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Townsquare Media
(NYSE:TSQ)
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Rating:46Neutral
Price Target:
$4.00
▼(-31.62% Downside)
Action:Reiterated
Date:09/29/26
The score is held down primarily by weak financial quality (ongoing net losses and negative equity) and bearish technicals (below all key moving averages with negative MACD). These are partially offset by supportive valuation via a very high dividend yield and a more constructive earnings-call outlook centered on digital growth and partnership expansion, though leverage remains a meaningful constraint.
Positive Factors
Digital-first business mix and growth
Digital has become the majority of revenue, creating a more diversified model than traditional broadcasting alone. Double-digit Digital Advertising growth, together with management’s expectation of further acceleration, supports durable customer relevance and a stronger platform for future expansion.
Negative Factors
Fragile balance sheet and elevated leverage
Negative equity leaves the company with a thin capital cushion and reduces flexibility if operating conditions weaken. Net leverage of 5.44x also limits the room available for investment, acquisitions, or shareholder returns until sustained cash generation supports deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital-first business mix and growth
Digital has become the majority of revenue, creating a more diversified model than traditional broadcasting alone. Double-digit Digital Advertising growth, together with management’s expectation of further acceleration, supports durable customer relevance and a stronger platform for future expansion.
Read all positive factors
Townsquare Media (TSQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$75.84M
Dividend Yield19.23%
Average Volume (3M)72.57K
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth-4.89%
EPS Growth-226.50%
CountryUS
Employees1,804
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)-2.87
Shares Outstanding16,916,344
10 Day Avg. Volume94,291
30 Day Avg. Volume72,569
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 Cap8.11
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit6.39
Enterprise Value/Ebitda30.03
Forecast
1Y Price Target
$12.50Price Target Upside113.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.57
Revenue Forecast (FY)$432.37M
Townsquare Media Business Overview & Revenue Model
Company Description
Townsquare Media, Inc. functions as a digital media and marketing services firm primarily serving small and medium-sized enterprises. Its operations are structured across three distinct divisions: Subscription Digital Marketing Solutions, Digital ...
How the Company Makes Money
Townsquare Media primarily generates revenue from advertising and marketing services delivered across its local media and digital platforms. A major revenue stream is broadcast (terrestrial) radio advertising sold to local and regional advertisers...
Townsquare Media Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a constructive picture of a company well into a strategic transformation toward a digital-first model: strong digital revenue mix (majority of profit and revenue), accelerating Digital Advertising (11% YoY) and robust programmatic growth (+27%), expansion of a capital-light media partnership business, and record TSI profitability (37.6% margin). Offsetting items include meaningful non-cash FCC impairments that produced a GAAP net loss, elevated net leverage (5.44x), TSI revenue still down (–8.5% YoY) while its salesforce is rebuilt, and ongoing broadcast revenue declines (–5.5% / –7.2% ex-political). Overall, the operational momentum in digital and reaffirmed guidance/significant strategic initiatives materially outweigh the accounting charges and near-term legacy-media pressures.Positive Updates
Revenue and Guidance Met
Q2 net revenue of $115.4M was roughly flat year-over-year and above the midpoint of guidance; company narrowed full-year guidance to $425M–$431M in net revenue and $87M–$90M in adjusted EBITDA, with Q3 net revenue guidance of $108M–$110M (midpoint = low single-digit YoY growth).
Negative Updates
Adjusted EBITDA and Adjusted EPS Slight Declines
Q2 adjusted EBITDA was $24.8M, down 6.2% year-over-year and only modestly above guidance midpoint; adjusted net income per share was $0.21 versus $0.22 in the prior-year period.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Guidance Met
Q2 net revenue of $115.4M was roughly flat year-over-year and above the midpoint of guidance; company narrowed full-year guidance to $425M–$431M in net revenue and $87M–$90M in adjusted EBITDA, with Q3 net revenue guidance of $108M–$110M (midpoint = low single-digit YoY growth).
