Executive Summary

Q1 2025 revenue declined 10.1% year-over-year to $48.912M, with operating loss widening to $2.0M; however, Adjusted EBITDA increased to $1.135M as cost reductions offset part of the top-line pressure .
Mix improved: digital revenue represented 22% of total and digital segment operating margin reached 18%, reflecting margin-focused product optimization and cost discipline .
Management guided Q2 revenue pacing down ~~10% amid continued macro/agency softness; additional Q1 cost cuts (~~$1.3M) will mostly flow through in Q2, supporting margins even as revenue remains constrained .
Debt service pressure eased: interest expense fell to ~$3.38M in Q1 (from ~$5.59M a year ago) following late-2024 deleveraging; total principal outstanding ended Q1 at $220M .
Key stock catalysts: accelerating digital profitability (Audio Plus rollout, streaming CPMs +13%) vs. macro/agency headwinds and negative Q2 pacing; no formal guidance ranges, and Street estimates appear unavailable, keeping the setup headline-driven on execution vs. internal pacing .

What Went Well and What Went Wrong

What Went Well
- Digital profitability inflected: same-station digital operating margin expanded to 17.8% (segment margin ~18%), with ~6% same-station digital revenue growth and improved CPMs (+13%) as proprietary inventory scaled (Audio Plus) .
- Cost actions working: Adjusted EBITDA rose to $1.135M despite revenue down $5.5M YoY, aided by lower operating and corporate spend and mix shift; interest expense also fell materially .
- Management tone confident on digital evolution: “digital segment operating income grew meaningfully from $100,000 in Q1 ’24 to $1.9 million in Q1 ’25…scalability of our platform” .
What Went Wrong
- Agency-driven weakness: net revenue down 10.1% YoY (8.5% same-station), driven by declines in agency revenue and lapses of Guarantee Digital/esports closures; local agency -19.9% YoY .
- Category pressure: domestic auto -5% and broader national ex-political -12.7%; tariff uncertainty cited as late-quarter overhang on auto ad budgets .
- Operating loss widened: operating loss increased to $2.0M as the $5.5M revenue decline outpaced $4.6M of expense reductions; net loss was $2.690M vs. de minimis profit in Q1 2024, which benefited from a $6.0M gain in that period .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Net Revenue ($USD Millions)	$54.380	$58.200	$67.285	$48.912
Operating Income (Loss) ($USD Millions)	$(1.103)	$1.200	$7.583	$(2.001)
Net Income (Loss) ($USD Millions)	$0.008	N/A	$(2.059)	$(2.690)
Diluted EPS ($)	$0.01	N/A	$(1.17)	$(1.50)
Adjusted EBITDA ($USD Millions)	$0.885	$5.600	$10.679	$1.135

Notes and context:

Q1 2025 YoY revenue down 10.1% (8.5% same-station) due to agency softness and lapping exited operations; Adjusted EBITDA up vs. Q1 2024 due to cost actions .
Interest expense declined to $3.381M vs. $5.587M in Q1 2024; CFO also cites lower interest expense and $220M outstanding principal .

Segment breakdown (Q1 2025 vs. Q1 2024)

Segment	Q1 2024	Q1 2025
Audio Net Revenue ($USD Millions)	$43.373 (same-station)	$38.153
Digital Net Revenue ($USD Millions)	$10.108 (same-station)	$10.759
Audio Operating Expenses ($USD Millions)	$38.319 (same-station)	$36.395
Digital Operating Expenses ($USD Millions)	$9.495 (same-station)	$8.846
Digital Segment Operating Margin (%)	~6.1% (same-station)	18% (reported)

KPIs

KPI	Q1 2025
New business as % of net revenue	18%
Local revenue (incl. local digital) as % of net revenue	71%
Digital revenue as % of net revenue	22%
Same-station digital revenue growth YoY	+6.4%
Streaming CPM change YoY	+13%
Streaming inventory availability	~3x increase (Audio Plus)
Stations #1 in market (Adults 25-54)	6 stations
Overall audio cume	+5.6% QoQ
Social media audience	>20% YoY growth

Non-GAAP adjustments (Q1 2025):

Adjusted EBITDA adds back severance ($0.889M), non-recurring expenses ($0.495M), stock-based comp ($0.099M), and removes other income and equity earnings; reconciliation provided in press release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (pacing)	Q2 2025	None	Pacing down ~10% YoY	New
Expense reductions (incremental)	Q2 2025 flow-through	None	~$1.3M cuts initiated in Q1; ~$(0.2)M recognized in Q1; ~$(1.1)M to benefit Q2	New
Strategic spending focus	2025	N/A	Continue funding digital, content, technology while managing costs	Maintained focus

