Townsquare Media (TSQ) AI Stock Analysis

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Townsquare Media

(NYSE:TSQ)

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)

Market Cap

$90.20M

Dividend Yield15.02%

Average Volume (3M)70.75K

Price to Earnings (P/E)5.5

Beta (1Y)0.90

Revenue Growth-2.07%

EPS GrowthN/A

CountryUS

Employees2,049

SectorN/A

Sector StrengthN/A

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)-0.36

Shares Outstanding15,145,320

10 Day Avg. Volume61,056

30 Day Avg. Volume70,754

Financial Highlights & Ratios

PEG Ratio0.16

Price to Book (P/B)-4.45

Price to Sales (P/S)0.31

P/FCF Ratio4.53

Enterprise Value/Market Cap6.64

Enterprise Value/Revenue1.37

Enterprise Value/Gross Profit5.16

Enterprise Value/Ebitda8.35

Forecast

1Y Price Target

$12.00

Price Target Upside88.98% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Townsquare Media Business Overview & Revenue Model

Company DescriptionTownsquare 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 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

Balance Sheet

Cash Flow

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

Positive

Last Price6.35

Price Trends

50DMA

5.30

Positive

100DMA

5.92

Negative

200DMA

6.41

Negative

Market Momentum

MACD

0.02

Negative

RSI

58.07

Neutral

STOCH

73.15

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSQ, the sentiment is Positive. The current price of 6.35 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 5.30, and below the 200-day MA of 6.41, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 73.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	―	―	―	―	―	―	―
DLX	72 Outperform	$1.04B	12.86	12.96%	5.41%	-0.94%	47.48%
ZD	69 Neutral	$1.38B	14.17	6.26%	―	5.70%	97.88%
QNST	66 Neutral	$870.00M	85.17	4.55%	―	43.12%	―
STGW	65 Neutral	$1.24B	63.89	3.80%	―	6.76%	1841.46%
EEX	62 Neutral	$955.41M	220.37	1.21%	1.29%	11.18%	―
TSQ	52 Neutral	$90.20M	5.49	―	15.02%	-2.07%	―

* Sector Average

Performance Comparison

TSQ

Townsquare Media

5.48

-2.68

-32.84%

DLX

Deluxe

23.12

2.63

12.81%

Ziff Davis

35.00

-16.40

-31.91%

STGW

Stagwell

4.90

-1.11

-18.47%

QNST

Quinstreet

15.33

-6.13

-28.56%

EEX

Emerald Expositions Events

4.83

0.21

4.55%

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