Beasley Broadcast Group Q2 Earnings Call Highlights

Beasley Broadcast Group (NASDAQ:BBGI) reported higher adjusted EBITDA for the second quarter of 2026 despite lower revenue, as cost reductions and a May balance-sheet restructuring began to affect results. Management said the company remains focused on rebuilding local direct advertising, expanding higher-margin owned digital revenue and reducing debt.

Revenue totaled approximately $44.1 million, down from $49.1 million a year earlier and representing a 9.6% decline on a same-station basis. Adjusted EBITDA rose to approximately $5.3 million, compared with $4.7 million in the prior-year quarter and a loss of $0.4 million in the first quarter.

“The quarter showed year-over-year adjusted EBITDA improvement, reflecting the early impact of our cost actions, even as revenue remains below where it needs to be,” Chief Executive Officer Caroline Beasley said.

Cost Reductions and Debt Restructuring

In May, Beasley implemented an expense-reduction program covering voluntary retirements, market operating changes, digital restructuring, technology costs and vendor expenses. The company expects the actions to produce approximately $10.5 million in annualized run-rate savings, including an estimated $5 million benefit during 2026. Because most actions were implemented during May, the second quarter reflected only a partial benefit, management said.

Operating expenses excluding corporate costs, depreciation and amortization fell approximately $5.9 million, or 13.3%, to $38.8 million. On a same-station basis, operating expenses declined 5.8%.

The company completed a balance-sheet restructuring on May 1 that reduced long-term debt and lowered near-term cash interest expense. Long-term debt, net of applicable accounting adjustments, stood at approximately $129 million as of June 30, down from $235.3 million at the end of 2025. Interest expense declined to approximately $1.5 million from $3.3 million a year earlier.

The restructuring generated a gain on debt restructuring of approximately $91.8 million, contributing to net income of approximately $84.3 million, or $45.95 per diluted share. The company recorded a $7.3 million tax expense related to the transaction, including $3.1 million that was current.

Beasley ended the quarter with approximately $6.7 million in cash and cash equivalents and spent approximately $800,000 on capital expenditures.

Asset Sale and Capital Actions

Beasley said it entered into an asset purchase agreement with EMF on July 31 to sell one radio station in Charlotte and one in Las Vegas for a combined $8 million. The company expects the transaction to close within 60 to 90 days and plans to use proceeds to reduce debt owed to its first-lien lenders.

Management said the stations are not expected to affect EBITDA on a go-forward basis. The company also established an at-the-market equity program in June and raised approximately $635,000 in gross proceeds before entering its quarterly blackout period.

Beasley said it views the equity program as a supplemental capital-management tool and continues to evaluate sales of non-core assets as part of its deleveraging strategy.

Advertising Trends Remain Mixed

Same-station local direct revenue increased approximately 9% year over year, supported by improved customer retention and expanded spending from existing advertisers. However, new-business generation remained below the prior-year level.

Agency advertising remained under pressure. Same-station national revenue excluding political advertising declined approximately 21%, while local agency revenue fell approximately 12% from a year earlier. Chief Business Officer Kevin LeGrett said national agency demand remained weak and the company also saw reduced spending from diversity, equity and inclusion-focused campaigns in several categories.

Among advertiser categories, gaming revenue increased approximately $1.1 million year over year, driven by major gaming-platform purchases associated with the World Cup. Home-improvement revenue increased about 13%. Automotive revenue declined approximately 22%, although management noted the comparison was not on a same-station basis because the prior-year period included revenue from WPBB-FM in Tampa, the Fort Myers market and the exited Digital Direct business.

Political advertising totaled approximately $400,000 through the end of the quarter. LeGrett said the company had booked more than 25% of its full-year political budget and was seeing opportunities in Michigan, Nevada, Georgia, North Carolina and Florida.

Digital Audience Growth and Monetization Focus

Reported digital revenue was approximately $11.7 million, compared with $13.2 million a year earlier. The comparison included approximately $1.9 million of prior-year revenue from the Digital Direct business that Beasley exited and approximately $400,000 from Fort Myers.

On a same-station basis, digital revenue grew approximately 7%, according to management, and digital represented about 26% of total company revenue. Owned-and-operated digital revenue, the company’s largest digital revenue line, grew approximately 10% in the second quarter and 18% during the first half on a same-station basis.

LeGrett said Beasley’s digital audience increased 7% over the trailing 12 months while traditional over-the-air audience declined 5%. Digital now represents more than half of the company’s total audience footprint, compared with 47% a year ago, he said.

The company said it restructured demand relationships and signed a bulk deal with a major audio platform, lifting programmatic sell-through above 80%. Management is shifting sales efforts away from lower-margin third-party resale products toward inventory it owns and controls.

Looking ahead, Beasley expects third-quarter same-station revenue to decline in the mid-single-digit percentage range from a year earlier. Caroline Beasley said fourth-quarter pacing was “looking very strong” with minimal political risk, while the company expects the full benefit of May cost actions to become more apparent during the second half of 2026.

About Beasley Broadcast Group (NASDAQ:BBGI)

Beasley Broadcast Group, Inc is a diversified media company primarily engaged in the ownership, operation and licensing of radio broadcast stations across the United States. Headquartered in Naples, Florida, the company provides local and regional audiences with a mix of music, news, talk and sports programming designed to serve diverse demographic markets. Through its portfolio of stations, Beasley generates advertising revenues by offering on-air spots, sponsorships and promotional partnerships to national and local advertisers.

In addition to traditional over-the-air programming, Beasley Broadcast Group offers digital services that include live audio streaming, podcast production, mobile apps and website content for many of its radio brands.