Townsquare Media (TSQ)
NYSE:TSQ
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Townsquare Media
(NYSE:TSQ)
Select Model
Select Model
Rating:51Neutral
Price Target:
$6.50
▼(-2.11% Downside)
Action:ReiteratedDate:04/16/26
The score is held back primarily by financial risk—negative equity, declining revenue, and continued net losses—despite improved operating margins and positive (but weakening) free cash flow. Technicals are modestly supportive with price above key moving averages, while valuation is mixed: a very high dividend yield offsets the lack of positive earnings (negative P/E).
Positive Factors
Improved operating margins
Meaningful improvement in EBIT and EBITDA margins signals stronger operating leverage and cost control. Higher sustainable margins give Townsquare more resilience against local ad cycles, support reinvestment in digital products, and improve cash conversion over the medium term.
Negative Factors
Negative shareholders' equity
Negative equity reflects past losses and constrains financial flexibility: it complicates refinancing, limits ability to absorb ad downturns, and raises creditor scrutiny. In cyclical local advertising, weak capitalization increases vulnerability to prolonged revenue stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved operating margins
Meaningful improvement in EBIT and EBITDA margins signals stronger operating leverage and cost control. Higher sustainable margins give Townsquare more resilience against local ad cycles, support reinvestment in digital products, and improve cash conversion over the medium term.
Read all positive factors
Townsquare Media (TSQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$113.58M
Dividend Yield15.02%
Average Volume (3M)70.75K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-2.07%
EPS GrowthN/A
CountryUS
Employees2,049
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.32
Shares Outstanding15,789,817
10 Day Avg. Volume61,056
30 Day Avg. Volume70,754
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)-1.87
Price to Sales (P/S)0.19
P/FCF Ratio5.41
Enterprise Value/Market Cap5.22
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit6.54
Enterprise Value/Ebitda9.24
Forecast
1Y Price Target
$12.50Price Target Upside88.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.85
Revenue Forecast (FY)$434.02M
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. ...
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,...
Townsquare Media Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 11, 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.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.
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.
Read all updates
Q3-2025 Updates
Positive
Negative
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.
Read all positive updates
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
44
Neutral
Balance Sheet
22
Negative
Cash Flow
48
Neutral
| 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 | 484.42M | 520.45M | 550.47M | 578.56M | 587.66M |
| Total Liabilities | 569.61M | 608.86M | 642.14M | 675.44M | 716.10M |
| Stockholders Equity | -44.41M | -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
Positive
6.64
Price Trends
6.44
Positive
5.82
Positive
6.13
Positive
Market Momentum
0.01
Negative
62.36
Neutral
95.55
Negative
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 6.64 is above the 20-day moving average (MA) of 5.61, above the 50-day MA of 6.44, and above the 200-day MA of 6.13, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 95.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSQ.
Townsquare Media Risk Analysis
Townsquare Media disclosed 33 risk factors in its most recent earnings report. Townsquare Media reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Townsquare Media Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.30B | 11.93 | 13.07% | 5.41% | -0.94% | 47.48% | |
68 Neutral | $706.72M | 4.07 | 24.45% | ― | 43.12% | ― | |
63 Neutral | $1.78B | 928.67 | 2.62% | ― | 5.70% | 97.88% | |
62 Neutral | $1.69B | 37.07 | 4.42% | ― | 6.76% | 1841.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $888.61M | -7.32 | -8.24% | 1.29% | 11.18% | ― | |
51 Neutral | $113.58M | -7.22 | 32.30% | 15.02% | -2.07% | ― |
* Communication Services Sector Average
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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.