Townsquare Media, Inc.

Second-quarter net revenue was $115.4 million, approximately flat year over year and above the guidance midpoint of $114 million to $116 million. Second-quarter adjusted EBITDA was $24.8 million, down 6.2% year over year and above the midpoint of the $24 million to $25 million range. Digital Advertising revenue grew 11% year over year, programmatic revenue rose 27%, Townsquare Interactive revenue declined 8.5% to $17.2 million, and Townsquare Interactive segment profit margin reached 37.6%. Broadcast revenue fell 5.5% including political and 7.2% excluding political, while adjusted net income per share was $0.21 versus $0.22 last year. For Q3, the company expects net revenue of $108 million to $110 million and adjusted EBITDA of $22.5 million to $23.5 million. For full-year 2026, guidance was narrowed to net revenue of $425 million to $431 million and adjusted EBITDA of $87 million to $90 million, including about $8 million of political revenue.

Bill Wilson framed the quarter as validation of Townsquare’s digital-first transformation, saying the business now gets the majority of both profit and revenue from digital. He highlighted acceleration in Digital Advertising, strong momentum in media partnerships, and record profitability at Townsquare Interactive, while describing broadcast as a cash-generating strategic asset. His tone was confident and upbeat, with repeated emphasis that the company’s investments in technology, automation, and AI are improving both growth and efficiency.

Stuart Rosenstein said the quarter met both revenue and adjusted EBITDA guidance, with $115.4 million of net revenue and $24.8 million of adjusted EBITDA. He noted Townsquare Interactive’s Q2 revenue of $17.2 million, its 37.6% segment profit margin, and Broadcast declines of 5.5% total and 7.2% ex political, plus adjusted net income per share of $0.21 and a GAAP net loss of $41.8 million driven largely by a $26.6 million non-cash FCC license impairment and an $18 million tax expense. On liquidity and capital allocation, he said first-half operating cash flow was $7.8 million, debt outstanding was $462 million, net leverage was 5.44x, and the company will keep investing in digital while also paying down debt and supporting its dividend. The next quarterly dividend is $0.20 per share, and full-year guidance was narrowed to $425 million to $431 million of revenue and $87 million to $90 million of adjusted EBITDA.

Analysts focused on the impact of AI search on traffic, the scaling of media partnerships, the potential for software licensing to partners, subscriber trends at Interactive, SiriusXM’s local ambitions, and political advertising levels. Management said audience had stabilized sequentially in 2026, with more traffic coming from direct sources and social, and said Q3 Digital Advertising growth should be stronger than Q2 as the company laps audience declines from last year. On media partnerships, Bill Wilson said the business is still early, has 16 partners across 115 markets, and is constrained mainly by how quickly Townsquare can add internal sales and support talent; he also said software licensing could become a meaningful incremental opportunity. On Interactive, management said churn is back to historically low levels, revenue stabilized at about $5.7 million per month in Q2, and sequential revenue growth is expected by year-end and possibly as early as Q3.