Broadcast Radio and Television industry, posted revenues of $115.35 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.56%. This compares to year-ago revenues of $115.45 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Townsquare shares have added about 23.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While Townsquare has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Townsquare was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $109.03 million in revenues for the coming quarter and $0.53 on $432.39 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Broadcast Radio and Television is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, iHeartMedia (IHRT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This radio company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +61.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. iHeartMedia's revenues are expected to be $974.93 million, up 4.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Townsquare Media, Inc. (TSQ) : Free Stock Analysis Report iHeartMedia, Inc. (IHRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Revenue: Approximately flat year-over-year at $115.4 million in Q2 2026, above the midpoint of guidance. Adjusted EBITDA: $24.8 million in Q2 2026, above the midpoint of guidance, representing a year-over-year decline of 6.2%. Digital Advertising Revenue (Townsquare Ignite): Increased 11% year-over-year in Q2 2026, accelerating from 6.8% growth in Q1 2026. Townsquare Interactive Revenue: Declined 8.5% year-over-year to $17.2 million in Q2 2026, with revenue stabilizing at approximately $5.7 million per month. Townsquare Interactive Segment Profit Margin: Reached a record 37.6% in Q2 2026. Broadcast Advertising Revenue: Declined 5.5% in Q2 2026, or 7.2% excluding political revenue, compared to the prior year. Net Loss: $41.8 million, or $2.36 per diluted share, in Q2 2026, primarily driven by non-cash impairment charges and income tax expense. Adjusted Net Income Per Share: $0.21 in Q2 2026, compared to $0.22 in the prior year period. Cash Flow from Operations: $7.8 million generated in the first six months of 2026. Debt Outstanding: $462 million as of June 30, 2026, with net leverage at 5.44 times. Q3 2026 Guidance: Net revenue expected between $108 million and $110 million; adjusted EBITDA expected between $22.5 million and $23.5 million. Full Year 2026 Guidance: Net revenue expected between $425 million and $431 million; adjusted EBITDA expected between $87 million and $90 million. Warning! GuruFocus has detected 6 Warning Signs with TSQ. Is TSQ fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Digital advertising revenue accelerated to +11% YoY in Q2, up from +7% in Q1, with expectations for further acceleration in Q3. Townsquare Interactive achieved record segment profit margins of 37.6%, with churn at historically low levels and revenue stabilizing. Media partnership business expanded to 16 partners across 115 markets, with revenue expected to more than double in 2026 and a long-term target of $50 million revenue at 20% profit margin. Completed first proprietary technology licensing deal with Summit Media, creating a new recurring revenue stream and deepening partner integration. Broadcast business continues to outperform industry peers, with strong cash flow generation and disciplined expense management despite secular headwinds. Digital now represents approximately 59% of total segment profit and 57% of total net revenue, significantly outpacing local media peers. Programmatic revenue grew +27% YoY in Q2, now representing ~70% of digital advertising revenue, with continued strong growth expected in Q3. Company maintains significant tax attributes, including $121 million in federal NOL carryforwards, with no material cash taxes expected until approximately end of 2028. Q3 guidance implies mid-single-digit YoY adjusted EBITDA growth, with full-year guidance narrowed within initial ranges. High dividend yield of ~13% supported by strong cash flow, with management confident in long-term value creation. Townsquare Interactive revenue declined 8.5% YoY in Q2, with sales force still 40% below peak levels and rebuilding expected to take until 2027. Broadcast advertising revenue declined 5.5% YoY in Q2 (7.2% ex-political), with continued secular pressure and national/agency business down high teens. Non-cash impairment charges of $26.6 million in Q2 and $35.2 million YTD related to FCC licenses, with expectations of continued write-downs. Net leverage remains elevated at 5.44x, though expected to tick down in H2 as EBITDA returns to growth. Political revenue forecast of $8 million for 2026 is modest, with some share shifting to digital and competitive races not fully materializing. Digital remnant revenue, though only 6% of digital advertising, has been a headwind due to AI search impacts, with stabilization only recently achieved. Q2 adjusted