Beasley Broadcast Group, Inc. Q3 FY2025 earnings call

• Lauren Burrows, Chief Financial Officer, resigned; Caroline Beasley serves as Principal Financial Officer, Sean Greening as Chief Accounting Officer. - Strategy: scale higher-margin digital products, strengthen earnings quality, pivot sales to direct data-driven. - Closed sale of WPBB in Tampa on September 29, but Fort Myers closings on hold due to gov't shutdown. - Total company revenue down, but expense management offset top line shortfall. - Retooling sales org to align with digital marketplace, adding digital AEs and managers. - Audio Plus grew significantly; self-serve advertising portal piloted in Tampa, launching in Q4. - Station operating expenses down 8% Y/Y, corporate expenses down nearly 50% Y/Y (partially due to one-time items). - 9-month corporate and station operating expenses down $15M, excluding onetime ~$20M.

Total company revenue was approximately $51 million for the third quarter, representing an 11% decline on a same-station basis or a 7.5% decline year-over-year, excluding $2.7 million of political in Q3 '24. Digital revenue accounted for roughly 25% of company's revenue, up from 19% last year, and grew approximately 28% year-over-year on a same-station basis. Audio Plus revenue exceeded $1.2 million in Q3, representing over 200% growth from Q2. Local direct revenue grew 3.5% year-over-year, now representing nearly 60% of total local business.

• Q4 total company revenue pacing down ~20% Y/Y, ex-political down high single digits. - Full-year 2025 station operating and corporate expenses expected to be down $25M-$30M (excluding severance). - Anticipate $4M savings from Q3-Q4 cuts in 2026, with further savings in 2026. - 2026 strategy: scale high-margin digital products, improve margins, pivot to direct data-driven revenue.

• Government shutdown impacting Fort Myers closings. - Agency softness continuing to affect revenue. - Sales org transition to digital led marketplace taking time.

Q: Can you comment further on the agency channel issues?

A: Agency business continues to be a headwind, although slightly improved in Q4 ex-political, and challenges expected to ease in Q1 next year.

Q: Given the current revenue challenges, do you expect to do more cost savings in 2026?

A: Anticipate $4M from Q3-Q4 cuts in 2026, with further savings in 2026.

Q: Can you provide a sales price on Fort Myers? Who is the buyer of Fort Myers, do you see the opportunity for more asset sales?

A: Fort Myers sales total $18M to Fort Myers broadcasting and Sun broadcasting, and open to accretive transactions to reduce debt and leverage.