Townsquare Q3 Revenue Rises 3.9%, Suspends Dividend

RADIO ONLINE | Wednesday, November 4, 2026 | 12:16pm CT

Townsquare Media

Townsquare Media reported third-quarter net revenue of $110.9 million, up 3.9% from $106.8 million a year earlier, as digital advertising growth and political spending offset weakness in its subscription digital marketing business. The company also announced it is suspending its quarterly dividend to preserve approximately $14 million annually.

Adjusted EBITDA increased 2.7% to $22.6 million from $22.0 million. Townsquare narrowed its net loss to $4.0 million, or 23 cents per diluted share, compared with a loss of $5.5 million a year earlier. Adjusted net income rose to $2.3 million from $855,000, with adjusted earnings of 12 cents per diluted share.

Digital Advertising revenue, generated by Townsquare Ignite, increased 12.7% to $45.3 million from $40.2 million. CEO Bill Wilson said growth accelerated for the third consecutive quarter, led by a 22.5% increase in programmatic revenue.

"Our Media Partnerships business now serves 18 partners and extends our digital programmatic advertising platform to 122 markets across the United States, and we expect Media Partnerships revenue to more than double in 2026," said Wilson.

Townsquare Interactive's subscription digital marketing revenue declined 8.5% to $17.1 million from $18.6 million, reflecting reduced sales velocity and lower sales staffing. The segment maintained a 36% profit margin, but Wilson said it would not return to sequential revenue growth in the fourth quarter as previously projected.

Combined digital revenue increased 6.0% to $62.4 million. Broadcast Advertising revenue edged up 0.4% to $47.2 million from $47.0 million. Excluding political advertising, broadcast revenue fell 5.2% to $44.4 million. Total political revenue reached $2.9 million, compared with $200,000 in the prior-year quarter.

Excluding political advertising, companywide revenue increased 1.4%, while Adjusted EBITDA declined 7.9% to $20.1 million.

"Our local clients continue to feel pressure from higher operating costs and interest rates, and they are scrutinizing every marketing dollar, particularly those spent on traditional media," Wilson said. He added that broadcast declines excluding political are expected to deepen in the fourth quarter, partly because political advertising crowds out other inventory.

Wilson cited those challenges and higher interest costs on floating-rate debt in explaining the dividend suspension. "We do not believe that the market is ascribing value to the dividend and we believe this cash can generate greater value for shareholders elsewhere," he said. The previously declared dividend of 20 cents per share was paid November 2.

For the first nine months of 2026, revenue increased 0.7% to $323.1 million from $320.9 million. Adjusted EBITDA declined 4.2% to $63.8 million, while the net loss widened to $42.8 million from $5.0 million, primarily reflecting increased noncash impairment charges. Digital businesses represented 57% of year-to-date revenue.

Townsquare ended September with $4.6 million in cash and $467.5 million in outstanding debt.

For the fourth quarter, the company projects revenue of $107 million to $109 million and Adjusted EBITDA of $23 million to $25 million. Full-year guidance calls for revenue of $430 million to $432 million and Adjusted EBITDA of $87 million to $89 million.