EBITDA declined 6.2% YoY, reflecting ongoing broadcast weakness and Interactive revenue declines. Net loss of $41.8 million in Q2, driven by impairments and a non-cash income tax expense of $18 million. Broadcast segment profit margins expected to average mid-20s for the full year, consistent with 2025 but below Q2's 30% level. Company expects FCC license values to continue to be written down regularly, which may weigh on reported earnings. Q: Can you provide an update on how AI search is impacting your business, given that it is at an all-time high, and how that might look as we go through Q3 and beyond?A: Bill Wilson (CEO): Our audience has actually grown from Q4 2025 into the first half of the year, driven by direct sources like newsletters and mobile apps, as well as social traffic. The remnant piece of our digital advertising is now just 6% of the total, while programmatic digital advertising, which grew 27% in the quarter, is now approximately 70% of our digital advertising. We are seeing sequential stability in our audience and modest growth overall. Search volumes continue to come down, but other traffic sources are climbing. This stability in remnant revenue, which will lap in August, is one of the reasons our Q3 digital advertising outlook is even stronger than Q2's plus 11% growth. Q: What is the percentage of Ignite customers originating through relationships with broadcast operations, and how is the business scaling nationwide across 115 markets?A: Bill Wilson (CEO): The media partnership division, which started in early 2024, has grown from $1 million in revenue in 2024 to $6 million in 2025, and we expect to more than double that to over $12 million in 2026. We now have 16 media partners contributing 41 incremental markets beyond our owned and operated footprint of 74 markets. The inbound interest is extremely strong, with dozens of new inquiries monthly. Each partner from 2025 has doubled or more than doubled their own digital advertising revenue by partnering with us. We also completed our first software licensing deal with Summit Media, who licensed our in-house developed CRM software called Blueprint, creating a new recurring revenue stream and deepening our integration into partners' operations. Q: Is there any gating factor in terms of capacity for the media partnerships business?A: Bill Wilson (CEO): The greatest gating factor is our own internal team members and how many people we can deploy and dedicate to our partners. The model is unique because we treat partners as if they are another market of Townsquare, with our salespeople doing four-legged calls alongside partners' AEs in these 41 markets. It requires other personnel like media buyers, data scientists, and reporting teams. The only gating factor is how quickly we can scale and build our team, which we are doing aggressively. This capital-light model gives us confidence that within four years we will reach $50 million in revenue through this division at a 20% profit margin, representing $10 million in incremental profit. Q: SiriusXM said they see opportunities in media and local markets and are looking to expand there. Any concerns about their plans?A: Bill Wilson (CEO): No concern at all. We are hyperlocal, and our bread and butter is the strength of our local brands. We reach on average 50% of the adult population in our 74 markets just through our AM/FM signal, which is incredibly powerful. SiriusXM would have inconsequential reach in our markets. Our broadcast performance ex-political is moderating slightly from last year, down 7% in the first two quarters compared to 8% last year. Our local direct selling of broadcast traditional advertising is actually down only low single-digits year-over-year, while our national network business was down high teens and agency business was down aggressively. These national and agency pieces are now the minority of our business, whereas three years ago they were the majority. Q: Political advertising seems to be trending a little light. Is it a function of not being in competitive markets or a secular issue with dollars being allocated to other mediums?A: Bill Wilson (CEO): There are definitely more dollars going to digital, which is true in political as it is in advertising generally. Roughly 70% of all local media dollars are being spent in digital. Through the first half of the year, we are up about 2% over 2022, which was our benchmark. We expect $8 million in political revenue for the full year, in line with the $7.5 million from the 2022 election cycle. We are well situated in markets like Michigan, Maine, and Texas with tight races. We believe we are on the trajectory to hit our $8 million goal, and we are not seeing any less political or share shift that we didn't anticipate going to digital. Q: Could you talk about the overall opportunity in providing software solutions to your media partners and if that could be