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    BBGI
    Earnings call· Jun 2026(Q2 FY26)

    BEASLEY BROADCAST GROUP Q2 FY26 earnings call BBGI

    Aug 12, 2026 Source

    Executive summary

    Beasley Broadcast Group Q2 FY26 — Cost Reductions and Digital Growth Drive EBITDA Improvement Amidst Revenue Challenges

    Beasley Broadcast Group made meaningful progress on cost reduction and balance sheet deleveraging in Q2 FY26, leading to improved adjusted EBITDA. While digital audience and owned-and-operated digital revenue showed strong growth, overall revenue remained challenged by traditional agency and automotive advertising softness. The company is focused on execution to improve local direct sales, digital monetization, and further debt reduction.

    Highlights

    5

    • Adjusted EBITDA improved to $5.3 million in Q2 FY26 from $4.7 million in Q2 FY25.

    • Cost reduction program expected to generate $10.5 million in annualized run rate savings, with $5 million benefit in FY26.

    • Long-term debt significantly reduced to $129 million at June 30, 2026, from $235.3 million at December 31, 2025.

    • Same-station local direct revenue increased approximately 9% year-over-year.

    • Owned and operated digital revenue grew approximately 10% in Q2 FY26 and 18% in H1 FY26 on a same-station basis.

    Concerns

    5

    • Total revenue declined approximately 9.6% on a same-station basis to $44.1 million.

    • National revenue (excluding political) declined approximately 21% year-over-year.

    • Local agency revenue declined approximately 12% versus prior year period.

    • Automotive revenue declined approximately 22% year-over-year.

    • Digital profitability was below expectations due to increased costs in Q2 FY26.

    Guidance & targets

    7
    CategoryTargetConfidence
    Annualized run rate savings from expense reduction program
    $10.5 million
    high materiality
    High
    Benefit from expense reduction program
    $5 million
    high materiality
    High
    Expense reduction impact visibility
    more visible
    medium materiality
    High
    Cost structure reflection of actions
    fully reflected
    medium materiality
    High
    Third quarter same-station revenue growth
    down in the mid-single-digit range
    high materiality
    Medium
    Fourth quarter pacing
    very strong
    medium materiality
    Medium
    Digital operating expenses alignment
    better align with our long-term cost structure
    medium materiality
    Medium

    Operational metrics

    43
    Cost reduction program annualized run rate savings
    $10.5 million
    Annualized

    Expected annualized run rate savings from expense reduction program implemented in May.

    Cost reduction program benefit
    $5 million
    FY26

    Estimated benefit from expense reduction program during 2026.

    ATM program gross proceeds
    $635,000
    Q2 FY26

    Gross proceeds raised through the at-the-market equity program prior to the quarterly blackout period.

    Digital revenue
    $11.7 milliondown from $13.2 million in Q2 FY25
    Q2 FY26

    Reported digital revenue for the quarter.

    Digital revenue (prior year)
    $13.2 million
    Q2 FY25

    Reported digital revenue in the prior year quarter, including $1.9 million from exited digital direct business and $400,000 from Fort Myers.

    Same-station digital revenue growth
    7%YoY
    Q2 FY26

    Growth in digital revenue on a same-station basis.

    Digital revenue as % of total company revenue
    26%
    Q2 FY26

    Digital's contribution to total company revenue.

    Digital operating expenses
    increased modestlycompared with prior year period
    Q2 FY26

    Reflects targeted investments in digital commercial organization, programmatic activity, and content initiatives, partially offset by May reductions.

    Local direct revenue growth
    9%YoY
    Q2 FY26

    Growth in local direct revenue on a same-station basis.

    National revenue (excluding political) decline
    21%YoY
    Q2 FY26

    Decline in national revenue on a same-station basis.

    Local agency revenue decline
    12%YoY
    Q2 FY26

    Decline in local agency revenue on a same-station basis.

    Gaming category revenue increase
    $1.1 millionYoY
    Q2 FY26

    Largest dollar increase among major advertising categories, driven by World Cup.

    Home improvement revenue increase
    13%YoY
    Q2 FY26

    Continued momentum in home improvement advertising.

    Automotive revenue decline
    22%YoY
    Q2 FY26

    Continued weakness in automotive advertising, not on a same-station basis.

    Political revenue
    $400,000
    Q2 FY26

    Total political revenue through the end of the quarter.

