Saga Communications released its fourth‑quarter and full‑year 2025 results before the market opened on March 12, 2026. Net revenue for the quarter fell 9.3% to $26.5 million, missing the consensus estimate of $27.7 million. The company posted a GAAP diluted loss of $1.07 per share, but after excluding a $20.4 million impairment charge the adjusted EPS rose to $1.27, a substantial beat over the $0.04 consensus estimate.
The revenue decline was largely driven by a sharp drop in political advertising, a typical headwind in a non‑election year. The company’s net revenue slipped $2.7 million from $29.2 million in Q4 2024, reflecting the loss of a significant portion of its political ad mix. Management noted that the decline was not due to broader market weakness but to the seasonal nature of political spend.
The GAAP loss was almost entirely the result of a one‑time, non‑cash impairment charge of $20.4 million, which included $19.2 million for goodwill write‑downs and $1.2 million for FCC license value reductions. When this charge is removed, the company’s operating performance is strong, with adjusted net income of $8.2 million and a margin that reflects disciplined cost management and a favorable mix shift toward higher‑margin digital products.
Digital revenue grew 25.8% year‑over‑year to $6.8 million, driven by e‑commerce, hyperlocal news sites, search, targeted display and online streaming. CEO Christopher Forgy highlighted that the e‑commerce platform grew 16% and generated $2.5 million in local direct revenue, while hyperlocal sites added $2.5 million in revenue with a 31% margin. CFO Samuel D. Bush emphasized that the impairment charge was a one‑off event and that the underlying business remains profitable.
Management provided forward guidance that the first quarter of 2026 would see mid‑single‑digit revenue growth, with the second quarter expected to be mid‑single‑digit down. The company anticipates a return to revenue growth in the second half of 2026, with revenue increasing in the mid‑single‑digit range. Saga also declared a quarterly cash dividend of $0.25 per share, payable on March 20, 2026.
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