Townsquare Media reported higher revenue and adjusted EBITDA in the third quarter. However, the company continues to face challenges in its broadcast and interactive businesses.
What We Know: Townsquare Media generated $110.9 million in net revenue during the third quarter, a 3.9% increase year over year. Adjusted EBITDA also improved, climbing 2.7% to $22.6 million. Meanwhile, digital advertising continued to provide growth, helping offset ongoing pressure across traditional media. Despite those gains, the company announced it would suspend its quarterly dividend. The decision comes as higher interest rates increase expenses tied to its floating-rate debt.
What The Numbers Show:
| Segment | Revenue | % Change |
|---|---|---|
| Net Revenue | $110.9 million | 🟢 +3.9% |
| Adjusted EBITDA | $22.6 million | 🟢 +2.7% |
| Total Digital Net Revenue | $62.3 million | 🟢 +6.0% |
| Digital Advertising Net Revenue | $45.3 million | 🟢 +12.7% |
| Broadcast Advertising Net Revenue | $47.2 million | 🟢 +0.4% |
What They Said: “We want to be candid about the challenges we face. Our local clients continue to feel pressure from higher operating costs and interest rates, and they are scrutinizing every marketing dollar, particularly those spent on traditional media. Excluding political, Broadcast Advertising net revenue declined 5.2% in the third quarter. We expect those declines to deepen in the fourth quarter, partly as political advertising crowds out other inventory.
“In addition, while Townsquare Interactive’s profit remains strong, lower-than-anticipated sales velocity means it will not return to sequential revenue growth in Q4 2026 as we had projected. Given these challenges, and the meaningful direct impact of higher interest rates on our floating-rate debt, we have made the decision, together with our Board, to suspend our quarterly dividend. We do not believe that the market is ascribing value to the dividend and we believe this cash can generate greater value for shareholders elsewhere.” -Townsquare Media CEO Bill Wilson
What It Means: Townsquare Media’s third-quarter results highlight the growing importance of its digital operations. Digital advertising revenue increased 12.7%, while broadcast advertising grew just 0.4%. Furthermore, Wilson expects traditional advertising declines to deepen during the fourth quarter. The dividend suspension also signals that management wants to preserve cash amid financial pressures. Although digital growth remains a positive, the company faces continued challenges heading into 2027.
Barrett Media produces daily content on the music, news, and sports media industries. Sign up for our newsletters to stay updated and get the latest information right in your inbox.
