WASHINGTON, D.C. — The nation’s most prominent media company superserving African American consumers has released its third quarter earnings results. In the words of Urban One President/CEO Alfred Liggins III, the Q3 results “came in slightly softer than expected across the board.”
If that’s unsettling to investors, what will they think of the Q4 pacings?
In Q3, core radio revenue on an ex-political basis finished down 8.1%, to $38.12 million from $45 million, while Q4 2025 is pacing down 6.4% — or 30.2% all-in.
The downbeat results and forecast are the result of declines in revenue in every segment of the company. At the Reach Media national audio arm, revenue was down 40%. The Digital segment was down 40%, to $12.69 million from $17.33 million. However, connected television (CTV) revenue is now reflected in the Cable Television segment for Urban One — a shift designed to boost a challenged segment. Did it work? Cable TV revenue in Q3 slipped to $39.79 million, from $42.8 million. Within the Cable TV segment, advertising was down to $22.67 million, from $23.98 million as affiliate fees declined to $17.09 million to $18.81 million — a 9.1% dip Liggins said was driven by continuing subscriber churn.
While operating income was achieved, compared to an operating loss in Q3 2024, the soft overall market conditions are greatly impacting Urban One as Adjusted EBITDA slid to $14.2 million from $25.41 million. As such, Liggins revealed that the company is reducing its full-year guidance for adjusted EBITDA to $56 million-$58 million, from $60 million.
“Our focus remains on controlling costs, managing debt, leverage and liquidity,” Liggins said Tuesday ahead of a conference call for the investment community.
Were poor comps due to political advertising seen a year ago a factor? Yes, as the political dollars moved downward to $201,000 from $3.55 million.
On the earnings call, Liggins responded to an institutional investor’s query about advertising by noting that “unexpected cancellations” from its No. 1 radio advertiser were experienced. He did not reveal who the advertiser is and if this is in response to DEI-oriented pullbacks from marketers given the current political environment in Washington.
THE OVERALL Q3 PICTURE FOR URBAN ONE
Net Revenue: $92,677 (down from $110.39 million)
Total Operating Expenses: $90.17 million (down from $136.6 million)
Net Loss: $2.83 million (down from $31.8 million, tied to a $46.82 million impairment charge in Q3 2024)
Net Loss Per Share: -$0.06 (down from -$0.68)
