Beach Cities Commercial Bank Announces Second Quarter 2025 Financial Results
The Bank was incorporated under the laws of the State of California on April 11, 2022. The Bank opened for business on June 12, 2023, after receiving all necessary regulatory approvals, and it began providing a full range of banking services from its branch locations in Irvine and Encinitas, California. The Bank operates primarily in the Southern California commercial markets, offering business and personal deposit accounts. The lending products include loans secured by commercial real estate, commercial and industrial loans, guidance lines of credit supporting bridge loans, lines of credit, SBA 7A and 504 loans, SBA express lines of credit, and State guaranteed loans. The Bank has a state-of-the-art technology platform and offers cash management products and services to allow its customers the ability to focus on their business and not worry about banking.
Significant items for the period include:
Total assets were $162.5 million as of June 30, 2025, which increased by $81.3 million from June 30, 2024 (100% growth).
Total loans were $131.3 million as of June 30, 2025, which increased by $68.2 million from June 30, 2024, (108% growth).
Total deposits were $133.0 million as of June 30, 2025, which increased by $71.7 million from June 30, 2024 (117%).
Total liquidity remains high at $27.6 million, which equates to 17.01% of the Bank's total assets. The Bank also maintains contingent available borrowing sources at $20.3 million which equals 12.5% of total assets.
The loan portfolio average yield was 7.57% which contributed to a healthy net interest margin at 3.48% as of June 30, 2025.
The Bank maintains a reserve for credit losses of $1.272 million which equates to 0.97% of total loans. As of June 30, 2025, the Bank had zero dollars in both delinquent and non-performing loans.
The shareholders' equity was at $14.9 million as of June 30, 2025, which was reduced by $305k from December 31, 2024, mainly due to the operating loss. The Bank's tier 1 capital to average assets ratio was at 9.55%, which is considered well-capitalized under the regulatory framework.
The Bank reported the second-quarter of 2025 net loss of $260.7k which increased slightly from the first-quarter of 2025 loss of $242k. During the second quarter, the Bank increased its loan portfolio by $7.85 million, which increased its quarterly total interest income by $476.1k.
During the second quarter of 2025 the total interest income was $2.77 million compared to $2.28 million recorded during the first quarter of 2025, an increase of 21%. The Bank's interest expense from the interest-bearing deposits was $1.26 million for the second quarter of 2025 compared to $1.08 million for the first quarter of 2025 an increase of 16.7%. The interest expense increased due to the growth in the short-term institutional CDs deposits. The Bank has launched a campaign to replace these high- cost institutional CD deposits with non-interest-bearing deposits to reduce the interest cost. During the second quarter of 2025, the Bank increased its borrowings from the Federal Home Loan Bank of San Francisco (FHLBSF). As a result, the Bank's borrowing interest expense increased to $47k in the second quarter of 2025 compared to $4.9k interest expense from borrowings during the first quarter, 2025. The second quarter 2025 net interest income increased by $302k from the first quarter 2025, an increase of 25.1%.
In the second quarter of 2025, the Bank sold SBA loans which netted gains of $168k compared to $255k in gain on sale realized in the first quarter 2025.
Total non-interest expenses for the second quarter of 2025 were $1.88 million compared to $1.71 million incurred during the first quarter, 2025, an increase of $171.1k. During the second quarter, the technology/data processing expense increased due to the Bank's growth in opening new accounts and adding new products/services such as Zelle. The legal expenses were $49k in the second quarter, 2025, compared to $16.5k in the first quarter, 2025. The $32.5k increase was for non-recurring legal costs related to leadership and staff changes incurred during the second quarter, 2025. The Bank continues to manage its operating expenses tightly.
As noted above, the Bank's liquidity remains above 17% of total assets. The Bank has also established contingent lines of borrowings with its correspondent banks, including Federal home loan Bank of San Francisco. As of June 30, 2025, total contingent borrowing sources unused totaled $20.3 million or 12.5% of total assets outstanding.
'The Bank's asset quality remains strong with no delinquent and non-performing loans on its balance sheet. Our quality deal flow for both loans and deposits continue to look strong,' commented Matt Blackmer, Chief Credit Officer.
