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

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

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 Stock Performance

Shares of NYSE:TSQ traded down $0.85 on Wednesday, hitting $2.16. 716,249 shares of the company were exchanged, compared to its average volume of 119,102. The company’s 50 day moving average price is $4.60 and its two-hundred day moving average price is $5.97. Townsquare Media has a one year low of $1.90 and a one year high of $7.97. The firm has a market capitalization of $39.32 million, a price-to-earnings ratio of -0.75 and a beta of 1.35.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on TSQ. Zacks Research upgraded Townsquare Media from a “strong sell” rating to a “hold” rating in a report on Thursday, August 20th. Wall Street Zen downgraded Townsquare Media from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Weiss Ratings downgraded Townsquare Media from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, August 11th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $10.00.

Insider Activity

In other Townsquare Media news, CEO Bill Wilson sold 21,420 shares of Townsquare Media stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $5.54, for a total transaction of $118,666.80. Following the sale, the chief executive officer owned 2,979,061 shares in the company, valued at $16,503,997.94. The trade was a 0.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 30.30% of the company’s stock.

About Townsquare Media

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.