Townsquare Media Q1 revenue falls 1.9% as digital gains offset declines

Townsquare Media, Inc. Class A

Townsquare Media, Inc. Class A

TSQ

0.00


Overview

  • U.S. digital and broadcast media firm's Q1 revenue fell 1.9% yr/yr as digital gains offset declines

  • Adjusted EPS turned positive yr/yr; net income improved on higher tax benefit and lower costs

  • Company maintained quarterly dividend at $0.20 per share


Outlook

  • Company sees Q2 net revenue between $114 mln and $116 mln

  • Company expects Q2 Adjusted EBITDA between $24 mln and $25 mln

  • Company reaffirms 2026 net revenue guidance of $420 mln to $440 mln and Adjusted EBITDA of $87 mln to $93 mln


Result Drivers

  • DIGITAL ADVERTISING GROWTH - Digital Advertising revenue rose 6.8% yr/yr, driven by increased client purchases and the performance of digital programmatic offerings and local digital properties

  • SUBSCRIPTION DIGITAL MARKETING DECLINE - Subscription Digital Marketing Solutions revenue fell 7.9% yr/yr, attributed to reduced sales velocity from lower headcount

  • BROADCAST ADVERTISING WEAKNESS - Broadcast Advertising revenue declined 6.6% yr/yr as clients reduced advertising purchases


Company press release: ID:nGNX5V7478


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Slight Miss*

$96.78 mln

$97.19 mln (2 Analysts)

Q1 Adjusted EPS

Beat

$0.16

-$0.14 (2 Analysts)

Q1 EPS

$0.16

Q1 Net Income

$2.96 mln

Q1 Operating Income

-$1.27 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the advertising & marketing peer group is "buy."

  • Wall Street's median 12-month price target for Townsquare Media Inc is $12.50, about 90.8% above its May 8 closing price of $6.55

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago


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