Saga Communications, Inc.

For the quarter ended June 30, 2026, net revenue decreased $1.8 million, or 6.5%, to $26.4 million versus $28.2 million a year ago. Station operating expense increased $1.2 million, or 5.4% in the quarter (3.9% excluding noncash rent expense), while station operating income was $3 million and operating income was $623,000. For the 6 months ended June 30, net revenue decreased $3.2 million, or 6%, to $49.3 million; station operating expense increased $1.3 million, or 2.8% (1.9% excluding the noncash tower rent expense). Gross political revenue was $450,000 in Q2 versus $50,000 last year, and $725,000 for the first half versus $321,000 last year. Management said Q3 revenue is pacing down mid-single digits, digital is up mid- to high single digits, and without political is pacing down mid- to high single digits. For 2026, station operating expense is expected to increase 1.5% to 2.5%, corporate G&A is expected to be $11.8 million to $12 million, and capital expenditures are expected to be $3 million to $3.5 million.

Chris Forgy framed the quarter as part of a longer digital and operational transformation, saying Saga is “remodeling a house while we’re still living in it.” He emphasized that the company’s foundation in radio remains strong, but that the business is being rebuilt around blended digital offerings, more local market sales support, and better execution. He also highlighted recent hires, partnerships with Marketron NXT and Borrell, AI tools, and the University of Florida sales partnership as signs that the strategy is taking shape.

Sam Bush highlighted the financial pressure from lower revenue and added transformation-related expenses, but noted that costs were being managed. He cited the quarter’s $26.4 million of net revenue, $3 million of station operating income, $623,000 of operating income, and a 13% decline in corporate G&A for the quarter, with full-year corporate G&A expected at $11.8 million to $12 million versus $12.3 million last year. He also detailed liquidity and capital allocation: $27.8 million in cash and short-term investments at June 30, $22.9 million as of August 10 after repaying the $5 million revolver, a $0.25 quarterly dividend totaling about $1.6 million, and 2026 capex expected at $3 million to $3.5 million.

In Q&A, analysts focused on pacing, political revenue, and whether Saga had the right digital product set. Management said Q3 pacing improved through the quarter, political bookings look likely to rise as elections approach, and the company already has strong search and display capabilities while continuing to adapt offerings as client needs change. Forgy said most major digital investments are already in place and that Saga will add or shift products as the market evolves.