Spanish Broadcasting System Posts $5.6 Million Q1 Loss

RADIO ONLINE | Sunday, June 1, 2025 | 7:21pm CT

Spanish Broadcasting System

Spanish Broadcasting System reported a net loss of $5.6 million for the first quarter ended March 31, 2025, compared to a loss of $1.6 million in the same quarter a year ago, as declines in core advertising revenue and special events weighed heavily on results.

Net revenue for the quarter dropped 18% year-over-year to $27.6 million, down from $33.7 million, driven by lower national, local, and network ad sales, as well as a sharp fall in special events revenue. The company cited continued market uncertainty and wildfires in the Los Angeles area in January as key factors impacting sales.

Despite the revenue decline, SBS trimmed operating expenses by 11% to $24.4 million. Corporate expenses also dropped 7% to $2.4 million, and depreciation and amortization rose slightly to $669,000. The company booked a one-time severance expense of $86,000 during the quarter.

Operating income fell sharply to just $93,000, compared to $5.2 million in Q1 2024. After $8.3 million in interest expense, SBS posted a pre-tax loss of $8.2 million. A $2.5 million income tax benefit narrowed the net loss.

The company ended the quarter with $7.6 million in cash, down from $14.4 million at year-end. Net cash used in operations totaled $6.2 million for the quarter.

SBS warned that it may not be able to meet its debt obligations without additional financing. Its $310 million in senior secured notes mature March 1, 2026, and the company does not currently have a refinancing commitment in place. In its filing, management said the absence of such a plan raises "substantial doubt about its ability to continue as a going concern."

The company's $15 million revolving credit facility was extended to August 29, 2025, and had $4.9 million outstanding as of March 31.

In segment results, radio revenue dropped to $26.5 million from $32.3 million, while television revenue declined slightly to $1.1 million. The company recently reclassified its television segment from discontinued to continuing operations after determining the assets no longer represented a strategic shift. SBS continues to pursue a sale of certain Puerto Rico and Miami television and real estate assets.

Chairman and CEO Raul Alarcon retains voting control of the company through ownership of all Series C preferred stock and nearly all Class B shares.

Despite ongoing challenges, SBS said it plans to focus on operational efficiency, refinancing strategies, and potentially monetizing non-core assets to improve its financial position ahead of the 2026 debt maturity.