Townsquare Media, Inc. SEC 10-Q Report

Townsquare Media, Inc., a leading media, entertainment, and digital marketing solutions company, has released its Form 10-Q report for the first quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both challenges and growth opportunities in various segments of its business.

Financial Highlights

• Net Revenue: $98.7 million, a decrease of 1.0% compared to the same period in 2024, primarily due to a decrease in Broadcast Advertising revenue.
• Operating Income: $7.1 million, an increase of 7.4% from the previous year, driven by a decrease in non-cash impairment charges and direct operating expenses.
• Net (Loss) Income: $(1.5) million, compared to a net income of $1.6 million in the same period of 2024, impacted by increased interest expense and a loss on extinguishment of debt.
• Basic (Loss) Income Per Share: $(0.12), compared to $0.07 in the same period of 2024, reflecting the net loss incurred during the period.
• Diluted (Loss) Income Per Share: $(0.12), compared to $0.06 in the same period of 2024, consistent with the basic loss per share due to the anti-dilutive effect of potential common shares.

Business Highlights

• Digital Advertising Segment Performance: The Digital Advertising segment, marketed as Townsquare Ignite, reported a net revenue increase of $2.6 million, or 7.6%, for the three months ended March 31, 2025, compared to the same period in 2024. This growth was driven by increased purchases of digital advertising by clients.
• Subscription Digital Marketing Solutions Segment Performance: The Subscription Digital Marketing Solutions segment, known as Townsquare Interactive, saw a net revenue increase of $0.8 million, or 4.2%, for the three months ended March 31, 2025. This was attributed to the addition of new subscribers and increased demand for digital marketing solutions.
• Broadcast Advertising Segment Performance: The Broadcast Advertising segment experienced a net revenue decrease of $4.1 million, or 9.1%, for the three months ended March 31, 2025. This decline was primarily due to reduced advertising purchases by clients.
• Operational Cost Management: Direct operating expenses decreased by $1.1 million, or 1.4%, for the three months ended March 31, 2025, compared to the same period in 2024. This was largely due to lower compensation and music license fees in the Broadcast Advertising segment.
• Segment Profit Analysis: Segment profit for the Subscription Digital Marketing Solutions increased by $1.1 million, or 22.2%, due to higher revenue and lower compensation costs. The Digital Advertising segment profit increased by $0.8 million, or 12.0%, driven by revenue growth, while the Broadcast Advertising segment profit decreased by $1.8 million, or 17.8%, due to lower net revenue.
• Future Outlook: The company anticipates continued growth in its Digital Advertising and Subscription Digital Marketing Solutions segments, while addressing challenges in the Broadcast Advertising segment. The company is focused on leveraging its diversified product offerings to mitigate risks associated with advertising revenue dependency.

SEC Filing: Townsquare Media, Inc. [ TSQ ] - 10-Q - May. 08, 2025