'In June this year, the Bank completed its two years in operation. The Bank's growth has been in par with our planned projected growth. Our goal for the remainder of this year is to continue to grow revenues and control operating costs. With this trajectory, we plan to achieve sustained profitability,' commented Najam Saiduddin, Chief Financial Officer.
'As we embark on our search for our new President/CEO, the Bank continues to grow in a thoughtful, safe, and sound manner. We continue our commitment to high ethics and business standards, all the hallmarks in creating a successful enterprise. Our Board, and the entire Beach Cities Commercial Bank team remains focused in attaining and achieving our strategic goals and objectives,' commented Angela Bienert, Chairperson.
Beach Cities Commercial Bank is a full-service bank, serving the business, commercial and professional markets. The Bank meets the financial needs of its business clients with loans for working capital, equipment, owner-occupied and investment commercial real estate, and a full array of cash management services and deposit products for businesses and their owners. Beach cities Commercial Bank meets its clients' needs through its head office and branch in Irvine and regional office and branch in Encinitas, California. The Bank's stock is currently trading on the OTCQB platform under the 'BCCB' stock symbol. For more information, please visit www.beachcitiescb.com/investor-relations.
FORWARD-LOOKING STATEMENT: This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified using words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would," and similar terms and phrases. including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Bank (which includes the Bank) considering management's experience and its perception of historical trends. Current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements do not guarantee future performance and are subject to risks, uncertainties, and other factors (many of which are beyond the Bank's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. factors that could affect the Bank's results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Bank's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Bank; unanticipated or significant increases in loan losses; changes in accounting principles, policies or guidelines may cause the Bank's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Bank's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Bank conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Bank currently anticipates; legislation or regulatory changes may adversely affect the Bank's business; technological changes may be more difficult or expensive than the Bank anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Bank anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Bank anticipates.
Beach Cities Commercial Bank
Unaudited Statements of Financial Condition
Asset As of June 30, 2025 As of Dec 31, 2024 Qtr. Growth $ Qtr. Growth % As of June 30, 2024 Annual Growth $ Annual Growth %
Total Cash and Cash Equivalent
$
27,629,896
$
22,112,065
$
5,517,831
25
%
$
14,345,518
$
13,284,378
93
%
Debt Securities Available for Sale
$
998,522
984,026
14,496
1
%
$
992,559
5,963
1
%
FHLB Stock
$
572,000
124,800
447,200
358
%
$
108,500
463,500
427
%
Total Investments
$
1,570,522
1,108,826
461,696
42
%
$
1,101,059
469,463
43
%
Gross Loans
$
131,335,545
105,648,160
25,687,385
24
%
$
63,135,638
68,199,907
108
%
Allowance for Credit Losses
($
1,272,000
)
(1,214,000
)
(58,000
)
(5
%)
($
726,000
)
(546,000
)
(75
%)
Net Loans
$
130,063,545
104,434,160
25,629,385
25
%
$
62,409,638
67,653,907
108
%
Fixed Assets
$
163,382
189,606
(26,225
)
(14
%)
$
222,669
(59,288
)
(27
%)
Right of Use Assets
$
1,202,008
1,386,721
(184,713
)
(13
%)
$
1,566,409
(364,401
)
(23
%)
Prepaid
$
1,170,016
1,061,411
108,606
10
%
$
1,158,273
11,743
1
%
Total Other Assets
$
692,369
492,926
199,444
40
%
$
388,870
303,500
78
%
Total Assets
$
162,491,738
$
130,785,714
$
31,706,024
24
%
$
81,192,436
$
81,299,303
100
%
Demand Deposit Accounts
$
15,011,398
$
13,870,624
$
1,140,774
8
%
$
7,192,511
$
7,818,887
109
%
NOW Accounts
$
922,522
938,289
(15,767
)
(2
%)
$
859,602
62,920
7
%
Money Market Accounts
$
50,456,931
48,539,814
1,917,116
4
%
$
26,145,078
24,311,852
93
%
Total Demand Deposits
$
66,390,850
63,348,727
3,042,123
5
%
$
34,197,191
32,193,659
94
%
Savings Accounts
$
5,060,922
5,058,477
2,445
0
%
$
39,286
5,021,636
12,782
