Urban One, Inc.

Consolidated net revenue was approximately $85.8 million, down 6.4% year over year. Adjusted EBITDA was $11.7 million, down 16%, and consolidated broadcast and digital operating income was approximately $22.2 million, down 13.7%. Net loss was approximately $7 million, or $1.58 per share, versus a net loss of $77.9 million, or $17.41 per share, in Q2 2025. Radio net revenue was $35.3 million, down 3.9%; Reach Media revenue was $4.8 million, down 10.6%; Digital revenue was $9.4 million, down 8.4%; and Cable Television revenue was $37.1 million, down 7.4%. Operating expenses excluding depreciation, amortization, stock-based compensation and impairment charges were about $75 million versus $78.1 million a year ago. Management said it now expects full-year adjusted EBITDA in the mid-$50 millions, down from prior guidance of $60 million. Management also said 3Q radio is expected to be down 2.8%, with political and improved market performance helping, and that free cash flow expectations are likely lower than the roughly $40 million previously discussed.

Alfred Liggins said the first half was still a tough period, but noted sequential improvement versus Q1 and expects conditions to improve in Q3 as political advertising begins to matter more. He emphasized competitive races in markets where Urban One has exposure, including Ohio, Texas, Georgia, North Carolina, and Indiana, and said Dallas should help because of the company’s strong position with African-American audiences and Democrats. He also framed the company as willing to expand beyond its core demographic in radio and as open to disciplined acquisitions, while cautioning that further consolidation must be accretive and deleveraging.

Peter Thompson walked through the quarter’s decline in revenue and profitability, highlighting that radio local ads underperformed while national ads were closer to market, and that digital weakness was tied to reduced DEI-focused spending and macro caution. He cited $13.9 million of goodwill impairment and about $300,000 of long-lived asset impairment in Reach Media, along with $6.2 million of depreciation and amortization and about $500,000 of cash taxes net of refunds. He also said the company repurchased $23.5 million of 2031 second lien notes at 42% of par, bringing long-term debt to $303.2 million, while unrestricted cash was $15.4 million and net debt was $307.9 million, for leverage of 6.66x. He noted an additional $10 million draw on the asset-backed facility during the quarter, plus a later $7 million draw and a $5 million repayment this week, leaving $22 million drawn and $24.1 million of incremental borrowing capacity.

Analysts focused heavily on political advertising, asking how much upside it could provide and whether Radio, Digital, and TV would all benefit. Management said political is hard to quantify this far in advance, but gave Radio political budget at about $11.1 million and said TV typically only sees meaningful political in a presidential cycle, while Digital could get roughly $1 million or a couple of million because it can be geo-targeted. Questions also covered the softer-than-expected ad environment, especially local radio, and management said weakness was broad-based locally and that TV was being hit by more CTV inventory, weaker scatter, and pressure on linear pricing. Another analyst pressed on goodwill and intangibles write-downs; management confirmed the roughly $14.1 million noncash charge was all in Reach Media and said future large impairments should be less likely because FCC licenses are now amortized and Reach goodwill has already been written off.