meaningfully incremental to the $50 million target?A: Bill Wilson (CEO): I believe it can be a meaningful contribution to overall revenue and profitability. We are talking to the other 16 partners about licensing our CRM, and we have other tools we utilize internally for sales teams and customer service that are sophisticated solutions. Over the next three to five years, the ability to license more of our own tech to partners is a meaningful opportunity that will contribute to that $50 million goal plus some. Putting aside the revenue, it's about how intertwined the partners become with us. As we license more technology, they become even more ingrained in our company, which is a double wina revenue opportunity and a way to deepen relationships for the future longevity of the business. Q: On Interactive, could you provide more color on subscriber trends and where the restructuring of the sales teams is being felt most immediately?A: Bill Wilson (CEO): We are incredibly proud of the Townsquare Interactive team. Our profit margin went from roughly 33% in Q2 of 2025 to 38% now, and we expect to be in that zone for the entire year. Our churn is back to historically low levels. We rebuilt our customer service organization from the ground up over the last two years, which was disruptive but added close to $4 million in profit last year. This year, our focus was redoing the sales piece, and we are seeing increased sales velocity both in and outside our markets. Revenue stabilized in Q2 at approximately $5.7 million per month for April, May, and June. We expect sequential revenue growth by the end of 2026, potentially as early as Q3. Our sales force declined by 40% from its highest level, and we are building it back judiciously, not expecting to get back to historical levels until 2027. Q: Can you elaborate on the Q2 financial results and the outlook for the rest of 2026?A: Stuart Rosenstein (CFO): Second quarter net revenue was approximately flat year-over-year at $115.4 million, above the midpoint of our guidance. Adjusted EBITDA was $24.8 million, For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management declared the company's transformation to a digital-first entity complete, with digital now representing 59% of total segment profit and 57% of total net revenue year-to-date. Digital Advertising revenue growth accelerated to 11% in Q2, fueled by a 27% year-over-year increase in programmatic revenue which now accounts for approximately 70% of the segment. Townsquare Interactive achieved record segment profit margins of nearly 38% by leveraging AI for operational efficiency and restructuring the customer service organization to reach historically low churn levels. The Media Partnership business expanded to 16 partners across 41 incremental markets, validating the company's ability to monetize its proprietary tech stack and sales expertise outside its owned footprint. Broadcast operations continue to serve as a high-margin cash cow, outperforming industry averages despite a challenging secular environment and high-teens declines in national network revenue. The company successfully stabilized its digital audience and associated revenue, which had been impacted by AI search changes, by pivoting to direct traffic sources like newsletters and mobile apps. Management expects Q3 Digital Advertising revenue growth to accelerate beyond the 11% achieved in Q2 as the company laps audience headwinds that began in August 2025. Townsquare Interactive is projected to return to sequential monthly revenue growth by the end of 2026, supported by a planned 12-month rebuilding of the sales organization. The Media Partnership division is targeting $50 million in revenue at a 20% profit margin within the next four years, with plans to expand into television, outdoor, and newspaper partnerships. Full-year 2026 guidance anticipates $8 million in political revenue, aligning with 2022 levels and assuming significant placements in key markets like Michigan and Texas during the second half. Net leverage is expected to decrease in the second half of 2026 as EBITDA returns to year-over-year growth, with excess cash flow prioritized for debt repayment and dividend support. The company recorded non-cash impairment charges of $26.6 million in Q2 related to FCC licenses, driven by decreases in third-party industry broadcast revenue forecasts. Management expects the value of FCC licenses to be written down regularly over time due to accounting formulas, though these charges have no impact on cash position or operating prospects. Townsquare maintains approximately $121 million in federal NOL carryforwards, leading management to believe the company will not be a material cash taxpayer until late 2028. A first-of-its-kind software licensing deal was signed with SummitMedia for the proprietary 'Blueprint' CRM, establishing a new recurring revenue stream and deepening partner integration. