Beasley targets $25M-$30M in 2025 expense reductions as digital revenue reaches 25% of total

Earnings Call Insights: Beasley Broadcast Group (BBGI) Q3 2025

MANAGEMENT VIEW

* Caroline Beasley, Chairman, CEO & Interim Principal Financial Officer, announced the resignation of CFO Lauren Burrows effective October 17, with Beasley stepping in as Principal Financial Officer and Sean Greening promoted to Chief Accounting Officer to maintain continuity and financial discipline. Beasley stated, "our strategy remains clear and our execution remains disciplined. #1, to scale higher-margin digital products; #2, strengthen the quality of our earnings; and #3, pivot our sales organization towards direct data-driven relationships."
* The company closed the sale of WPBB in Tampa on September 29 but is awaiting government clearance for the Fort Myers closings.
* Beasley reported, "total company revenue was approximately $51 million, representing an 11% decline on a same-station basis or a 7.5% decline year-over-year, excluding $2.7 million of political in Q3 '24." Beasley called the revenue results “unacceptable” and highlighted the need to execute more aggressively across the sales organization.
* Beasley described ongoing structural changes: "we are aggressively retooling our sales org to align with the realities of a modern, digitally led marketplace... we are adding dedicated digital AEs and digital sales managers in markets to accelerate adoption and execution."
* Digital revenue accounted for roughly 25% of total revenue, up from 19% a year ago, with same-station digital revenue growing 28% year-over-year. Audio Plus revenue reached over $1.2 million in Q3, representing over 200% growth from Q2. Digital segment operating income reached 28% on a same-station basis, the highest in company history.
* Beasley highlighted cost reductions: "station operating expenses were down 8% year-over-year or nearly $4 million... corporate expenses were down nearly 50% year-over-year... For the 9-month period ending September 30, total corporate and station operating expenses are down $15 million, and this includes over $4 million of onetime expenses such as severance, and other expenses. Excluding these onetime expenses, total corporate and station operating expenses are down nearly $20 million."
* Ilana Goldstein, Director of Finance, stated, "National Agency revenue ex-political declined approximately 16% year-over-year... Local Agency revenue fell roughly 17% year-over-year, a meaningful improvement from the 24.7% decline in Q2... New business remains under pressure, down approximately 12% year-over-year ex-political, but the rate of decline has slowed materially compared to Q2's 21.6% contraction."

OUTLOOK

* Beasley signaled, "total company revenue for Q4 is pacing down roughly 20% year-over-year. Ex-political, revenue is pacing down in the high single digits, which is generally consistent with third quarter trends."
* The company expects full year 2025 station operating and corporate expenses to be down between $25 million and $30 million, excluding severance and other onetime expenses.
* Beasley reiterated the commitment to "advancing our strategy of scaling our high-margin digital products, improving our overall margins across all products and pivoting ourselves toward direct data-driven revenue."

FINANCIAL RESULTS

* Digital business showed margin expansion, with "digital operating margin expanded from roughly 7% in the prior-year period to 21% in Q3," according to Goldstein.
* Station operating income was $4.9 million; adjusted SOI was $5.9 million; adjusted EBITDA was $3.9 million, excluding onetime items.
* Interest expense for the quarter totaled $3.3 million.
* Cash position at quarter end was $14.3 million. Capital expenditures totaled approximately $2.2 million in Q3, mainly for the Charlotte engineering and studio consolidation project.

Q&A

* Analyst question: "can you comment further on the agency channel issues? At what point do we anniversary the challenges there?" Beasley answered, "agency business continues to be a headwind, although we do see it as slightly improved in the fourth quarter ex-political. We do expect that we will be anniversary -- the anniversary of these challenges will take shape in first quarter of next year."
* Analyst question: "given the current revenue challenges, do you expect to do more cost savings in 2026?" Beasley replied, "we anticipate the benefit of savings from our third and fourth quarter cuts to be about $4 million for next year, plus we are looking at further savings as we go into 2026."
* Analyst question: "can you provide a sales price on Fort Myers? Who is the buyer of Fort Myers, do you see the opportunity for more asset sales?" Beasley said, "there are 2 transactions that cover the Fort Myers sale. 1 is $9 million, the other is for $9 million, so a total of $18 million to Fort Myers broadcasting and Sun broadcasting...we're always open to discussing accretive transactions that will help us reduce our debt and our leverage."

SENTIMENT ANALYSIS

* Analysts' tone was neutral, focused on clarifying agency revenue trends, cost-saving initiatives, and asset sales, without signs of heightened concern or optimism.
* Management maintained a realistic but determined tone, acknowledging challenges—"we are disappointed with our revenue performance this year, and we view these results as unacceptable"—while emphasizing ongoing transformation and confidence in structural changes.
* Compared to last quarter, both analysts and management exhibited a slightly more urgent focus on cost control and agency channel risks, with management offering more detail on digital progress and cost reductions.

QUARTER-OVER-QUARTER COMPARISON

* Revenue decline accelerated slightly, with same-station revenue down 11% in Q3 versus 11.1% in Q2, while agency revenue contraction intensified for national channels but slowed for local agency and new business.
* Digital revenue share held steady at 25% of total, but digital margin expanded from 17.8% in Q2 to 28% on a same-station basis in Q3.
* Management's tone shifted to greater urgency regarding revenue pressures and sales transformation.
* Cost reduction efforts deepened, with Q3 noting $15 million in year-to-date expense reductions and a $25-$30 million full-year target, compared with the prior quarter's $10 million in annualized expense reductions year-to-date.
* Analysts continued to focus on cost actions, revenue trajectory, and asset sales, echoing prior quarter themes.

RISKS AND CONCERNS

* Management cited persistent headwinds in national and local agency channels, with continued contraction in key advertiser categories such as telecom, cable, insurance, auto, retail, and entertainment.
* The risk of delayed government approval for asset sales was noted, impacting the timing of proceeds and deleveraging plans.
* Management described ongoing mitigation through aggressive sales org transformation, digital product expansion, and further cost controls.

FINAL TAKEAWAY

Management emphasized the company's ongoing transformation, highlighting record digital margin expansion, cost discipline, and strategic asset sales as core to positioning Beasley for profitable growth. While revenue headwinds persist, particularly in agency channels, the strengthened digital business and continued structural efficiencies are intended to drive long-term value for shareholders and reduce leverage as market conditions evolve.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/bbgi/earnings/transcripts]

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* Beasley Broadcast Group, Inc. (BBGI) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4841392-beasley-broadcast-group-inc-bbgi-q3-2025-earnings-call-transcript]
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