Townsquare Media (TSQ) AI Stock Analysis

• Market Cap: $89.13M
• Dividend Yield: 13.05%
• Average Volume (3M): 70.75K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.81
• Revenue Growth: -2.07%
• EPS Growth: N/A
• Country: US
• Employees: 2,049
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.36
• Shares Outstanding: 15,130,156
• 10 Day Avg. Volume: 61,056
• 30 Day Avg. Volume: 70,754
• PEG Ratio: 0.16
• Price to Book (P/B): -4.45
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 4.53
• Enterprise Value/Market Cap: 6.72
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: 8.35
• 1Y Price Target: $12.00
• Price Target Upside: 88.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $4.50 ▼(-29.13% Downside)

Townsquare Media's overall stock score reflects significant financial and operational challenges, particularly in terms of high leverage and declining revenue. While the company shows potential in digital growth and offers a high dividend yield, the bearish technical indicators and mixed earnings call results highlight ongoing risks. The low valuation score suggests potential undervaluation, but the financial instability and negative trends in traditional revenue streams weigh heavily on the overall assessment.

Positive Factors

Digital Revenue Growth

The growth in digital revenue signifies a successful pivot towards digital-first strategies, enhancing long-term revenue stability and market competitiveness.

Programmatic Business Performance

Continued growth in programmatic business highlights strong demand and positions the company well in the evolving digital advertising landscape.

Townsquare Interactive Profit Growth

Significant profit growth in Townsquare Interactive underscores effective cost management and robust demand for digital services.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Core Broadcast Revenue Decline

Declining core broadcast revenue reflects challenges in traditional media, potentially affecting overall revenue and market position.

Decline in Remnant Revenue

A sharp decline in remnant revenue indicates challenges in monetizing digital inventory, affecting digital advertising revenue streams.

Townsquare Media Business Overview & Revenue Model

Company Description

Townsquare Media, Inc. (TSQ) is a leading local media and entertainment company that operates a diverse portfolio of radio stations, digital platforms, and live events. The company focuses on providing content tailored to local audiences, with a significant presence in small and medium-sized markets across the United States. Townsquare Media is engaged in various sectors including radio broadcasting, digital marketing services, and event production, offering core products such as radio advertising, digital advertising solutions, and live concert events.

How the Company Makes Money

Townsquare 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 Financial Statement Overview

Summary

Townsquare Media faces significant challenges in revenue growth and financial stability. Improvements in profitability margins and cash generation are overshadowed by high leverage and negative equity, posing substantial risks.

Income Statement

Townsquare Media's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate at -1.91%, and the gross profit margin has decreased to 21.13% from previous years. However, the company has managed to maintain a positive net profit margin of 4.25% in the TTM period, a significant improvement from the negative margins in earlier years. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. Despite these improvements, the overall revenue decline and fluctuating profitability suggest challenges in sustaining growth.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity and a high debt-to-equity ratio of -1.87 in the TTM period. This indicates potential financial instability and risk. The negative return on equity further highlights the company's struggle to generate returns for shareholders. The equity ratio is also negative, reflecting a concerning capital structure. These factors suggest a need for improved financial management and reduction in debt levels.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth rate at -1.46% in the TTM period, indicating challenges in generating cash. However, the operating cash flow to net income ratio is healthy at 0.57, suggesting that the company is able to convert its earnings into cash effectively. The free cash flow to net income ratio of 0.66 further supports this. Despite the decline in free cash flow growth, the company's ability to generate cash from operations remains a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	438.69M	450.98M	454.23M	463.08M	417.96M	371.34M
Gross Profit	116.06M	124.20M	125.03M	138.15M	129.66M	88.99M
EBITDA	71.78M	49.74M	11.79M	75.32M	86.37M	-52.88M
Net Income	18.24M	-12.70M	-44.96M	12.34M	16.74M	-82.47M
Balance Sheet
Total Assets	539.23M	580.41M	652.05M	744.52M	765.69M	806.54M
Cash, Cash Equivalents and Short-Term Investments	3.21M	32.99M	61.05M	43.42M	50.51M	83.23M
Total Debt	489.31M	520.45M	550.47M	578.56M	587.66M	595.80M
Total Liabilities	573.20M	608.86M	642.14M	675.44M	716.10M	705.79M
Stockholders Equity	-37.39M	-31.86M	6.41M	65.52M	46.26M	97.26M
Cash Flow
Free Cash Flow	26.03M	31.31M	52.85M	29.36M	48.66M	16.30M
Operating Cash Flow	41.52M	48.75M	67.83M	50.19M	61.08M	31.49M
Investing Cash Flow	-5.71M	-9.93M	-3.57M	-37.76M	-10.64M	-14.04M
Financing Cash Flow	-54.57M	-67.38M	-46.62M	-19.51M	-83.17M	-18.89M

Townsquare Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 6.35 is above the 20-day moving average (MA) of 5.39, above the 50-day MA of 5.96, and below the 200-day MA of 6.76, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 31.60 is Neutral, neither overbought nor oversold. The STOCH value of 30.09 is Neutral, 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	$918.61M	11.19	12.96%	5.88%	-0.94%	47.48%
STGW	65 Neutral	$1.35B	70.01	3.80%	―	6.76%	1841.46%
QNST	65 Neutral	$863.99M	191.84	4.55%	―	43.12%	―
ZD	62 Neutral	$1.31B	13.42	6.26%	―	5.70%	97.88%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EEX	52 Neutral	$700.24M	163.89	1.21%	1.69%	11.18%	―
TSQ	48 Neutral	$89.13M	5.29	―	13.05%	-2.07%	―

Townsquare Media Corporate Events

Townsquare Media Reports Q3 2025 Financial Results

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.