Townsquare Media (2T8) Q3 2026 Earnings Report

The call presented a mixed outlook. Digital Advertising showed strong and accelerating growth, programmatic revenue increased more than 20%, Media Partnerships expanded with 100% partner retention, political revenue exceeded expectations, and full-year revenue guidance was raised. However, these positives were offset by continued Broadcast declines excluding political, a delayed Interactive recovery with revenue down 8.5% year-over-year, lower adjusted EBITDA excluding political, higher interest expense, elevated leverage, and the suspension of the dividend. The strengths and challenges were broadly balanced.

For the fourth quarter, Townsquare expects net revenue to be between $107 million and $109 million, including approximately $6 million of political revenue, and adjusted EBITDA to be between $23 million and $25 million; for the full year, it is raising net revenue guidance to $430 million to $432 million and narrowing adjusted EBITDA guidance to $87 million and $89 million, with forecasted political revenue of approximately $11 million. Digital Advertising is expected to deliver approximately plus 10% year-over-year revenue growth in 2026, with full year programmatic revenue growth north of plus 20%, while indirect or remnant revenue is expected to be flat year-over-year in Q4; Townsquare Interactive’s sequential revenue decline from Q3 to Q4 will be larger than the decline we saw from Q2 to Q3, with Q4’s profit margin expected to be similar to 36% and long-term profit margin expected to be in that 35%, 36% margin; Broadcast ex political revenue declines in Q4 are expected to return to roughly the declines we saw in the first half of 2026, if not slightly worse, and full-year Broadcast segment profit margins are expected to be in the mid- to high 20s.