Beasley Broadcast Group Q4 Earnings Call Highlights
by Kim Johansen · The Markets DailyBeasley Broadcast Group (NASDAQ:BBGI) outlined a sweeping operational and financial reset during its full-year 2025 earnings call, describing 2025 as a “year of significant challenge,” but also one defined by cost restructuring, a push toward higher-margin digital revenue, portfolio actions, and a pending balance-sheet overhaul.
2025 results pressured by accelerated audio declines and political comp
CEO Caroline Beasley said the company operated amid an environment where “traditional audio revenue continued to decline at an accelerated pace,” particularly in “agency-driven channels” where the company has had greater exposure. Full-year net revenue declined to approximately $206 million from $240 million in 2024, a change she said reflects the negative impact of the absence of political advertising worth $13.6 million. Excluding political on a same-station basis, Beasley said revenue was down 7% year-to-date.
Adjusted EBITDA fell to approximately $10.5 million in 2025 from $25.8 million in 2024. The company also recorded a $224.8 million non-cash impairment loss tied to a write-down of FCC licenses. Beasley added that the company received a going-concern disclosure from its auditors, which she said “should be eliminated once our debt restructure is closed.”
Cost reductions and operating model overhaul
Management emphasized that much of the past 18 months has been focused on resizing the organization and cost structure. Caroline Beasley said the company executed approximately $30 million in annualized cost reductions through structural changes that “reset our operating model.” She cited actions including streamlining the organization, reducing layers, centralizing key functions, tighter cost controls at both corporate and station levels, and headcount and resource allocation decisions aimed at creating “a leaner, more agile organization.”
CFO Ilana Goldstein said total operating expenses declined year-over-year due to these initiatives. Station operating income (SOI) was $16.2 million for full-year 2025, down from $38.5 million in 2024, driven largely by revenue declines but partially offset by expense reductions. Adjusting for $2.3 million of severance and $34,000 in stock-based compensation, Goldstein said SOI would have been $18.5 million.
Digital growth continues, with emphasis on owned-and-operated products
While traditional audio trends remained a headwind, management pointed to continued expansion in digital. Caroline Beasley said full-year digital revenue was approximately $49.5 million, up $2.7 million, or 5.9%. On a same-station basis, she said digital revenue increased $7.7 million, or 21%, and now accounts for roughly 24% of total revenue.
She also highlighted improving profitability in the digital segment, with full-year digital segment margins of approximately 24%. Digital segment earnings were $12.8 million for the year, which she said implies a 28.8% operating margin on a same-station basis, up from 22.7% on a same-station basis in 2024. The company attributed margin gains to a shift toward owned-and-operated products and away from lower-margin third-party pass-through revenue.
New Chief Revenue Officer Kevin Magrath—who joined Feb. 1—reinforced that digital is central to improving revenue quality and margins. He said same-station digital revenue increased over 33% in the fourth quarter of 2025, while digital operating margins improved from 17.4% in Q4 2024 to “over 29%” in Q4 2025. Magrath said Beasley is prioritizing owned-and-operated products and integrated campaigns for better scalability and profitability.
Revenue mix shifts local as national and agency channels remain weak
Goldstein said full-year net revenue was approximately $205.9 million, down from $240 million in 2024, driven by weakness in agency revenue and the absence of prior-year political advertising. She noted that local revenue, inclusive of digital, now represents roughly 76% of total revenue.
New business represented approximately 13% of net revenue for the full year and 12% in the fourth quarter, though new business declined 14% for the year and 18% in Q4 on a year-over-year basis. Goldstein said the company is seeing improved pipeline activity entering 2026, which she attributed to increased CRM accountability, more disciplined sales execution, and a refocus on local direct relationships.
National revenue, Goldstein said, was down approximately 34% for the full year and 50% in the fourth quarter, comparisons she said were “significantly impacted” by political advertising in the prior year. Excluding political, she said national revenue declined approximately 10% in Q4 and 13% for the full year, which management viewed as a more normalized run rate and “early signs of stabilization.”
Debt exchange aims to cut leverage roughly in half; early 2026 pacing improves
Management framed a pending balance-sheet transaction as a key inflection point. Caroline Beasley said the company is executing a comprehensive debt exchange with second-lien bondholders and expects, upon completion, to reduce second-lien debt by approximately 50% and repay roughly $15 million of first-lien debt. She said the result would reduce total outstanding debt from approximately $220 million “today” to approximately $110 million.
Bondholders have until April 20 to participate, and the company expects the transaction to close by the end of April, she said. Beasley also said the company is in discussions with an ABL lender to provide liquidity going forward and noted the company worked with Guggenheim as an advisor on the process.
As of year-end, Goldstein said Beasley had approximately $235 million of total debt and approximately $10 million of cash. Cash interest expense for the year was approximately $20.7 million, and net cash used in operating activities was approximately $8.5 million. Investing activities provided approximately $5.6 million, primarily related to asset sales. Capital expenditures totaled $4.8 million, which Goldstein said rose versus the prior year mainly due to costs associated with a Charlotte build-out previously discussed on the company’s last call.
On the operating outlook, Caroline Beasley said the company expects same-station first-quarter revenue to be down in the mid-single digits, but said trends improved through the quarter: January ended down 8%, February down 6%, and March increased 3%. On an actual basis including Fort Myers and Digital Direct, she said revenue was down double digits for the quarter. Beasley also pointed to the midterm election cycle as political advertising returns in key markets, calling 2026 a “reset” year where the restructuring work begins to translate into performance.
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.