We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Urban One Q2 Loss Narrows Y/Y, Adjusted EBITDA Outlook Cut
Read MoreHide Full Article
Shares of Urban One, Inc. (UONE - Free Report) have increased 3.5% since reporting results for the second quarter of 2026, outperforming the S&P 500 index’s 1.3% return. Over the past month, Urban One shares have risen 8.2% compared with a 2.8% return in the S&P 500.
Earnings & Revenue Performance
Urban One reported second-quarter net revenues of $85.76 million, down 6.4% from $91.63 million a year earlier. The company’s net loss attributable to common stockholders narrowed 90.9% to $7.07 million from $77.9 million in the year-ago quarter, while the basic and diluted loss per share narrowed to $1.58 from $17.41 in the prior-year quarter. The per-share figures were retroactively adjusted for the 1-for-10 reverse stock split completed on Jan. 22, 2026.
The operating loss narrowed 90.7% to $11.24 million from $120.68 million in the prior-year quarter, largely reflecting substantially lower impairment charges. Adjusted EBITDA decreased 16% to $11.72 million from $13.96 million in the prior-year quarter, while broadcast and digital operating income fell 13.7% to $22.15 million from $25.66 million a year ago.
Radio Broadcasting revenues decreased 3.9% to $35.28 million from $36.69 million in the prior-year quarter, reflecting weaker demand from local and national advertisers. Reach Media revenues declined 10.6% to $4.75 million from $5.32 million in the prior-year quarter, primarily because of lower syndicated revenues. Digital revenues fell 8.4% to $9.4 million from $10.25 million as reduced advertising spending weighed on direct revenue streams, including diversity, equity and inclusion-focused campaigns.
Cable Television revenues decreased 7.4% to $37.12 million from $40.07 million in the prior-year quarter, driven by subscriber churn and lower advertising sales. Cable advertising revenues fell 9.6% to $20.77 million, while affiliate fees declined 4.5% to $16.29 million. Radio advertising revenues dropped 10.1% to $34.73 million, although political advertising increased to $1.243 million from $254,000. Event and other revenues rose 35% to $3.34 million.
Segment adjusted EBITDA was $6.29 million for Radio Broadcasting, down from $6.94 million in the prior-year quarter. Cable Television’s contribution fell to $14.21 million from $18.06 million. Reach Media’s loss improved to $1.03 million from $1.65 million, while Digital’s loss narrowed to $92,000 from $146,000.
Management Commentary
Chief executive Alfred C. Liggins III said that the second-quarter results showed improvement from the first quarter, with slower revenue decline rates. Urban One’s local radio revenues, as measured by Miller Kaplan, fell 10.1% compared with a 7.8% contraction in its markets. National radio revenues declined 1.5%, narrower than the market’s 4.6% decrease. Including local digital operations, radio revenues decreased 4.9%.
Management said that Reach Media remained in a turnaround, affected by a weak advertising market, the loss of important clients and rebuilding of its sales team. The company continued to emphasize collections of receivables, operating cash flow and control of discretionary vendor spending.
Factors Influencing Results
Operating expenses declined 54.3% year over year to $96.996 million, mainly because impairment charges fell 89.1% to $14.16 million from $130.08 million in the prior-year quarter. The second quarter included $13.9 million of goodwill impairment and $0.3 million of long-lived asset impairment related to Reach Media. Notably, the prior-year period included $130.1 million of Radio FCC license impairment.
Selling, general and administrative expenses decreased 8.7% to $45.20 million, while programming and technical costs increased 3.9% to $29.77 million, primarily because of higher radio royalty expenses. Interest expenses declined 78.7% to $2.07 million due to lower debt balances and effective rates.
Outlook
Urban One lowered its 2026 adjusted EBITDA forecast to the mid-$50 million range from the previous $60 million, citing current market conditions. Radio revenues for the third quarter edged down 2.8% when the results were released.
Other Developments
Urban One completed the sales of Charlotte stations WMXG and WLNK-FM on June 1 for $0.7 million and $4.2 million, respectively, recording a $4.67-million gain. It also repurchased $23.5 million of 2031 Second Lien Notes at 42.0% of par. After quarter-end, Urban One sold KZMJ for $6 million and completed its $22-million acquisition of Service Broadcasting Group, including Dallas stations KKDA and KRNB.
