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UO

URBAN ONE, INC. (UONE)·Q2 2025 Earnings Summary

Executive Summary

  • Urban One’s Q2 2025 was materially weaker year-over-year: revenue fell 22.2% to $91.6M, Adjusted EBITDA dropped ~52% to $14.0M, and GAAP net loss widened to $(77.9)M ($(1.74) basic EPS), driven by steep declines in Reach Media and Digital and a $130.1M non-cash impairment primarily to radio licenses .
  • Management cut full-year 2025 Adjusted EBITDA guidance to $60.0M from $75.0M previously; Q3 core radio pacings are currently down 8.3% (-5.6% ex-political), with local pacing flat YoY, and cable affiliate revenue continues to decline with subscriber churn .
  • Cable Television held up comparatively better (ad revenue -4.2% YoY; affiliate -11.7%), with segment Adj. EBITDA up YoY; company continued delevering via $64.0M of note repurchases at ~51.8% of par, reducing gross debt to ~$492.3M by mid-August .
  • Key near-term stock catalysts: the guidance cut to $60M, ongoing national radio softness (DEI pullback, AI-driven media-buy shifts), and visibility into further cost actions by end-Q3; deleveraging progress and any stabilization in TV delivery/CTV revenue share could provide partial offsets .

What Went Well and What Went Wrong

  • What Went Well

    • Cable Television profitability resilience: segment Adjusted EBITDA rose to $18.1M vs $16.0M YoY; management noted full-year TV One margins are “flat essentially” off a diminished revenue base .
    • Continued debt reduction: repurchased $64.0M of 2028 notes at ~51.8% of par in Q2; gross debt approx. $492.3M by Aug 13, 2025; interest expense declined YoY to $9.7M .
    • Cost discipline: operating expenses ex-D&A, SBC, and impairments fell to ~$78.1M from ~$93.3M YoY; Radio opex down ~7.8%, Digital opex down ~8.4%, and TV opex down ~19.6% YoY .

  • What Went Wrong

    • Reach Media and Digital underperformance: Reach revenue fell 71.9% YoY (timing of Tom Joyner cruise; client attrition, lower CPMs); Digital revenue -27.1% YoY (lower demand, reduced streaming CPMs; loss of exclusive audio streaming deal, ~$1.6M impact) .
    • National radio pressure: core radio ads down 11.8% ex-digital; national ad sales -23.6% versus market -13.1%; management cited DEI pullback and AI planning tools omitting radio .
    • Large non-cash impairment: $130.1M Q2 impairment (mainly radio licenses), reflecting declining industry cash flows; useful life changed to finite with ~$1.3M quarterly amortization beginning June 1 .

Financial Results

Consolidated performance vs prior periods

MetricQ2 2024Q1 2025Q2 2025
Net Revenue ($M)$117.7 $92.2 $91.6
Operating Income (Loss) ($M)$(60.4) $2.1 $(120.7)
Net (Loss) Attributable to Common ($M)$(45.4) $(11.7) $(77.9)
Basic EPS ($)$(0.94) $(0.26) $(1.74)
Adjusted EBITDA ($M)$28.9 $12.9 $14.0
Gain on Retirement of Debt ($M)$7.4 $11.6 $30.3
Interest Expense ($M)$12.4 $10.9 $9.7
Impairment of Intangibles ($M)$80.8 $6.4 $130.1

Segment revenue and profitability (Q2 YoY)

SegmentQ2 2024 Revenue ($M)Q2 2025 Revenue ($M)Q2 2024 Adj. EBITDA ($M)Q2 2025 Adj. EBITDA ($M)
Radio Broadcasting$42.0 $36.7 $9.5 $6.9
Reach Media$18.9 $5.3 $3.5 $(1.7)
Digital$14.1 $10.3 $2.7 $(0.1)
Cable Television$43.3 $40.1 $16.0 $18.1
Corporate/Elims/Other$(0.6) $(0.7) $(2.8) $(9.2)
Consolidated$117.7 $91.6 $28.9 $14.0

Revenue mix and KPIs

KPIQ2 2024Q2 2025Notes
Radio Advertising Revenue ($M)$45.4 $38.6 -15.0% YoY
Political Advertising ($M)$2.15 $0.25 -88.2% YoY
Digital Advertising ($M)$13.7 $10.24 -25.3% YoY
Cable TV Advertising ($M)$23.99 $22.98 -4.2% YoY
Cable TV Affiliate Fees ($M)$19.32 $17.06 -11.7% YoY
Events & Other ($M)$13.16 $2.47 Timing of Tom Joyner cruise
TV One Nielsen Subscribers (MM)35.6 (Q1-end) 34.3 (Q2-end) Clio TV 33.7MM (Q2-end)
Q3 Core Radio Pacings—-8.3% (-5.6% ex-pol.), local flat YoY Sequential improvement signaled
Gross Debt ($M)—~$492.3 as of Aug 13 $488.4 at 6/30 GAAP carrying, net of costs
Cash & Restricted Cash ($M)—$86.2 at 6/30 Capex $1.2M in Q2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDA ($M)FY 2025~$75.0 (reaffirmed Q1) $60.0 Lowered
Core Radio PacingsQ3 2025—-8.3% (-5.6% ex-political); local flat YoY Outlook update
Nasdaq Bid Price ComplianceThrough—Extension granted; deadline Feb 9, 2026; reverse split authorized range 1-for-2 to 1-for-30 Regulatory update

