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    SGA
    Earnings call· Jun 2026(Q2 FY26)

    SAGA COMMUNICATIONS Q2 FY26 earnings call SGA

    Aug 13, 2026 Source

    Executive summary

    Saga Communications Q2 FY26 — Digital Revenue Growth Amidst Traditional Declines

    Saga Communications navigated Q2 FY26 with significant digital revenue growth, up 60.8%, partially offsetting double-digit declines in traditional advertising verticals. The company is actively investing in digital transformation, including new hires and strategic partnerships, while monetizing non-core assets to fund these initiatives and maintain a strong balance sheet. Management emphasized a return to traditional media's community connection and the strength of its radio foundation.

    Highlights

    5

    • Blended digital revenue was up 60.8% for the quarter year-over-year.

    • Gross political revenue for Q2 FY26 was $450,000, up from $50,000 in the prior year period.

    • Corporate general and administrative expense was down 13% or $398,000 for the quarter.

    • The company has sold or is selling 6 noncore properties for over $4 million since Q4 last year.

    • Saga has paid over $145 million in dividends to shareholders since the first special dividend in 2012.

    Concerns

    5

    • Net revenue decreased $1.8 million or 6.5% to $26.4 million for the quarter.

    • Station operating expense increased $1.2 million or 5.4% for the quarter.

    • Local revenue was down 11.2% for the quarter.

    • National revenue was down 25% for the quarter.

    • Nontraditional revenue was down 16.4% for the quarter.

    Guidance & targets

    4
    CategoryTargetConfidence
    Political Revenue
    $1.1 million
    medium materiality
    Medium
    Station Operating Expense Increase
    1.5% to 2.5%
    medium materiality
    High
    Corporate General and Administrative Expense
    $11.8 million to $12 million
    medium materiality
    High
    Capital Expenditures
    $3 million to $3.5 million
    medium materiality
    High

    Segment performance

    12
    SegmentRevenueYoYQoQMargin
    Local Revenue
    Local revenue for the quarter ending June 2026.
    		—down 11.2%——
    Local Revenue
    Local revenue year-to-date.
    		—down 11%——
    National Revenue
    National revenue for the quarter ending June 2026.
    		—down 25%——
    National Revenue
    National revenue year-to-date.
    		—down 19.5%——
    Nontraditional Revenue
    Nontraditional revenue for the quarter ending June 2026.
    		—down 16.4%——
    Nontraditional Revenue
    Nontraditional revenue year-to-date.
    		—down 12.9%——
    Blended Digital Strategy Revenue
    Blended digital strategy revenue for the quarter ending June 2026.
    		—up 60.8%——
    Blended Digital Strategy Revenue
    Blended digital strategy revenue for the 6 months ending June 2026.
    		—up 76.4%——
    E-commerce Revenue
    E-commerce revenue for the quarter ending June 2026.
    		—up 10.7%——
    E-commerce Revenue
    E-commerce revenue year-to-date.
    		—up 15.2%——
    All Other Digital Revenue
    All other digital revenue for the quarter ending June 2026.
    		—down 9.6%——
    All Other Digital Revenue
    All other digital revenue year-to-date.
    		—down 8.4%——

    Operational metrics

    28
    Station operating expense increase
    $1.2 millionup 5.4%
    Q2 FY26

    Increase in station operating expense for the quarter.

    Station operating expense increase
    $1.3 millionup 2.8%
    6 months ended June 30, 2026

    Increase in station operating expense for the six-month period.

    Station operating expense impact from sales manager hires
    $146,000
    Q2 FY26 and 6 months ended June 30, 2026

    Impact on station operating expense from hiring 9 sales managers.

    Station operating expense impact from digital campaign manager hires
    $211,000
    Q2 FY26

    Impact on station operating expense from hiring digital campaign managers and fulfillment team members.

    Station operating expense impact from digital campaign manager hires
    $290,000
    6 months ended June 30, 2026

    Impact on station operating expense from hiring digital campaign managers and fulfillment team members.

    Corporate general and administrative expense decrease
    $398,000down 13%
    Q2 FY26

    Decrease in corporate G&A expense for the quarter.

    Corporate general and administrative expense decrease
    $589,000down 9.4%
    6 months ended June 30, 2026

    Decrease in corporate G&A expense for the six-month period.

    Noncash proceeds from tower sale
    $5.4 million
    FY25

    Noncash proceeds from the sale of telecommunications towers, gain deferred over 25-year lease term.

