Townsquare Media (NYSE:TSQ) Releases Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• Townsquare Media reported quarterly EPS of -$0.16, missing analyst expectations by $0.04, while revenue of $96.1 million also came in slightly below estimates.
• Management said the company is increasingly a digital-first business, with digital accounting for 59% of net revenue and 63% of segment profit, and it reaffirmed full-year revenue and adjusted EBITDA guidance.
• Key growth is coming from programmatic advertising, which rose about 21% year over year in Q1, while the company also faces pressure from a declining broadcast segment and a heavy debt load of $457 million.

Townsquare Media (NYSE:TSQ - Get Free Report) announced its earnings results on Monday. The company reported ($0.16) earnings per share for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.04), FiscalAI reports. Townsquare Media had a negative return on equity of 13.74% and a negative net margin of 2.58%.The business had revenue of $96.10 million during the quarter, compared to analysts' expectations of $96.46 million.

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

• Company is now a digital-first business with digital generating an all-time high of 59% of net revenue and 63% of segment profit in Q1, and management reaffirmed full-year revenue and adjusted EBITDA guidance while citing stronger digital pacing into Q2 and H2 2026.
• Programmatic advertising is the primary growth engine—Q1 programmatic revenue rose ~21% YoY, Q2 is pacing >20% YoY, the media-partnership channel is scaling (13 partners, on track to ~double 2025 media-partnership revenue) and management targets ~$50M revenue (at ~20% margin) from this division within four years.
• Townsquare Interactive revenue declined ~8% YoY in Q1 but improved operating leverage drove segment margins to 33.7%; management is rebuilding the sales force and expects sequential revenue improvement with potential month-over-month growth by Q3.
• Broadcast remains a drag with Q1 broadcast revenue down ~6.6% (‑6.9% ex-political) and management acknowledging radio is not a growth driver despite claiming share gains and plans to manage expenses to protect margins.
• Q1 net revenue was $96.8M and adjusted EBITDA $16.4M (both within guidance), the board approved a $0.20 quarterly dividend, but the balance sheet shows $457M of debt (net leverage ~5.27x) and only $2M cash, which management plans to address via free cash flow and targeted debt repayments.

Townsquare Media Stock Performance

TSQ stock traded up $0.75 during midday trading on Monday, reaching $7.30. 127,428 shares of the company's stock traded hands, compared to its average volume of 164,450. The firm has a market capitalization of $124.85 million, a PE ratio of -10.28, a price-to-earnings-growth ratio of 1.42 and a beta of 1.18. Townsquare Media has a 52 week low of $4.30 and a 52 week high of $9.31. The company has a 50-day moving average price of $6.37 and a two-hundred day moving average price of $5.97.

Townsquare Media Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, May 4th. Shareholders of record on Monday, April 27th were issued a dividend of $0.20 per share. The ex-dividend date of this dividend was Monday, April 27th. This represents a $0.80 dividend on an annualized basis and a yield of 11.0%. Townsquare Media's payout ratio is presently -112.68%.

Insider Buying and Selling at Townsquare Media

In other news, EVP Scott Schatz sold 28,980 shares of the company's stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $5.08, for a total value of $147,218.40. Following the transaction, the executive vice president owned 123,977 shares of the company's stock, valued at approximately $629,803.16. This represents a 18.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 30.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. increased its holdings in shares of Townsquare Media by 4.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 48,152 shares of the company's stock worth $248,000 after purchasing an additional 2,049 shares during the period. Marshall Wace LLP increased its stake in Townsquare Media by 6.3% in the fourth quarter. Marshall Wace LLP now owns 37,953 shares of the company's stock valued at $195,000 after acquiring an additional 2,256 shares during the last quarter. Gabelli Funds LLC increased its stake in Townsquare Media by 4.9% in the second quarter. Gabelli Funds LLC now owns 57,500 shares of the company's stock valued at $455,000 after acquiring an additional 2,700 shares during the last quarter. Rhumbline Advisers increased its stake in Townsquare Media by 23.2% in the first quarter. Rhumbline Advisers now owns 18,036 shares of the company's stock valued at $147,000 after acquiring an additional 3,393 shares during the last quarter. Finally, Raymond James Financial Inc. bought a new position in Townsquare Media in the second quarter valued at $33,000. Institutional investors own 71.69% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Weiss Ratings cut shares of Townsquare Media from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, April 29th. Barrington Research lowered their price target on shares of Townsquare Media from $12.00 to $10.00 and set an "outperform" rating on the stock in a report on Tuesday, March 17th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, Townsquare Media has an average rating of "Hold" and an average target price of $10.00.

Townsquare Media Company Profile

Townsquare Media, Inc NYSE: TSQ is a diversified media and entertainment company that operates primarily in small and mid-sized markets across the United States. The company owns and manages over 300 local radio stations that deliver music, news, sports and community programming to listeners. In addition to its core broadcasting business, Townsquare Media provides digital marketing solutions and advertising services through its proprietary platforms and specialized agencies, helping local businesses connect with consumers via targeted online campaigns.

Founded in 2010 and headquartered in Purchase, New York, Townsquare Media has grown its footprint through strategic acquisitions and the development of a broad digital portfolio.

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