Management did not provide formal ranges for revenue, margins, or EPS; emphasis remained on pacing, cost control, and digital product roadmap .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Digital/product optimization	Closed Guarantee Digital; digital same-station +11.7%; segment SOI $0.871M	Digital core to growth; redesign of sites; expand streaming/newsletters; expect ~half of new biz from digital	Audio Plus unified streaming; 3x inventory; streaming CPM +13%; margin expansion; O&O focus	Accelerating margin-focused digital execution
Macro/agency softness	Local agency down; national constrained; shifting to direct/local	National ex-political -4.9%; cautious advertisers; political crowded inventory	Agency-driven declines persist; national ex-pol -12.7%; local agency -19.9%	Persistent headwind
Auto category dynamics/tariffs	Auto down 11%; import strength earlier in 2024	Import +115% YoY in Q4; tariff risk flagged	Foreign auto +7.5% (vs. +15% in Q4); domestic -5%; tariff uncertainty weighed late quarter	Risk elevated; growth moderating
Cost actions/operating leverage	Severance and efficiency work; adj EBITDA impacted by onetime items	~$20M annualized savings; lower interest expense; lender EBITDA $12.5M in Q4	Adj EBITDA +28% YoY; more cuts to flow in Q2; lender focus on Adjusted EBITDA	Margin defense continues
Capital structure/interest	Debt down to $220M pro forma post-transaction	Debt reduced to $220M; interest expense reduced YoY	Interest expense $3.38M (vs. $5.59M YoY); principal $220M	Improved servicing costs
Ratings/audience	Market share/rating strength; storm coverage impact	Ratings strength; PPM methodology change beneficial	6 stations #1 (A25-54); PPM gains; cume +5.6% QoQ	Audience momentum

Management Commentary

CEO: “Digital revenue now represents over 20% of total revenue, and the meaningful expansion in digital segment operating income underscores the scalability of our platform and the impact of our strategic investments.”
CEO on digital margin expansion: “same-station digital segment operating margin expanded significantly from 6.1% to 17.8%…a clear demonstration of…a high-margin, value-accretive engine” .
CFO on costs and lender focus: “we have refocused our earnings release around adjusted EBITDA as that continues to be their metric…Adjusted EBITDA…was $1.1 million…EBITDA as defined by our indenture…$1.7 million” .
CEO on product execution: “We’ve increased streaming inventory availability by nearly 3x, making Audio Plus a far more scalable and competitive product…Display is the next product we’ll optimize” .

Q&A Highlights

Expense actions and cadence: ~$1.3M incremental cuts in Q1; ~~$(0.2)M recognized in Q1 with the balance (~~$1.1M) to benefit Q2; ongoing evaluation of expense base vs. revenue .
KPI focus for creditors: Lenders are focused on Adjusted EBITDA; management aligned disclosure and operations around EBITDA resilience .
Outlook tone: Q2 pacing down ~10% with macro/agency pressure; management prioritizing digital, content, and tech investments while protecting margins .

Estimates Context

S&P Global consensus: No active consensus for EPS or revenue appeared available for Q1 2025; therefore, no beat/miss comparison versus Street is presented. Results: Revenue $48.912M and Diluted EPS $(1.50) per company-reported actuals .
Implications: In absence of formal consensus anchors, investor focus likely centers on (i) digital margin expansion and product execution vs. internal pacing and (ii) the glidepath for expense reductions and interest savings sustaining EBITDA through a soft revenue backdrop .
Values retrieved from S&P Global.*

Key Takeaways for Investors

Digital is the margin engine: Audio Plus launch and O&O prioritization drove CPMs higher and margins up; digital mix (22%) and segment margin (18%) provide a structural offset to cyclical ad softness .
Macro/agency headwinds persist: Q2 revenue pacing down ~10%; domestic auto weakness and tariff uncertainty present near-term risk to national/agency budgets .
Cost discipline underpinning EBITDA: Incremental cuts from Q1 flow into Q2; despite a $5.5M YoY revenue drop, Adjusted EBITDA rose—evidence expense actions are offsetting top-line pressure .
Balance sheet progress easing carry: Interest expense materially lower; total principal ~$220M—late-2024 actions improved debt service capacity .
Ratings and audience momentum: Strong market positions (6 stations #1), PPM gains, and social growth (>20%) should support monetization as demand recovers .
Near-term trading setup: Sentiment likely hinges on sustained digital margin expansion and visibility into agency stabilization vs. negative pacing; absence of Street estimates increases sensitivity to company pacing and detailed KPIs .
Medium-term thesis: If digital mix and margins continue to expand and cost structure remains tight, EBITDA leverage and lower interest burden can drive improved free cash flow through the cycle .

Appendix: Source Tables (from Company Filings)

Condensed Statement highlights (Q1 2025 vs. Q1 2024)

Net revenue: $48.912M vs. $54.380M
Operating loss: $(2.001)M vs. $(1.103)M
Net income (loss): $(2.690)M vs. $0.008M
Diluted EPS: $(1.50) vs. $0.01
Interest expense: $3.381M vs. $5.587M
Adjusted EBITDA: $1.135M vs. $0.885M

Other relevant press releases and materials in the period: earnings call scheduling (Apr 30) ; Q4 2024 results baseline (Mar 20) .

BEASLEY BROADCAST GROUP INC (BBGI)·Q1 2025 Earnings Summary