UONE · Urban One, Inc.

Urban One's Q1 2026 results showed significant revenue declines across segments: TV down 18.5%, Digital down 33.5%, Radio down 6.4%, and Reach Media down 17.0%, leading to net revenue of $77.7 million and an operating loss of $2.2 million, compared to operating income of $2.1 million in Q1 2025. Adjusted EBITDA fell to $4.7 million from $12.9 million, reflecting higher operating expenses and softer advertising demand. CEO Alfred C. Liggins noted weak scatter markets and advertiser demand impacted TV and Digital, while Radio outperformed the local market decline. Political ad revenue contributed $1.0 million in Q1 with another $1.0 million booked for Q2. Despite challenges, cash flow from operations exceeded expectations due to receivable collections and prepaid interest. The company aggressively reduced debt by repurchasing $4.3 million of 2028 Notes at 51% of par and $32.45 million of 2031 Second Lien Notes at 40.7% of par in Q1, plus $23.46 million more in Q2 at 42% of par, totaling $60.2 million reduction and $4.6 million annual interest savings. Balance sheet as of March 31, 2026, shows cash at $28.0 million, long-term debt net at $412.1 million. Strategic moves include acquiring Dallas stations KKDA and KRNB and disposing of KZMJ for a net $11.1 million outflow, adding $5.0 million pro-forma annual Adjusted EBITDA, and selling Charlotte stations WMXG and WLNK. Revised full-year Adjusted EBITDA guidance of $60.0 million incorporates these transactions ($2.0 million impact). ABL facility draws of $10.0 million each in Q1 and Q2 provide liquidity, with borrowing capacity at $22.0 million post-Q2 draws.