Townsquare suspends dividend after $4m Q3 net loss

Townsquare Media suspended its quarterly dividend after reporting a $4.0 million net loss for the third quarter on November 4, the company said in an earnings press release.

The Purchase, New York-based local media company forecast fourth-quarter revenue of $107 million to $109 million and said the dividend suspension will preserve about $14 million annually, compared with third-quarter revenue of $110.9 million, up 3.9% from a year earlier.

“We do not believe that the market is ascribing value to the dividend and we believe this cash can generate greater value for shareholders elsewhere,” Chief Executive Officer Bill Wilson said in the release.

Townsquare said adjusted EBITDA, a non-GAAP profit measure based on earnings before interest, taxes, depreciation and amortization with company adjustments, rose 2.7% from a year earlier to $22.6 million in the third quarter. The net loss narrowed by $1.5 million from a $5.5 million loss in the third quarter of 2025.

The company’s board approved the dividend suspension in November 2026 to redirect capital to corporate liquidity and growth opportunities, according to the release. A previously declared quarterly dividend of $0.20 a share was paid on November 2 to shareholders of record as of October 26, and future payouts will be at the board’s discretion.

Digital Advertising was the main growth area. Segment revenue rose 12.7% from a year earlier in the third quarter, led by 22.5% growth in programmatic revenue, which refers to automated buying and placement of digital ads. Townsquare said digital businesses accounted for 57% of net revenue and 56% of segment profit for the nine months ended September 30.

Townsquare also said its Media Partnerships business serves 18 partners and extends its programmatic advertising platform to 122 United States markets. The company said it expects Media Partnerships revenue to more than double in 2026.

The weaker parts of the quarter were in traditional and subscription businesses. Wilson said local clients are facing higher operating costs and interest rates and are scrutinizing marketing spending, especially in traditional media. Excluding political advertising, Broadcast Advertising revenue fell 5.2% from a year earlier in the third quarter.

Subscription Digital Marketing Solutions revenue fell 8.5% from a year earlier because of reduced sales velocity tied to lower sales headcount, the company said. Wilson said Townsquare Interactive would not return to sequential revenue growth in the fourth quarter of 2026, unlike the company’s earlier projection.

For the nine months ended September 30, Townsquare revenue rose 0.7% from a year earlier, while the net loss widened by $37.8 million to $42.8 million. The company attributed the larger loss primarily to a $38.7 million increase in non-cash impairment charges.

For full-year 2026, Townsquare forecast revenue of $430 million to $432 million and adjusted EBITDA of $87 million to $89 million, both within its original guidance ranges.

Source: Earnings press release, Townsquare Media via GlobeNewswire, November 4, 2026