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management reported that audience levels have grown since Q4 2025 despite AI search headwinds by increasing reliance on direct sources like newsletters and social traffic. Remnant digital revenue, which was most affected by search changes, has stabilized and now represents only 6% of total Digital Advertising revenue. The primary gating factor for expansion is internal human capital, specifically the speed at which the company can hire and train 'SEAL team' sales and support staff. The model remains capital-light as it relies on deploying people and proprietary technology rather than acquiring physical assets. Management expressed no concern, citing Townsquare's 'hyperlocal' focus and 50% reach in its markets as a competitive moat that national satellite or streaming services cannot replicate. Radio is viewed as a strategic asset for emotional connection and local news, especially in 'news deserts' where traditional newspapers have exited.

Netflix (NFLX) came out with quarterly earnings of $0.8 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.27%. A quarter ago, it was expected that this internet video service would post earnings of $0.76 per share when it actually produced earnings of $0.7, delivering a surprise of -7.89%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Netflix, which belongs to the Zacks Broadcast Radio and Television industry, posted revenues of $12.56 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.1%. This compares to year-ago revenues of $11.08 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Netflix shares have lost about 21.4% since the beginning of the year versus the S&P 500's gain of 10.6%. While Netflix has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Netflix was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $13.02 billion in revenues for the coming quarter and $3.60 on $51.42 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Broadcast Radio and Television is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Townsquare Media (TSQ), is yet to report results for the quarter ended June 2026. This operator of radio stations in small and mid-sized markets is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -13.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Townsquare Media's revenues are expected to be $114.71 million, down 0.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report Townsquare Media, Inc. (TSQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PURCHASE, N.Y., July 15, 2026 (GLOBE NEWSWIRE) -- Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare” or the “Company”) announced today that it will release second quarter 2026 financial results before the market opens on Thursday, August 6, 2026. The Company will host a conference call to discuss certain second quarter 2026 financial results on Thursday, August 6, 2026 at 8:00 a.m. Eastern Time. The conference call dial-in number is 1-800-717-1738 (U.S. & Canada) or 1-646-307-1865 (International) and the conference ID is “Townsquare.” A live webcast of the conference call as well as the press release disclosing the Company’s results will be available on the investor relations page of the Company’s website at www.townsquaremedia.com. A telephone replay of the conference call will be available through August 13, 2026. To access the replay, please dial 1-844-512-2921 (U.S. & Canada) or 1-412-317-6671 (International) and enter confirmation code 1196403. A web-based archive of the conference call will also be available on the investor relations page of the Company’s website. About Townsquare Media, Inc. Townsquare is a community-focused digital and broadcast media and digital marketing solutions company principally focused outside the top 50 markets in the U.S. Townsquare Ignite, our robust digital advertising division, specializes in helping businesses of all sizes connect with their target audience through data-driven, results based strategies, by utilizing a) our proprietary digital programmatic advertising technology stack with an in-house demand and data management platform and b) our owned and operated portfolio of more than 400 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data. Townsquare Interactive, our subscription digital marketing services business, partners with SMBs to help manage their digital presence by providing a SAAS business management platform, website design, creation and hosting, search engine optimization and other digital services. And through our portfolio of local radio stations strategically situated outside the Top 50 markets in the United States, we provide effective advertising solutions for our clients and relevant local content for our audiences. For more information, please visit www.townsquaremedia.com, www.townsquareinteractive.com, and www.townsquareignite.com. Investor RelationsClaire Yenicay        (203) [email protected]

