Townsquare Media: Barrington Research maintains Outperform, PT raised to $13 from $12.50

Townsquare Media: Barrington Research maintains Outperform, PT raised to $13 from $12.50

Townsquare Media, Inc. (NYSE: TSQ), a leading player in the digital advertising and marketing solutions industry, has seen its stock price target raised by Barrington Research from $12.50 to $13.00 following the company's strong second quarter (Q2) results and strategic partnerships [1].

In its latest financial report, Townsquare Media reported a net revenue of $115.4 million for Q2 2025, a 2.3% year-over-year decrease, but this was accompanied by a significant improvement in net income, which increased from a net loss of $48.9 million in Q2 2024 to $2.0 million in Q2 2025. Adjusted EBITDA also improved by 0.7% year-over-year to $26.4 million [2].

A key driver of Townsquare Media's performance was its digital operations, which accounted for 55% of total net revenue and 56% of total segment profit. Digital advertising net revenue grew by 2.4% year-over-year, while subscription digital marketing solutions revenue increased by 1.4% year-over-year. These segments delivered a strong segment profit growth of 9.4% year-over-year, operating at a 27% profit margin [2].

In addition to its strong financial performance, Townsquare Media has been expanding its reach through strategic partnerships. The company recently formed a strategic alliance with Renda Media, a local media company with a strong presence in six U.S. cities. This partnership aims to enhance Renda Media's digital advertising capabilities by leveraging Townsquare's expertise in data-driven strategies and its proprietary programmatic platform [1].

The alliance is part of Townsquare's Media Partnerships division, launched in 2024, which provides white-label digital advertising services to local media companies. This division is a key component of Townsquare Ignite, the company's digital advertising segment, which now accounts for over 50% of Townsquare's total revenue and profit. With this new partnership, Townsquare expands its reach to 19 additional markets that do not overlap with its existing footprint [1].

Despite the recent earnings per share of $0.09, which fell short of the estimated $0.21, Townsquare exceeded revenue expectations, reporting $115.4 million compared to the estimated $111.1 million. The company's operating profit margin stands at about 4.25%, reflecting the percentage of revenue that remains after covering operating expenses [1].

Looking ahead, Townsquare Media expects net revenue between $106.5 million and $108.5 million for the third quarter of 2025 and between $435 million and $440 million for the full year 2025. The company also anticipates adjusted EBITDA between $22.0 million and $23.0 million for the third quarter and between $90 million and $94 million for the full year 2025 [2].

References:
[1] https://site.financialmodelingprep.com/market-news/townsquare-media-renda-media-digital-advertising-partnership
[2] https://www.tradingview.com/news/tradingview:fc9d03427155f:0-townsquare-media-inc-q2-2025-financial-results/