Townsquare Media (TSQ)
NYSE:TSQ
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Townsquare Media
(NYSE:TSQ)
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Rating:53Neutral
Price Target:
$6.50
▼(-6.47% Downside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by a stretched balance sheet (high debt and negative equity) and recent revenue softness, partially offset by stable free cash flow and improved operating profitability. Valuation is supportive (low P/E and high dividend yield), while technicals are mixed and the earnings call was moderately positive on digital execution and guidance reaffirmation despite leverage and near-term EBITDA pressure.
Positive Factors
Digital revenue mix expansion
A sustained shift to a digital-first mix (59% of revenue, 63% of profit) diversifies Townsquare away from lower-growth broadcast. Higher-margin digital sales and audience recovery improve structural revenue durability and profitability, supporting long-term cash flow generation and strategic reinvestment.
Negative Factors
Very high leverage and negative equity
Elevated debt with negative equity creates significant refinancing and covenant risk, increasing sensitivity to interest costs and slowing strategic initiatives. Negative equity limits balance-sheet flexibility, constrains capital allocation, and raises the probability that operational shocks could impair solvency.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital revenue mix expansion
A sustained shift to a digital-first mix (59% of revenue, 63% of profit) diversifies Townsquare away from lower-growth broadcast. Higher-margin digital sales and audience recovery improve structural revenue durability and profitability, supporting long-term cash flow generation and strategic reinvestment.
Read all positive factors
Townsquare Media (TSQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$113.24M
Dividend Yield15.02%
Average Volume (3M)70.75K
Price to Earnings (P/E)8.2
Beta (1Y)1.21
Revenue Growth-5.45%
EPS Growth61.51%
CountryUS
Employees2,049
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.41
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 Cap5.23
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit6.03
Enterprise Value/Ebitda9.54
Forecast
1Y Price Target
$12.50Price Target Upside79.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.48
Revenue Forecast (FY)$430.95M
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:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented strong, accelerating digital momentum—programmatic growth (+21% YoY Q1), record digital mix (59% of revenue; 63% of profit), O&O digital +10% and recovering audience—while acknowledging near-term pressures: consolidated revenue and adjusted EBITDA declines, broadcast weakness (-6.6% ex-political), remnant revenue contraction, elevated leverage (net leverage 5.27x) and a Townsquare Interactive top-line decline as the salesforce is rebuilt. Management met quarterly guidance, reaffirmed full-year guidance, and laid out a clear path (media partnerships, programmatic scale, AI-driven efficiencies) to drive future growth and debt reduction. Overall, the positive digital execution and guidance reaffirmation outweigh the listed challenges.Positive Updates
Digital Revenue and Profit Mix Expansion
Digital solutions represented an all-time high 59% of total net revenue in Q1 2026 and produced a record 63% of total segment profit, demonstrating the company's ongoing shift to a digital-first model.
Negative Updates
Consolidated Revenue and Adjusted EBITDA Contraction
Consolidated Q1 net revenue declined -1.9% YoY to $96.8M and adjusted EBITDA fell -9.7% YoY to $16.4M, reflecting margin and revenue pressure despite digital strength.
Read all updates
Q1-2026 Updates
Positive
Negative
Digital Revenue and Profit Mix Expansion
Digital solutions represented an all-time high 59% of total net revenue in Q1 2026 and produced a record 63% of total segment profit, demonstrating the company's ongoing shift to a digital-first model.
