Townsquare Media Inc - Class A
Q4 2025 Earnings
Market Reaction
Did TSQ Beat Earnings? Q4 2025 Results
Townsquare Media closed out Q4 2025 with results that met guidance but underscored the hangover from a blockbuster 2024 election cycle, posting a net loss of $0.32 per share as revenue fell 9.6% year-over-year to $106.50 million, a hair above the consensus estimate of $106.36 million. The headline decline was driven almost entirely by the absence of political advertising dollars that had inflated the year-ago quarter; stripping out political revenue, the drop narrows to a more manageable 4.5%. A $15.10 million swing in the income tax provision compounded the pressure, contributing to a net loss of $4.75 million versus net income of $25.04 million in Q4 2024. The company's digital operations offered a measure of resilience, with that segment now accounting for 55% of full-year net revenue, though <a href="https://247wallst.com/investing/2026/03/13/townsquare-media-vestis-and-ashland-3-under-the-radar-stocks-to-watch/">this under-the-radar stock</a> still contends with elevated gross leverage of 5.19x. Management guided Q1 2026 revenue of $96 million to $98 million and sees full-year 2026 net revenue reaching $420 million to $440 million.
- Digital business now represents 55% of total net revenue and 56% of total segment profit
- Programmatic digital advertising platform and Media Partnership division grew 9% year-over-year
- Direct sales of owned and operated digital properties grew 9% year-over-year
- Townsquare Interactive delivered record 34% segment profit margin with 17.4% segment profit growth
- Strong expense management kept Adjusted EBITDA margins constant year-over-year excluding political despite revenue declines
- Broadcast Advertising revenue decline of 17.8% (7.9% ex-political) driven by lower client spending and absence of election-cycle political revenue
- Declining search engine referral traffic created headwinds for remnant digital advertising revenue
“I am pleased to share that Townsquare's fourth quarter and year end results met our previously issued net revenue and Adjusted EBITDA guidance, reflecting our team's hard work in the current environment. We are proud that the execution of our Digital First Local Media strategy allowed us to deliver excellent results for our clients, while also outperforming competitors and gaining market share.”
Townsquare Media CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, net revenue is expected to be between $96 million and $98 million, with Adjusted EBITDA between $16 million and $17 million. For full year 2026, net revenue is expected to be between $420 million and $440 million, with Adjusted EBITDA between $87 million and $93 million. Management noted early signs of digital audience stabilization, with January and February 2026 local traffic growing sequentially and exceeding December levels, and expects the negative remnant revenue headwinds from declining search engine referral traffic to abate in the second half of 2026. The Media Partnership division expanded from six to eleven partners in 2026.
TSQ YoY Financials
TSQ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.