Urban One 2025 Q2 Earnings Deepened Losses Amid Revenue Drop

Urban One reported its fiscal 2025 Q2 earnings on August 13, 2025. The results fell significantly short of expectations, with the company posting a substantial revenue decline and wider net losses. The management lowered its full-year guidance, signaling ongoing challenges in its core segments and a strategic shift toward cost control and liquidity preservation.

Revenue
Urban One’s total revenue dropped by 22.2% year-over-year to $91.63 million in Q2 2025. The decline was driven by underperformance in Reach Media and Digital segments, which experienced client attrition and lower CPMs. Radio Broadcasting generated $36.69 million, Cable Television contributed $40.07 million, while the Digital segment brought in $10.25 million. Reach Media posted $5.32 million in revenue, and the company reported eliminations of $-701,000 in the "All other - corporate/eliminations" category.

Earnings/Net Income
The company’s financial performance deteriorated sharply in Q2 2025, with a net loss widening to $-77.97 million, representing a 72.9% increase from the previous year. The loss per share expanded to $1.74, an 85.1% year-over-year increase in negative performance, highlighting the deepening challenges in the business.

Price Action
Urban One’s stock price continued to decline, dropping 3.59% during the latest trading day and 1.83% during the most recent full trading week. Over the month, the stock fell by 12.02%, reflecting investor concerns about the company’s financial outlook.

Post-Earnings Price Action Review
A strategy of buying Urban One shares following a revenue increase quarter-over-quarter on the report date and holding for 30 days performed poorly. Over the past three years, the strategy returned -66.20%, significantly underperforming the benchmark by 112.53%. The compound annual growth rate (CAGR) was -31.24%, indicating a steep decline in value, while the Sharpe Ratio of -0.45 highlighted poor risk-adjusted returns. The strategy showed no additional losses beyond the initial 30-day period, but its overall performance remained dismal.

CEO Commentary
Alfred C. Liggins, III, CEO and President of Urban One, attributed the poor performance to weaker results in Reach Media and Digital segments, which were impacted by client attrition and lower advertising demand. The CEO noted that Core radio advertising fell 11.8% year-over-year, excluding digital. While Q3 pacings showed some improvement, core radio advertising remains under pressure. Cost control, leverage management, and liquidity preservation were emphasized as key priorities amid ongoing economic challenges.

Guidance
Urban One reduced its full-year guidance for 2025, forecasting Adjusted EBITDA of $60.0 million. The company expects core radio pacings for Q3 to remain at (8.3)% or (5.6)% excluding political advertising. The company emphasized its focus on maintaining strong liquidity and managing its leverage.

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