Townsquare Media (TSQ) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenue declined 1.9% year-over-year to $96.8 million, meeting guidance, with digital solutions driving 59% of net revenue and 63% of segment profit, both record highs.

• Digital advertising revenue grew 6.8%–7% year-over-year, offsetting declines in broadcast and subscription digital marketing; programmatic up 21% and O&O direct sales up 10%.

• Net income improved to $3 million ($0.16 per diluted share), aided by a $15.7 million income tax benefit, compared to a net loss in the prior year.

• Adjusted EBITDA declined 9.7% year-over-year to $16.4 million, within guidance.

• Board approved a quarterly dividend of $0.20 per share, reflecting a ~12% yield.

Financial highlights

• Q1 2026 net revenue was $96.8 million, down from $98.7 million in Q1 2025.

• Adjusted EBITDA was $16.4 million, down from $18.1 million year-over-year.

• Cash flow from operations was $4.2 million, higher than Q1 2025 and Q1 2024.

• Net income per diluted share was $0.16; Adjusted Net Loss per diluted share was $0.16.

• Digital segment LTM net revenue was $237 million with $60 million segment profit.

Outlook and guidance

• Q2 2026 net revenue expected between $114–$116 million; Adjusted EBITDA between $24–$25 million.

• Full-year 2026 revenue guidance reaffirmed at $420–$440 million; Adjusted EBITDA at $87–$93 million.

• Digital advertising revenue forecasted to accelerate in Q2 and the back half of 2026.

• Townsquare Interactive expected to see sequential revenue improvement and possible month-over-month growth by Q3.

• Management expects current cash and cash flows to be sufficient for liquidity needs over the next 12 months.