    Quarterly dividend per share
    $0.25
    Q2 FY26

    Dividend paid per share on June 12, 2026.

    Aggregate quarterly dividend value
    $1.6 million
    Q2 FY26

    Total value of the quarterly dividend paid.

    Total dividends paid
    over $145 million
    Since 2012

    Total dividends paid to shareholders since the first special dividend in 2012.

    Revolving credit agreement repayment
    $5 million
    Q2 FY26

    Repayment in full of outstanding amount under revolving credit agreement, which was subsequently terminated.

    Cash from tower sale
    $10.5 million
    FY25

    Cash generated from the sale of telecommunications towers.

    Proceeds from noncore property sales
    over $4 million
    Since Q4 FY25

    Total proceeds from the sale of noncore properties.

    Sarasota House sale
    $1.7 million
    Since Q4 FY25

    Proceeds from the sale of Saga's former Sarasota House.

    Portland, Maine tower site sale
    $1 million
    Since Q4 FY25

    Proceeds from the sale of an unused tower site in Portland, Maine.

    Q3 Revenue Pacing
    down mid-single digits
    Q3 FY26

    Overall revenue pacing for the third quarter.

    Q3 Digital Revenue Pacing
    up mid- to high single digits
    Q3 FY26

    Digital revenue pacing for the third quarter.

    Q3 Revenue Pacing (without political)
    down mid- to high single digits
    Q3 FY26

    Overall revenue pacing for the third quarter, excluding political revenue.

    July and August Revenue Pacing (gross)
    down high single digits
    July-August FY26

    Gross revenue pacing for July and August.

    July and August Revenue Pacing (without political)
    down high single digits
    July-August FY26

    Revenue pacing for July and August, excluding political revenue.

    September Revenue Pacing (gross)
    up low single digits
    September FY26

    Gross revenue pacing for September.

    September Revenue Pacing (without political)
    down low single digits
    September FY26

    Revenue pacing for September, excluding political revenue.

    October Revenue Pacing (gross)
    up mid-single digits
    October FY26

    Gross revenue pacing for October.

    October Revenue Pacing (without political)
    down low single digits
    October FY26

    Revenue pacing for October, excluding political revenue.

    Sales managers hired
    9
    Q2 FY26

    Number of sales managers hired in specific markets.

    Digital campaign managers hired
    10
    Q2 FY26

    Number of digital campaign managers hired.

    Funds raised for local communities
    nearly $4 million
    First half of 2026

    Amount raised by Saga Markets for their local communities.

    Industry KPIs

    8
    MetricValueDetails
    Total revenue$26.4 millionUSD
    Net income EPS$623,000USD
    CAPEX capital program$1.3 millionUSD
    Operating income margin$623,000USD
    Total operating expenses$26.4 millionUSD
    Content title performanceNAB Service to America Award, 4 Marconi Award nominations
    Cash marketable securities$27.8 millionUSD
    Ai product feature adoptionAI lead gen solution, AI search calculator, AI proposal writing solution

    Product announcements

    2
    ProductTypeDetails
    AI Lead Generation Solutionlaunch
    AI Search Calculator and Proposal Writing Solutionlaunch

    Deals & partnerships

    3
    Marketron NXTDigital fulfillment solution provider

    Saga partnered with Marketron NXT for all digital fulfillment products other than search, migrating from previous solutions. Marketron is already Saga's radio traffic and billing solution.

    Borrell AssociatesMarket and advertiser visibility and strategy

    Saga forged a partnership with Borrell Associates to gain visibility into markets, advertiser spending, market share, and strategies for acquiring, retaining, and growing revenue in key business categories.

    University of Florida College of Journalism and Communication7-year joint sales partnership and educational collaboration7 years

    A landmark 7-year joint sales partnership expanding Saga's broadcast footprint to include WOGK-FM, WRUF-AM and FM, WIND-FM, and the University of Florida Gators Sports Network. It also involves collaboration on broadcast media sales, digital media, audience development, sports media, content strategy, internships, and mentorships.

    Risks & headwinds

    3
    Traditional advertising verticals declineQ2 FY26

    Local revenue down 11.2% for Q2; National revenue down 25% for Q2; Nontraditional revenue down 16.4% for Q2.

    Mitigation: Investment in blended digital strategy, hiring sales managers and digital campaign managers, strategic partnerships to gain market visibility.

