Beasley Broadcast Group — Second Quarter 2026 Earnings Summary

Financial Performance

• Net revenue for the three months ended June 30, 2026, was $44.1 million, a 9.6% decrease on a same-station basis compared to $53.0 million in the prior year period.
• Net revenue for the six months ended June 30, 2026, was $86.7 million, a decrease from $101.9 million in the prior year period.
• Operating income for the quarter was $1.3 million, down from $2.9 million in the prior year period.
• Operating income for the six-month period was $9.0 million, up from $0.9 million in the prior year period.
• Net income for the quarter was $84.3 million, compared to a net loss of $0.2 million in the prior year period.
• Net income for the six-month period was $87.5 million, compared to a net loss of $2.8 million in the prior year period.
• Diluted net income per share for the quarter was $45.95, compared to a loss of $0.09 per share in the prior year period.
• Diluted net income per share for the six-month period was $48.01, compared to a loss of $1.59 per share in the prior year period.
• Adjusted EBITDA for the quarter was $5.3 million, an increase from $4.7 million in the prior year period.
• Adjusted EBITDA for the six-month period was $4.9 million, down from $5.8 million in the prior year period.
• Station Operating Income totaled $5.3 million, representing a margin of 12.1%.
• Operating expenses declined 13.2% year-over-year for the quarter.
• Corporate expenses declined 37.3% year-over-year for the quarter, including $367,275 in debt restructuring expenses.
• Total outstanding debt was reduced by $95 million, with long-term debt net of unamortized costs decreasing from $235.3 million as of December 31, 2025, to $144.8 million as of June 30, 2026.
• Stockholders' equity improved from a deficit of $48.4 million as of December 31, 2025, to $38.8 million as of June 30, 2026.

Guidance and Future Outlook

• Management stated the strategy remains unchanged, focusing on delivering sustainable revenue growth, expanding EBITDA through operating discipline and higher-margin revenue, and further reducing leverage over time.
• The Company aims to improve free cash flow, reduce leverage, and create shareholder value as part of its long-term strategy.
• Management expects to emerge as a stronger, more profitable, and more resilient company despite a dynamic advertising environment.

Business Segments and Product Lines

• Digital revenue was $11.7 million for the quarter, down 11.6% year-over-year but up 7.1% on a same-station basis.
• Digital revenue accounted for 26% of net revenue.
• The digital segment operating margin was 15.4%.
• Local revenue, including digital packages sold locally, accounted for 74% of net revenue and grew 9% year-over-year.
• Revenue from new business accounted for 13% of net revenue.
• Strength in digital revenues and stabilization in local direct spot revenues partially offset weakness in traditional national and local agency advertising businesses.
• The Company implemented approximately $10 million of additional annualized expense reductions in the second quarter, bringing total savings over the trailing twelve months to roughly $30 million.

Market and Competitive Landscape

• The Company operates 49 AM and FM stations in large- and mid-size markets including Augusta, GA; Boston, MA; Charlotte, NC; Detroit, MI; Fayetteville, NC; Las Vegas, NV; Middlesex, NJ; Monmouth, NJ; Morristown, NJ; Philadelphia, PA; and Tampa-Saint Petersburg, FL.
• Approximately 18 million consumers listen to the Company's radio stations weekly.
• Traditional national and local agency advertising businesses continue to face weakness.

Risks and Challenges

• Continued weakness in traditional national and local agency advertising businesses.
• Risks include compliance with Nasdaq listing standards, health epidemics, natural disasters, inflation, and external economic forces impacting advertising revenues.
• Dependence on federally issued licenses subject to extensive regulation and potential FCC actions.
• Substantial debt levels and potential restrictive debt covenants affecting operational flexibility.
• Risks related to the ability to continue as a going concern for at least one year from the date of issuance.
• Potential effects of hurricanes, extreme weather, and climate change conditions on corporate offices and stations.
• Dependence on selected market clusters for a material portion of net revenue.

Management Commentary and Tone

• Caroline Beasley, Chief Executive Officer, noted that while traditional advertising markets face pressure, the Company is making progress transforming into a more diversified, higher-margin media company.
• Management highlighted that digital and local direct spot businesses are building momentum and the cost structure is significantly more efficient than a year ago.
• Management emphasized operating with discipline, allocating capital thoughtfully, and taking deliberate actions to strengthen the balance sheet through debt reduction and portfolio optimization.

Other Key Points

• On May 1, 2026, the Company completed a second lien restructuring, repurchased a portion of first lien notes, and established a new asset-based lending facility.
• The debt restructuring resulted in a significant non-cash gain on extinguishment of debt of $91.8 million, driving GAAP net income for the quarter.
• The debt restructuring reduced total outstanding debt by $95 million, including a 46% reduction in second lien debt.
• The transaction materially lowers future cash interest expense and simplifies the Company's capital structure.
• Net cash used in operating activities for the six months ended June 30, 2026, was $15.2 million.
• Net cash provided by investing activities for the six months ended June 30, 2026, was $17.9 million.
• Net cash used in financing activities for the six months ended June 30, 2026, was $5.9 million.