SGA · Saga Communications, Inc.

Saga Communications reported weakening Q1 2026 results, with net operating revenue declining 5.6% to $22.867 million from $24.212 million in the prior year quarter, primarily due to softer advertising demand in the radio broadcasting sector. Station operating expenses edged down only 0.2% to $22.012 million, resulting in station operating income plunging 62.0% to $0.855 million—a critical non-GAAP measure for the industry that reflects core station profitability before corporate costs, depreciation, and other items. This drove the GAAP operating loss to widen to $3.262 million from $2.298 million. Corporate G&A expenses decreased to $2.976 million from $3.167 million, providing modest relief, while depreciation and amortization fell to $1.174 million. Net loss expanded to $2.394 million or $0.38 diluted per share from $1.575 million or $0.25, with weighted average shares slightly down to 6.074 million. Operating cash flow weakened sharply to $0.407 million from $1.364 million, reflecting lower profitability partially offset by working capital improvements. Investing activities used $0.261 million net, mainly on $0.779 million capex versus $0.696 million last year. Financing outflows of $1.598 million were driven by the $1.585 million dividend payment. Balance sheet remains solid with $30.4 million in cash and short-term investments at quarter-end, $5.0 million long-term debt, and negative net leverage of (1.51)x trailing EBITDA of $4.002 million. Management reaffirmed commitment to shareholder returns, paying $0.25 quarterly dividend and declaring the next, totaling over $145 million since 2012, while guiding full-year capex to $3.5 million. No revenue or earnings guidance provided; conference call held May 7, 2026.