Townsquare Exceeds Q2 Guidance as Digital Revs Expand

RADIO ONLINE | Wednesday, August 6, 2025 | 10:02am CT

Townsquare Media

Townsquare Media has announced results for the second quarter of 2025, reporting adjusted EBITDA that surpassed its previously issued guidance and underscoring the company's continued focus on digital growth and disciplined financial management.

For the quarter ended June 30, Townsquare reported adjusted EBITDA of $26.4 million, a 0.7% increase compared to the same period last year. When excluding political revenue, adjusted EBITDA grew 3.8%. Net income for the quarter was $2 million, marking a significant turnaround from a net loss of $48.9 million in the second quarter of 2024. The improvement was driven primarily by lower impairment charges, gains on asset sales, and reduced stock-based compensation.

Total net revenue in the second quarter declined 2.3% year-over-year to $115.4 million, or 1.6% when excluding political revenue. Digital revenue reached $61.3 million, a 2.1% increase from the prior year, with digital advertising revenue growing 2.4% and Townsquare Interactive subscription revenue up 1.4%. Broadcast advertising revenue, by contrast, fell 9.2%, or 7.8% excluding political.

CEO Bill Wilson credited the company's local presence and broad marketing solutions for helping to offset revenue headwinds, including disruption tied to April's Liberation Day. He emphasized that digital remains the company's growth engine and noted that digital revenue accounted for 55% of total net revenue and 56% of total segment profit in the first half of 2025. Digital segment profit rose 9.4% compared to the same period in 2024.

Townsquare continued to prioritize debt reduction, repurchasing $10 million in debt during the quarter and $13 million in total since its refinancing earlier this year. As of June 30, the company had $3.2 million in cash and $467.1 million in outstanding debt, representing a net leverage ratio of 4.58x.

The company also announced a quarterly dividend of $0.20 per share, payable on November 3, 2025, to shareholders of record as of October 27. Based on recent share prices, the dividend reflects an approximate yield of 12%.

Segment performance in the quarter was mixed. Digital advertising segment profit was $10.9 million, a slight year-over-year decline of 1.0%, while Townsquare Interactive grew its segment profit by 15.2% to $6.2 million. Broadcast segment profit declined 8.4% to $14.7 million.

Looking ahead, Townsquare expects third quarter net revenue to range between $106.5 million and $108.5 million, with adjusted EBITDA between $22 million and $23 million.