tiprankstipranks
Trending News
More News >
Townsquare Media (TSQ)
NYSE:TSQ

Townsquare Media (TSQ) AI Stock Analysis

Compare
158 Followers

Top Page

TSQ

Townsquare Media

(NYSE:TSQ)

Select Model
Select Model
Select Model
Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
$5.00
▼(-21.26% Downside)
Townsquare Media's overall stock score reflects significant financial challenges, with high leverage and negative equity posing risks. While valuation metrics suggest the stock is undervalued, bearish technical indicators and mixed earnings call results highlight ongoing operational challenges. The company's ability to manage debt and capitalize on digital growth will be crucial for future performance.

Townsquare Media (TSQ) vs. SPDR S&P 500 ETF (SPY)

Townsquare Media Business Overview & Revenue Model

Company DescriptionTownsquare 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 MoneyTownsquare Media generates revenue primarily through three key streams: advertising, digital marketing solutions, and live events. The company earns a substantial portion of its income from radio advertising, where local and national advertisers purchase airtime across its network of radio stations. Additionally, Townsquare Media has expanded its digital footprint, providing digital marketing services that include website development, social media management, and online advertising, which cater to local businesses seeking to enhance their online presence. The live events segment contributes further revenue through ticket sales, sponsorships, and merchandise associated with concerts and festivals. Strategic partnerships with advertisers and collaborations with local businesses also bolster its earnings, allowing for diversified revenue generation across its platforms.

Townsquare Media Earnings Call Summary

Earnings Call Date:Nov 10, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 23, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several positive developments, such as growth in digital revenue and programmatic business, as well as increased profit margins in Townsquare Interactive and broadcast segments. However, these highlights were tempered by significant challenges, including declines in remnant revenue, core broadcast revenue, and search traffic, as well as lower political revenue than anticipated.
Q3-2025 Updates
Positive Updates
Digital Revenue Growth
Digital revenue grew by 2% year-over-year in the first 9 months of 2025, expanding to 55% of total net revenue, which is more than twice the industry average.
Programmatic Business Performance
The digital programmatic business experienced high single-digit revenue growth in the third quarter, continuing to be a primary growth driver.
Townsquare Interactive Profit Growth
Townsquare Interactive's segment profit increased by 19% year-over-year in the first 9 months of 2025 with profit margins expanding to 33%.
Broadcast Profit Margin Expansion
Broadcast profit margins increased from 25% in Q3 2024 to 28% in Q3 2025, demonstrating strong expense management.
Negative Updates
Decline in Remnant Revenue
Remnant revenue declined by 50% year-over-year in Q3 2025, decreasing from $5 million in Q3 2024 to $2.5 million in Q3 2025, impacting digital advertising revenue.
Core Broadcast Revenue Decline
Broadcast advertising net revenue, excluding political, declined by 8% year-over-year in Q3 2025, continuing a trend of decline.
Search Traffic Decline
Significant declines in search engine traffic due to AI advancements impacted online audience trends, affecting remnant revenue streams.
Reduced Political Revenue
Lower-than-forecasted political revenue in Q4 2025 contributed to downward revisions in full-year revenue and adjusted EBITDA guidance.
Company Guidance
During Townsquare Media's Third Quarter 2025 Conference Call, the company announced that their results aligned with the previously provided guidance, with total net revenue reaching $106.8 million, within the $106.5 million to $108.5 million range, and adjusted EBITDA hitting $22 million, also within the $22 million to $23 million forecast. The digital-first strategy proved effective as digital revenue grew by 2% year-over-year, now comprising 55% of total net revenue and 55% of total segment profits. Despite a slight decline in digital advertising revenue by less than 2% year-over-year due to indirect revenue challenges, the programmatic business segment achieved high single-digit growth. Townsquare Interactive saw a 19% increase in segment profit year-over-year for the first nine months, with a profit margin rise to 33%. The broadcast local radio segment experienced an 8% decline in net revenue, excluding political, but managed to improve profit margins from 25% to 28%. The company expects continued digital advertising growth and improved political revenue in 2026, aiming to maintain its digital growth momentum while managing headwinds in traditional broadcast and remnant revenue streams.

Townsquare Media Financial Statement Overview

Summary
Income Statement
45
Neutral
Balance Sheet
30
Negative
Cash Flow
55
Neutral
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Townsquare Media Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.35
Price Trends
50DMA
5.58
Negative
100DMA
6.14
Negative
200DMA
6.57
Negative
Market Momentum
MACD
-0.07
Negative
RSI
53.88
Neutral
STOCH
77.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSQ, the sentiment is Neutral. The current price of 6.35 is above the 20-day moving average (MA) of 4.90, above the 50-day MA of 5.58, and below the 200-day MA of 6.57, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 77.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSQ.

Townsquare Media Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$1.42B14.476.26%5.70%97.88%
69
Neutral
$829.71M81.944.55%43.12%
68
Neutral
$1.02B12.4612.96%5.28%-0.94%47.48%
65
Neutral
$1.39B69.233.80%6.76%1841.46%
52
Neutral
$88.23M5.2314.71%-2.07%
52
Neutral
$979.15M229.171.21%1.21%11.18%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSQ
Townsquare Media
5.36
-3.37
-38.60%
DLX
Deluxe
22.73
1.44
6.76%
ZD
Ziff Davis
35.75
-20.21
-36.12%
STGW
Stagwell
5.31
-1.57
-22.82%
QNST
Quinstreet
14.75
-6.55
-30.75%
EEX
Emerald Expositions Events
4.62
0.03
0.65%

Townsquare Media Corporate Events

Townsquare Media Reports Q3 2025 Financial Results
Nov 11, 2025

Townsquare Media LLC is a community-focused digital and broadcast media company that provides digital marketing solutions, primarily operating outside the top 50 U.S. markets. The company specializes in digital advertising through its Townsquare Ignite division and offers subscription-based digital marketing services via Townsquare Interactive.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 30, 2025