Urban One Radio Revenue Rises to $36.7 Million With Annual Savings Plan of at Least $20 Million
Key Facts
Urban One’s radio broadcasting segment revenue rose to $36.7 million in the third quarter of 2026, from $34.7 million in the same period of 2025, an increase of about $2.0 million, according to a company filing with the U.S. Securities and Exchange Commission. The company said acquired stations and political campaigns drove the increase, partly offset by weaker demand from local and national advertisers. Meanwhile, management said it had identified annual savings of at least $20 million and was focused on cutting costs as it enters next year. The company did not specify when it would begin implementing the savings. The steps come as results showed pressure on other segments and large losses tied to asset impairments.
Advertising performance diverged between the company and the market in the third quarter. Urban One’s local ad sales fell 5.1%, compared with a 9.2% decline in the market, while its national sales rose 4.2% as the national market contracted 2.1%, according to Radio Ink. This indicates that the company’s radio sales outperformed market trends in both local and national segments, although its local sales remained lower. The company said broad weakness in demand from local and national advertisers limited the impact of growth at acquired stations and political campaigns. The chief executive said net political revenue exceeded $0.8 million during the quarter. The Dallas station deal also added $1.9 million, and the company expects net political revenue of $8.8 million across its divisions in 2026.
But radio growth did not translate into higher adjusted earnings, with adjusted earnings before interest, taxes, depreciation and amortization at $12.3 million in the third quarter, compared with $14.2 million a year earlier. Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment, fell to $78.2 million from $83.7 million, a decline of 6.5%. The company attributed a significant part of the decrease to nonrecurring music license settlement costs recorded in 2025. Operating loss was about $126.6 million, compared with operating income of $2.5 million in the third quarter of the previous year. The company recorded an impairment charge of about $128.9 million for assets, goodwill, intangible assets and long-lived assets during the quarter.
The loss attributable to common shareholders widened to about $119.2 million, or $26.39 per share, compared with a loss of $2.8 million, or $0.64 per share, in the third quarter of 2025. In other segments, Reach Media revenue fell to $5.1 million from $6.1 million, with the company citing weak demand and a broad contraction in the network audio market. Digital segment revenue also declined to $9.6 million from $12.7 million; the company attributed the decrease to weaker demand for diversity, equity and inclusion-related spending and lower effective campaign rates. Cable television segment revenue fell to $37.3 million from $39.8 million, with the company attributing the decline to subscriber losses and lower advertising rates. The results show that pressure extended beyond the radio business, which recorded revenue growth.
Urban One lowered its 2026 forecast for adjusted earnings before interest, taxes, depreciation and amortization to $40 million, saying the revision reflects current advertising market conditions. Management was scheduled to discuss results and its outlook on an earnings call on November 10, 2026, at 10:00 a.m. Eastern Time. Investing.com reported that the stock fell 7.69% to $3.60 in trading on November 10, following the company’s report of wider losses and lower revenue. These indicators reflect the cost-cutting plan coinciding with the company’s reassessment of its annual earnings amid a weak advertising market. The announced savings remain an annual target for management, with no start date specified in the filing.