Saga Communications, Inc. (SGA) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals a challenging financial situation with significant declines in net revenue and operating income, exacerbated by a substantial noncash impairment charge. Despite some growth in digital revenues and a gain from asset sales, the lack of clarity in the Q&A session and the absence of strong guidance contribute to a negative sentiment. The ongoing operational strain and competitive pressures further dampen the outlook, leading to an overall negative prediction for the stock price movement in the short term.
Key Financial Performance
Net Revenue (Q4 2025) Decreased $2.7 million or 9.3% to $26.5 million compared to $29.2 million last year. The decline was largely due to reduced political revenue.
Gross Political Revenue (Q4 2025) Decreased to $254,000 compared to $2 million for the fourth quarter of last year.
Station Operating Expense (Q4 2025) Decreased 1.9% or approximately $400,000 to $22.9 million for the 3-month period.
Net Revenue (Year 2025) Decreased $5.8 million or 5.1% to $107.1 million compared to $112.9 million last year. Almost half of the decrease was due to reduced political revenue.
Gross Political Revenue (Year 2025) Decreased to $650,000 compared to $3.3 million for 2024.
Station Operating Expense (Year 2025) Flat with 2024 at $91.8 million.
Noncash Impairment Charge (Q4 and Year 2025) Recorded a charge of $20.4 million, including $19.2 million for goodwill and $1.2 million for FCC licenses in one market.
Operating Loss (Q4 2025) $9.5 million compared to operating income of $1 million for the fourth quarter last year. Without the impairment charge, operating income would have been $10.9 million.
Net Loss (Q4 2025) $6.9 million compared to net income of $1.3 million last year. Without the impairment charge, net income would have been $8.2 million or $1.27 per share compared to $0.20 per share last year.
Operating Loss (Year 2025) $11 million compared to operating income of $2.4 million for 2024. Without the impairment charge, operating income would have been $9.4 million.
Net Loss (Year 2025) $7.9 million compared to net income of $3.5 million last year. Without the impairment charge, net income would have been $7.2 million or $1.11 per share compared to $0.55 per share last year.
Music Licensing Settlement Impact (Year 2025) Increased station operating expense by $2.2 million. Without this, station operating expense would have decreased by 2% compared to 2024 instead of being flat.
Gain from Sale of Telecommunications Towers (Q4 2025) Recognized a gain of $11.6 million. Total proceeds were $15.1 million, with net cash proceeds of $9.8 million after expenses.
Interactive Revenue (Q4 2025) Increased 25.8%.
Interactive Revenue (Year 2025) Increased 19.1%.
E-commerce Platform Revenue (Year 2025) Up 16% year-over-year, creating $2.5 million in local direct revenue.
Hyperlocal Online News Sites Revenue (Year 2025) Grew 18% year-over-year, contributing over $2.5 million in revenue with a 31% margin (excluding sales commissions).
Search Revenue (Year 2025) Up 59% year-over-year, generating $2.2 million.
Targeted Display Revenue (Year 2025) Up 44.8% year-over-year, accounting for nearly $3.5 million.
Online Streaming Revenue (Year 2025) Up 8.6% year-over-year.
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Operating Highlights
E-commerce platform: Up 16% year-over-year, generating $2.5 million in local direct revenue in 2025.
Hyperlocal online news sites: Grew 18% year-over-year, contributing $2.5 million in revenue with a 31% margin.
Search advertising: Increased 59% year-over-year, generating $2.2 million.
Targeted display advertising: Up 44.8% year-over-year, accounting for nearly $3.5 million.
Online streaming: Revenue increased by 8.6% year-over-year.
Digital infrastructure expansion: Investing $1.5 million in 2026 to build digital infrastructure and hire sales and campaign managers to support digital growth.
Tower monetization: Sold 24 towers for $15.1 million, recognizing a gain of $11.6 million, with $9.8 million in net cash proceeds.
Expense reductions: Reduced local market expenses by $1.4 million.
Music licensing settlement: Increased 2025 station operating expense by $2.2 million.
Capital allocation strategy: Implemented stock buybacks and special dividends funded by tower sales.
Digital transformation strategy: Focused on blending radio and digital advertising to meet advertiser needs and grow digital revenue.
Training and education: Enhanced training for leadership and media advisers to improve digital ad sales.
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Risk or Challenges
Decline in Political Revenue: The company experienced a significant decline in political revenue, which contributed to a decrease in net revenue for both the quarter and the year. This decline poses a challenge to maintaining revenue levels, especially during non-election years.
Noncash Impairment Charge: A $20.4 million noncash impairment charge, including a $19.2 million goodwill write-off and a $1.2 million reduction in FCC license value, negatively impacted operating income and net income for the quarter and year.
Music Licensing Settlement: An industry-wide rate settlement with music licensing organizations increased station operating expenses by $2.2 million, affecting profitability for the year.
Decline in Traditional Broadcast Revenue: Traditional broadcast revenue continues to decline, and the company has yet to offset this with growth in interactive revenue, posing a risk to long-term revenue stability.
Increased Expenses for Digital Initiative: The company is investing $1.5 million in building digital infrastructure and hiring new personnel, which will initially be more costly than the revenue it generates, impacting short-term profitability.
