Townsquare Media (TSQ) AI Stock Analysis

• Market Cap: $86.91M
• Dividend Yield: 15.02%
• Average Volume (3M): 70.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -2.07%
• EPS Growth: N/A
• Country: US
• Employees: 2,049
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.32
• Shares Outstanding: 15,145,320
• 10 Day Avg. Volume: 61,056
• 30 Day Avg. Volume: 70,754
• PEG Ratio: 0.59
• Price to Book (P/B): -2.03
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 5.41
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 2.24
• 1Y Price Target: $12.50
• Price Target Upside: 136.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.85
• Revenue Forecast (FY): $434.02M

• Rating: 44 Neutral
• Price Target: $6.00 ▲(13.64% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held down primarily by financial risk from negative equity and ongoing net losses alongside declining revenue. Technicals also reflect weak near-term momentum. Offsetting factors include positive free cash flow, constructive earnings-call execution on digital strategy, and a high dividend yield.

Positive Factors

Digital-first revenue mix

A 55% digital mix is a durable structural shift that reduces dependence on declining local broadcast ad volumes. Digital-heavy revenue supports scalable ad products, cross-platform bundling, and greater exposure to programmatic and subscription-like services, improving long-term resilience.

Programmatic revenue growth

Sustained programmatic growth indicates scalable, higher-automation ad sales that typically carry better gross margins and recurring demand. As advertisers shift to automated buying, this capability strengthens competitive positioning and supports durable revenue diversification.

Townsquare Interactive profitability

Interactive’s margin expansion and profit growth point to a recurring, subscription-like business with strong unit economics. High-margin, recurring services improve cash conversion and provide predictable revenue that supports reinvestment and cushions ad cyclicality over time.

Negative Factors

Negative equity / pressured balance sheet

Negative equity is a persistent capitalization weakness that constrains financing options, increases refinancing and covenant risk, and limits the firm's ability to invest or weather ad-market downturns. This materially raises structural financial risk despite operational improvements.

Multi-year revenue decline

Ongoing top-line erosion undermines scale benefits and long-term margin sustainability. Even with improved operating margins, declining revenue limits absolute profit growth, reduces bargaining power with advertisers, and restricts funding for digital product development.

Remnant/search revenue vulnerability

A 50% drop in remnant and structural search traffic headwinds from AI represent a lasting monetization risk for digital inventory. Reduced discoverability and lower remnant yields make ad revenue more volatile and challenge the sustainability of digital growth trends.

Townsquare Media Business Overview & Revenue Model

Company Description

Townsquare Media, Inc. operates as a digital media and marketing solutions company in small and medium-sized businesses. It operates through three segments: Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. The Subscription Digital Marketing Solutions segment offers various digital marketing solutions, including hosting, search engine optimization, online directory optimization, e-commerce solutions, online reputation monitoring, social media management, appointment scheduling, payment and invoice, customer management, email marketing, and website retargeting services, as well as traditional and mobile-enabled website design, creation, and development services. The Digital Advertising segment provides digital advertising on its owned and operated digital properties, and digital programmatic advertising platforms, as well as data analytics and management platform. The Broadcast Advertising segment engages in the sale of local radio stations to local, regional, and national spot advertisers, and national network advertisers. As of December 31, 2021, this segment owned and operated 322 radio stations and approximately 330 local websites in 67 local markets. It also owns and operates approximately 200 live events, including concerts, expositions, and other experiential events; and operates local media under the WYRK.com, WJON.com, and NJ101.5.com brands, as well as national music under the XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com brands. The company was formerly known as Regent Communications, Inc. and changed its name to Townsquare Media, Inc. in May 2010. Townsquare Media, Inc. was incorporated in 1996 and is headquartered in Purchase, New York.