    Operating expenses (excluding corporate, D&A)
    $38.8 milliondown from $44.8 million in Q2 FY25
    Q2 FY26

    Operating expenses for the quarter, reflecting a reduction of $5.9 million or 13.3% YoY.

    Operating expenses (excluding corporate, D&A) prior year
    $44.8 million
    Q2 FY25

    Operating expenses in the prior year period.

    Same-station operating expenses decline
    5.8%YoY
    Q2 FY26

    Reduction in operating expenses on a same-station basis.

    Station operating income (SOI) adjusted severance
    $1.9 million
    Q2 FY26

    Severance amount excluded from adjusted SOI for Q2 FY26.

    Station operating income (SOI) adjusted stock-based compensation
    $8,000
    Q2 FY26

    Stock-based compensation excluded from adjusted SOI for Q2 FY26.

    Station operating income (SOI) prior year adjusted severance
    $200,000
    Q2 FY25

    Severance amount excluded from prior year adjusted SOI on a same-station basis.

    Station operating income (SOI) prior year adjusted stock-based compensation
    $20,000
    Q2 FY25

    Stock-based compensation excluded from prior year adjusted SOI on a same-station basis.

    Corporate expenses
    $2.4 milliondown from $3.8 million in Q2 FY25
    Q2 FY26

    Corporate expenses for the quarter, representing a reduction of $1.4 million or 37% YoY.

    Corporate expenses prior year
    $3.8 million
    Q2 FY25

    Corporate expenses in the prior year period.

    Corporate expenses transaction, restructuring, nonrecurring costs
    $350,000
    Q2 FY26

    Costs included in corporate expenses, excluded from adjusted EBITDA.

    Corporate expenses corporate severance
    $23,000
    Q2 FY26

    Severance costs included in corporate expenses, excluded from adjusted EBITDA.

    Corporate expenses stock-based compensation
    $45,000
    Q2 FY26

    Stock-based compensation included in corporate expenses, excluded from adjusted EBITDA.

    Long-term debt (net)
    $129 milliondown from $235.3 million at December 31, 2025
    As of June 30, 2026

    Long-term debt, net of unamortized debt issuance costs and other accounting adjustments.

    Total audience growth
    1%YoY
    Q2 FY26

    Overall audience growth driven by digital platforms.

    Digital audience growth
    7%YoY
    Trailing 12 months

    Growth in digital audience over the past year.

    Traditional over-the-air audience decline
    5%
    Trailing 12 months

    Decline in traditional broadcast audience over the past year.

    Digital audience as % of total audience
    more than halfup from 47% a year ago
    Q2 FY26

    First time digital audience surpassed broadcast.

    PPM market rating share decline
    5%QoQ
    Q2 FY26

    Reflecting a deliberate decision to optimize investment in ratings supported initiatives.

    Ad-supported audio market share (AM/FM radio)
    62%
    Latest Edison Share of Ear study

    AM/FM radio's share of all ad-supported audio.

    Ad-supported audio market share (podcasting)
    22%
    Latest Edison Share of Ear study

    Podcasting's share of all ad-supported audio.

    Ad-supported audio market share (Spotify)
    8%
    Latest Edison Share of Ear study

    Spotify's share of all ad-supported audio.

    Enterprise sales programs closed business
    $6 million
    Q2 FY26

    Revenue generated from 'Summer of Influence' and 'America 250' programs across 9 markets.

    Political budget booked
    more than 25%
    Full year

    Portion of full year political budget already booked, tracking with the last presidential cycle in a midterm year.

    Owned and operated digital revenue growth (same-station)
    10%
    Q2 FY26

    Growth in highest margin digital revenue line.

    Owned and operated digital revenue growth (same-station)
    18%
    H1 FY26

    Growth in highest margin digital revenue line for the first half of the year.

    Programmatic sell-through rate
    above 80%
    Q2 FY26

    Improved sell-through rate after restructuring demand relationships and signing a bulk deal.

    Programmatic revenue growth
    double digits
    Q2 FY26

    Growth in programmatic revenue on the same audience.

    Charity events funds raised
    $700,000
    Q2 FY26

    Funds raised for local charities across 9 markets.

