Tear Sheet: Townsquare Media Inc.

We expect leverage will increase to about 5.1x in 2025, driven by the loss of political revenue in a nonelection year and an approximate 4% decline in broadcast advertising revenue. However, we expect leverage will decline to about 4.5x in 2026, driven by our expectations for 6%-7% digital advertising revenue growth and political advertising revenue associated with the U.S. midterm election. We expect Townsquare will generate about $30 million of free operating cash flow (FOCF) in 2025 and about $45 million in 2026, which it could potentially use for voluntary debt repayment (after about $15 million in dividend payments and required debt amortization of 2.5%). Management has publicly stated that reducing leverage is a main priority over the next couple

...April 2, 2025 Despite our expectations for Townsquare Media Inc.'s S&P Global Ratings-adjusted gross leverage to increase to 5.1x in 2025 from 4.7x in 2024, we expect leverage will return back below 5x in 2026. We expect leverage will increase to about 5.1x in 2025, driven by the loss of political revenue in a nonelection year and an approximate 4% decline in broadcast advertising revenue. However, we expect leverage will decline to about 4.5x in 2026, driven by our expectations for 6%-7% digital advertising revenue growth and political advertising revenue associated with the U.S. midterm election. We expect Townsquare will generate about $30 million of free operating cash flow (FOCF) in 2025 and about $45 million in 2026, which it could potentially use for voluntary debt repayment (after about $15 million in dividend payments and required debt amortization of 2.5%). Management has publicly stated that reducing leverage is a main priority over the next couple of years. Townsquare has a...

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