Saga Communications, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for the quarter ended September 30, 2026, decreased 5.4% to $26.7 million compared to $28.2 million in the same period last year.
• Net revenue for the nine-month period ended September 30, 2026, decreased 5.8% to $75.9 million compared to $80.6 million in the same period last year.
• Station operating expense decreased 1.7% to $24.2 million for the quarter compared to $24.7 million last year; increased 1.2% to $69.7 million for the nine-month period compared to $68.9 million last year.
• GAAP operating loss was $9.8 million for the quarter compared to a $626 thousand loss last year; $12.4 million for the nine-month period compared to a $1.5 million loss last year.
• Station operating income (non-GAAP) was $2.4 million for the quarter compared to $3.5 million last year; $6.2 million for the nine-month period compared to $11.7 million last year.
• Without the $9.2 million non-cash impairment charge, the quarterly operating loss would have been $563 thousand compared to a $626 thousand loss last year.
• Without the non-cash impairment charge, the nine-month operating loss would have been $3.2 million.
• Net loss was $7.1 million ($1.11 per share) for the quarter compared to $532 thousand ($0.08 per share) last year; $8.5 million ($1.34 per share) for the nine-month period compared to $979 thousand ($0.15 per share) last year.
• Without the non-cash impairment charge, the quarterly net loss would have been approximately $240 thousand ($0.03 per share) compared to $0.08 per share last year.
• Without the non-cash impairment charge, the nine-month net loss would have been approximately $1.7 million ($0.26 per share) compared to $0.15 per share last year.
• Capital expenditures were $900 thousand for the quarter compared to $600 thousand last year; $2.9 million for the nine-month period compared to $2.6 million last year.
• Cash and short-term investments were $23.5 million as of September 30, 2026, and $22.4 million as of November 9, 2026.
• Long-term debt was $0 as of September 30, 2026, compared to $5.0 million last year.
• Trailing twelve-month consolidated EBITDA was $740 thousand as of September 30, 2026, compared to $4,184 thousand for the nine months ended September 30, 2025.

Guidance and Future Outlook:

• The Company expects to spend approximately $3.0 million to $3.5 million for capital expenditures during 2026.
• The Company expects to continue recording approximately $154 thousand per quarter and $616 thousand per year in non-cash rental expense attributable to the tower sale.
• The Board will continue to assess dividends, share repurchases, investments in the business, and other potential uses of capital based on opportunities to create long-term shareholder value.

Business Segments and Product Lines:

• Gross political revenue was $1.2 million for the third quarter of 2026 compared to $73 thousand in 2025; $1.9 million for the nine-month period compared to $395 thousand last year.
• The Company has approximately $3.6 million of gross political revenue sold for the fourth quarter.
• Saga owns or operates broadcast properties in 28 markets, including 82 FM and 28 AM radio stations and 78 metro signals.
• The Company recorded $154 thousand of non-cash rent expense for the quarter and $561 thousand for the nine-month period related to the sale of 24 telecommunications towers.
• Net revenues were reduced by $188 thousand for the quarter and $564 thousand for the year-to-date due to the transfer of income-producing leases associated with the sold towers.

Market and Competitive Landscape:

• The impairment of intangible assets was driven by an increase in interest rates which increased the discount rate used in fair value calculations, a decrease in operating margins in the business and industry, and reductions in market revenue projections.
• The broadcasting industry is facing challenges regarding operating margins and market revenue projections.

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 risks.
• The Company recorded a significant non-cash impairment charge of $9.2 million based on FCC license values.

Management Commentary and Tone:

• The Board declared a quarterly cash dividend of $0.25 per share, reflecting a continued commitment to a disciplined and balanced approach to capital allocation.
• Management stated the Board determined the current financial position provides flexibility to return capital to shareholders while investing in strategic priorities and digital transformation.
• The Company retains long-term access to sold tower assets with no cash expense.

Other Key Points:

• The Board declared a quarterly cash dividend of $0.25 per share, payable on December 11, 2026, to shareholders of record on November 23, 2026, with an aggregate amount of approximately $1.6 million.
• A quarterly dividend of $0.25 per share was paid on October 16, 2026, with an aggregate amount of approximately $1.6 million.
• Including the recently declared dividend, the Company will have paid over $148 million in dividends to shareholders since the first special dividend in 2012.
• The Company paid $5.0 million in payments on long-term debt during the nine-month period ended September 30, 2026.
• The Company purchased $30 thousand of treasury shares during the nine-month period.
• Non-cash interest income on notes from the tower sale was $127 thousand for the quarter and $508 thousand for the nine-month period.
• The conference call for the third quarter 2026 results was scheduled for November 12, 2026, at 11:00 a.m. Eastern time.