Townsquare (TSQ) Q1 2026 Earnings Transcript

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DATE

Monday, May 11, 2026 astatine 8:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Bill Wilson

• Chief Financial Officer — Stuart Rosenstein

Full Conference Call Transcript

Bill Wilson: Thank you, Claire, and convey you each for joining america today. It's large to talk with you this morning. We're pleased to stock our archetypal 4th results with you today, which show the spot of our integer advertizing level and validate our digital-first section media strategy with a absorption connected section markets extracurricular of the Top 50. We are arrogant to stock that our archetypal 4th results met the guidance that we provided connected our past telephone and that we're presently seeing ongoing betterment successful integer advertizing trends and pacing successful Q2 and the backmost fractional of 2026.

And arsenic a effect of our digital-first strategy, we are besides reaffirming the afloat twelvemonth nett gross and adjusted EBITDA guidance that we provided connected our past net call. By now, it should beryllium precise wide that Townsquare has transformed from a bequest broadcast institution into a Digital First Local Media Company and that our integer level and integer execution sets america isolated from others successful section media. In 2025, astir 55% of our company's full nett gross and 56% of our full conception nett was generated from our integer solutions. In the archetypal 4th of 2026, our integer gross grew to beryllium a precise important 59% of our full nett gross successful the quarter, an all-time high.

And arsenic highlighted connected Slide 10, is astir 2x our competitors, arsenic connected mean they person lone 30% of their gross coming from integer sources. Even much importantly, our integer nett contributed a precise important 63% of our full nett successful the archetypal quarter, besides an all-time high. As we person consistently stated for galore years, integer is and integer volition proceed to beryllium Townsquare's maturation motor and the country wherever we absorption the bulk of our concern superior going forward, accordant with our strategy of being a Digital First Local Media Company focusing connected markets extracurricular the Top 50 successful the United States and further differentiating america from others successful section media.

Now let's dive into our fastest-growing business, integer advertising, which we telephone Townsquare Ignite, the larger of our 2 integer segments. As I stated what happened connected our past call, our integer advertizing nett gross accrued precocious azygous digits successful the archetypal quarter, with gross expanding positive 7% implicit the anterior year, a important betterment from 2025's integer advertizing maturation of astir positive 2%. Our archetypal 4th integer advertizing gross maturation of positive 7% was driven by the aforesaid trends that we person seen for the past respective quarters and person besides discussed astatine magnitude previously. Strong integer advertizing related to our direct-to-client income and declines successful our indirect revenue, besides known arsenic remnant revenue, which volition mean successful Q3.