Interested in Townsquare Media, Inc.? Here are five stocks we like better. Townsquare Media said first-quarter results came in within guidance, and it reaffirmed full-year net revenue and adjusted EBITDA guidance as digital trends improved heading into the second quarter. Q1 net revenue fell 1.9% to $96.8 million and adjusted EBITDA declined 9.7% to $16.4 million, both in line with forecasts. The company’s business mix continued shifting toward digital, with digital revenue reaching a record 59% of total net revenue and 63% of total profit in Q1. Digital advertising growth was led by Townsquare Ignite, where revenue rose 7% year over year and programmatic advertising grew 21%. Legacy businesses remained pressured: broadcast revenue declined 6.6% and Townsquare Interactive revenue fell about 8%, though margins improved there. The company still expects full-year revenue of $420 million to $440 million and adjusted EBITDA of $87 million to $93 million, and it raised its quarterly dividend to $0.20 per share. Analysts Think These Stocks Could More Than Double Townsquare Media (NYSE:TSQ) said its first-quarter results met its prior guidance as the company continued to shift its revenue and profit mix toward digital advertising and marketing services. On the company’s earnings call, Chief Executive Officer Bill Wilson said Townsquare is “reaffirming the full-year net revenue and adjusted EBITDA guidance” provided on its previous call, citing improving digital advertising trends in the second quarter and expectations for the second half of 2026. → Micron Investors Face a High-Stakes Moment After the Latest Rally Top Dividend Stocks Analysts Recommend for 2025 Chief Financial Officer and Executive Vice President Stuart Rosenstein said first-quarter net revenue declined 1.9% year over year to $96.8 million, within the company’s guidance range of $96 million to $98 million. Adjusted EBITDA fell 9.7% to $16.4 million, also within the guided range of $16 million to $17 million. The company reported first-quarter net income of $3 million, or $0.16 per diluted share, compared with a net loss of $0.12 per diluted share in the prior-year period. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Wilson said Townsquare’s business mix has continued to move away from legacy broadcast revenue and toward digital products. In 2025, digital solutions accounted for about 55% of total net revenue and 56% of total segment profit. In the first quarter of 2026, digital revenue increased to 59% of total net revenue, while digital profit represented 63% of total profit, both all-time highs for the company. Wilson said those figures demonstrate that Townsquare has “transformed from a legacy broadcast company into a digital-first local media company,” focused on local markets outside the top 50 in the U.S. → How Berkshire’s New York Times Bet Looks Today Townsquare Ignite, the company’s digital advertising segment, posted first-quarter net revenue growth of 7% year over year. Wilson said the increase represented a significant improvement from 2025, when digital advertising revenue grew about 2%. The company attributed the improvement to growth in direct-to-client digital sales, including its programmatic advertising platform and sales of advertising on its owned-and-operated digital properties. Rosenstein said Townsquare Ignite revenue growth rebounded from a slight year-over-year decline in the fourth quarter of 2025 to 6.8% growth in the first quarter of 2026. Wilson said the company’s programmatic digital advertising business, which represented about 65% of Townsquare Ignite’s 2025 revenue, grew 21% year over year in the first quarter. He said the company expects programmatic revenue to be up more than 20% year over year again in the second quarter. Townsquare’s third-party media partnership model, a component of the programmatic business, also continued to expand. Wilson said media partnership revenue was approximately $6 million in 2025, and the company had six local media partners. In the first quarter, revenue from the initiative roughly doubled from the prior-year period, and Townsquare is on track to approximately double the $6 million generated in 2025 for the full year. Wilson said the company has added two more media partners since its prior earnings call, bringing the total to 13. He reiterated a longer-term goal for the division to reach $50 million in revenue within four years at an approximately 20% profit margin. During the question-and-answer portion of the call, Wilson said the media partnership pipeline includes “dozens and dozens” of local media companies, primarily radio operators, as well as some television, outdoor, print and other legacy media companies. He said some current partners operate in top 50 markets, where Townsquare’s digital advertising solutions have shown traction, though the company remains focused on markets outside the top 50 