Saga Communications, Inc. Q4 FY2025 earnings call

• Chris mentioned the legacy of Saga's 'Three Amigos' and the message from Al Luccarelli to act fast, with force, and with purpose driving operational culture. • Began transformational change over three years, diversifying top-line mix including e-commerce platform up 16% y-o-y, hyper-local online news sites up 18% with $2.5 million revenue and 31% margin. • Search up 59% y-o-y generating $2.2 million, targeted display up 44.8% accounting for nearly $3.5 million, online streaming up 8.6% y-o-y. • Implemented special capital allocation and management plan including ongoing quarterly dividend, special dividends, stock buyback plan. • Sold 22 Saugus Tower sites, recognized a gain of $11.6 million. • Cut local market expenses over $1.4 million. • Continuing to train leadership and media advisors on 'the blend' which is advertiser-focused. • Expanding and diversifying board of directors. • Anticipating $3.5 million to $4.5 million capital expenditures in 2026. • Hiring digital infrastructure team and sales/campaign management personnel in second and third quarters to reduce digital fulfillment costs.

For the quarter ended December 31st, 2025, net revenue decreased 2.7 million or 9.3% to 26.5 million compared to 29.2 million last year. A large part of the decline was due to reduced political revenue. Gross political revenue for the quarter was 254,000 compared to 2 million last year. Station operating expense decreased 1.9% or approximately $400,000 to $22.9 million for the three-month period. For the 12-month period into December 31, 2025, net revenue decreased $5.8 million or 5.1% to $107.1 million compared to $112.9 million last year. Almost half of the decrease was due to reduced political revenue. Gross political revenue for the year was $650,000 compared to $3.3 million for 2024. Station operating expense was flat at $91.8 million. There was a non-cash impairment charge of $20.4 million in the fourth quarter, including $19.2 million goodwill impairment and $1.2 million FCC license impairment. Operating loss was $9.5 million for the quarter vs $1 million income last year. Net loss was $6.9 million for the quarter vs $1.3 million income last year. For the year, operating loss was $11 million vs $2.4 million income last year. Net loss was $7.9 million vs $3.5 million income last year. Music licensing settlement increased year-end 2025 station operating expense by $2.2 million. Total interactive revenue was up 25.8% for the quarter and 19.1% for the year. First quarter interactive up 26.4% but pacing down mid-single digits. Second quarter pacing down mid-single digits including political. Expect return to revenue growth in second half of 2026 with mid-single digit increase. E-commerce platform up 16% year-over-year, hyper-local online news sites up 18% with $2.5 million revenue and 31% margin. Search up 59% year-over-year generating $2.2 million. Targeted display up 44.8% accounting for nearly $3.5 million. Online streaming up 8.6% year-over-year. Digital revenue initiatives up 19.1% year-over-year.

• First quarter interactive revenue pacing down mid-single digits. • Second quarter currently pacing down mid-single digits including political. • Expect return to revenue growth including political in the second half of 2026 with revenue increasing in the range of mid-single digits. • Anticipate station operating expense to be flat for the year as compared to 2025 when not considering digital initiative expenses and up 3% to 4% when including digital initiative. • Anticipate annual corporate general and administrative expenses to be approximately $12.3 million for 2026, flat to 2025. • Expect to spend approximately $3.5 million to $4.5 million for capital expenditures during 2026.

• The call contains forward-looking statements that involve risks and uncertainties described in the risk factor section of the most recent form 10-K. • Non-cash impairment charge and music licensing settlement negatively impacted results. • Uncertainties related to the timing of the final tower transfer from the escrow account. • Risks associated with the digital transformation initiative initially being more costly than the revenue it brings in. • Risks related to the market conditions affecting the sale of non-productive assets like the companies in Sarasota, Florida due to hurricanes previously causing delays.

Q: Do we have any questions?

A: Chris, we do not today. I think we can turn it back over to Matt to wrap up.