URBAN ONE, INC. (UONE)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 net revenue fell 11.7% year over year to $92.235M; Adjusted EBITDA declined 42% to $12.857M as radio (-12.4% ex-political), Reach (-30.9%), digital (-16.1%), and cable TV (-6.3% ad; -10% affiliate) remained soft .
• Management reaffirmed FY 2025 Adjusted EBITDA guidance of $75M and highlighted substantial deleveraging: $88.6M of notes repurchased year-to-date at 53.9% of par, reducing gross debt to ~$495.9M and cash to ~$79.8M–$80M .
• Q2 radio pacings weakened to -8.7%, implying another subdued quarter before a back-half weighted year; digital profitability is skewed to H2 and TV ratings have stabilized, aided by CLEO TV and FAST/AVOD traction .
• Key stock catalysts: continued discounted debt buybacks, cost actions targeted mid-year, and execution on TV distribution (FAST/AVOD) and local digital monetization initiatives .

What Went Well and What Went Wrong

• What Went Well

  • TV ratings stabilized versus Q4 lows and are tracking to budget; CLEO TV delivery up and FAST/AVOD contributed ~$1.1M in ad revenue .
  • Operating expenses ex-D&A, SBC, and impairment declined 8.6% YoY to $80.7M on lower third‑party fees, content costs, and employee compensation; cost actions ($5M annualized from Q4 headcount reduction) continue .
  • Aggressive deleveraging: $88.6M of notes repurchased YTD at ~53.9% of par; gross debt reduced to ~$495.9M while maintaining ~$80M cash and undrawn revolver .
    • “We reaffirm our full year guidance of $75 million in Adjusted EBITDA... our focus remains on controlling costs, managing leverage and retaining a strong liquidity position.” — Alfred Liggins .

• What Went Wrong

  • Core radio advertising down 12.4% YoY; Q2 pacings deteriorated to -8.7%, with national weakness a primary driver and political dollars minimal in Q1 .
  • Digital down 16.1% YoY on streaming/podcasting renegotiations and weaker national digital demand; digital Adjusted EBITDA fell to $58K from $2.3M YoY .
  • Intangible impairment ($6.443M) to radio licenses across five markets; effective tax rate inflated by discrete items (valuation allowance), driving net loss of $(11.742)M and EPS of $(0.26) .

Financial Results

Consolidated performance (oldest → newest):

YoY and sequential context (Q1 focus):

Q1 2025 segment breakdown:

Revenue sources (Q1 YoY):

KPIs and balance sheet:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Second quarter core radio advertising pacings have weakened... now (8.7)%... we reaffirm our full year guidance of $75 million in Adjusted EBITDA.” — Alfred Liggins .
• “Digital revenues were down (16.1)% driven by expected weakness in streaming and podcasting revenues.” — Alfred Liggins .
• “Cable TV advertising was (6.3)%. Our cable TV ratings stabilized significantly... and are performing in line with our 2025 budget.” — Alfred Liggins .
• “We bought back... $88.6 million of our debt at an average price of about 53.9%... reduced our gross debt down to $495.9 million, and we’re still sitting on about $80 million of cash.” — Alfred Liggins .

Q&A Highlights

• Cost controls: Additional cost opportunities targeted by end of June; $75M EBITDA guide excludes further back-half cost reductions .
• Earnings cadence: More than half of 2025 EBITDA expected in H2; Q2 “a little bit better than Q1, but similarly weak,” with digital profit largely back-half .
• Debt buybacks and liquidity: Opportunistic repurchases to capture discounts; undrawn revolver provides flexibility; potential liability management only nearer to 2028 maturity .
• Radio mix: Approx. 2:1 local vs national dollars; local pacing down low single digits vs national weakness .
• Cable affiliate renewals: 2025 renewals include Charter (Q4), Verizon (option), NCTC (September); 2026 includes DIRECTV/AT&T and Comcast .
• Programming spend: Down ~10% YoY; emphasis on FAST/AVOD distribution over incremental linear-only spend .

Estimates Context

• S&P Global consensus data for Q1 2025 was unavailable for EPS and revenue estimates; no “beat/miss” comparison can be made. Values retrieved from S&P Global.*
• Actual Q1 2025 revenue reported: $92.235M (company-reported actual, not consensus) .
• Implication: Street models likely need to reflect weaker Q2 radio pacings, H2-weighted EBITDA, digital headwinds, and the benefit from continued debt repurchases .

Key Takeaways for Investors

• Near-term softness persists: Q2 radio pacings worsened to -8.7%, suggesting limited upside before H2; maintain caution on Q2 setup .
• Back-half weighted year: Digital profitability and TV stabilization imply H2 earnings concentration; position for H2 catalysts if cost cuts materialize .
• Deleveraging is the story: Discounted buybacks at ~50–54% of par rapidly improve leverage; continued opportunism could be a positive stock driver .
• TV strategy pivot: Growth to come from FAST/AVOD and broader distribution rather than heavy linear content spend; watch affiliate renewals and AVOD contribution .
• Digital rebuild: Streaming/podcasting deals reset and traffic acquisition costs pressure margins; local digital penetration is a structural opportunity vs peers .
• Tax and impairment noise: Q1 discrete tax items and radio license impairments distorted GAAP; focus on Adjusted EBITDA and cash metrics for trajectory .
• Actionable: Monitor June cost program, debt buyback cadence, Q2 radio pacing updates, and any disclosure on digital/local monetization tools; use weakness to build into H2 if capital allocation pace remains strong .

Note: S&P Global consensus was unavailable for Q1 2025 for UONE; values retrieved from S&P Global.*