Urban One reported a difficult first quarter for 2026, with revenue falling across every major division. Net revenue dropped to $77.7 million, down 15.8% from $92.2 million in the first quarter of 2025. The company also posted an operating loss of $2.2 million, compared with operating income of $2.1 million during the same period last year.
Digital and Cable Took the Biggest Hits
“Urban One is dealing with weaker advertising demand, pressure in digital and cable, and a turnaround challenge at Reach Media.”
The sharpest revenue declines came from Digital, down 33.5%, and Cable Television, down 18.5%. Radio was down 6.4%, while Reach Media fell 17.0%. CEO Alfred Liggins said the company expected weakness in Radio and TV, but the softness in Reach Media and Digital was worse than planned.
DEI Ad Spending Pullback Hit Digital Revenue
The digital decline is especially notable because Urban One tied part of the weakness to reduced advertising spending from diversity, equity and inclusion-focused campaigns. That matters because Urban One’s digital properties serve Black audiences through brands including Bossip, HipHopWired, MadameNoire, Cassius, and others.
Net Loss Improved Despite Revenue Pressure
Despite the revenue pressure, Urban One narrowed its net loss to $3.1 million, compared with a $11.7 million loss in Q1 2025. That improvement was helped by lower interest expense and debt repurchases.
The company said it reduced long-term debt by $60.2 million year-to-date, which is expected to save approximately $4.6 million annually in interest.
Urban One Is Reshaping Its Radio Portfolio
Urban One is also making major moves with its radio station holdings. The company announced plans to acquire Dallas stations KKDA and KRNB for $22 million, sell KZMJ for $6 million, and dispose of Charlotte stations WLNK and WMXG.
Liggins said the station transactions are expected to create approximately $5 million in annualized pro-forma Adjusted EBITDA, with a combined net cash outflow of about $11.1 million after closing.
The Bigger Industry Read
The numbers point to a company working through several issues at once: softer advertising demand, digital weakness, pressure in cable television, and rebuilding challenges at Reach Media. At the same time, Urban One is cutting debt, managing expenses, and repositioning its radio assets in markets it believes can produce stronger returns.
For the broader media business, the report also shows how fragile ad-supported platforms remain when advertiser demand softens. Urban One still has major audience assets, but the first quarter made clear that audience ownership alone does not protect a company from market pressure.
