Urban One ((UONE)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Urban One’s recent earnings call painted a challenging picture for the company, with significant declines in revenue across several segments, including radio broadcasting, digital, and cable television. While there were positive notes, such as cost savings and debt repurchase efforts, these were overshadowed by the overall financial performance decline. The company remains hopeful for improvements in 2026, with strategic changes and potential positive impacts from deregulation.
Cost Savings Achieved
Urban One successfully implemented cost-saving measures, resulting in $3 million of annualized expense savings in the third quarter. This adds to the $5 million saved earlier in the year, demonstrating the company’s commitment to improving its financial efficiency.
Service and Financial Ad Categories Growth
Despite the overall revenue decline, Urban One saw growth in specific ad categories. The services ad category increased by 22.9%, and the financial ad category rose by 17.9% year-over-year, highlighting areas of resilience in the company’s advertising strategy.
Debt Repurchase Efforts
Urban One made significant strides in reducing its debt by repurchasing $4.5 million of its 2028 notes. This effort brought the company’s gross debt down to $487.8 million by the end of September 2025, showcasing a proactive approach to managing its financial obligations.
Overall Revenue Decline
The company faced a consolidated net revenue decrease of 16% year-over-year. This decline was notably felt in the radio broadcasting and digital segments, which experienced significant downturns, impacting the company’s overall financial health.
Radio Broadcasting Revenue Down
Urban One’s radio broadcasting segment saw a revenue fall of 12.6% year-over-year, with national ad sales plummeting by 29.1%. This segment’s performance underscores the challenges faced in maintaining traditional media revenue streams.
Reach Media Segment Challenges
The Reach Media segment encountered substantial difficulties, with net revenue decreasing by 40% year-over-year and an adjusted EBITDA loss of $200,000 for the quarter, reflecting significant operational challenges.
Digital Segment Revenue Drop
The digital segment experienced a 30.6% drop in net revenues in the third quarter, affected by declines in DEI money, back-to-school, political, and softer client demand, indicating a need for strategic adjustments in digital operations.
Cable Television Revenue Decline
Urban One’s cable television segment saw a 7% revenue decline, with advertising revenue down by 5.4% and affiliate revenue impacted by subscriber churn, highlighting ongoing challenges in the cable sector.
Significant Decrease in Adjusted EBITDA
The company’s consolidated adjusted EBITDA dropped by 44.1% to $14.2 million in the third quarter, reflecting the broader financial challenges faced across its operations.
Forward-Looking Guidance
Urban One revised its guidance for the fiscal year, adjusting its EBITDA target from $60 million to a range between $56 million and $58 million due to softer-than-expected business performance. The company highlighted revenue challenges, with a third-quarter consolidated net revenue of approximately $92.7 million, a 16% decline year-over-year. Despite these setbacks, cost-saving measures and debt reduction efforts remain a priority.
In conclusion, Urban One’s earnings call highlighted a challenging quarter with significant revenue declines across multiple segments. Despite these challenges, the company has made efforts in cost savings and debt reduction, with hopes for improvements in 2026. The revised guidance reflects a cautious outlook, emphasizing the need for strategic adjustments to navigate the current financial landscape.