Wall Street Expects 10%-Yielding Townsquare Media Inc Stock to More Than Double
July 23, 2025
Analysts Bullish on Townsquare Media Inc Stock
When it comes to the world of communications, most people don’t think of radio. But they should.
Not everyone wants to pay for satellite radio. If anything, more and more listeners in underserved small and mid-sized local markets across the U.S. are looking for both music and regional content. And that is becoming more difficult to find.
Since 2004, roughly 2,100 newspapers have closed in the U.S., and more than 100 local newsrooms closed during the 2020 health crisis.
That’s where overlooked Townsquare Media Inc (NYSE:TSQ) comes in.
The New-York-based advertising company announced solid 2024 results, with that momentum carrying into 2025. In the first quarter, Townsquare reported another adjusted earnings beat and reaffirmed its full-year guidance on the heels of strong digital revenue and profit growth.
This helps explain why Wall Street analysts think TSQ stock could more than double over the coming quarters.
About Townsquare Media Inc
Townsquare Media Inc operates as a digital and broadcast (radio) media and digital marketing company for small- and medium-sized businesses in the U.S. It has three operating divisions: Digital Advertising, Subscription Digital Marketing Solutions, and Broadcast Advertising. (Source: “June Investors Presentation,” Townsquare Media Inc, last accessed July 7, 2025.)
One of its assets is Townsquare Interactive, a digital marketing services subscription business providing websites, search engine optimization, social platforms, and online reputation management for approximately 21,900 businesses.
“Townsquare Ignite” is the company’s proprietary digital programmatic advertising technology with an in-house demand and data management platform.
Townsquare Media has a portfolio of more than 400 local news and entertainment websites across 74 markets.
With 342 local radio stations, Townsquare Media is the third largest owner of radio stations in the U.S. It’s the only local media company focused solely on markets outside the top 50. These stations reach 50% of adult listeners in each of its AM/FM local markets and have an average market population of approximately 300,000.
Some of its broadcast properties include WYRK.com, KLAQ.com, and WJON.com, along with a network of national music brands including TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com.
Being a digital marketing first local media company is the right fit for Townsquare. In 2024, radio advertising accounted for four percent of all advertising dollars spent in the U.S., while digital advertising solutions contributed 70%.
From 2016 to 2024, digital revenue at Townsquare grew 13% on an annual basis, from $88.0 million to $234.0 million. Looking ahead, by 2029, it is estimated that digital advertising will hit $410.0 billion and account for grow to 80% of all advertising spend.
Over the years Townsquare has delivered consistent digital revenue growth. From 2016 through 2024, digital ad revenue has expanded at a compound annual growth rate (CAGR) of 13%, from $88.0 million to $234.0 million.
Q1 Adjusted Earnings Beat
For the first quarter ended March 31, 2025, Townsquare announced that first-quarter results met or exceeded its previously issued guidance, driven by the continued strength of its differentiated digital platform. (Source: “Townsquare Beats Q1 Adjusted EBITDA Guide and Reaffirms Full Year Guidance as a Result of Strong Digital Revenue and Profit Growth,” Townsquare Media Inc, May 8, 2025.)
The company’s first-quarter net revenue slipped one percent to $98.7 million, in line with guidance of $98.0 million to $100.0 million. Its total digital revenue increased 6.4%, with digital advertising revenue climbing 7.6% and interactive revenue up 4.2%.
Townsquare’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 3.5% to $18.1 million, exceeded estimates of $17.0 million to $18.0 million. It reported a first-quarter net loss of $1.5 million, down from net income of $1.6 million in the same prior-year period.
During the quarter, the company completed the refinancing of its debt and entered a new $490.0-million credit agreement due February 2030.
Commenting on the results, Bill Wilson, the company chief executive officer, said, “We are proud of our business model’s ability to deliver solid and consistent results, while also producing strong cash flow, even during uncertain times. Sometimes it takes a challenging macroeconomic environment to serve the purpose of highlighting how truly differentiated Townsquare is from others in local media.”
Business Outlook
For the second quarter of 2025, Townsquare expects to report:
- Net revenue of $114.0 million to $116.0 million
- Adjusted EBITDA between $25.0 million and $26.0 million
For the full year 2025, the company’s net revenue guidance is reaffirmed to be between $435.0 million and $455.0 million, and adjusted EBITDA guidance is reaffirmed to be between $90.0 million and $98.0 million.
Increased Quarterly Distribution to $0.20/Share
“Due to our strong cash generation and recent refinancing, we retain financial flexibility moving forward and we are confident in our ability to build shareholder value for our investors through long-term net revenue, Adjusted EBITDA and cash flow growth, net leverage reduction, and future dividend payments,” concluded Wilson.
And current and future dividend payments are what income investors are looking for when it comes to Townsquare. In May, the company declared a first-quarter dividend of $0.20 per share, up from $0.1975 per share in the same prior-year period.
This works out to an annual distribution of $0.80 per share, for an annual dividend of 10.11% per share. The dividend will be payable on August 1, 2025 to TSQ shareholders of record as of the close of business on July 18, 2025.
Townsquare has provided a dividend since 2018, but it hasn’t been entirely reliable. It suspended its dividend during the health crisis in 2020 and reinstated it in 2023. Since 2020, though, it’s raised its dividend three times.
TSQ Stock Has 160% Upside Potential
TSQ stock has not exactly been lighting up the airwaves, down 18% on an annual basis. That said, it is up 11% over the last month and 16% over the last three months. Wall Street thinks TSQ could hit record levels over the coming quarters, with analysts providing a 12-month share price target range of $17.00 to $21.00. That points to potential upside in the range of 111% to 160%.
The company’s current record high is $12.62 from November 2021.
Chart courtesy of StockCharts.com
The Lowdown on Townsquare Media Inc
Townsquare Media Inc is a digital-first local media company focused outside on areas outside the top 50 market in the U.S. It continues to have a leading position in small- and mid-sized markets, a strong balance sheet, and a business model that allows it to perform well even during periods of uncertainty.
This includes attractive free cash flow, which supports its dividend and share repurchase programs.
That’s good news for the 125 institutions that hold 57.75% of all outstanding TSQ shares. Some of the top holders include Beck Mack & Oliver LLC, BlackRock Inc, and Vanguard Group Inc. Source: “Townsquare Media, Inc. (TSQ),” Yahoo! Finance, last accessed July 7, 2025.)