Read all positive updates
Company Guidance
Management guided Q3 net revenue of $108–$110M (midpoint ≈ low-single-digit YoY growth) and Q3 adjusted EBITDA of $22.5–$23.5M (midpoint ≈ mid-single-digit YoY growth), narrowed full‑year guidance to net revenue $425–$431M and adjusted EBITDA $87–$90M (which embeds ~ $8M of political revenue, vs $7.5M in 2022). They expect Digital Advertising to accelerate in Q3 above Q2’s +11% YoY (Q2 Digital Advertising +11%; programmatic ≈70% of YTD Digital Advertising and +27% in Q2; remnant ≈6% of YTD Digital Advertising; direct owned sites/apps grew high single digits) and Project Media Partnerships—now 16 partners covering 115 markets (74 owned + 41 partner markets)—to more than double $6M of 2025 revenue in 2026 and target $50M of revenue at a 20% margin within four years. Townsquare Interactive revenue was $17.2M in Q2 (‑8.5% YoY) with monthly stability at ≈$5.7M and record segment profit margin ~37.6%, with management expecting sequential monthly revenue growth by year‑end (possibly Q3); Broadcast revenue declined 5.5% in Q2 (‑7.2% ex‑political) with segment margins expected in the high‑20s for the remainder of the year and mid‑20s for the full year. Q2 company results included net revenue $115.4M, adjusted EBITDA $24.8M (above guidance midpoint, down 6.2% YoY), a Q2 net loss of $41.8M (‑$2.36/sh) driven by $26.6M FCC impairment ($35.2M YTD) and an $18M GAAP tax charge, adjusted net income per share $0.21 (vs $0.22 prior), $7.8M cash flow from operations in 1H, $462M debt and 5.44x net leverage (expecting leverage to tick down in H2), and a Board‑approved quarterly dividend of $0.20/sh ($0.80 annualized ≈ $14M, ~13% yield at current price).Townsquare Media Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
24
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 425.39M | 427.38M | 450.98M | 454.23M | 463.08M | 417.96M |
| Gross Profit | 96.33M | 90.70M | 124.20M | 125.03M | 138.15M | 129.66M |
| EBITDA | 20.48M | 62.79M | 49.74M | 11.79M | 75.32M | 86.37M |
| Net Income | -50.30M | -11.52M | -12.70M | -44.96M | 12.34M | 16.74M |
Balance Sheet | ||||||
| Total Assets | 494.72M | 528.62M | 580.41M | 652.05M | 744.52M | 765.69M |
| Cash, Cash Equivalents and Short-Term Investments | 1.17M | 4.76M | 32.99M | 61.05M | 43.42M | 50.51M |
| Total Debt | 488.19M | 482.79M | 520.45M | 550.47M | 578.56M | 587.66M |
| Total Liabilities | 583.33M | 569.61M | 608.86M | 642.14M | 675.44M | 716.10M |
| Stockholders Equity | -90.41M | -44.41M | -31.86M | 6.41M | 65.52M | 46.26M |
Cash Flow | ||||||
| Free Cash Flow | 14.26M | 15.38M | 31.31M | 52.85M | 29.36M | 48.66M |
| Operating Cash Flow | 28.25M | 30.60M | 48.75M | 67.83M | 50.19M | 61.08M |
| Investing Cash Flow | -8.69M | -4.46M | -9.93M | -3.57M | -37.76M | -10.64M |
| Financing Cash Flow | -21.57M | -54.32M | -67.38M | -46.62M | -19.51M | -83.17M |
Townsquare Media Technical Analysis
Negative
5.85
Price Trends
5.32
Negative
5.84
Negative
5.87
Negative
Market Momentum
-0.32
Positive
27.61
Positive
12.80
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 5.85 is above the 20-day moving average (MA) of 4.71, above the 50-day MA of 5.32, and below the 200-day MA of 5.87, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 27.61 is Positive, neither overbought nor oversold. The STOCH value of 12.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $877.23M | 11.11 | 27.66% | ― | 18.29% | 1634.10% | |
66 Neutral | $1.05B | 10.22 | 14.63% | 5.19% | 0.30% | 71.14% | |
65 Neutral | $1.97B | 3.28 | 34.27% | 2.03% | -8.46% | -157.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $2.17B | 140.90 | 2.16% | 6.16% | 6.17% | 351.09% | |
46 Neutral | $75.84M | -1.45 | 94.89% | 19.32% | -4.89% | -226.50% |
* Communication Services Sector Average
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-24.53%
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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.