Executive Summary

Q3 revenue declined 12.4% YoY to $51.0M (same-station -11.2%), yielding an operating loss of $0.5M, net loss of $3.6M (–$1.97 per diluted share), and Adjusted EBITDA of $3.9M; digital revenue grew 14.6% YoY to $13.0M with a 21% segment margin (28% same-station), partially offsetting agency weakness .
Sequentially, revenue fell from $53.0M in Q2 to $51.0M in Q3 while Adjusted EBITDA declined from $4.7M to $3.9M as agency softness intensified; management tightened costs further (station opex –8% YoY, corporate opex –~50% YoY) and highlighted structural efficiency gains .
Q4 pacing: including roughly $8.2M of prior-year political, total revenue is pacing down ~20% YoY; ex-political, pacing down high single digits. FY25 station + corporate expenses expected down $25–$30M ex one-time items; incremental ~$4M run-rate savings benefit in 2026 from 2H cuts .
Portfolio actions continue: closed sale of WPBB-FM for $8.0M; entered agreements to sell Ft. Myers assets for $18M (two transactions, pending FCC approval) to support deleveraging—potential catalysts alongside continued digital mix shift and margin expansion .

What Went Well and What Went Wrong

What Went Well
- Digital momentum and profitability: digital revenue +14.6% YoY to $13.0M; digital margin 21% (28% same-station). CEO: “Digital revenue now represents roughly one-quarter of total company revenue, with owned-and-operated products driving margin expansion” .
- Sales mix quality: local direct grew 3.5% YoY and now represents nearly 60% of total local business, enhancing predictability and reducing volatility .
- Cost discipline: station opex –8% YoY; corporate opex ~–50% YoY aided by reclass/one-time effects; structural consolidation and centralization underpin durable savings; YTD corporate + station opex down ~$15M (nearly $20M ex one-time) .
What Went Wrong
- Agency headwinds deepened: national agency revenue at the political fell ~16% YoY, with pullbacks in telecom/cable, insurance, QSR; local agency –~17% YoY (improving from –24.7% in Q2) .
- Category pressure: entertainment –~40% YoY on delayed promoter spend/softer event calendar; retail –~22% YoY; auto –~8% YoY on OEM budget compression and dealer consolidation .
- Top-line decline persisted: total revenue –12.4% YoY to $51.0M and operating swung to a loss; Adjusted EBITDA down to $3.9M (from $6.5M in Q3’24). Q4 total revenue pacing down ~20% YoY including political .

Financial Results

Metric (GAAP unless noted)	Q3 2024	Q1 2025	Q2 2025	Q3 2025	vs YoY	vs QoQ	Consensus (S&P Global)
Revenue ($)	$58,190,116	$48,912,465	$52,999,711	$50,977,046	–12.4% YoY (Q3)	Down from $53.0M in Q2	n/a (no consensus available; values retrieved from S&P Global)
Operating Income (Loss) ($)	$1,237,242	$(2,000,589)	$2,891,256	$(536,676)	n/a	Down vs Q2	n/a
Net Income (Loss) ($)	$(3,560,575)	$(2,689,821)	$(154,175)	$(3,556,703)	Flat YoY loss	Down vs Q2	n/a
Diluted EPS ($)	$(2.33)	$(1.50)	$(0.09)	$(1.97)	Better YoY EPS (less negative)	Down vs Q2	n/a
Adjusted EBITDA (non-GAAP) ($)	$6,477,681	$1,134,792	$4,706,522	$3,856,270	Down YoY	Down vs Q2	n/a

Notes: Adjusted EBITDA excludes items including severance and transaction/one-time costs; Q3’25 Adjusted EBITDA excludes ~$1.0M severance and ~$1.6M transaction/one-time expenses per management . S&P Global consensus for Q3’25 EPS/Revenue/EBITDA was not available for BBGI; coverage appears limited (values retrieved from S&P Global).

Segment revenue breakdown

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Audio Net Revenue ($)	$46,889,920	$38,153,370	$39,818,870	$38,030,320
Digital Net Revenue ($)	$11,300,196	$10,759,095	$13,180,841	$12,946,726

Key operating KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Digital as % of Net Revenue	22%	25%	25%
Digital Segment Operating Margin	18%	27%	21% (28% same-station)
Local Revenue as % of Net Revenue	71%	76%	79%
New Business as % of Net Revenue	18%	14%	14%
Owned & Operated (O&O) share of Digital	n/a	n/a	~58%

Balance sheet and liquidity highlights (select)

