Urban One Q2 2025 Earnings: Revenue Down 22.2%, Operating Loss Doubles to $120.7M

Urban One's Q2 2025 earnings show a 22.2% decline in net revenue to $91.6 million and a doubling of operating loss to $120.7 million. Net loss widened to $77.9 million, or $1.74 per share. Management remains focused on cost control, managing leverage, and maintaining liquidity, with revised full-year guidance of $60 million in Adjusted EBITDA. The company is navigating economic headwinds while seeking to stabilize its core operations.

Urban One Inc. (UONE) reported a challenging second quarter for fiscal year 2025, with a 22.2% year-over-year decline in net revenue to $91.6 million and a significant widening of operating loss to $120.7 million. The company's net loss widened to $77.9 million, representing a loss of $1.74 per share. Despite these headwinds, Urban One remains focused on cost control, debt reduction, and maintaining liquidity, with revised full-year guidance of $60 million in adjusted EBITDA.

Key highlights from the earnings call include a notable increase in services ad category revenue, up 23.4%, driven by legal firms and services. The company successfully reduced operating expenses by 16.3% year-over-year, primarily due to the absence of the Reach cruise event. Interest expenses were also decreased to $9.7 million from $12.4 million last year, thanks to debt reduction efforts. Urban One repurchased $64 million of its 2028 notes at an average price of 51.8% of par, reducing overall debt.

However, the company faced significant declines in revenue across all major segments, with the Reach Media segment revenue plummeting by 71.9% and the digital segment experiencing a 27.1% decline. These declines were attributed to the absence of key events and the loss of exclusive third-party audio streaming deals. The company also recorded a net loss of approximately $77.9 million, a significant increase from the $45.4 million loss in the previous year.

Management cited broad advertising pressures and a non-cash impairment charge of $130.1 million as contributing factors to the negative assessment. The impairment charge was applied to radio broadcasting licenses, reflecting tougher industry dynamics and reduced long-term prospects. Urban One expects core radio advertising to be down 8.3% compared to the prior year in Q3 2025, with some stabilization in local advertising but continued softness in national.

Looking ahead, Urban One is navigating economic headwinds while seeking to stabilize its core operations. The company's priority remains on balance sheet management, maintaining liquidity, and adapting its portfolio to changing consumer media preferences. Investors should monitor sector trends such as continued declines in traditional radio listening, the pace of change in digital ad spending, and how quickly Urban One can adapt its portfolio to these shifts.

References:
[1] https://finance.yahoo.com/news/urban-one-inc-uone-q2-190133646.html
[2] https://www.nasdaq.com/articles/urban-one-reports-22-revenue-drop-q2