%
Total CDs
$
61,587,394
44,484,698
17,102,696
38
%
$
27,101,286
34,486,108
127
%
Total Deposits
$
133,039,166
112,891,902
20,147,264
18
%
$
61,337,763
71,701,403
117
%
Other Borrowed < 1 Yr
$
12,000,000
-
12,000,000
100
%
$
0
12,000,000
100
%
Total Other Liabilities
$
2,526,114
2,661,935
(135,821
)
(5
%)
$
2,846,402
(320,288
)
(11
%)
Total Liabilities
$
147,533,280
115,553,837
31,979,444
28
%
$
64,184,166
83,349,115
130
%
Common Stock
$
25,116,895
25,116,895
-
0
%
$
25,019,375
97,520
0
%
Surplus
$
667,786
470,347
197,439
42
%
$
416,786
251,000
60
%
Retained Earnings
($
10,355,311
)
(5,831,485
)
(4,523,826
)
(78
%)
($
5,831,485
)
(4,523,826
)
(78
%)
FAS 115 Unrealized Gain/Loss
($
296
)
(54
)
(242
)
(448
%)
($
1,424
)
1,128
79
%
Profit/Loss YTD
($
502,616
)
(4,523,826
)
4,021,210
89
%
($
2,594,981
)
2,092,365
81
%
Total Equity
$
14,926,458
$
15,231,877
($
305,419
)
(2
%)
$
17,008,270
($
2,081,812
)
(12
%)
Total Liabilities & Equity
$
162,491,738
$
130,785,714
$
31,706,024
24
%
$
81,192,436
$
81,299,303
100
%
BEACH CITIES COMMERCIAL BANK
For the Three Months Ended For the Six Months Ended For the Twelve Months Ended For the twelve Months Ended
June 30, 2025 March 31, 2025 December 31, 2024 June 30, 2025 June 30, 2024 December 31, 2024 December 31, 2023
Interest Income:
Interest and fees on loans
$
2,515,860
$
2,062,683
$
1,634,051
$
4,578,543
$
1,643,372
$
4,692,037
$
336,181
Interest on securities
18,549
13,586
13,814
32,135
26,259
54,054
17,320
Interest on federal funds sold and other interest-bearing deposits
231,188
207,270
213,719
438,458
467,161
860,018
821,283
Total Interest Income
2,765,597
2,283,539
1,861,584
5,049,136
2,136,792
5,606,109
1,174,784
Interest Expense:
Interest on Deposits
1,212,316
1,074,406
859,137
2,286,722
841,701
2,404,973
348,700
Interest on Borrowings
47,128
4,968
945
52,096
19
12,941
-
Total Interest Expense
1,259,444
1,079,374
860,082
2,338,818
841,720
2,417,914
348,700
Net Interest Income
1,506,153
1,204,165
1,001,502
2,710,318
1,295,072
3,188,195
826,084
Provisions for Credit Losses
64,000
-
381,000
64,000
429,000
927,000
317,000
Net interest income after provisions for loan losses
1,442,153
1,204,165
620,502
2,646,318
866,072
2,261,195
509,084
Non-interest income:
Service charges, fees and other
9,656
7,769
3,004
17,425
9,264
18,662
1,706
Gain on sale of loans
168,249
255,034
127,399
423,283
-
127,399
-
177,905
262,803
130,403
440,708
9,264
146,061
1,706
Non-Interest expense:
Salaries and employee benefits
1,167,215
1,134,486
1,134,175
2,301,701
2,240,449
4,481,445
2,318,336
Occupancy and Equipment expenses
171,924
167,812
169,431
339,736
346,325
691,504
408,909
Organization Expenses
-
-
-
-
-
1,045,800
Data Processing
192,403
150,569
172,028
342,972
303,432
628,030
332,424
Legal
49,198
16,485
19,633
65,683
34,785
Professional/Consulting
100,652
41,749
40,101
142,401
248,524
444,450
469,110
Other Expenses
198,597
197,752
204,097
396,349
295,201
684,053
294,946
Total Non-interest expense
1,879,989
1,708,853
1,739,465
3,588,842
3,468,716
6,929,482
4,869,525
Income (Loss) before taxes
(259,931
)
(241,885
)
(988,560
)
(501,816
)
(2,593,380
)
(4,522,226
)
(4,358,735
)
Income tax expense
800
-
-
800
1,600
1,600
800
Net Income (Loss)
$
(260,731
)
$
(241,885
)
$
(988,560
)
$
(502,616
)
$
(2,594,980
)
$
(4,523,826
)
$
(4,359,535
)
Earnings per share ("EPS"): Basic
$
(0.10
)
$
(0.09
)
$
(0.39
)
$
(0.20
)
$
(1.02
)
$
(1.76
)
$
(1.71
)
Common Shares Outstanding
2,565,864
2,565,864
2,565,864
$
2,565,864
2,556,112
2,565,864
2,556,112
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GRIMSBY, Ontario, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Andrew Peller Limited (TSX: ADW.A / ADW.B) ('APL' or the 'Company') announced today results for the three months ended June 30, 2025. All amounts are expressed in Canadian dollars unless otherwise stated. FIRST QUARTER 2026 HIGHLIGHTS: Revenue was $99.2 million, compared with revenue of $99.5 million in Q1 2025; Gross margin of 42.4%, compared with 38.4% in the prior year; EBITA of $16.1 million, up from $12.9 million in Q1 2025; Net income improved to $4.6 million ($0.11 per Class A Share), compared to a loss of $0.4 million (loss of $0.01 per Class A Share) in Q1 2025; and Dividends of $0.0615 per Class A Share and $0.535 per Class B Share. 'Our first quarter results were highlighted by a 25% year-over-year increase in EBITA as we continue to navigate a dynamic retail environment,' said Paul Dubkowski, Chief Executive Officer. 