Townsquare Media (NYSE:TSQ – Get Free Report) posted its earnings results on Thursday. The company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.19 by $0.02, FiscalAI reports. The company had revenue of $114.00 million during the quarter, compared to analysts’ expectations of $114.74 million. Townsquare Media had a negative net margin of 11.82% and a negative return on equity of 7.18%.
Here are the key takeaways from Townsquare Media’s conference call:
- Digital advertising accelerated, with Q2 revenue up 11% year over year versus 6.8% in Q1; programmatic revenue rose 27%. Management expects Q3 digital advertising growth to exceed Q2’s rate.
- The media partnership business expanded to 16 partners and 115 total markets, with 2026 revenue expected to more than double from approximately $6 million in 2025. Townsquare also signed its first CRM software licensing deal and continues to target $50 million of partnership revenue at a 20% margin within four years.
- Townsquare Interactive delivered record segment profit margins of 37.6%, supported by cost savings, automation, and AI. Revenue stabilized at roughly $5.7 million per month in Q2, with sequential growth expected by Q3 or year-end as the sales force is rebuilt.
- Q2 revenue was approximately flat at $115.4 million and Adjusted EBITDA declined 6.2% to $24.8 million, while management maintained full-year guidance of $425 million-$431 million in revenue and $87 million-$90 million of Adjusted EBITDA.
- The company recorded a $41.8 million net loss, driven largely by a $26.6 million non-cash FCC license impairment and an $18 million tax expense. Townsquare ended the quarter with $462 million of debt and net leverage of 5.44 times, although it expects leverage to decline in the second half.
Townsquare Media Trading Up 2.8%
Shares of NYSE:TSQ traded up $0.18 on Friday, hitting $6.51. 93,957 shares of the company were exchanged, compared to its average volume of 70,074. The firm has a market capitalization of $111.25 million, a P/E ratio of -2.26, a price-to-earnings-growth ratio of 2.51 and a beta of 1.22. Townsquare Media has a 1-year low of $4.30 and a 1-year high of $7.97. The stock’s 50 day moving average price is $6.54 and its 200 day moving average price is $6.48.
Townsquare Media Dividend Announcement
Insiders Place Their Bets
In other news, COO Erik Hellum sold 35,000 shares of the stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $6.44, for a total value of $225,400.00. Following the transaction, the chief operating officer directly owned 914,542 shares of the company’s stock, valued at approximately $5,889,650.48. This represents a 3.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Robert L. Worshek sold 34,299 shares of the firm’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $6.62, for a total value of $227,059.38. Following the completion of the transaction, the chief accounting officer owned 142,722 shares of the company’s stock, valued at approximately $944,819.64. The trade was a 19.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 30.30% of the company’s stock.
Hedge Funds Weigh In On Townsquare Media
Several hedge funds and other institutional investors have recently bought and sold shares of TSQ. Goldman Sachs Group Inc. lifted its stake in Townsquare Media by 52.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 271,693 shares of the company’s stock valued at $2,212,000 after acquiring an additional 93,753 shares during the period. Rhumbline Advisers raised its holdings in shares of Townsquare Media by 23.2% during the first quarter. Rhumbline Advisers now owns 18,036 shares of the company’s stock worth $147,000 after purchasing an additional 3,393 shares during the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in shares of Townsquare Media during the second quarter worth $240,000. Marshall Wace LLP lifted its position in Townsquare Media by 63.1% during the second quarter. Marshall Wace LLP now owns 82,107 shares of the company’s stock valued at $649,000 after purchasing an additional 31,773 shares during the period. Finally, Gabelli Funds LLC boosted its holdings in Townsquare Media by 4.9% in the second quarter. Gabelli Funds LLC now owns 57,500 shares of the company’s stock valued at $455,000 after purchasing an additional 2,700 shares during the last quarter. Institutional investors and hedge funds own 71.69% of the company’s stock.
Analyst Ratings Changes
TSQ has been the topic of a number of recent analyst reports. Wall Street Zen raised Townsquare Media from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Weiss Ratings upgraded Townsquare Media from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 13th. Zacks Research downgraded Townsquare Media from a “hold” rating to a “strong sell” rating in a research note on Monday, July 13th. Finally, Barrington Research reiterated an “outperform” rating and issued a $10.00 price target on shares of Townsquare Media in a research note on Monday, May 11th. One research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average target price of $10.00.
Get Our Latest Research Report on TSQ
Townsquare Media Company Profile
Townsquare Media, Inc (NYSE: TSQ) is a diversified media and entertainment company that operates primarily in small and mid-sized markets across the United States. The company owns and manages over 300 local radio stations that deliver music, news, sports and community programming to listeners. In addition to its core broadcasting business, Townsquare Media provides digital marketing solutions and advertising services through its proprietary platforms and specialized agencies, helping local businesses connect with consumers via targeted online campaigns.
Founded in 2010 and headquartered in Purchase, New York, Townsquare Media has grown its footprint through strategic acquisitions and the development of a broad digital portfolio.
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