View the Zacks #1 Rank List
Image: Bigstock
Urban One Q2 Loss Narrows Y/Y, Adjusted EBITDA Outlook Cut
Shares of Urban One, Inc. (UONE - Free Report) have increased 3.5% since reporting results for the second quarter of 2026, outperforming the S&P 500 index’s 1.3% return. Over the past month, Urban One shares have risen 8.2% compared with a 2.8% return in the S&P 500.
Earnings & Revenue Performance
Urban One reported second-quarter net revenues of $85.76 million, down 6.4% from $91.63 million a year earlier. The company’s net loss attributable to common stockholders narrowed 90.9% to $7.07 million from $77.9 million in the year-ago quarter, while the basic and diluted loss per share narrowed to $1.58 from $17.41 in the prior-year quarter. The per-share figures were retroactively adjusted for the 1-for-10 reverse stock split completed on Jan. 22, 2026.
The operating loss narrowed 90.7% to $11.24 million from $120.68 million in the prior-year quarter, largely reflecting substantially lower impairment charges. Adjusted EBITDA decreased 16% to $11.72 million from $13.96 million in the prior-year quarter, while broadcast and digital operating income fell 13.7% to $22.15 million from $25.66 million a year ago.
Urban One, Inc. Price, Consensus and EPS Surprise
Radio One, Inc. price-consensus-eps-surprise-chart | Radio One, Inc. Quote
Other Key Business Metrics
Radio Broadcasting revenues decreased 3.9% to $35.28 million from $36.69 million in the prior-year quarter, reflecting weaker demand from local and national advertisers. Reach Media revenues declined 10.6% to $4.75 million from $5.32 million in the prior-year quarter, primarily because of lower syndicated revenues. Digital revenues fell 8.4% to $9.4 million from $10.25 million as reduced advertising spending weighed on direct revenue streams, including diversity, equity and inclusion-focused campaigns.
Cable Television revenues decreased 7.4% to $37.12 million from $40.07 million in the prior-year quarter, driven by subscriber churn and lower advertising sales. Cable advertising revenues fell 9.6% to $20.77 million, while affiliate fees declined 4.5% to $16.29 million. Radio advertising revenues dropped 10.1% to $34.73 million, although political advertising increased to $1.243 million from $254,000. Event and other revenues rose 35% to $3.34 million.
Segment adjusted EBITDA was $6.29 million for Radio Broadcasting, down from $6.94 million in the prior-year quarter. Cable Television’s contribution fell to $14.21 million from $18.06 million. Reach Media’s loss improved to $1.03 million from $1.65 million, while Digital’s loss narrowed to $92,000 from $146,000.
Management Commentary
Chief executive Alfred C. Liggins III said that the second-quarter results showed improvement from the first quarter, with slower revenue decline rates. Urban One’s local radio revenues, as measured by Miller Kaplan, fell 10.1% compared with a 7.8% contraction in its markets. National radio revenues declined 1.5%, narrower than the market’s 4.6% decrease. Including local digital operations, radio revenues decreased 4.9%.
Management said that Reach Media remained in a turnaround, affected by a weak advertising market, the loss of important clients and rebuilding of its sales team. The company continued to emphasize collections of receivables, operating cash flow and control of discretionary vendor spending.
Factors Influencing Results
Operating expenses declined 54.3% year over year to $96.996 million, mainly because impairment charges fell 89.1% to $14.16 million from $130.08 million in the prior-year quarter. The second quarter included $13.9 million of goodwill impairment and $0.3 million of long-lived asset impairment related to Reach Media. Notably, the prior-year period included $130.1 million of Radio FCC license impairment.
Selling, general and administrative expenses decreased 8.7% to $45.20 million, while programming and technical costs increased 3.9% to $29.77 million, primarily because of higher radio royalty expenses. Interest expenses declined 78.7% to $2.07 million due to lower debt balances and effective rates.
Outlook
Urban One lowered its 2026 adjusted EBITDA forecast to the mid-$50 million range from the previous $60 million, citing current market conditions. Radio revenues for the third quarter edged down 2.8% when the results were released.
Other Developments
Urban One completed the sales of Charlotte stations WMXG and WLNK-FM on June 1 for $0.7 million and $4.2 million, respectively, recording a $4.67-million gain. It also repurchased $23.5 million of 2031 Second Lien Notes at 42.0% of par. After quarter-end, Urban One sold KZMJ for $6 million and completed its $22-million acquisition of Service Broadcasting Group, including Dallas stations KKDA and KRNB.