Townsquare Media (NYSE:TSQ) Posts Earnings Results, Beats Expectations By $0.01 EPS

Townsquare Media (NYSE:TSQ) announced its earnings results on Wednesday. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.01, FiscalAI reports. Townsquare Media had a negative return on equity of 5.59% and a negative net margin of 11.82%. The firm had revenue of $110.95 million during the quarter, compared to analysts’ expectations of $108.68 million.

Here are the key takeaways from Townsquare Media’s conference call:

• Third-quarter revenue rose 3.9% to $110.9 million, beating guidance, while Adjusted EBITDA increased 2.7% to $22.6 million, within guidance. The company raised its 2026 revenue outlook to $430 million–$432 million, supported in part by political revenue now expected to exceed $11 million.
• Digital advertising revenue grew 12.7% (about 13%), accelerating for a third consecutive quarter; programmatic revenue rose 22.5%. Media Partnerships more than doubled year over year, with 18 partners, though growth in this lower-margin business contributed to digital advertising segment margins falling to 18.7% from 21.5%.
• Broadcast revenue declined 5.2% excluding political in Q3, and management expects the ex-political decline to worsen in Q4, citing political ad crowding and continued weakness among local advertisers. Executives said they see no near-term catalyst for a meaningful recovery.
• Townsquare Interactive revenue fell 8.5% year over year to $17.1 million, and the company no longer expects sequential growth by year-end because sales activity remains weak. Management cited a reduced sales team, while saying margins remain strong at 36% and expressing confidence in a return to sequential growth in 2027.
• Townsquare suspended its dividend to preserve about $14 million in annual cash amid broadcast pressure, Interactive’s delayed recovery, and higher interest costs. Debt was $467.5 million, net leverage stood at 5.43x, and each additional 25-basis-point rate increase would add about $1.2 million in annualized interest expense.

Townsquare Media Trading Down 28.3%

Townsquare Media stock traded down $0.85 during midday trading on Wednesday, hitting $2.16. The stock had a trading volume of 716,249 shares, compared to its average volume of 119,102. The stock has a market cap of $39.32 million, a P/E ratio of -0.75 and a beta of 1.35. Townsquare Media has a 12 month low of $1.90 and a 12 month high of $7.97. The business has a fifty day moving average price of $4.60 and a 200 day moving average price of $5.97.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Zacks Research raised shares of Townsquare Media from a “strong sell” rating to a “hold” rating in a report on Thursday, August 20th. Wall Street Zen lowered Townsquare Media from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Weiss Ratings cut Townsquare Media from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $10.00.

Insider Activity

In other news, CEO Bill Wilson sold 126,744 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $5.61, for a total transaction of $711,033.84. Following the completion of the transaction, the chief executive officer owned 3,000,481 shares in the company, valued at approximately $16,832,698.41. This trade represents a 4.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 30.30% of the company’s stock.

Townsquare Media Company Profile

Townsquare Media, Inc (NYSE: TSQ) is a local media and digital marketing company serving communities across the United States. Its operations are organized around local radio, digital media and events, providing audiences with news, entertainment, information and community-focused programming.

The company owns and operates radio stations in small and mid-sized markets, with programming distributed through broadcast and digital channels. Townsquare also publishes local websites and mobile content, offering advertising and promotional opportunities across audio, display, video, social media and other digital formats.

Through Townsquare Interactive and related services, the company provides digital marketing solutions to small and medium-sized businesses, including website development, search engine marketing, social media support and online reputation management.