How the Company Makes Money

Townsquare Media primarily makes money by selling advertising and marketing solutions to local and regional businesses. Key revenue streams include: (1) Broadcast advertising: selling on-air commercial inventory across its radio station portfolio, including traditional spot ads and integrated/promotional opportunities tied to station programming. (2) Digital advertising and marketing services: monetizing its local digital audience and providing marketing solutions such as display and programmatic advertising, video, sponsored content, and other digital campaign services sold to advertisers. (3) Townsquare Interactive: generating recurring subscription-style revenue by providing small and medium-sized businesses with digital products and services (commonly including website creation/hosting, search and social marketing services, and related lead-generation/online presence tools); if specific product inclusions are not disclosed in a given period, null. (4) Live events and experiential marketing: earning revenue from producing and promoting concerts, festivals, and local events through ticket sales, sponsorships, and related event advertising packages. The company’s earnings are influenced by local advertising demand, audience reach across radio and digital channels, the scale and retention of recurring Interactive clients, and its ability to bundle cross-platform campaigns for advertisers; any specific named partnerships not publicly disclosed are null.

Townsquare Media Financial Statement Overview

Summary

Operations improved with solid EBIT/EBITDA margins and positive free cash flow, but revenue is declining, the company remains net loss-making, and the balance sheet is the major risk due to negative equity and pressured capitalization.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-2.6%), continuing a multi-year pattern of soft top-line performance. Profitability improved meaningfully versus 2023, with solid operating profitability (EBIT margin ~11.7% and EBITDA margin ~16.4%), but bottom-line results remain weak with a net loss in TTM and 2024. Gross margin has also trended lower from 2021–2022 levels, suggesting less pricing/volume leverage despite the operating rebound.

Balance Sheet

The balance sheet is the primary concern: stockholders’ equity is negative in TTM and 2024, which limits financial flexibility and makes leverage metrics less reliable (debt-to-equity becomes distorted). While total debt is shown much lower in TTM than in prior annual periods, the company’s recent history reflects heavy leverage and sharp equity erosion (including a very high debt-to-equity in 2023 when equity was still positive). Overall, capitalization remains pressured and increases risk in a cyclical advertising environment.

Cash Flow

Cash generation is positive but weakening: TTM operating cash flow (~$25.9M) and free cash flow (~$10.7M) are both positive, yet free cash flow fell sharply versus the prior period (down ~58.9%). Cash flow also does not fully cover reported earnings shortfalls, as the company remains loss-making in TTM, and operating cash flow coverage is only moderate. Still, the business has demonstrated an ability to produce free cash flow across multiple years, which provides some cushion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	427.38M	450.98M	454.23M	463.08M	417.96M
Gross Profit	90.70M	124.20M	125.03M	138.15M	129.66M
EBITDA	75.81M	49.74M	11.79M	75.32M	86.37M
Net Income	-11.52M	-12.70M	-44.96M	12.34M	16.74M
Balance Sheet
Total Assets	528.62M	580.41M	652.05M	744.52M	765.69M
Cash, Cash Equivalents and Short-Term Investments	4.76M	32.99M	61.05M	43.42M	50.51M
Total Debt	61.54M	520.45M	550.47M	578.56M	587.66M
Total Liabilities	569.61M	608.86M	642.14M	675.44M	716.10M
Stockholders Equity	-40.99M	-31.86M	6.41M	65.52M	46.26M
Cash Flow
Free Cash Flow	15.38M	31.31M	52.85M	29.36M	48.66M
Operating Cash Flow	30.60M	48.75M	67.83M	50.19M	61.08M
Investing Cash Flow	-4.46M	-9.93M	-3.57M	-37.76M	-10.64M
Financing Cash Flow	-54.32M	-67.38M	-46.62M	-19.51M	-83.17M

Townsquare Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSQ, the sentiment is Negative. The current price of 5.28 is below the 20-day moving average (MA) of 7.01, below the 50-day MA of 6.49, and below the 200-day MA of 6.22, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 26.00 is Positive, neither overbought nor oversold. The STOCH value of 13.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSQ.

Townsquare Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	68 Neutral	$1.18B	11.93	13.07%	5.41%	-0.94%	47.48%
QNST	68 Neutral	$681.08M	4.07	4.55%	―	43.12%	―
ZD	63 Neutral	$1.60B	30.42	2.62%	―	5.70%	97.88%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STGW	57 Neutral	$1.56B	37.07	4.42%	―	6.76%	1841.46%
EEX	55 Neutral	$874.76M	-7.32	-8.24%	1.29%	11.18%	―
TSQ	44 Neutral	$86.91M	-4.38	-56.09%	15.02%	-2.07%	―