Beasley Broadcast Group, Inc. Q4 FY2025 earnings call

• Overall Business Transformation & Cost Restructuring • 2025 was a year of accelerated decline in traditional audio revenue (especially agency-driven channels where the company has high historical exposure) paired with decisive strategic and operational restructuring to reposition the business • Over 18 months ending in 2025, the company delivered ~$30 million in annualized permanent structural cost reductions, streamlining organizational layers, centralizing key functions, and implementing stricter cross-level cost controls, resulting in a leaner, more agile operating model aligned with current revenue levels • Portfolio optimization: Completed sales of WPBB (Tampa) and the Fort Myers market for total proceeds of ~$26 million, as part of a broader strategy to concentrate capital on the highest-return core assets

• Revenue Quality & Digital Transition • Management is actively shifting the revenue mix away from low-margin third-party pass-through digital revenue toward owned-and-operated (O&O) digital products that deliver higher margins and better growth visibility; the transition is already improving margin performance • Local inclusive of digital now makes up 76% of total revenue, a structural shift that improves revenue stability and visibility relative to volatile national/agency revenue streams

• 2026 Operating Priorities (Three Core Pillars) • 1. Accountability and sales execution: Implemented a five-day in-office sales model to improve CRM engagement and pipeline visibility, introduced data-driven real-time active pipeline management and quarter-end "war room" leadership cadence for deal closing, with clear accountability at market and individual levels • 2. Accelerate digital transition: Position digital as the core foundation for long-term revenue quality and margin expansion, prioritizing high-margin O&O digital products and integrated client campaigns, with the business approaching an inflection point where incremental revenue falls through at much higher margins • 3. Rebuild local direct revenue engine: Shifted strategic focus away from reliance on declining national/agency revenue to growing local direct client relationships, with targeted client retention efforts, bundled integrated solutions (audio + digital + events + content) to increase share of wallet, and AI-powered disciplined prospecting for new business; leadership has conducted in-market coaching and made targeted leadership changes, with high-performing markets (Tampa, Boston, Augusta) serving as company-wide models

• Balance Sheet Transformation • A comprehensive debt exchange transaction with second lien bondholders is underway; upon completion, total outstanding debt is expected to be reduced from ~$220 million to ~$110 million, with a 50% reduction in second lien debt and repayment of ~$15 million in first lien debt; the transaction is on track to close by the end of April 2026, and the company is in active discussions for a new ABL liquidity facility

1. Traditional Audio Segment: Full year 2025 audio revenue declined meaningfully year-over-year to ~$156.4 million (2024: ~$193.2 million), accounting for 76% of total 2025 net revenue. National revenue within the segment fell 34% full year (50% in Q4 2025); excluding 2024 political advertising comparisons, national revenue declined 13% full year and 10% in Q4. Station operating income for the full year was $16.2 million (2024: $38.5 million).
2. Digital Segment: Full year 2025 digital revenue was $49.5 million, up 5.9% year-over-year, and up 21% on a same-station basis. Digital represents 24% of total company revenue. Full year digital segment margins reached 24%, with a 28.8% operating margin on a same-station basis (up from 22.7% same-station in 2024), and full year digital segment earnings were $12.8 million. In Q4 2025, same-station digital revenue grew over 33% year-over-year, and digital operating margins reached over 29% (up from 17.4% in Q4 2024).

• Management expects same-station Q1 2026 revenue to decline in the mid-single digits, with sequential improvement through the quarter: January revenue down 8% year-over-year, February down 6%, and March up 3% year-over-year. Including closed market sales (Fort Myers) and Digital Direct, actual Q1 revenue is projected to decline in the double digits.
• Management expects the operational changes implemented in late 2025 and early 2026 will drive re-acceleration of new business growth in the second half of 2026, moving the company from overall revenue decline to stabilization and eventually growth as 2026 progresses.
• Political advertising from the 2026 midterm election cycle is expected to return as a meaningful revenue contributor across the company's key markets, supporting full year performance.
• No overall full year 2026 revenue or EBITDA guidance was explicitly provided, but management frames 2026 as a reset and execution year focused on stabilizing and growing EBITDA, scaling digital, and further portfolio optimization.

• The company recorded a $224.8 million non-cash impairment loss related to its FCC licenses in 2025, and its auditors issued a going concern opinion, which management expects to be eliminated once the ongoing debt restructuring closes.
• National and agency-driven traditional audio revenue continues to face structural, not just cyclical, decline, and management expects this pressure to persist; this requires ongoing strategic repositioning to offset the declines.
• The ongoing debt exchange transaction is not yet completed, with a participation deadline of April 20 and closing planned for end of April 2026; failure to complete the transaction as planned would leave the company with a highly leveraged balance sheet and retain the going concern uncertainty.

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