Townsquare Sees Results From a Digital-First Strategy

Townsquare Media, Inc. Monday reported its Q2 2025 financial results, highlighting a robust performance driven by its digital-first strategy despite challenges in traditional broadcast revenue.

Key points from the earnings report:

• Net Income: Townsquare reported a net income of $2.0 million in Q2 2025, a significant improvement of $50.9 million compared to a $48.9 million loss in Q2 2024. This turnaround was driven by lower impairment charges, gains on asset sales, and reduced stock-based compensation.
• Earnings Per Share (EPS): Adjusted for non-recurring items and asset impairment costs, EPS was $0.22, slightly above analyst expectations of $0.21. Reported EPS was $0.09.
• Total Net Revenue: Revenue reached $115.4 million, down 2.3% year-over-year (1.6% excluding political revenue), meeting the company’s guidance range of $114–$116 million. This decline was attributed to revenue pressures from April’s Liberation Day.
• Adjusted EBITDA: Increased by 0.7% to $26.4 million, with a 3.8% rise excluding political revenue, surpassing guidance. This reflects effective cost management.
• Digital Revenue: Digital operations were a key growth driver, accounting for 55% of total net revenue and 56% of segment profit in the first half of 2025. Total digital net revenue grew 4.1% year-over-year, with:Digital Advertising (Townsquare Ignite): Up 4.8% to approximately $36.7 million.
• Subscription Digital Marketing Solutions (Townsquare Interactive): Up 2.8% to approximately $19.0 million.
• Broadcast Advertising: Revenue was down 0.2% (1.9% excluding political revenue), reflecting ongoing challenges in traditional media, though national broadcast ad declines eased, and political revenue contributed $1.5 million.Strategic and Operational Highlights

Bill Wilson

CEO Bill Wilson emphasized digital as the company’s “growth engine,” with digital revenue now significantly outpacing industry averages (52–57% of total revenue vs. ~25% for peers). Townsquare’s focus on markets outside the top 50 U.S. cities, combined with its proprietary digital programmatic advertising platform (Townsquare Ignite) and subscription services (Townsquare Interactive), drove growth.

The Board approved a quarterly cash dividend of $0.20 per share, payable on November 3, 2025, to shareholders of record as of October 27, 2025, yielding approximately 12% based on recent stock prices.

Segments

• Digital Advertising: Grew 4.8% year-over-year, with a 27% profit margin, driven by programmatic advertising strength.
• Subscription Digital Marketing Solutions: Saw a 2.8% revenue increase and a 22.2% profit jump, reflecting subscriber growth and a new SaaS-based business management platform.
• Broadcast Advertising: Profit declined 17.8% to $8.4 million due to market challenges.