Townsquare Media’s Q3 2025 financial results revealed a 7.4% drop in net revenue, down to $106.8 million, compared to $115.3 million in the same quarter of 2024.
Despite the overall decline, the company managed to meet its financial guidance, which projected a reduction in revenue and EBITDA.
Broadcast advertising, which has been impacted by reduced client advertising spends and political revenue, saw a significant decrease of 13.8%. Digital advertising, meanwhile, experienced a smaller decline of 1.5%.
The third quarter net loss amounted to $5.5 million, a sharp contrast to the $11.3 million net income recorded during the same period last year. Adjusted EBITDA also fell by 13.5% to $22.0 million.
Excluding political revenue, the drop in EBITDA was less severe, at 2.0%. The digital segment, including digital advertising and subscription digital marketing solutions, showed mixed results.
The total digital revenue dropped 1.8%, but Townsquare Interactive, a subscription-based service, saw a growth of 21.1% in profit, with an additional $1.1 million in Q3 profit.
On the positive side, Townsquare reported a 2.1% year-over-year increase in digital net revenue for the first nine months of 2025, representing 55% of the company’s total revenue.
The company also reduced its outstanding debt by $17 million following a refinancing effort earlier in the year. Additionally, its cash flow remained strong due to tight expense management, enabling the company to continue paying a high dividend yield.
For the full year, the company expects its total net revenue to fall between $426 million and $430 million, with Adjusted EBITDA ranging from $88 million to $90 million. The board also approved a quarterly cash dividend of $0.20 per share, payable in February 2026, representing a yield of approximately 13% based on the recent stock price.
Financial Results:
Net revenue: $106.8 million, down 7.4% YoY.
Net loss: $5.5 million, compared to net income of $11.3 million last year.
Adjusted EBITDA: $22.0 million, down 13.5% YoY.
Digital revenue: Down 1.8% overall, with Townsquare Interactive showing a profit increase of 21.1%.
Debt and Dividend:
Reduced outstanding debt by $17 million in 2025, including $6 million of Term Loans repurchased at a discount.
Board approved a quarterly cash dividend of $0.20 per share, payable February 2026.
Outlook for Q4 and Full Year 2025:
Q4 revenue is expected between $105 million and $109 million, with Adjusted EBITDA between $21.5 million and $23.5 million.
Full-year revenue is expected to be between $426 million and $430 million.
Townsquare Media’s Strategic Focus:
Townsquare has been focusing heavily on its “Digital First Local Media” strategy, particularly in digital advertising, where it saw a modest decline of 1.5% in Q3. The company has emphasized expense management and debt reduction as key components of its strategy, which have allowed it to generate strong operational cash flow.
Townsquare’s digital services like Townsquare Interactive are positioned as growth drivers, contributing to the company’s ongoing focus on digital marketing solutions and programmatic advertising, despite challenges in online audience trends.
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