Adjusted EBITDA was negative. Yet, a swing from a Q1 2025 net loss to net income in the first three months of 2026 was seen from Beasley Media Group.
What’s the key message for shareholders including Mario Gabelli and his GAMCO Investors? Digital prowess will help the owner of such stations as “The Sports Hub” in Boston, WCSX and WRIF in Detroit, WMMR and WMGK in Philadelphia and WQYK and “Q105” in Tampa power through continued headwinds.
Digital revenue accounted for 25% of the company’s net revenue in Q1, which declined to $42.59 million from $48.91 million. With respect to Digital performance, revenue was flat year-over-year, at $10.7 million. But on a same-station basis, it grew by 18.2% from Q1 2025.
Additionally, Beasley pointed out that its Q1 dollar intake from new business accounted for 11% of net revenue.
Alas, adjusted EBITDA fell to -$400,000 in the first quarter of 2026, compared to $1.1 million in the first quarter of 2025.
That couldn’t stop a positive swing to net income, however, which came in at $3.2 million ($1.77 per share), compared to a Q1 2025 net loss of $2.7 million (-$1.50 per share).
There’s one key reason for this — Beasley’s closing of the sale of its radio stations in its home market of Fort Myers-Naples, Fla., giving it a cash infusion.
Commenting on the net revenue decline, Beasley said ahead of an 11am Eastern earnings call hosted by CEO Caroline Beasley that the performance “reflects persistent weakness in the traditional agency advertising market.” It was partially offset “by the continued expansion of our high-margin, owned-and-operated direct digital revenues.”
She continued, “While first quarter results continued to reflect pressure in certain legacy advertising categories and an uneven pace of recovery across our markets, we made meaningful progress against the strategic priorities we outlined over the past year. Importantly, we continue to see strong momentum in digital, particularly in our owned and operated products, which grew year-over-year on a same station basis and now represent an increasingly important contributor to both revenue quality and long-term profitability. Markets with stronger digital adoption continue to demonstrate greater revenue stability, reinforcing our confidence in the long-term direction of the business.”
Additionally, Caroline Beasley noted how on May 1 the company founded by her father, George Beasley, 65 years ago “took significant steps” to strengthen its balance sheet and improve financial flexibility. “Through the completion of our second lien restructuring, repurchase of a portion of our first lien notes, establishment of a new asset-based lending facility, and the continued execution of our portfolio optimization strategy, we meaningfully improved our capital structure and liquidity position,” she said. “These actions provide additional runway and flexibility as we continue executing our operating and deleveraging strategy.”
Lastly, Caroline Beasley noted that the company remains focused on disciplined execution as it moves through 2026.
“Our priorities are clear: stabilize and rebuild local direct revenue, continue scaling higher-margin digital products, improve conversion from revenue to station operating income, and further reduce leverage over time,” she said. “While macroeconomic conditions remain challenging, we believe the operational and financial actions we are taking today are positioning the company for a more durable and profitable long-term future.”