    Increased station operating expenses due to digital transformationFull-year 2026

    Station operating expense increased $1.2 million or 5.4% for Q2; expected to increase 1.5% to 2.5% for full-year 2026.

    Mitigation: Monetizing non-core assets to offset cash spent on these increases; focus on improving profitability as digital initiatives mature.

    Loss of revenue from tower sale lease transfersOngoing

    Leases on sold towers were generating approximately $200,000 in revenue per quarter.

    Mitigation: Monetization of non-core assets to offset impacts; strategic management of balance sheet and liquidity.

    What to watch in Q3 FY26

    5

    Political revenue booking

    Q3/Q4 FY26
    Current$1.1 million booked for remainder of year
    TargetIncrease in political dollars as elections approach

    Why it matters

    Political advertising is a significant revenue driver in election years, and management expects further bookings closer to elections.

    I'm encouraged that we'll see💬 an increase in political dollars as we get closer to the actual elections as opposed to the primaries and so forth.

    Q&A highlights

    1

    Does the company possess the necessary digital feature sets for success, or are further investments in products and services required?

    Management believes most major digital investments have been made, particularly in search and display. They will continue to adjust and expand digital offerings based on evolving customer needs and market shifts, ensuring competitiveness.

    “Well, as I stated, most of the major investments have been made. We're already real strong in search and display, as referenced in my statement about the growth of the blend, which primarily deals with search and display and radio. And we will adjust and add to our digital offerings as this ever-changing digital landscape continues to change, and it will.”

    asked by Samuel D. Bush (implied) · answered by Christopher Forgy

    2 min read6 chapters

    Detailed Narrative

    01

    Digital Transformation & Strategy

    Saga Communications is undergoing a significant digital transformation, building a blended digital strategy over the last three years, encompassing search, display, SEO, social, managed e-mail, OTT, and CTV. Key initiatives include bringing search tools in-house with three full-time specialists, hiring 10 digital campaign managers and 9 directors of sales, and partnering with Marketron NXT for digital fulfillment. The strategy aims to create an easy-to-understand, buy, execute, measure, and renew digital platform focused on the customer journey, while mitigating declines in traditional radio ad spend.

    02

    Revenue Trends & Pacing

    The company faces headwinds in traditional advertising verticals, with local, national, and nontraditional revenue experiencing double-digit year-over-year declines for Q2 FY26. Conversely, blended digital revenue surged by 60.8% for the quarter. Third-quarter revenue is pacing down mid-single digits overall, with digital revenue pacing up mid- to high single digits. Monthly pacing shows improvement, with September gross revenue up low single digits and October gross revenue up mid-single digits, indicating a potential stabilization trend.

    03

    Strategic Partnerships & AI Integration

    Saga has forged strategic partnerships, including with Borrell Associates, to gain deeper market and advertiser visibility, aiming to maximize programmatic revenue and grow market share. Paul O'Malley has been promoted to Senior Vice President of Revenue Development to focus on all revenue streams. Internally, AI-driven solutions have been developed for lead generation, search calculation, and proposal writing, significantly enhancing efficiency and speed to market for media advisers.

    04

    Community Engagement & Industry Recognition

    Saga's radio stations are deeply embedded in their local communities, raising nearly $4 million in the first half of 2026. The company received significant industry accolades, including WYMG-FM winning the NAB Service to America Award, WOGK-FM being recognized as a favorite station, and four nominations for the 2027 Marconi Awards across various markets and categories, highlighting the strength and impact of its traditional media operations.

    05

    University of Florida Joint Sales Partnership

    A landmark 7-year joint sales partnership has been established with the University of Florida College of Journalism and Communication. This agreement expands Saga's broadcast footprint in the Ocala Gainesville, Florida market, incorporating WOGK-FM, WRUF-AM and FM, WIND-FM, and the Gators Sports Network. The partnership extends beyond sales to create opportunities for advertisers, students, and faculty in broadcast media sales, digital media, audience development, and content strategy, fostering the next generation of media professionals.

    06

    Non-Core Asset Monetization & Balance Sheet Management

    Saga is actively monetizing non-core assets to offset investments in digital transformation and operational expenses. Since Q4 last year, the company has sold or is selling six properties for over $4 million, including a former Sarasota House for $1.7 million and an unused tower site for $1 million. The company also repaid and terminated a $5 million revolving credit agreement, enhancing flexibility for future capital allocation towards dividends, share repurchases, and strategic opportunities.

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