for potential acquisitions. Direct sales of advertising on Townsquare’s owned-and-operated digital assets, including more than 400 local websites and mobile apps, increased 10% in the first quarter, Wilson said. He said those sales continued to show strong growth in the second quarter. At the same time, the company continued to see pressure in remnant, or indirect, digital advertising revenue. Wilson said remnant revenue declined 40% in 2025 to about $12 million from about $20 million in 2024. For 2026, the company expects remnant revenue to decline to approximately $9 million, with most of the year-over-year decline occurring in the first seven months of the year. In the first quarter, indirect remnant digital advertising revenue declined 37% year over year, but Wilson said it grew sequentially from the fourth quarter of 2025. He said remnant revenue now represents about 8% of total digital advertising revenue. Wilson also said Townsquare’s digital audience showed signs of stabilization despite lower search engine referrals and headwinds related to AI search traffic. Average monthly unique visitors rose to 25 million in the first quarter from about 20 million in the fourth quarter of 2025, according to Wilson. Townsquare Interactive, the company’s subscription digital marketing solutions business, reported an 8% year-over-year revenue decline in the first quarter, which Wilson said was in line with expectations and reflected slower sales velocity due to a smaller sales force. Rosenstein said Townsquare Interactive’s first-quarter net revenue declined 7.9% year over year, while segment profit margins increased to 33.7%. Wilson said the margin improvement was driven by a restructured customer service model, changes to the sales organization and efficiencies from AI tools used in areas such as website creation and customer service. The company expects Townsquare Interactive revenue to decline about 8% year over year again in the second quarter, though Wilson said the sequential decline is expected to be smaller, at about 2% quarter over quarter. He said the company may return to month-over-month revenue growth as early as the third quarter of 2026. In response to a question from Barrington Research analyst Patrick Sholl, Wilson said churn has continued to improve and is returning to historically low levels. He said the company’s main hurdle is rebuilding the size of the Townsquare Interactive sales team, which was reduced during 2025. Wilson said the sales force had been down about 40% and is not expected to return to prior levels until 2027. Townsquare’s broadcast business continued to decline, though at a slightly slower rate than in 2025. Rosenstein said total broadcast revenue declined 6.6% in the first quarter, while broadcast revenue excluding political advertising fell 6.9%. That compares with consistent 8% ex-political declines in each quarter of 2025. Wilson said Townsquare gained local and national broadcast market share in the quarter, according to Miller Kaplan estimates, despite the revenue decline. He reiterated that radio remains a valuable cash-flow asset for the company, but not a growth driver. For the second quarter, Townsquare expects net revenue of $114 million to $116 million and adjusted EBITDA of $24 million to $25 million. For the full year, the company reaffirmed guidance for net revenue of $420 million to $440 million and adjusted EBITDA of $87 million to $93 million. The guidance includes approximately $8 million of political revenue. Rosenstein said Townsquare generated $4.2 million of cash flow from operations in the first quarter, more than in the first quarters of both 2025 and 2024. The company ended the quarter with $457 million of debt outstanding, $2 million of cash and net leverage of 5.27 times. The company’s board approved a quarterly dividend of $0.20 per share, payable Aug. 3 to shareholders of record as of July 27. Rosenstein said the dividend equates to $0.80 per share annually and implies an annual payment of approximately $14 million based on the share count. Townsquare Media, Inc (NYSE: TSQ) is a diversified media and entertainment company that operates primarily in small and mid-sized markets across the United States. The company owns and manages over 300 local radio stations that deliver music, news, sports and community programming to listeners. In addition to its core broadcasting business, Townsquare Media provides digital marketing solutions and advertising services through its proprietary platforms and specialized agencies, helping local businesses connect with consumers via targeted online campaigns. Founded in 2010 and headquartered in Purchase, New York, Townsquare Media has grown its footprint through strategic acquisitions and the development of a broad digital portfolio. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Townsquare Media Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.