SMG Reports $7.1M Net Loss in Q1 Amid Revs Decline

RADIO ONLINE | Wednesday, May 14, 2025 | 9:11pm CT

Salem Media Group

Salem Media Group reported a net loss of $7.1 million for the first quarter of 2025, a sharp increase from the $5.2 million loss posted in the same period last year. The higher loss comes as total revenue declined and restructuring expenses weighed on results.

Total revenue fell 11.8% to $51.7 million, compared to $58.6 million in Q1 2024. The decline was driven primarily by weaker performance in the company's core broadcast segment, where net broadcast revenue dropped 13.6% year-over-year to $39.8 million. Digital media revenue dipped slightly from $10.7 million to $10.2 million, while publishing revenue also fell to $1.6 million from $1.8 million.

Salem incurred $3.7 million in restructuring charges during the quarter, primarily tied to employee terminations and contract settlements related to the announced sale of its remaining seven Contemporary Christian Music (CCM) radio stations. The company closed that $80 million sale on April 4, 2025. A $72 million secured promissory note related to the deal had been issued in Q4 2024 and was repaid at closing.

"These cost-saving initiatives are expected to provide future operational efficiencies," Salem stated in the filing.

Despite the restructuring and declining revenues, the company benefited from a $2.2 million income tax benefit in the quarter, which helped partially offset its operating loss of $9.3 million.

Salem also recorded gains from the sale of various assets, including a $0.8 million gain from selling a Nashville tower easement and a $0.6 million gain from divesting an office building in Greenville, SC. In total, asset dispositions contributed $1.9 million in net gains for the quarter.

Operating cash flow was negative $2.8 million in Q1 2025, compared to a $1 million outflow in the prior year period. Capital expenditures and investments, including a $1 million equity investment in a motion picture company, contributed to a slight net cash usage from investing activities.

As of March 31, 2025, the company reported no cash or cash equivalents on hand. Total debt stood at $104.7 million, including a $24.3 million unsecured note that was converted into Series A Preferred Stock following the CCM station sale.

Salem ended the quarter with total assets of $422.7 million and stockholders' equity of $181.8 million, down from $189 million at the end of 2024. The company had 24.01 million shares of Class A common stock and 5.55 million shares of Class B common stock outstanding.