Saga Communications reported second-quarter 2026 net revenue of $26.4 million, down 6.5% from $28.2 million a year earlier, while station operating income fell 50.6% to $3.0 million.
Station operating expenses rose 5.4% to $23.4 million (3.9% excluding non-cash rent expense).
Operating income declined to $623,000 from $1.4 million, and net income was $960,000 compared with $1.1 million in the second quarter of 2025. Diluted earnings per share were $0.15.For the first six months of 2026, net revenue fell 6.0% to $49.3 million from $52.4 million. Station operating income dropped 53.7% to $3.8 million. The company posted an operating loss of $2.6 million and a net loss of $1.4 million, or $0.23 per diluted share.Results include the impact of the October 2025 sale of 24 telecommunications towers and related assets at 22 sites for approximately $10.7 million.
Saga retained long-term access to the assets and is recording non-cash rent expense and non-cash interest income from the transaction. In the second quarter, it recorded $352,000 in non-cash rent expense and $381,000 in non-cash interest income.
The company paid a quarterly dividend of $0.25 per share on June 12, totaling about $1.6 million. Saga has returned more than $145 million in dividends to shareholders since its first special dividend in 2012 and plans to continue regular quarterly cash dividends.
Cash and short-term investments stood at $27.8 million as of June 30 and $22.9 million as of August 10, with the decline mainly due to repayment of the $5 million outstanding under its revolving credit facility.
Capital expenditures for 2026 are expected to be approximately $3 million to $3.5 million.