Townsquare Media (TSQ) AI Stock Analysis

• Market Cap: $91.51M
• Dividend Yield: 15.02%
• Average Volume (3M): 70.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -2.07%
• EPS Growth: N/A
• Country: US
• Employees: 2,049
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.32
• Shares Outstanding: 15,145,320
• 10 Day Avg. Volume: 61,056
• 30 Day Avg. Volume: 70,754
• PEG Ratio: 0.59
• Price to Book (P/B): -1.87
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 5.41
• Enterprise Value/Market Cap: 6.24
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 8.90
• 1Y Price Target: $12.50
• Price Target Upside: 144.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.85
• Revenue Forecast (FY): $434.02M

• Rating: 44 Neutral
• Price Target: $5.00 ▼(-2.34% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held down primarily by financial risk from negative equity and ongoing net losses alongside declining revenue. Technicals also reflect weak near-term momentum. Offsetting factors include positive free cash flow, constructive earnings-call execution on digital strategy, and a high dividend yield.

Positive Factors

Large digital revenue mix and programmatic growth

A digital-first revenue base (55% of sales) and continued programmatic growth shift Townsquare away from legacy broadcast cyclicality. A larger, growing digital mix supports more scalable, data-driven ad products and recurring demand from advertisers, improving revenue resilience over the medium term.

Townsquare Interactive profitability expansion

Interactive's rising profitability and high (~33%) margins indicate durable, subscription-like cash flows from SMB digital services. Higher margins and segment profit growth provide stable recurring revenue, enhance cross-sell value, and reduce reliance on one-off spot ad sales across economic cycles.

Positive free cash flow and solid operating margins

Consistent positive operating and free cash flow combined with healthy EBIT/EBITDA margins provide internal funding for technology, programmatic scale, and events. This cash generation cushions investment and debt service needs, supporting strategic shifts even amid revenue pressure.

Negative Factors

Negative stockholders' equity and pressured capitalization

Negative equity is a structural capital weakness that constrains financing options, raises refinancing risk, and can limit strategic investments. It distorts leverage metrics and reduces the firm's buffer against cyclical ad downturns, making sustained recovery more difficult without balance sheet repair.

Persistent revenue declines and net losses

Ongoing top-line contraction coupled with reported net losses undermines reinvestment capacity and long-term margin expansion. Persistent revenue declines erode scale benefits in local advertising, threaten client retention economics, and increase reliance on cost cuts or nonrecurring fixes to sustain profitability.

Remnant ad collapse and search-traffic disruption

A sharp drop in remnant inventory revenue and AI-driven search traffic shifts represent structural headwinds to programmatic yield and digital audience monetization. Reduced low-quality inventory and weaker organic search can persistently pressure ad fill rates and CPMs absent product or channel diversification.

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 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, including traditional spot ads and integrated/promotional opportunities tied to station programming. (2) Digital advertising and marketing services: monetizing its local digital audience and providing marketing solutions such as display and programmatic advertising, video, sponsored content, and other digital campaign services sold to advertisers. (3) Townsquare Interactive: generating recurring subscription-style revenue by providing small and medium-sized businesses with digital products and services (commonly including website creation/hosting, search and social marketing services, and related lead-generation/online presence tools); if specific product inclusions are not disclosed in a given period, null. (4) Live events and experiential marketing: earning revenue from producing and promoting concerts, festivals, and local events through ticket sales, sponsorships, and related event advertising packages. The company’s earnings are influenced by local advertising demand, audience reach across radio and digital channels, the scale and retention of recurring Interactive clients, and its ability to bundle cross-platform campaigns for advertisers; any specific named partnerships not publicly disclosed are null.

Townsquare Media Financial Statement Overview

Summary

Operations improved with solid EBIT/EBITDA margins and positive free cash flow, but revenue is declining, the company remains net loss-making, and the balance sheet is the major risk due to negative equity and pressured capitalization.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-2.6%), continuing a multi-year pattern of soft top-line performance. Profitability improved meaningfully versus 2023, with solid operating profitability (EBIT margin ~11.7% and EBITDA margin ~16.4%), but bottom-line results remain weak with a net loss in TTM and 2024. Gross margin has also trended lower from 2021–2022 levels, suggesting less pricing/volume leverage despite the operating rebound.

Balance Sheet

The balance sheet is the primary concern: stockholders’ equity is negative in TTM and 2024, which limits financial flexibility and makes leverage metrics less reliable (debt-to-equity becomes distorted). While total debt is shown much lower in TTM than in prior annual periods, the company’s recent history reflects heavy leverage and sharp equity erosion (including a very high debt-to-equity in 2023 when equity was still positive). Overall, capitalization remains pressured and increases risk in a cyclical advertising environment.

Cash Flow

Cash generation is positive but weakening: TTM operating cash flow (~$25.9M) and free cash flow (~$10.7M) are both positive, yet free cash flow fell sharply versus the prior period (down ~58.9%). Cash flow also does not fully cover reported earnings shortfalls, as the company remains loss-making in TTM, and operating cash flow coverage is only moderate. Still, the business has demonstrated an ability to produce free cash flow across multiple years, which provides some cushion.

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

• Technical Analysis Sentiment: Negative
• Last Price: 5.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 5.12 is below the 20-day moving average (MA) of 6.74, below the 50-day MA of 6.49, and below the 200-day MA of 6.20, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 31.93 is Neutral, neither overbought nor oversold. The STOCH value of 8.52 is Positive, 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	$1.23B	11.93	13.07%	5.41%	-0.94%	47.48%
QNST	68 Neutral	$685.64M	4.07	4.55%	―	43.12%	―
ZD	63 Neutral	$1.63B	30.42	2.62%	―	5.70%	97.88%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STGW	57 Neutral	$1.58B	37.07	4.42%	―	6.76%	1841.46%
EEX	55 Neutral	$922.25M	-28.94	-8.24%	1.29%	11.18%	―
TSQ	44 Neutral	$91.51M	-7.22	-56.09%	15.02%	-2.07%	―