Saga Communications reported a net loss for the fourth quarter and full year 2025, primarily due to a $20.4 million non-cash impairment charge on goodwill and FCC license values stemming from lower-than-expected radio advertising growth and revised industry projections.
For the quarter ended Dec. 31, 2025, the Grosse Pointe Farms, Mich.-based radio broadcaster posted net revenue of $26.5 million, down 9.3% from $29.2 million in Q4 2024. Digital revenue rose 25.8% to $4.3 million from $3.5 million. The company recorded an operating loss of $9.5 million, compared with operating income of $1.0 million a year earlier. Net loss totaled $6.9 million, or $1.07 per diluted share, versus net income of $1.3 million, or $0.20 per share, in the prior-year period.
Excluding the impairment, operating income would have been $10.9 million, with net income of $8.2 million, or $1.27 per share. Station operating income (a non-GAAP measure) fell 38.7% to $3.6 million, while station operating expenses decreased 1.9% to $22.9 million. Capital expenditures were $400,000, down from $600,000.
For the full year 2025, net revenue declined 5.1% to $107.1 million from $112.9 million in 2024. Digital revenue grew 19.1% to $16.9 million. Station operating income dropped 27.3% to $15.3 million, with expenses flat at $91.8 million.
The company posted an operating loss of $11.0 million, compared with operating income of $2.4 million in 2024. Net loss was $7.9 million, or $1.22 per share, versus net income of $3.5 million, or $0.55 per share. Results also reflected a retroactive $2.2 million industry-wide settlement with ASCAP and BMI added to operating expenses.
Excluding the impairment, full-year operating income would have been $9.4 million, with net income of $7.2 million, or $1.11 per share.
Saga sold 24 telecommunications towers in 2025, generating $15.1 million in proceeds ($9.8 million net cash after expenses) to monetize underperforming assets. The company continued shareholder returns, paying $0.25 quarterly dividends and repurchasing 219,326 Class A shares for $2.5 million. It ended the year with $31.8 million in cash and short-term investments and anticipates $3.5 million to $4.5 million in 2026 capital expenditures.