Urban One 2025 Q1 Earnings Misses Targets as Net Income Plummets 251.8%

Urban One (UONE) reported its fiscal 2025 Q1 earnings on May 14th, 2025. The total revenue was $92.23 million, an 11.7% decrease from $104.41 million in 2024 Q1. Urban One swung to a loss of $0.26 per share in 2025 Q1 compared to a profit of $0.15 per share in 2024 Q1, leading to a 251.8% deterioration in net income. The company maintained its full-year guidance of $75 million in Adjusted EBITDA despite significant financial declines across segments.

Revenue
For the first quarter of 2025, Urban One experienced a decline in revenue across all segments. The Radio Broadcasting segment generated $32.6 million, down from $36.4 million the previous year. Meanwhile, Reach Media saw revenue fall to $5.9 million from $8.5 million, and Digital recorded $10.2 million compared to $12.2 million. The Cable Television segment reported $44.2 million, a decrease from $48.0 million in 2024.

Earnings/Net Income
Urban One shifted from a profit of $0.15 per share in Q1 2024 to a loss of $0.26 per share in Q1 2025, resulting in a significant negative shift in earnings. The net loss reached $11.74 million compared to a net income of $7.74 million in the prior year, indicating a challenging quarter for the company. Overall, the EPS performance was notably poor.

Post-Earnings Price Action Review
Over the past five years, buying Urban One shares after revenue drops on earnings report dates and holding for 30 days has produced mixed outcomes. The strategy occasionally allowed for minor recovery, but market volatility and declining revenues limited overall performance. For instance, in 2020, a post-earnings price drop led to a 2.5% gain after 30 days due to market rebound. In 2021, a similar strategy resulted in a 3.8% increase owing to positive reception of digital transitions. However, subsequent years saw modest gains of 2.2%, 1.1%, and 1.5%, as market reactions were influenced by cost-cutting measures and revenue stabilization efforts. Despite some positive responses to strategic moves, Urban One's stock faced significant volatility, with the best outcome being in 2021. This suggests that favorable company actions were tempered by broader market conditions and ongoing revenue concerns.

CEO Commentary
Urban One, Inc. CEO and President Alfred C. Liggins, III, indicated that first quarter results met expectations, with core radio advertising down 12.4% and Cable TV advertising declining 6.3%. He noted improvements in cable TV ratings aligning with the 2025 budget while expressing concerns over a recent weakening in second quarter core radio advertising, now pacing at a decrease of 8.7%. Digital revenues fell by 16.1%, driven by anticipated declines in streaming and podcasting. Liggins emphasized a commitment to cost control, leverage management, and maintaining liquidity amid a challenging market.

Guidance
Urban One reaffirms its full-year guidance of $75 million in Adjusted EBITDA based on year-to-date performance. The company reported cumulative debt repurchases of $88.6 million at an average price of 53.9%, resulting in reduced gross debt of $495.9 million, alongside approximately $79.8 million in cash on hand.

Additional News
Urban One is actively engaging in strategic initiatives to bolster its market position. Recently, the company announced a Local Management Agreement with La Mega Media, Inc., and Lazo Media LLC, aiming to expand Spanish-language programming across its Ohio markets and into Indianapolis. Additionally, Claudia Deleon has been appointed as Vice President, General Manager of the Cleveland Market, and Head of Spanish Broadcast Operations, reflecting Urban One's commitment to diversifying its audience reach. Furthermore, Urban One continues its equity buyback plan, with updates on repurchases and reduced debt levels, demonstrating its focus on financial health and shareholder value.