Townsquare Media (TSQ) AI Stock Analysis

• Market Cap: $108.15M
• Dividend Yield: 15.02%
• Average Volume (3M): 70.75K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.87
• 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: 15,145,320
• 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: 5.52
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: 8.32
• 1Y Price Target: $13.50
• Price Target Upside: 100.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $6.00 ▼(-10.98% Downside)

The score is held back primarily by financial risk—declining revenue and a highly leveraged, negative-equity balance sheet—despite improved profitability and cash conversion. Valuation is supportive (low P/E and high yield), and technicals are moderately positive, while the latest earnings call suggests digital strengths but ongoing structural headwinds in remnant and broadcast revenue.

Positive Factors

Digital Revenue Mix

A digital-first mix now constituting 55% of revenue reduces reliance on declining broadcast ad markets. This structural shift supports more scalable, data-driven advertising sales, higher recurring revenue potential, and better long-term margin stability as digital monetization and programmatic channels mature.

Programmatic Growth

Consistent high single-digit programmatic growth indicates the company is capturing automation and audience-targeted ad demand. Programmatic scale delivers higher yield per impression and operational leverage, supporting long-term revenue diversification and reduced exposure to traditional spot-ad volatility.

Cash Conversion & Margin Improvement

Strong cash conversion and positive net margins after prior losses improve financial resilience. Reliable operating cash generation supports ongoing investment in digital initiatives, funds working capital needs, and provides some buffer for servicing debt—important given limited equity cushion.

Negative Factors

Highly Levered Balance Sheet

Negative equity and high leverage materially constrain strategic flexibility, increasing refinancing and covenant risks. Over the medium term, this structure elevates default risk, limits capital allocation for growth projects, and raises the cost of external financing when pursuing digital expansion or events.

Declining Revenue Trend

A persistent top-line decline undermines scale economics and long-term profitability even as margins improve. Without sustained revenue stabilization or new growth levers, fixed-cost absorption will pressure margins and free cash flow, limiting ability to deleverage and invest in digital product development.

Remnant & Broadcast Headwinds

A steep remnant collapse and persistent broadcast ad declines signal structural demand shifts and inventory monetization challenges. AI-driven search traffic losses and lower political revenue suggest continuing volatility in legacy segments, pressuring total ad inventory value and requiring sustained digital offset to preserve earnings.

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 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

Mixed fundamentals: profitability and cash conversion improved (TTM net margin 4.25%; healthy operating cash flow to net income of 0.57), but revenue is declining (TTM revenue growth -1.91%) and the balance sheet is a major risk with negative equity and high leverage.

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: Positive
• Last Price: 6.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.74 is above the 20-day moving average (MA) of 5.73, above the 50-day MA of 5.19, and above the 200-day MA of 6.12, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 65.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZD	69 Neutral	$1.51B	15.31	6.26%	―	5.70%	97.88%
DLX	68 Neutral	$1.19B	14.10	13.07%	5.41%	-0.94%	47.48%
QNST	66 Neutral	$754.23M	74.11	4.55%	―	43.12%	―
STGW	65 Neutral	$1.52B	79.14	3.80%	―	6.76%	1841.46%
EEX	62 Neutral	$996.95M	233.33	1.21%	1.29%	11.18%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TSQ	55 Neutral	$108.15M	6.41	―	15.02%	-2.07%	―