Townsquare Media LLC ((TSQ)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Townsquare Media LLC painted a mixed picture, reflecting both optimism and challenges. On the positive side, the company showcased growth in digital revenue and programmatic business, alongside increased profit margins in its Townsquare Interactive and broadcast segments. However, these achievements were offset by significant hurdles, such as declines in remnant revenue, core broadcast revenue, and search traffic, coupled with lower-than-expected political revenue.
Digital Revenue Growth
Townsquare Media reported a 2% year-over-year growth in digital revenue for the first nine months of 2025, which now constitutes 55% of the company’s total net revenue. This growth rate is more than double the industry average, highlighting the company’s successful digital-first strategy.
Programmatic Business Performance
The digital programmatic business continued to be a key growth driver, experiencing high single-digit revenue growth in the third quarter. This performance underscores the strength and potential of Townsquare’s programmatic offerings in the digital advertising landscape.
Townsquare Interactive Profit Growth
Townsquare Interactive saw a significant profit increase of 19% year-over-year in the first nine months of 2025. The profit margins for this segment expanded to 33%, reflecting efficient operations and strong market demand.
Broadcast Profit Margin Expansion
The company’s broadcast segment demonstrated robust expense management, with profit margins increasing from 25% in Q3 2024 to 28% in Q3 2025. This improvement highlights the company’s ability to optimize its traditional media operations.
Decline in Remnant Revenue
Remnant revenue faced a steep decline of 50% year-over-year in Q3 2025, dropping from $5 million in Q3 2024 to $2.5 million in Q3 2025. This decline significantly impacted the company’s digital advertising revenue streams.
Core Broadcast Revenue Decline
Broadcast advertising net revenue, excluding political contributions, declined by 8% year-over-year in Q3 2025. This continued trend of decline poses a challenge to the company’s traditional revenue sources.
Search Traffic Decline
Advancements in AI technology have led to significant declines in search engine traffic, affecting online audience trends and impacting remnant revenue streams. This shift presents a challenge for maintaining digital engagement.
Reduced Political Revenue
Lower-than-forecasted political revenue in Q4 2025 has contributed to downward revisions in the company’s full-year revenue and adjusted EBITDA guidance. This shortfall underscores the volatility and unpredictability of political advertising revenue.
Forward-Looking Guidance
Townsquare Media’s results for the third quarter of 2025 were in line with previously provided guidance, with total net revenue reaching $106.8 million and adjusted EBITDA hitting $22 million. The company remains optimistic about continued digital advertising growth and improved political revenue in 2026, aiming to sustain its digital growth momentum while addressing challenges in traditional broadcast and remnant revenue streams.
In summary, Townsquare Media LLC’s earnings call reflected a balanced narrative of growth and challenges. While the company has made significant strides in digital revenue and programmatic business, it faces ongoing challenges in traditional revenue streams and search traffic. The forward-looking guidance suggests a focus on sustaining digital growth and managing headwinds in the coming year.