Beasley Broadcast Group — Q3 2026 Earnings Summary

Financial Performance:

• Net revenue for the three months ended September 30, 2026, was $42.8 million, a 16.1% decrease year-over-year (YoY) and a 10.2% decrease on a same-station basis compared to $51.0 million in Q3 2025.
• Net revenue for the nine months ended September 30, 2026, was $129.5 million, down from $152.9 million in the prior-year period.
• Operating loss for Q3 2026 was $12.8 million, compared to an operating loss of $0.5 million in Q3 2025; for the nine months ended September 30, 2026, the operating loss was $3.8 million versus an operating income of $2.1 million in 2025.
• Net loss for Q3 2026 was $12.1 million ($6.52 per diluted share), compared to a net loss of $3.6 million ($1.97 per diluted share) in Q3 2025; for the nine months ended September 30, 2026, net income was $75.4 million ($40.99 per diluted share) versus a net loss of $6.4 million ($3.56 per diluted share) in 2025.
• Adjusted EBITDA for Q3 2026 was $1.3 million, down from $3.9 million in Q3 2025; for the nine months ended September 30, 2026, Adjusted EBITDA was $5.4 million compared to $9.7 million in 2025.
• Digital revenue was $9.8 million in Q3 2026, a 24% decline YoY and a 12% decline on a same-station basis; digital revenue accounted for 23% of net revenue (24% excluding political).
• Local revenue, including digital packages sold locally, was 76% of net revenue and declined 6% YoY.
• Revenue from new business accounted for 14% of net revenue in Q3 2026.
• Operating expenses, excluding corporate expenses, depreciation, and amortization, declined approximately $7.0 million (15.1%) YoY; on a same-station basis, they declined approximately $3.7 million.
• Station Operating Income (SOI) totaled approximately $3.6 million in Q3 2026, representing an SOI margin of 8.5%.
• Corporate expenses totaled $3.9 million in Q3 2026, compared to $2.2 million in Q3 2025; excluding nonrecurring items, corporate expenses were approximately $2.8 million.
• Digital segment operating margin was 32% in Q3 2026, up from 21% in Q3 2025.
• Cash and cash equivalents increased to $16.5 million as of September 30, 2026, from $9.9 million as of December 31, 2025.
• Long-term debt, net of unamortized debt issuance costs, decreased to $32.0 million as of September 30, 2026, from $235.3 million as of December 31, 2025.
• Stockholders' equity turned positive to $31.4 million as of September 30, 2026, from a deficit of $49.3 million as of December 31, 2025.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $15.4 million, compared to $5.3 million in 2025.
• Net cash provided by investing activities for the nine months ended September 30, 2026, was $25.1 million, compared to $6.9 million in 2025.

Guidance and Future Outlook:

• Management identified priorities to stabilize and rebuild core revenue, expand digital profitability, improve free cash flow generation, and continue reducing leverage.
• The Company aims to translate recent operational and financial improvements into more consistent financial performance and create long-term value for stockholders.
• Management noted that while the advertising environment remains challenging, structural cost reductions are helping protect profitability amid revenue pressure.

Business Segments and Product Lines:

• The Company operates 47 AM and FM stations in large- and mid-size U.S. markets including Augusta, Boston, Charlotte, Detroit, Fayetteville, Las Vegas, Middlesex, Monmouth, Morristown, Philadelphia, and Tampa-Saint Petersburg.
• Approximately 17 million consumers listen to the Company's radio stations weekly over-the-air, online, and on smartphones and tablets.
• Digital revenue growth was partially offset by declines in traditional national and local agency advertising.
• Local direct revenue increased 7% on a same-station basis in Q3 2026.
• Year-to-date same-station digital revenue increased 4.4% despite the quarterly decline.

Market and Competitive Landscape:

• The Company faces continued weakness in traditional national and local agency advertising.
• The Company competes for advertising revenues in its respective markets against other media platforms.
• Political advertising provided partial offset to revenue declines in Q3 2026.

Risks and Challenges:

• Risks include the ability to comply with Nasdaq listing standards and make periodic SEC filings.
• Potential adverse effects from inflation, external economic forces, and health epidemics or natural disasters.
• Risks related to the ability to compete effectively for advertising revenues and develop compelling digital content.
• Dependence on federally issued licenses subject to extensive regulation and potential FCC actions.
• Substantial debt levels and restrictive debt covenants affecting operational flexibility.
• Risks related to the Class A common stock dilution from recent equity offerings and pre-funded warrants.
• The Company faces a going concern risk for at least one year from the date of the financial statements.
• Control by the Beasley family creates difficulties for any attempt to gain control of the Company.

Management Commentary and Tone:

• Caroline Beasley, Chief Executive Officer, stated that results demonstrate tangible progress in building a more efficient and financially resilient company.
• Management expressed encouragement regarding the growth in local direct advertising and remains focused on rebuilding revenue and improving sales productivity.
• The tone reflected confidence in the structural cost reductions implemented over the past two years and the expansion of digital operating margins.
• Management acknowledged there is more work ahead but believes the actions taken have established a stronger operating and financial foundation.

Other Key Points:

• The Company completed a comprehensive debt restructuring in May 2026.
• In September 2026, the Company raised gross proceeds of approximately $4.6 million through a registered direct offering and concurrent private placement.
• Subsequent to the quarter-end, the Company sold two radio stations and two parcels of real estate, generating more than $10 million in net proceeds.
• These asset sales reduced the outstanding principal amount of first-lien notes to approximately $3.6 million.
• The Company recorded FCC licenses impairment losses of $13.1 million in Q3 2026 and for the nine months ended September 30, 2026.
• The Company recorded a gain on debt restructure of $91.8 million for the nine months ended September 30, 2026.
• The Company recorded a gain on dispositions of $14.5 million for the nine months ended September 30, 2026.