'Our strong performance in the quarter was due to ongoing improvements in our margins, profitability, and free cash flow, while lowering debt and further strengthening our balance sheet. Margins continue to expand due to the success of our cost savings programs and are further supported by the Ontario Government's recent policy changes, which reflect its ongoing commitment to a strong and competitive industry. The business is on a strong foundation as we look to generate sustained long-term value through above-category sales performance, EBITA growth, and leveraging our asset base.' Financial Highlights (Financial Statements and the Company's Management Discussion and Analysis for the period can be obtained on the Company's web site at For the three months ended June 30, (in $000, except per share amounts) 2025 2024 Revenue $ 99,184 $ 99,465 Gross margin (1) 42,032 38,179 Gross margin (% of revenue) 42.4 % 38.4 % Selling and administrative expenses 25,911 25,320 EBITA (1) 16,121 12,859 Interest expense 3,902 4,580 Net unrealized loss on derivative financial instruments 17 218 Other expenses, net 439 296 Net earnings (loss) 4,553 (375) Earnings (loss) per share – Class A basic $ 0.11 $ (0.01) Earnings (loss) per share – Class B basic $ 0.09 $ (0.01) Dividend per share – Class A $ 0.0615 $ 0.0615 Dividend per share – Class B $ 0.0535 $ 0.0535 (1) Please refer to the Company's MD&A concerning 'Non-IFRS Measures' Financial Review Revenue for the three months ended June 30, 2025 remained consistent with the prior year's first quarter results. Several of the Company's well-established trade channels performed well, particularly sales in western Canada due to the success of our BC replacement program, as well as sales to big box stores and at the Company estates. This was offset by expected softness in sales at the Company's stand-alone retail stores due to the evolving Ontario market, as well as sales from the Company's personal wine making business. Gross margin as a percentage of revenue for the three months ended June 30, 2025 increased to 42.4% from 38.4%. The increase was driven by lower costs for glass bottles and inbound freight, resulting from the Company's cost savings program. The improvement also reflects the benefit of the Ontario Government Support Program of $2.1 million, which was recognized in the first quarter of fiscal 2026 but was not in effect during the comparable period in fiscal 2025. As a percentage of revenue, selling and administrative expenses increased to 26.1% from 25.5% for the three months ended June 30, 2025 primarily due to timing of professional services and advertising and promotional expenditures. The increase is partially offset by a reduction in compensation expense resulting from the realization of cost savings associated with the Company's restructuring efforts. Earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other (income) expenses, and income taxes ('EBITA') (see 'Non-IFRS Measures' section of the Company's MD&A) was $16.1 million in the first quarter of fiscal 2026, compared to $12.9 million in the first quarter of prior year, an increase of 25.4%. Interest expense for the three months ended June 30, 2025 has decreased by 14.8% compared to the prior year due to lower average debt levels and lower interest rates compared to prior year. The Company recorded a nominal net unrealized non-cash loss in the first quarter of fiscal 2026 related to mark-to-market adjustments on interest rate swaps and foreign exchange contracts compared to a loss of $0.2 million in the first quarter of fiscal 2025. The Company has elected not to apply hedge accounting and accordingly the change in fair value of these financial instruments is reflected in the Company's consolidated statement of earnings (loss) each reporting period. These instruments are considered to be effective economic hedges and are expected to mitigate the short-term volatility of changing foreign exchange and interest rates. The Company generated net earnings of $4.6 million ($0.11 per Class A share) for the first quarter of fiscal 2026 compared to a net loss of $0.4 million (loss of $0.01 per Class A share) in the first quarter of the prior year. As part of its strategy to recognize value from non-core assets, during the first quarter of fiscal 2026, the Company initiated proceedings to sell land, vineyard, and building assets in Kaleden, British Columbia with a net book value of $1.0 million which were classified as assets held for sale on June 30, 2025. The sale was completed on July 15, 2025 for proceeds of $1.3 million. Investor Conference Call The Company will hold a conference call to discuss the results on Thursday, August 7, 2025 at 10:00 a.m. ET. Paul Dubkowski, CEO, Renee Cauchi, CFO and Patrick O'Brien, President and CCO, will host the call, with a question and answer period following management's presentation. About Andrew Peller Limited Andrew Peller Limited is one of Canada's leading producers and marketers of quality wines and craft beverage alcohol products. The Company's award-winning premium and ultra-premium Vintners' Quality Alliance brands include Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery, Raven Conspiracy, and Conviction. Complementing these premium brands are a number of popularly priced varietal offerings, wine-based liqueurs, craft ciders, and craft spirits. The Company owns and operates 101 well-positioned independent retail locations in Ontario under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names. The Company also operates Andrew Peller Import Agency and The Small Winemaker's Collection Inc., importers and marketing agents of premium wines from around the world. With a focus on serving the needs of all wine consumers, the Company produces and markets premium personal winemaking products through its wholly owned subsidiary, Global Vintners Inc., the recognized leader in personal winemaking products. More information about the Company can be found at The Company utilizes EBITA (defined as earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other (income) expenses, and income taxes) to measure its financial performance. EBITA is not a recognized measure under IFRS. Management believes that EBITA is a useful supplemental measure to net earnings (loss), as it provides readers with an indication of earnings available for investment prior to debt service, capital expenditures, and income taxes, as well as provides an indication of recurring earnings compared to prior periods. Readers are cautioned that EBITA should not be construed as an alternative to net earnings determined in accordance with IFRS as indicators of the Company's performance or to cash flows from operating, investing, and financing activities as a measure of liquidity and cash flows. The Company also utilizes gross margin (defined as sales less cost of goods sold, excluding amortization). The Company's method of calculating EBITA and gross margin may differ from the methods used by other companies and, accordingly, may not be comparable to measures used by other companies. Andrew Peller Limited common shares trade on the Toronto Stock Exchange (symbols ADW.A and ADW.B). FORWARD-LOOKING INFORMATION Certain statements in this news release may contain 'forward-looking statements' within the meaning of applicable securities laws including the 'safe harbour provisions' of the Securities Act (Ontario) with respect to APL and its subsidiaries. Such statements include, but are not limited to, statements about the growth of the business; its launch of new premium wines and craft beverage alcohol products; sales trends in foreign markets; its supply of domestically grown grapes; and current economic conditions. These statements are subject to certain risks, assumptions, and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. The words 'believe', 'plan', 'intend', 'estimate', 'expect', or 'anticipate', and similar expressions, as well as future or conditional verbs such as 'will', 'should', 'would', 'could', and similar verbs often identify forward-looking statements. We have based these forward-looking statements on our current views with respect to future events and financial performance. With respect to forward-looking statements contained in this news release, the Company has made assumptions and applied certain factors regarding, among other things: future grape, glass bottle, and wine and spirit prices; its ability to obtain grapes, imported wine, glass, and other raw materials; fluctuations in foreign currency exchange rates; its ability to market products successfully to its anticipated customers; the trade balance within the domestic Canadian and international wine markets; market trends; reliance on key personnel; protection of its intellectual property rights; the economic environment; the regulatory requirements regarding producing, marketing, advertising, and