Townsquare Media Tops First Quarter EBITDA Forecasts

RADIO ONLINE | Thursday, May 8, 2025 | 10:19am CT

Townsquare Media

Townsquare Media reported first quarter 2025 financial results that met or exceeded expectations, driven by strength in its digital operations. Despite a slight year-over-year dip in total revenue, the company posted increased profitability and reaffirmed its full-year guidance.

Townsquare's net revenue for the quarter slipped 1.0% year-over-year to $98.7 million, or 0.5% when excluding political advertising. However, Adjusted EBITDA rose 3.5% to $18.1 million-or 6.2% when excluding political revenue-exceeding company forecasts.

CEO Bill Wilson highlighted the performance of Townsquare's digital operations as a key growth driver. "Digital is and will continue to be Townsquare's growth engine," said Wilson. "Our digital net revenue grew 6.4% year-over-year, and digital now represents 57% of our total net revenue and 62% of our segment profit."

By segment, Digital Advertising revenue rose 7.6% to $36.8 million, while Subscription Digital Marketing Solutions (Townsquare Interactive) increased 4.2% to $19.0 million. Combined, digital segments generated a 16.2% increase in profit. In contrast, Broadcast Advertising revenue declined 9.1% to $41.3 million.

Townsquare posted a net loss of $1.5 million for the quarter, compared to net income of $1.6 million a year earlier. The company attributed the decline to one-time factors including a $1.5 million loss on debt redemption and a non-repeating $4.0 million gain in Q1 2024.

Looking ahead, the company reaffirmed its full-year 2025 outlook, projecting net revenue between $435 million and $455 million, and Adjusted EBITDA between $90 million and $98 million. For Q2 2025, Townsquare expects revenue between $114 million and $116 million and Adjusted EBITDA between $25 million and $26 million.

Townsquare also announced a quarterly cash dividend of $0.20 per share, payable August 1, 2025, to shareholders of record as of July 18. Based on the last closing price, this reflects a yield of approximately 12%.

In February, the company completed a major refinancing, issuing a five-year, $490 million credit agreement and redeeming its outstanding $467 million in 2026 Senior Secured Notes. Wilson noted the move provides a "long operating runway" and positions the company to reduce net leverage over time.

"We began as a traditional broadcast company and are now a Digital First Local Media Company," Wilson said. "In a rapidly changing landscape for consumers and local businesses, it has never been more important to embrace transformation and evolution."