Townsquare Media Reports Higher Q3 Revenue

Townsquare Media Inc. said Wednesday that third-quarter net revenue rose 3.9% to $110.9 million, beating its guidance, while the company suspended its quarterly dividend to conserve cash.

Adjusted EBITDA increased 2.7% to $22.6 million, within guidance. The net loss narrowed by $1.5 million to $4.0 million, or 23 cents per diluted share. Excluding political advertising, net revenue rose 1.4% and adjusted EBITDA fell 7.9%.

Chief Executive Bill Wilson attributed the results primarily to growth in the company’s digital advertising business and political advertising that is running ahead of expectations. Digital advertising net revenue climbed 12.7%, the third consecutive quarter of acceleration, led by a 22.5% increase in programmatic revenue.

Townsquare’s Media Partnerships business now works with 18 partners and reaches 122 U.S. markets. The company expects that unit’s revenue to more than double in 2026. Total digital net revenue rose 6.0%.

Bill Wilson

At the same time, Wilson noted pressure on traditional media. Broadcast advertising net revenue rose 0.4% overall but fell 5.2% excluding political. Local advertisers are facing higher operating costs and interest rates and are scrutinizing marketing spending, particularly on traditional platforms. The company expects broadcast declines to deepen in the fourth quarter as political advertising crowds out other inventory.

Townsquare Interactive, the subscription digital marketing solutions business, posted segment profit margins of 36% in the quarter, but net revenue fell 8.5%. Wilson said lower-than-expected sales velocity means the unit will not return to sequential revenue growth in the fourth quarter as previously projected. Total digital segment profit declined 1.1%.

Wilson said higher interest rates on the company’s floating-rate debt also weighed on results. The board decided to suspend the quarterly dividend, which Wilson said the market is not ascribing value to. The move is expected to preserve about $14 million in cash annually for general corporate liquidity and potential higher-return opportunities.