Cash and cash equivalents: $14.3M at Q3’25; CapEx ~$2.2M in Q3 tied to Charlotte consolidation project; majority of related CapEx expected in Q4’25; project expected to reduce annual opex by nearly $1M in 2026 .
Long-term debt (net of unamortized costs): $237.2M at 9/30/25 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue (incl. political)	Q4 2025	n/a	Pacing down ~20% YoY	New disclosure
Revenue ex-political	Q4 2025	n/a	Pacing down high single digits YoY	New disclosure
Station + Corporate Expenses (ex one-time)	FY 2025	n/a	Down $25–$30M YoY	New disclosure
Run-rate Savings from 2H’25 cuts	FY 2026	n/a	~$4M benefit expected	New disclosure
WPBB-FM Sale Proceeds	Closed 9/29/25	n/a	$8.0M closed	Executed
Ft. Myers Asset Sales	Pending (FCC)	n/a	$18M total (two $9M transactions)	Announced/pending
CapEx (Charlotte project)	2H 2025 / 2026	n/a	Majority spend in Q4’25; ~$1M annual opex reduction in 2026	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2, Q1)	Current Period (Q3)	Trend
Digital mix and margins	Q1: Digital 22% of rev; margin 18% . Q2: Digital 25%; margin 27% .	Digital 25% of rev; margin 21% (28% same-station); O&O ~58% of digital .	Mix stable; margin strong; O&O scaling
Sales org retooling	Q2: Emphasis on direct/digital-first; self-serve platform launching . Q1: Early transformation focus .	Adding dedicated digital AEs/DSMs; comp/training overhauled; self-serve portal piloted in Tampa, broader Q4 launch .	Acceleration
Agency softness	Q2: Agency softness persisted . Q1: Agency-driven declines .	National agency –~16%; local agency –~17% YoY; pressure in telecom/cable, insurance, QSR .	Deteriorated
Local direct growth	Q2: Local 76% of revenue . Q1: Local 71% .	Local revenue 79% of total; local direct up 3.5% YoY .	Improving
Cost structure	Q2: Opex reductions; operating income $2.9M . Q1: Adjusted EBITDA improved despite revenue shortfall .	Station opex –8% YoY; corporate opex ~–50% YoY; further $4M run-rate savings in 2026 .	Improving structurally
Portfolio actions/deleveraging	Q2: Announced Tampa and Ft. Myers divestitures .	Closed WPBB $8M; Ft. Myers $18M pending; open to creative transactions .	Executing

Management Commentary

Strategic focus: “Scale higher margin digital products… strengthen the quality of our earnings… pivot our sales organization toward direct data-driven relationships.”
Digital profitability: “Digital segment operating income reached 28% on a same-station basis, the highest in the company’s history… O&O Products representing roughly 58% of total digital revenue for the quarter.”
Cost actions: “For the nine-month period… total corporate and station operating expenses are down $15 million… Excluding one-time expenses… down nearly $20 million. These declines reflect durable structural efficiency gains.”
Near-term outlook: “Including approximately $8.2 million in political revenue from the fourth quarter of last year, total company revenue for Q4 is pacing down roughly 20% year-over-year. Ex-political… pacing down in the high single digits.”
CFO transition: CEO Caroline Beasley is serving as principal financial officer following the CFO’s resignation effective October 17; CAO elevated to support continuity .

Q&A Highlights

Agency channel recovery: Management expects to “anniversary” the agency headwinds around Q1 next year; ex-political Q4 shows slight improvement vs Q3 .
Incremental cost savings: Expect ~$4M benefit in 2026 from Q3/Q4 cuts, with further savings under review .
Asset sale details: Ft. Myers comprises two transactions at $9M each (total $18M) with Fort Myers Broadcasting and Sun Broadcasting; management remains open to additional deleveraging transactions .

Estimates Context

S&P Global consensus estimates for Q3 2025 EPS, revenue, and EBITDA were not available for BBGI; coverage appears limited, so we cannot characterize beat/miss versus Street. Values retrieved from S&P Global.
Company results show revenue of $51.0M, net loss of $3.6M (–$1.97 per diluted share), and Adjusted EBITDA of $3.9M, with revenue in line with internal guidance commentary (“in line with Company guidance”) .

Key Takeaways for Investors

Mix improvement continues: digital now ~25% of revenue with structurally higher margins, aided by O&O product scaling and new self-serve capabilities—supportive of multi-year margin expansion .
Near-term revenue headwinds persist: agency and certain categories (entertainment, retail, auto) remain under pressure; Q4 pacing down ~20% YoY including political; ex-political high-single-digit decline .
Cost actions are real and compounding: durable savings evident in station/corporate opex; additional run-rate savings expected in 2026—offsetting part of revenue pressure and supporting EBITDA stability .
Balance sheet simplification underway: $8M Tampa sale closed; $18M Ft. Myers pending; further deleveraging transactions could re-rate equity if execution continues .
Execution watch items: pace of salesforce retooling and digital AE productivity, stabilization of agency channel, and traction of self-serve platform rollouts (Tampa pilot, Q4 expansions) .
Potential catalysts: closing of pending divestitures, continued digital margin expansion, and evidence of category recovery could drive multiple expansion; conversely, prolonged agency weakness or slower-than-expected digital adoption are key risks .

Supporting sources: Q3 2025 press release and financial tables ; Q3 2025 earnings call transcript ; Q2 2025 press release and financial tables ; Q1 2025 press release and financial tables .

BEASLEY BROADCAST GROUP INC (BBGI)·Q3 2025 Earnings Summary