Beasley Targets Digital Growth, Debt Reduction After Challenging Q2.

Beasley Media Group is entering the second half of 2026 with a leaner cost structure and substantially reduced debt, but CEO Caroline Beasley says the company still has work to do to rebuild revenue.

Speaking Wednesday (Aug. 12) during the company’s second-quarter earnings call, Beasley said the quarter advanced two of the company’s three turnaround priorities: improving the cost structure and strengthening the balance sheet. The third — stabilizing and rebuilding core revenue — remains a work in progress.

Beasley said a May expense reduction program covering voluntary retirements, market-level operations, digital restructuring, technology and vendors is expected to generate approximately $10.5 million in annualized savings, with about $5 million of benefit during 2026. Because most of the changes took effect in May, she expects a greater impact during the second half of the year.

“The second quarter showed year-over-year adjusted EBITDA improvements, reflecting the early impact of our cost actions,” Beasley said, while acknowledging that revenue “remains below where it needs to be.”

The company also completed a balance-sheet restructuring May 1. Long-term debt stood at approximately $129 million at June 30, down from approximately $235.3 million at the end of 2025. Cash totaled approximately $6.7 million.

Beasley’s agreements to sell two radio stations — one in Charlotte and one in Las Vegas — to EMF for $8 million is expected to close within 60 to 90 days, with proceeds earmarked for repayment of first-lien debt. She said the stations are not expected to affect Beasley’s go-forward EBITDA.

For the quarter, revenue was approximately $44.1 million, down 9.6% on a same-station basis from $49.1 million a year earlier. Adjusted EBITDA improved to approximately $5.3 million from $4.7 million in Q2 2025 and a negative $400,000 in Q1.

The revenue picture was mixed. Same-station local direct revenue increased approximately 9%, but national revenue excluding political declined 21%, while local agency revenue fell approximately 12%. Gaming revenue increased approximately $1.1 million, helped by World Cup-related spending, while home improvement rose 13%, Director of Finance and Strategy Ilana Goldstein revealed. Automotive revenue declined approximately 22%.

Digital remains a key part of Beasley’s strategy. Chief Business Officer Kevin LeGrett said total audience increased 1% year over year, with digital audience growing 7% year-over-year while over-the-air audience declined 5%. Digital now accounts for more than half of the company’s total audience, up from 47% a year ago.

Same-station digital revenue grew approximately 7% and represented about 26% of company revenue. Owned-and-operated digital revenue increased approximately 10% in Q2 and 18% during the first half. Beasley also rebuilt programmatic sell-through to above 80%.

LeGrett said the company’s focus is shifting from building its digital audience to monetizing it more effectively. Two enterprise sales initiatives, “Summer of Influence” and “America 250,” have generated nearly $6 million in closed business, while more than 25% of the company’s full-year political budget has already been booked.

Despite the revenue pressure, Beasley expects Q3 same-station revenue to decline in the mid-single-digit range. Q4 pacing is currently strong, with minimal political revenue included.

Beasley said the remainder of 2026 will focus on improving local direct sales, increasing revenue and margins from owned digital products, converting cost savings into EBITDA and free cash flow, and continuing to reduce debt and advance refinancing efforts.