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Urban One, Inc. Financial Results for Q1 2026

Urban One, Inc., a leading media company that primarily targets African American and urban audiences, has announced its financial performance for the first quarter ending March 31, 2026. The results reveal a decline in revenue and operating income compared to the same quarter last year.

Financial Overview

For the first quarter of 2026, Urban One reported total net revenue of approximately $77.7 million. This reflects a notable decrease of 15.8% when compared to the $92.2 million net revenue achieved in the first quarter of 2025. The company's operating loss stood at approximately $2.2 million for the quarter, a stark contrast to the operating income of about $2.1 million recorded in the prior year.

A breakdown of the revenue sources shows a significant decline across multiple business segments, with Broadcasting and Digital income falling by approximately 35.4% to $14.9 million.

Segment Performance

1. Broadcasting Revenue: The Radio Broadcasting segment generated about $30.5 million, down from $32.6 million in Q1 2025. This decline is attributed to weaker demand from both national and local advertisers.
2. Reach Media: The revenue from the Reach Media segment was $4.9 million, decreasing from $5.9 million. This decrease is primarily driven by lower national sales.
3. Digital Revenue: The Digital segment reported $6.8 million in revenue, compared to $10.2 million in the same quarter of 2025, reflecting a drop largely due to reduced spend on targeted advertising campaigns.
4. Cable Television: The Cable Television segment saw revenue fall to $36.0 million from $44.2 million, attributed to subscriber churn and decreased advertising revenue.

Executive Commentary

Alfred C. Liggins, III, Urban One's CEO and President, remarked, "First quarter revenue was weak across all divisions. We anticipated declines in our Radio and TV divisions, but the downturn in Reach Media and Digital was surprising. The integration of Nielsen DASH data enhanced our linear cable TV inventory but insufficient scatter market conditions resulted in more commercial units being allocated to Direct Response advertising at a lower comparison rate."

Notably, the company had previously budgeted for a challenging quarter in its Radio and TV sectors, though the current environment poses ongoing challenges, particularly in Digital and Reach Media.

Cost Management and Debt

In terms of cost management, Urban One made strides in controlling its operating expenses, which decreased by 8.9% from the same quarter last year. This reduction in expenses is reflective of initiatives to streamline operational efficiencies and reduce variable costs associated with lower revenue.

The company's interest expenses also decreased significantly to $4.4 million, a reduction from $10.9 million in the previous year, thanks to lower debt balances and more favorable interest rates. In a move to manage its long-term debt, Urban One repurchased $32.4 million of its Second Lien Notes at advantageous rates, resulting in substantial interest savings.

Future Outlook

Despite the challenges faced in Q1 2026, the company aims for an optimistic second half of the year, backed by improved sales forecasts. Urban One is currently focusing on improving performance across its segments and rebuilding its sales team, particularly in the Reach Media division.

Urban One Inc. will open a conference call for investors to discuss more details about these results and the future direction of the company. Details on participation will be made available via their corporate website.

With a rich portfolio that includes TV networks, radio stations, and a strong digital presence, Urban One continues to strive for growth and relevance in the evolving media landscape, aiming to resonate with its target audience while navigating the industry’s complexities.