Townsquare Media, Inc. (TSQ) AI Stock Analysis

Townsquare Media, Inc. operates as a digital media and marketing solutions provider focused on small and medium-sized businesses. The company operates through three primary segments: Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. Its subscription services include website design, SEO, reputation monitoring, social media management, e-commerce, customer management, and email marketing. Its digital advertising segment operates proprietary digital properties and uses programmatic advertising technology and data analytics to optimize campaigns. In broadcast advertising, the company owns and operates 322 radio stations across 67 local markets, delivering advertising solutions to local, regional, and national clients.

Revenue has decreased in recent fiscal years, falling from $463.1M in FY2022 to $454.2M in FY2023, $451.0M in FY2024, and $427.4M in FY2025. Gross margin contracted to 21.2% in FY2025, down from 31.0% in FY2021. Net income remained negative over the past three fiscal years, recording -$45.0M in FY2023, -$12.7M in FY2024, and -$11.5M in FY2025. Over the trailing twelve months, revenue was $425.4M with an operating margin of 14.5% and EPS of -$2.94. In the latest quarter ended June 30, 2026, quarterly revenue growth declined 0.1% year-over-year, while quarterly earnings grew 176.7%.

As of June 30, 2026, Townsquare Media held $1.2M in cash and short-term investments against $488.2M in total debt, leading to net debt of $487.0M. Total assets stood at $494.7M, while shareholders' equity was -$90.4M, resulting in negative equity. The company reported a current ratio of 0.83. Operating cash flow totaled $30.6M in FY2025, supporting capital expenditures of $15.2M and free cash flow of $15.4M. Cash distributions included $13.2M in dividends paid, while the share count decreased 9.8% over five years.

Townsquare Media trades at an enterprise value of $579.8M and a market capitalization of $69.8M. The stock trades at a forward P/E of 12.4x and a price-to-sales ratio of 0.2x, compared to medians of 14.1x and 0.8x for its US-listed Communication Services peers. Its EV/EBITDA multiple stands at 32.2x, above the peer group median of 10.0x. Over the past year, the stock returned -28.9%, trailing the S&P 500 return of 16.8%, and is down 60.6% over five years compared to an 83.0% gain for the benchmark.

Townsquare Media pays a quarterly dividend with an annual forward rate of $0.80 per share, representing a dividend yield of 20.89%. The payout ratio is 5.3%. The company has paid dividends for 4 consecutive years, recording a 5-year annualized dividend growth rate of 60.5%. The last ex-dividend date was October 26, 2026.

Wall Street coverage consists of 1 Strong Buy and 1 Buy rating. The mean price target is $10.00, which is 161.1% above the last close of $3.83. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $430.2M and EPS of $0.34, representing 30.8% EPS growth. Over the last four quarters, the company has beaten EPS expectations twice. The next earnings release is scheduled for November 4, 2026.

This page is an AI-written research summary of Townsquare Media, Inc. (TSQ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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