[Management View]
Urban One reported a significant decline in revenue and EBITDA across all segments, leading to a reduction in full-year EBITDA guidance from $60 million to $56-$58 million. Management attributed declines in Digital and Reach Media to reduced DEI and network audio demand, while cost reduction initiatives achieved $3 million in new annualized savings in Q3. A one-time retroactive royalty expense of $3.1 million was recorded, and cable subscriber churn led to a 9.1% affiliate revenue drop. Liquidity remains a focus, with a pause in debt repurchase activity to monitor regulatory developments.

[Outlook]
CEO Alfred C. Liggins expressed optimism for 2026, citing strategic operating adjustments to strengthen underperforming markets and segments. The company is not currently pursuing any transformative M&A deals but is monitoring potential deregulation for future asset alignment opportunities.

[Financial Performance]
Consolidated net revenue was $92.7 million, a 16% decline YoY. Radio Broadcasting revenue fell 12.6%, while Reach Media revenue dropped 40%. Digital sales decreased by $4.4 million, and Cable TV revenue declined 7%. Adjusted EBITDA was $14.2 million, down 44.1%. Net loss improved to $2.8 million from $31.8 million last year.

[Q&A Highlights]
Question 1: Are you thinking about 2026 and what demand looks like there and what listenership may be?
Answer: We feel good about 2026 due to political year dynamics and strategic changes in underperforming areas. Reach Media faced challenges with advertiser concentration, but we are better positioned now. We launched a new format targeting the Hispanic community in DC, which is a significant market segment.

Question 2: Are you considering any M&A activity or larger transformative deals?
Answer: We are focused on potential deregulation and its opportunities. While no large transformative deals are currently in progress, we are exploring asset alignment opportunities. Leverage remains a consideration in any M&A activity.

Question 3: What are your plans regarding debt buyback activity?
Answer: We have paused debt buybacks to build liquidity and assess deregulation impacts. We remain focused on delevering, either through buying back debt at a discount or through delevering M&A activity.

[Sentiment Analysis]
Analysts showed interest in future strategic plans and debt management, while management maintained a cautiously optimistic tone about 2026 and potential deregulation opportunities.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-----------------------------|---------------|---------------|------------|
| Consolidated Net Revenue | $92.7 million | $110.4 million| -16% |
| Radio Broadcasting Revenue | $34.7 million | $39.7 million | -12.6% |
| Reach Media Revenue | $6.1 million | $10.2 million | -40% |
| Digital Sales | $4.4 million | $8.8 million | -50% |
| Cable TV Revenue | $39.8 million | $42.8 million | -7% |
| Adjusted EBITDA | $14.2 million | $25.4 million | -44.1% |
| Net Loss | $2.8 million | $31.8 million | Improved |

[Risks and Concerns]
Key risks include continued revenue declines in core segments, advertiser concentration issues, and potential impacts from regulatory changes. The company faces challenges in replacing lost advertising dollars and managing subscriber churn in the cable segment.

[Final Takeaway]
Urban One's Q3 2025 results reflect significant revenue and EBITDA declines, prompting a reduction in full-year guidance. Management is optimistic about 2026, with strategic adjustments in place to address underperforming areas. While no transformative M&A deals are currently underway, the company is poised to explore opportunities arising from potential deregulation. Liquidity management remains a priority, with a cautious approach to debt buybacks as regulatory developments unfold.