Saga Communications, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Net revenue decreased 6.5% to $26.4 million for the quarter ended June 30, 2026, compared to $28.2 million in the same period last year.
• Net revenue decreased 6.0% to $49.3 million for the six-month period ended June 30, 2026, compared to $52.4 million in the same period last year.
• Station operating expense increased 5.4% to $23.4 million for the quarter (3.9% excluding non-cash rent expense), compared to the same period last year.
• Station operating expense increased 2.8% to $45.4 million for the six-month period (1.9% excluding non-cash rent expense), compared to the same period last year.
• Operating income was $623 thousand for the quarter, down from $1.4 million in the prior year period.
• Operating loss was $2.6 million for the six-month period, compared to an operating loss of $889 thousand in the prior year period.
• Station operating income (non-GAAP) decreased 50.6% to $3.0 million for the quarter and 53.7% to $3.8 million for the six-month period.
• Net income was $960 thousand for the quarter, compared to $1.1 million in the prior year period.
• Net loss was $1.4 million for the six-month period, compared to a net loss of $447 thousand in the prior year period.
• Diluted earnings per share were $0.15 for the quarter; diluted loss per share was $0.23 for the six-month period.
• Capital expenditures totaled $1.3 million for the quarter and $2.0 million for the six-month period, both comparable to the prior year periods.
• Cash and short-term investments were $27.8 million as of June 30, 2026, decreasing to $22.9 million as of August 10, 2026.
• Long-term debt was $5.0 million as of June 30, 2026, with the revolving credit facility repaid in full by August 10, 2026.
• Trailing twelve-month consolidated EBITDA was $1.7 million as of June 30, 2026.

Guidance and Future Outlook

• The Company expects to spend approximately $3.0 million to $3.5 million for capital expenditures during 2026.
• The Company intends to pay regular quarterly cash dividends in the future.
• The Company expects to report approximately $154 thousand per quarter of non-cash rent expense and $127 thousand per quarter of non-cash interest income for the term of the lease agreements in 2026.

Business Segments and Product Lines

• The Company owns or operates broadcast properties in 28 markets, including 82 FM and 28 AM radio stations and 78 metro signals.
• The business focuses on acquiring, developing, and operating broadcast properties with complementary opportunities in digital, e-commerce, local on-line news services, and non-traditional revenue initiatives.

Market and Competitive Landscape

• The press release does not provide specific details on market share, specific competitors, or broader market trend analysis beyond general references to the radio broadcast industry.

Risks and Challenges

• Forward-looking statements involve risks including global, national, and local economic changes and changes in the radio broadcast industry.
• Actual results may vary materially from expectations due to these uncertainties.
• The Company recorded non-cash rent expense and non-cash interest income resulting from the accounting for amendments to a purchase agreement, impacting station operating expense and income.

Management Commentary and Tone

• Management highlighted that the sale of 24 telecommunications towers increased liquidity while retaining long-term access to assets with no cash expense.
• The structure of the tower sale transaction allows for a portion of the taxable gain to be accounted for as an installment sale for tax purposes over the lease term.
• The Company paid a quarterly dividend of $0.25 per share on June 12, 2026, with an aggregate amount of approximately $1.6 million.
• The Company has paid over $145 million in dividends to shareholders since the first special dividend in 2012.

Other Key Points

• On October 17, 2025 (amended in the quarter ended June 30, 2026), the Company sold 24 telecommunications towers, related real property, and other assets at 22 sites for a total cash purchase price of approximately $10.7 million.
• For the quarter ended June 30, 2026, the Company recorded $352 thousand in non-cash rent expense (including $154 thousand for the current quarter and adjustments for prior quarters) and $381 thousand in non-cash interest income.
• For the six-month period ended June 30, 2026, the Company recorded $407 thousand in non-cash rent expense and $381 thousand in non-cash interest income.
• The decrease in cash and short-term investments from June 30 to August 10, 2026, was primarily due to the repayment of the $5.0 million outstanding under the revolving credit facility.
• A conference call regarding the second quarter results was scheduled for August 13, 2026, at 11:00 a.m.