Saga Communications (SGA) investor relations material

Executive summary

• Net revenue for Q1 2026 decreased 5.6% year-over-year to $22.9 million, primarily due to declines in traditional, local, and national advertising, partially offset by a 25%–25.2% increase in digital revenue, which now represents 19% of gross revenue.

• Net loss widened to $2.4 million ($0.38 per share) from $1.6 million ($0.25 per share) in Q1 2025, with operating loss increasing to $3.3 million from $2.3 million.

• The company is investing in digital transformation, hiring digital staff, and building infrastructure to drive future growth.

• Significant attrition in non-blended accounts was noted, but blended digital and radio revenue increased 59% year-over-year.

• The company sold non-core assets, including telecommunications towers and a property in Springfield, MA, and continues to focus on blended radio and digital advertising strategies.

Financial highlights

• Net revenue fell by $1.3 million year-over-year to $22.9 million for Q1 2026.

• Digital advertising revenue increased by $900,000 (25%–25.2%) to $4.4 million.

• Station operating expenses remained flat at $22 million; digital expenses rose by $649,000 due to new hires and training.

• Quarterly dividend of $0.25 per share paid, totaling $1.6 million.

• Cash and short-term investments ranged from $21.1 million to $30.4 million as of Q1 2026.

Outlook and guidance

• Station operating expenses expected to rise 1.5%–2.5% for the year due to digital investments.

• Capital expenditures projected at $3.5 million for 2026.

• Second quarter is pacing down high single digits, with digital revenue up 10.2%.

• Anticipates digital investments to become accretive by late Q3 or early Q4 2026.

• Political advertising revenue is expected to increase in future quarters due to the election cycle, but timing and amounts remain unpredictable.