Salem Reports Growing Net Loss

Salem Media Group reported a deepened net loss of $7.1 million for Q1 2025, up from $5.2 million in Q1 2024, driven by declining revenues and restructuring costs.

Total revenue dropped 11.8% to $51.7 million from $58.6 million, with net broadcast revenue falling 13.6% to $39.8 million. Digital media revenue slightly declined to $10.2 million from $10.7 million, and publishing revenue decreased to $1.6 million from $1.8 million.

The company incurred $3.7 million in restructuring charges, largely from employee terminations and contract settlements tied to the $80 million sale of its seven Contemporary Christian Music radio stations, finalized April 4, 2025. A $72 million promissory note from Q4 2024 was repaid at closing.

Salem noted that these cost-cutting measures should enhance future operational efficiency.

A $2.2 million income tax benefit partially offset the $9.3 million operating loss. Asset sales, including a $0.8 million gain from a Nashville tower easement and a $0.6 million gain from a Greenville, SC office building, contributed $1.9 million in net gains.

Operating cash flow was negative $2.8 million, worsening from a $1 million outflow in Q1 2024. Capital spending and a $1 million film company investment led to minor net cash usage in investing activities.

As of March 31, 2025, Salem had no cash on hand, with total debt at $104.7 million, including a $24.3 million unsecured note converted to Series A Preferred Stock post-sale. Total assets were $422.7 million, with stockholders’ equity at $181.8 million, down from $189 million. Outstanding shares included 24.01 million Class A and 5.55 million Class B common stock.