Read all positive updates
Company Guidance
Management reaffirmed prior guidance and provided quarter and full‑year targets: Q1 results met guidance with net revenue $96.8M (guidance $96–98M) and adjusted EBITDA $16.4M (guidance $16–17M); Q2 net revenue is expected to be $114–116M (midpoint ~flat y/y) with adjusted EBITDA $24–25M; full‑year 2026 guidance is revenue $420–440M and adjusted EBITDA $87–93M (embedded political revenue ≈$8M). They reiterated digital strength (Q1 digital = 59% of revenue and 63% of profit; digital advertising +7% Y/Y in Q1 with programmatic +21% Y/Y and programmatic pacing >20% Y/Y in Q2; overall digital advertising targeted to grow high single digits for the year), remnant digital revenue down to ≈$9M in 2026 (from ≈$12M in 2025), Townsquare Interactive revenue down ~8% with Q1 margin 33.7% and margins expected in line with 2025, broadcast revenue down ~6–7% ex‑political with broadcast margins returning to mid‑to‑high‑20s, Q1 net income $3.0M ($0.16/sh), operating cash flow $4.2M, debt $457M, cash $2M, net leverage 5.27x, quarterly dividend $0.20 ($0.80 annualized, ≈$14M payout, ~12% yield), and each 25 bp interest rate cut would reduce annual interest expense by roughly $1.1M.Townsquare Media Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
22
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 425.49M | 427.38M | 450.98M | 454.23M | 463.08M | 417.96M |
| Gross Profit | 98.11M | 90.70M | 124.20M | 125.03M | 138.15M | 129.66M |
| EBITDA | 62.01M | 75.81M | 49.74M | 11.79M | 75.32M | 86.37M |
| Net Income | -6.76M | -11.52M | -12.70M | -44.96M | 12.34M | 16.74M |
Balance Sheet | ||||||
| Total Assets | 516.06M | 528.62M | 580.41M | 652.05M | 744.52M | 765.69M |
| Cash, Cash Equivalents and Short-Term Investments | 2.18M | 4.76M | 32.99M | 61.05M | 43.42M | 50.51M |
| Total Debt | 483.91M | 482.79M | 520.45M | 550.47M | 578.56M | 587.66M |
| Total Liabilities | 552.30M | 569.61M | 608.86M | 642.14M | 675.44M | 716.10M |
| Stockholders Equity | -39.84M | -44.41M | -31.86M | 6.41M | 65.52M | 46.26M |
Cash Flow | ||||||
| Free Cash Flow | 20.45M | 15.38M | 31.31M | 52.85M | 29.36M | 48.66M |
| Operating Cash Flow | 34.83M | 30.60M | 48.75M | 67.83M | 50.19M | 61.08M |
| Investing Cash Flow | -3.01M | -4.46M | -9.93M | -3.57M | -37.76M | -10.64M |
| Financing Cash Flow | -35.17M | -54.32M | -67.38M | -46.62M | -19.51M | -83.17M |
Townsquare Media Technical Analysis
Positive
6.95
Price Trends
6.45
Positive
5.87
Positive
6.12
Positive
Market Momentum
0.13
Negative
66.79
Neutral
89.93
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 6.95 is above the 20-day moving average (MA) of 5.79, above the 50-day MA of 6.45, and above the 200-day MA of 6.12, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 66.79 is Neutral, neither overbought nor oversold. The STOCH value of 89.93 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $680.51M | 23.32 | 23.85% | ― | 14.75% | ― | |
62 Neutral | $1.16B | 8.90 | 9.42% | 5.41% | 0.55% | 82.53% | |
62 Neutral | $1.50B | 17.72 | 2.62% | ― | -1.81% | -35.73% | |
62 Neutral | $987.57M | 30.98 | -8.24% | 1.29% | 14.04% | -1310.49% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $1.50B | -30.40 | 2.52% | ― | 4.48% | 868.83% | |
53 Neutral | $113.24M | 8.22 | 32.30% | 15.02% | -5.45% | 61.51% |
* Communication Services Sector Average
TSQ
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Townsquare Media Corporate Events
Executive/Board ChangesShareholder Meetings
Townsquare Media Shareholders Elect Directors, Approve Pay Policies
Positive
May 12, 2026
On May 11, 2026, Townsquare Media, Inc. held its 2026 Annual Meeting of Stockholders, where shareholders elected Class III directors Stephen Kaplan and Bill Wilson to three-year terms expiring at the 2029 annual meeting. Stockholders also ratified...
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.