Townsquare Media’s first quarter results made one thing clear: the company’s future is being built around digital, not traditional broadcast growth.
The company reported first quarter 2026 net revenue of $96.8 million, down 1.9% from the same period last year. Adjusted EBITDA came in at $16.4 million, down 9.7% year over year. Net income improved to $3.0 million, compared with a net loss of $1.5 million in the first quarter of 2025.
That is the headline beneath the headline. Revenue was down, profit pressure remained, but the company’s digital business continues to become a larger part of the overall operation.
Digital Is Now Carrying More Of The Company
Townsquare said digital generated 59% of total net revenue and 63% of total segment profit in the quarter, the highest percentages in the company’s history. Digital Advertising revenue rose 6.8% year over year to $39.3 million, helped by stronger programmatic advertising, owned and operated digital properties, and growth in its Media Partnerships division.
That is not a small shift. For a company still known heavily for its radio station footprint in markets outside the Top 50, digital is no longer a side business. It is becoming the core financial engine.
Townsquare Ignite, the company’s digital advertising platform, continues to be a major part of that strategy. The company also pointed to its owned and operated local digital properties and first-party data as key pieces of the business.
Broadcast Advertising Remains Under Pressure
The broadcast side told a different story.
Broadcast Advertising net revenue fell 6.6% to $38.6 million. Excluding political revenue, Broadcast Advertising was down 6.9%. The company attributed the decline to lower advertising purchases from clients.
That matters because radio operators continue to face the same basic issue: local relationships still have value, but the advertising dollars are moving differently. The sale is not just the spot anymore. It is audience data, digital targeting, content reach, and performance.
For companies like Townsquare, the question is not whether broadcast still matters. It does. The question is whether broadcast can keep supporting the business without digital doing more of the heavy lifting.
Townsquare Interactive Slipped
Townsquare Interactive, the company’s subscription digital marketing solutions business, posted a 7.9% revenue decline to $17.5 million. The company said the drop was tied to reduced sales velocity caused by lower headcount.
Segment profit for Townsquare Interactive was $5.9 million, down 4.5% from the prior year. Still, CEO Bill Wilson highlighted the unit’s 34% segment profit margin, saying it reflected year-over-year margin expansion.
That is the tradeoff. Revenue was down, but margin performance held up better than the top line suggests.
Guidance Remains In Place
Townsquare reaffirmed its full-year 2026 guidance. The company expects full-year net revenue between $420 million and $440 million, with Adjusted EBITDA between $87 million and $93 million.
For the second quarter, Townsquare expects net revenue between $114 million and $116 million and Adjusted EBITDA between $24 million and $25 million.
The company also declared a quarterly cash dividend of $0.20 per share, payable August 3, 2026, to shareholders of record as of July 27, 2026. Based on the company’s last closing price, Townsquare said that represented a yield of about 12%.
Debt Is Still Part Of The Story
The balance sheet still needs attention.
As of March 31, 2026, Townsquare reported $2.2 million in cash and cash equivalents and $457.5 million in outstanding debt. The company said that represented gross leverage of 5.30x and net leverage of 5.27x, based on Adjusted EBITDA for the twelve months ended March 31, 2026.
That debt load is not something investors will ignore, especially with revenue still under pressure. The company is leaning on digital growth, cash generation, leverage reduction, and dividend payments as its shareholder value story.
The Real Read
Townsquare’s quarter was not clean, but it was clear.
Broadcast advertising declined. Subscription digital marketing declined. Total revenue slipped. Adjusted EBITDA was down. At the same time, Digital Advertising grew, net income improved, and the company’s business mix moved further toward digital.
That is where the radio business keeps heading. The companies that figure out how to turn local market relationships into digital revenue have a shot. The ones still waiting for broadcast advertising to return to old patterns are going to keep staring at the same wall.