Townsquare Media Says Q2 Is Outpacing First Quarter.

Townsquare Media says its second quarter performance is tracking ahead of Q1, with strength in its digital businesses and an ongoing rebuild of its Townsquare Interactive sales organization helping position the company for stronger results in the second half of the year. Speaking at Noble Capital Markets’ recent investor conference, CEO Bill Wilson said business trends have improved as the quarter has progressed.

“We continue to deliver our expectations that we outlined for all of our stakeholders, and Q2 is actually pacing up overall over Q1 — and we expect that to continue into the back half of the year,” Wilson said. He credited growth in digital advertising and improving performance at the company’s subscription-based digital marketing business.

Townsquare continues to emphasize its evolution away from dependence on traditional radio. Digital operations accounted for 59% of first-quarter revenue and 63% of segment profit, according to the company.

A major focus for investors has been Townsquare Interactive, which spent much of the past year restructuring its sales organization and service model. The company reduced the size of its sales force by roughly 40% between early 2025 and the first quarter of 2026, a move management said was designed to improve productivity and profitability. Now the company is shifting back into hiring mode.

“Our challenge now is growing back the size of the sales team,” Wilson said. “Thankfully our June sales team is one of the largest that we’ve had in the last 12 months.”

Management believes that rebuilding effort, combined with historically low customer churn, should allow Interactive to return to growth later this year. Wilson said churn rates have fallen below 2025 levels and reached an all-time low in May after the company revamped its service model and customer support processes during the past two years. He said the business is now operating with stronger economics despite having a smaller sales force.

“We feel very well situated here,” Wilson said, noting that segment profit margins have expanded from roughly 28% to 33%. The company expects growth to accelerate further during the back half of the year as its owned-and-operated digital properties and media partnerships business continue to expand.

Radio ‘Cash Cow’

Even as Townsquare increasingly highlights its digital operations, Wilson defended the value of its broadcast business to investors. He described radio as a mature “cash cow” that generated $179 million in revenue and $45 million in profit during the 12 months ended March 31.

Wilson also pushed back against the notion that audiences are disappearing. He noted that more Americans listen to AM/FM radio today than they did a decade ago, despite growing competition.

Wilson said listening levels across Townsquare stations have remained stable during the past several years, which he views as evidence that the company is taking audience and advertising share from competitors. “We’re committed to live and local DJs in our markets,” he said, calling them “the original social influencers.”

At the same time, Townsquare’s digital advertising division continues to generate the fastest growth inside the company. Programmatic advertising revenue increased more than 20% year-over-year during the first quarter and was pacing even stronger in the second quarter.

The company has also continued expanding its media partnerships business, where other local media companies use Townsquare’s programmatic advertising platform. Wilson expects that operation to more than double revenue this year to more than $12 million.

Taken together, the two digital businesses now generate the majority of Townsquare’s revenue and profit. While the company’s radio operations remain a significant contributor, management increasingly describes broadcast as a mature cash-generating business that supports investment in digital growth initiatives.

“Our two digital businesses are really firing on all cylinders,” Wilson said. “Setting us up not only for a strong back half of the year in ’26, but more importantly for the next three to five years.”