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

Townsquare Media (NYSE:TSQ) issued its quarterly earnings data on Wednesday. The company reported $0.12 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.01, FiscalAI reports. Townsquare Media had a negative return on equity of 7.87% and a negative net margin of 11.30%. The business had revenue of $110.95 million for the quarter, compared to the consensus estimate 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 Price Performance

Shares of NYSE TSQ traded down $0.23 during trading hours on Friday, hitting $1.85. 104,120 shares of the company’s stock were exchanged, compared to its average volume of 122,030. The company’s 50-day moving average price is $4.45 and its 200-day moving average price is $5.93. Townsquare Media has a 1-year low of $1.78 and a 1-year high of $7.97. The stock has a market capitalization of $33.71 million, a price-to-earnings ratio of -0.66 and a beta of 1.35.

Insider Buying and Selling

In other news, CEO Bill Wilson sold 126,744 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was 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 directly owned 3,000,481 shares in the company, valued at $16,832,698.41. The trade was a 4.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 30.30% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

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

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.