    Industry KPIs

    7
    MetricValueDetails
    Total revenue$44.1 millionUSD
    Net income EPS$84.3 millionUSD
    Adjusted EBITDA$5.3 millionUSD
    CAPEX capital program$800,000USD
    Operating income margin$5.3 millionUSD
    Total operating expenses$38.8 millionUSD
    Cash marketable securities$6.7 millionUSD

    Product announcements

    2
    ProductTypeDetails
    Summer of Influencelaunch
    America 250launch

    Deals & partnerships

    1
    EMFSale of 2 radio stations (one in Charlotte, one in Las Vegas)$8 million

    Entered into an Asset Purchase Agreement (APA) on July 31, 2026, for the sale of two non-core radio stations.

    Risks & headwinds

    5
    Challenging advertising environment

    Revenue remains below where it needs to be.

    Mitigation: Stabilizing and rebuilding core revenue base, scaling higher margin digital business, strengthening balance sheet.

    Pressure on traditional agency revenue

    National agency demand remains under pressure; local agency revenue declined approximately 12% YoY.

    Mitigation: Building own demand through enterprise sales programs, focusing on direct client relationships, improving sales activity.

    Reduced advertising spend from DEI-focused campaignsQ2 FY26

    Reduced advertising spend from diversity, equality and inclusion-focused campaigns across several categories.

    Mitigation: Focusing on controllable sales strategies and building own demand.

    Digital profitability below expectationsQ2 FY26

    Profitability was below our expectations due to additional costs incurred in Q2 FY26.

    Mitigation: Actions underway to close monetization gap, including restructuring demand relationships and rebuilding programmatic sell-through.

    Continued weakness in automotive advertisingQ2 FY26

    Automotive revenue declined approximately 22% year-over-year.

    Mitigation: Diversifying revenue streams and focusing on other strong categories like gaming and home improvement.

    What to watch in Q3 FY26

    5

    Cost reduction program impact visibility

    H2 FY26
    CurrentPartial benefit in Q2 FY26
    TargetMore visible impact in H2 FY26

    Why it matters

    Verifying the increasing visibility of cost savings is crucial for assessing the company's progress towards a more efficient operating model and improved EBITDA.

    We expect the impact to become more visible during the second half of the year and to be fully reflected in our ongoing cost structure as we move into 2027.

    2 min read5 chapters

    Detailed Narrative

    01

    Balance Sheet Restructuring and Deleveraging

    Beasley completed a balance sheet restructuring on May 1, significantly reducing its debt burden and lowering near-term cash interest. Long-term debt, net of unamortized debt issuance costs, decreased to $129 million at June 30, 2026, from $235.3 million at December 31, 2025. The company also entered into an agreement to sell two radio stations for $8 million, with proceeds earmarked for debt reduction, and established an at-the-market (ATM) equity program, raising $635,000 in gross proceeds opportunistically.

    02

    Cost Reduction Initiatives

    An expense reduction program was executed in May, targeting voluntary retirements, market-level operating changes, digital restructuring, technology, and vendor expenses. These actions are expected to generate approximately $10.5 million in annualized run rate savings, with an estimated $5 million benefit in 2026. The goal is to establish a more efficient operating model, with the full impact expected to be visible in the second half of 2026 and fully reflected in 2027.

    03

    Digital Transformation and Audience Growth

    Digital now represents over half of Beasley's total audience footprint for the first time, up from 47% a year ago, driven by a 7% increase in digital audience over the trailing 12 months. Website traffic and podcast consumption showed the strongest year-over-year growth. The company is focused on monetizing this growing digital audience more efficiently, with owned and operated digital revenue growing 10% in Q2 and 18% in H1 on a same-station basis.

    04

    Sales Strategy and Political Revenue

    Beasley launched two enterprise sales programs, 'Summer of Influence' and 'America 250,' generating nearly $6 million in closed business by focusing on direct sales. The company also proactively engaged in political revenue operations, booking over 25% of its full-year political budget, tracking with the last presidential cycle in a midterm year. This strategy aims to build demand and capture digital and streaming political dollars, particularly in key battleground states.

    05

    Revenue Channel Performance and Category Trends

    Local direct revenue increased approximately 9% year-over-year, reflecting improved client retention and expanded relationships. However, this growth was offset by continued pressure in agency channels, with national revenue (excluding political) declining 21% and local agency revenue down 12%. Gaming revenue increased by $1.1 million, driven by World Cup advertising, and home improvement grew 13%, while automotive revenue declined 22%.

    AI-generated summary of the company’s earnings call. Not investment advice.