Economic Uncertainty in Asset Sales: The sale of nonproductive assets, such as telecommunications towers and a property in Sarasota, Florida, is subject to market conditions and delays, such as those caused by hurricanes, which could impact the timing and valuation of these sales.
Competitive Pressures in Digital Advertising: The company faces significant competition in the digital advertising space, where it currently captures only a small fraction of the market. This requires substantial investment in training and infrastructure to remain competitive.
Operational Strain from Transformation: The ongoing digital transformation and blended sales strategy have been taxing on the company's operations, requiring significant training and adaptation, which could strain resources and impact efficiency.
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Guidance & Outlook
Revenue Growth Expectations: The company expects a return to revenue growth, including political revenue, in the second half of 2026, with revenue increasing in the range of mid-single digits.
Digital Initiative Investments: Saga plans to increase market expenses by $1.5 million in 2026 to build digital infrastructure, hire sales and campaign managers, and enhance digital fulfillment capabilities. This initiative is expected to initially be more costly than the revenue it generates but is deemed necessary for competitiveness.
Capital Expenditures: The company expects to spend approximately $3.5 million to $4.5 million on capital expenditures during 2026.
Station Operating Expense: Station operating expense is expected to be flat for 2026 compared to 2025, excluding digital initiative expenses. Including these expenses, operating expenses are projected to increase by 3% to 4%.
Corporate General and Administrative Expenses: Annual corporate general and administrative expenses are anticipated to be approximately $12.3 million for 2026, remaining flat compared to 2025.
Digital Revenue Growth: Interactive revenue is currently up 26.4% in Q1 2026, and the company is focusing on growing its digital business to offset declines in traditional broadcast revenue.
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Shareholder Return Plan
Quarterly Dividend: The company paid a quarterly dividend of $0.25 per share on December 12, 2025, with an aggregate value of approximately $1.6 million. A similar dividend was declared on February 12, 2026, with a record date of February 26, 2026, and a payable date of March 20, 2026.
Historical Dividend Payments: Since the first special dividend in 2012, the company has paid over $143 million in dividends to shareholders.
Future Dividend Plans: The company intends to continue paying regular quarterly cash dividends and will consider declaring special cash dividends and variable dividends in the future.
Share Repurchase Program: The company repurchased 219,326 shares of its Class A common stock for $2.5 million during the year ended December 31, 2025.
Future Share Buyback Plans: The Board of Directors will continue to consider stock buybacks as part of its strategic objective to return value to shareholders.
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Key Q&A
Q:What is the current status of the Saga Q4 and year-end earnings?
A:The call was conducted to discuss the Saga Q4 and year-end earnings, but no specific details or numbers were provided in the transcript.
Q:Did the management provide any specific financial details or performance metrics during the call?
A:No, the transcript does not include any specific financial details or performance metrics.
Q:Review of Unclear Management Responses
A:The management did not provide direct answers or specific details regarding the financial performance or metrics of Saga Q4 and year-end earnings. The responses were vague and lacked clarity.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Absence host
CFO comment
Class stock
Conference Instructions
Director Leave
Directors cash
EVP CFO
End Release
FCC license
Interactive way
cash dividend
charge income
client
conference
decline
digit
expense initiative
gain
impairment charge
income impairment
income loss
income share
infrastructure
loss income
manager
music licensing
noncash impairment
return
settlement
share period
tower space
transaction
transfer
valuation
SGA Transcript
Saga Communications, Inc. (SGA) Q4 2025 Earnings Call Transcript
Unknown3-12
The earnings call reveals a challenging financial situation with significant declines in net revenue and operating income, exacerbated by a substantial noncash impairment charge. Despite some growth in digital revenues and a gain from asset sales, the lack of clarity in the Q&A session and the absence of strong guidance contribute to a negative sentiment. The ongoing operational strain and competitive pressures further dampen the outlook, leading to an overall negative prediction for the stock price movement in the short term.
Saga Communications, Inc. (SGA) Q3 2025 Earnings Call Transcript
Unknown11-7
The earnings call reveals a mixed financial performance with a decrease in net revenue and an operating loss, despite some growth in digital and interactive revenues. The Q&A section highlights concerns about weak national advertising and unclear buyback plans. Although there are positive initiatives like AI and stock buybacks, the overall sentiment is negative due to financial losses and lack of clarity on key strategies.
Saga Communications, Inc. (SGA) Q2 2025 Earnings Call Transcript
Unknown8-8
The earnings call reveals declining financial performance, with reduced net revenue and increased losses. While digital revenue shows growth, it is overshadowed by the overall negative financial metrics. The Q&A section highlights concerns about search traffic fragmentation, which management addresses vaguely. Despite plans for asset sales and buybacks, the lack of specific guidance and declining financial health suggest a negative sentiment. Without market cap data, the prediction leans towards a negative stock price movement due to weak financial results and management's unclear communication.
Saga Communications, Inc. (NASDAQ:SGA) Q4 2024 Earnings Call Transcript
Positive3-12
The earnings call summary reveals a positive EPS surprise and a strategic focus on expanding digital advertising, which is a growing market. The share buyback program further supports stock price. Despite competitive pressures and a lack of clear guidance on some trends, the overall sentiment from the earnings call and strategic initiatives suggests a positive outlook for the stock price in the near term.
SGA Report
Frequently Asked Questions
Where does this earnings call transcript come from?
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Why do some answers appear as “Unclear” or “Inaudible”?
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Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