labelling of its products; the regulation of liquor distribution and retailing in Ontario; the application of federal and provincial environmental laws; and the impact of increasing competition. These forward-looking statements are also subject to the risks and uncertainties discussed in this news release, in the 'Risks and Uncertainties' section and elsewhere in the Company's MD&A and other risks detailed from time to time in the publicly filed disclosure documents of Andrew Peller Limited which are available at Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and assumptions which could cause actual results to differ materially from those conclusions, forecasts, or projections anticipated in these forward-looking statements. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. The Company's forward-looking statements are made only as of the date of this news release, and except as required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information, future events or circumstances or otherwise.
Globe and Mail
37 minutes ago
- Globe and Mail
Townsquare (TSQ) Q2 Revenue Slips 2%
Key Points GAAP revenue edged past analyst estimates at $115.4 million in Q2 2025, though Net revenue (GAAP) declined 2.3% year-over-year. Digital net revenue became a clear majority, while digital growth slowed to 2.1% in Q2 2025, down from stronger recent quarters. Adjusted (Non-GAAP) EPS missed expectations, coming in at $0.22 versus the $0.26 analyst estimate. These 10 stocks could mint the next wave of millionaires › Townsquare Media (NYSE:TSQ), a local media and digital marketing company focused on mid-sized markets, released its second quarter 2025 earnings on August 6, 2025. The company's most notable news: GAAP revenue modestly exceeded Wall Street expectations, reaching $115.4 million compared to the $114.8 million consensus in Q2 2025. Adjusted earnings per diluted share (EPS, Non-GAAP) missed expectations at $0.22, below the $0.26 analyst estimate for Q2 2025. Net income (GAAP) swung strongly positive, moving from a loss in the prior-year period to a $2.0 million gain in Q2 2025—as Digital business accounted for approximately 52% of company revenue and 50% of segment profit in the first half of 2025. The overall quarter showed ongoing digital transformation, resilient profitability, and progress on leverage reduction, but also signs of slower digital growth, as Townsquare's total digital net revenue growth decelerated from +6.4% year-over-year in Q1 2025 to +4.1% for the first six months of 2025 and continued declines in legacy broadcast revenue, with broadcast advertising net revenue decreasing 9.2% year-over-year in Q2 2025 and for the first half of 2025. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS – Diluted (Non-GAAP) $0.22 $0.26 $0.14 57.1 % Revenue (GAAP) $115.4 million $114.8 million $118.2 million (2.3 %) Adjusted EBITDA (Non-GAAP) $26.4 million $26.2 million 0.8 % Net Income (GAAP) $2.0 million $(48.9 million) n/m Digital Net Revenue $61.3 million $60.0 million 2.2 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Company Profile and Key Strategic Areas Townsquare Media operates as a local media, digital marketing, and radio company, but its strategy has increasingly focused on digital products. It serves markets outside the top 50 largest U.S. cities, providing localized digital content, digital advertising, subscription marketing solutions, and broadcasting. The company positions itself as a 'digital first' business, prioritizing growth in digital advertising (the Ignite platform) and subscription marketing solutions (Townsquare Interactive). Recently, the company has worked to shift its revenue mix, moving digital services ahead of traditional broadcast radio. Success now relies on growing digital revenue, maintaining high engagement with local audiences, and leveraging its advantage in markets with fewer large competitors. The company's competitive position outside major media markets and its focus on local content remain central differentiators. Adhering to Federal Communications Commission (FCC) rules and diversifying revenue across business lines are also vital to operations and stability. Quarter in Review: Notable Developments and Segment Trends Digital net revenue grew 2.1% in Q2 2025, now representing 55% of company-wide net revenue in the first half of 2025. While this marked a slowdown versus recent quarters, the digital share both in revenue and