Townsquare Media issued its Q1 2026 earnings report this morning noting a year-to-year net revenue decrease of 1.9% , adjusted EBITDA down -9.7% year-over-year, while net income improved by $4.5 million.
Townsquare’s broadcast net revenue decreased by $2.7 million to $38 million a drop of 6.6%, and 6.9% excluding political due to decreases in the purchases of advertising. Its digital advertising net revenue increased 6.8% to $39.2 million, while profit was down 5.0%. The Townsquare Interactive subscription digital marketing solutions net revenue decreased 7.9%, while its profit was down 4.5% due to reduced sales velocity as a result of lower headcount. The company reported a net income of $3 million up from a loss of $1.5 million in Q1 2025 due to a $12.6 million increase in income tax benefit due to a reduction in the valuation for interest expense carryforwards, a $1.5 million loss on the extinguishment of debt recognized in the first quarter of 2025 and a $1.3 million decrease in transaction and business realignment costs offset by $8.6 million of non-cash impairment charges, the $1.9 million decrease in net revenue and a $1.1 million increase in interest expense.
Townsquare Media CEO Bill Wilson said, “I am pleased to share that Townsquare’s first quarter results met our previously issued net revenue and Adjusted EBITDA guidance, driven by the strength of our differentiated Digital Advertising platform. Additionally, we are reaffirming our 2026 full year guidance for both net revenue and Adjusted EBITDA. In the first quarter, net revenue decreased -1.9% year-over-year, Adjusted EBITDA decreased -9.7% year-over-year, and net income improved $4.5 million year-over-year. With our digital growth engine driving our performance, each year our business mix continues to shift to a greater percentage of both digital revenue and profit. In the first quarter, 59% of our total revenue and 63% of our total Segment Profit was generated from our differentiated digital solutions – each our highest percentages ever. Our Digital Advertising revenue returned to high-single digit revenue growth in Q1, which we believe will continue throughout the year due to the consistent performance of our digital programmatic offering and the success of our Media Partnership division; the strong revenue growth of the direct sales of our local owned and operated digital properties; and the stabilization of our online audience and remnant revenue. I would also like to highlight Townsquare Interactive’s strong profit performance, with Segment Profit margin of 34% in Q1, representing year-over-year margin expansion.”
Wilson continued, “Looking forward, due to our confidence in our Digital First Local Media strategy, our focus on markets outside of the Top 50 U.S. cities, and the strong cash generation characteristics of our business model, we remain assured in our ability to build shareholder value for our investors through long-term net revenue, Adjusted EBITDA and cash flow growth, net leverage reduction, and future dividend payments.”
Townsquare will issue a quarterly cash dividend of 20 cents per share on August 3.