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
Macro/Advertising DemandQ4: radio core pacings: Q1 down 13.6%, Q2 down 1.7%; cost containment focus . Q1: core radio -12.4% ex-digital; Q2 pacings weakened to -8.7% .Core radio pacings Q3: -8.3% (-5.6% ex-pol.), local flat; national demand weak .Continued weakness; modest sequential improvement in local .
Cable TV PerformanceQ4: delivery underperformed; seeing stabilization into Q1 . Q1: ratings stabilized in line with budget .Ad -4.2%, affiliate -11.7%; CTV/3rd-party platform revenue share up; margins flat FY .Stabilizing ads; subs pressure persists .
DigitalQ1: revenue -16.1% (streaming/podcasts) .Revenue -27.1%; reduced streaming CPMs; lost exclusive audio streaming deal (~$1.6M hit) .Worsened YoY; mix/CPM pressure .
Reach Media— (Q1 down vs 2024) .Revenue -71.9% YoY; cruise timing, client attrition, lower unit rates .Transitory timing + structural headwinds .
Debt/DeleveragingQ4-Q1: continued note repurchases; debt down to ~$567.6M in Jan .$64M repurchased in Q2 at ~51.8% of par; gross debt ~$492.3M by Aug 13 .Accelerated deleveraging .
Regulatory/Listing—Nasdaq minimum bid notice; 180-day extension; reverse split authorization; new deadline Feb 9, 2026 .New in Q2 .
AI/Media Buying—AI planning tools omitting radio; DEI pullback hits national radio .New negative demand driver .

Management Commentary

  • CEO (Alfred Liggins): “Second quarter results were impacted by weaker than expected performance in our Reach Media and Digital segments... Core radio pacings for the third quarter are currently (8.3)% or (5.6)% excluding political... Based on the broad economic headwinds being experienced, we are reducing our full year guidance to $60.0 million in Adjusted EBITDA.” .
  • CFO (Peter Thompson): “Digital... decline was driven by the loss of an exclusive third party audio streaming deal... impact ~$1.6M of revenue” and “Cable TV affiliate revenue was down 11.7% driven by subscriber churn... launch of NOW TV” .
  • CEO on cost actions: “We have not instituted a second round of cost cuts... expect majority of the impact to come through 2026; not going to take [guide] to 70” .
  • CFO on TV One margins: “Looking at the full year projections... margins are flat essentially” .

Q&A Highlights

  • Cost reductions: Second round not yet implemented; expected by end-Q3, but unlikely to change 2025 guidance materially; more impact in 2026 .
  • Cable TV margins: Improvement partly timing (marketing); full-year TV One margins “flat essentially” .
  • Debt buybacks: Opportunistic; priority remains deleveraging despite price moves in bonds .
  • National radio: Underperformance vs market; factors include DEI pullback and AI-driven media planning excluding radio .
  • Liquidity: ABL fully available; covenant 1.1x fixed charge; current ~1.7x; projecting year-end cash around $95M (assuming no additional buybacks) .

Estimates Context

  • S&P Global consensus was not available for EPS or revenue for UONE in Q2 2025, Q1 2025, or Q4 2024; tool returned actuals only and no consensus, so a beat/miss assessment vs Street is not possible at this time (S&P Global). Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Guidance cut to $60M Adjusted EBITDA signals tougher 2H setup; further cost actions by end-Q3 may support 2026 but won’t offset 2025 softness near-term .
  • National radio remains the biggest pressure point (DEI pullback, AI planning tools, agency trends), while local radio is comparatively stable (flat pacing) .
  • Cable TV is comparatively more resilient on margin, aided by CTV/third-party platform revenue share; subs erosion persists but delivery stabilizing .
  • Deleveraging continues aggressively with discounted note buybacks; interest expense declining; liquidity remains solid with $86M cash at Q2 and projected ~$95M year-end (no further buybacks) .
  • Watch Q4 for one-time uplift from the rescheduled Tom Joyner cruise (timing shift from Q2 2024), which should aid Reach Media comps, but structural advertiser attrition/CPM pressure remains a risk .
  • Regulatory overhang: Nasdaq minimum bid compliance extension to Feb 2026 with reverse split authorization in place — monitor execution/timing .

Citations:

  • Q2 2025 8-K/Press release, results and segment details:
  • Q2 2025 Earnings call transcript:
  • Q1 2025 press release (prior quarter trend, prior guidance):
  • Q4 2024 press release (two quarters back, narrative context):

Footnote: *Values retrieved from S&P Global.