profit underscores the strategic shift that is underway. Digital advertising revenue from the Ignite platform rose 2.4% year-over-year in Q2 2025, down from the 8% pace seen in Q1 2025. Subscription digital marketing solutions, delivered through Townsquare Interactive, registered revenue growth of 1.4% in Q2 2025, alongside a pronounced 15.2% jump in segment profit in Q2 2025. Digital segment profit increased 4.3% year-over-year in Q2 2025, with digital-related activities accounted for 56% of segment profit in the first half of 2025. Digital segment margins stood at 27% in the first half of 2025. However, within digital advertising, profit edged down 1.0% in Q2 2025. These results followed a brief dip in customer demand in April 2025, which management linked to heightened economic uncertainty, which rebounded by the latter half of the quarter. Townsquare Interactive's profitability increased sharply in Q1 2025, attributed to efficiencies and operational changes implemented over the past year. The company's legacy broadcast advertising continued to face headwinds. Broadcast ad revenue fell 9.2% in Q2 2025, with segment profit down 8.4% for broadcast advertising in Q2 2025. Management continues to see radio as a cash-generating—if shrinking—business. The focus outside the top 50 markets appears to help dampen some revenue declines as the company takes share in less contested spaces. Other revenue, such as from live events, surged 19.9% in Q2 2025 (GAAP), representing the fastest growth, but remaining a small share of total sales at roughly $5.5 million in Q2 2025. Progress on capital structure continued in the quarter. Townsquare Media repaid $10 million of debt in Q2 2025 and finished Q2 2025 with $467.1 million in outstanding debt and $3.2 million in cash on hand. Net leverage fell slightly to 4.58 times trailing adjusted EBITDA for the twelve months ended June 30, 2025. It maintained a quarterly dividend of $0.20 per share, consistent with prior quarters. Operating cash flow in the first half of 2025 totaled $10.1 million, slightly lower than a year ago. Capital expenditures for the six months ended June 30, 2025, were $8.3 million. Products and Revenue Breakdown Explained The Ignite platform is Townsquare's digital advertising business, offering programmatic—automated and data-driven—buying across online channels such as search, display ads, social media, and video for local businesses. About 60% of segment digital ad revenue came from programmatic in Q1 2025. The Subscription Digital Marketing Solutions segment, Townsquare Interactive, provides software services to small and medium-sized businesses—such as website design, management tools, and online marketing through monthly subscription fees. Each of these areas is targeted toward improving local client engagement and advertising reach in mid-sized markets. Digital revenue streams have surpassed both the company's traditional broadcast radio advertising and smaller 'other' categories, including local events. In Q1 2025, digital advertising comprised 37.3% of net revenue. Subscription digital marketing made up approximately 16% of net revenue in Q2 2025. Broadcast advertising represented 46.3% of total net revenue for the year ended December 31, 2024, and other lines contributed about 5 %. Looking Ahead: Guidance and Key Watch Areas For Q3 2025, management guided to net revenue of $106.5 million to $108.5 million and Adjusted EBITDA is expected to be between $22.0 million and $23.0 million for Q3 2025. For FY2025, Townsquare Media affirmed its outlook, targeting net revenue of $435 million to $440 million and adjusted EBITDA in the $90 million to $94 million range. Both sets of numbers match or slightly narrow the company's prior guidance for Q2 2025 and the full year, indicating management's measured confidence in current trends and spending patterns. Investors will want to monitor the speed of digital growth, which slowed in Q2 2025 after several periods of faster expansion. The shift could be due to maturation, strong prior-year results, or broader uncertainty in economic conditions affecting advertisers. Additionally, the company's cash balance and ongoing leverage will bear watching, especially as dividend payments continue and if advertising demand fluctuates. Townsquare Media continues to pay a quarterly dividend of $0.20 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. 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