Saga Communications Swings to Loss Amid Revenue Dip, Expense Hike

TL;DR

**SGA is bleeding cash and revenue, and their asset sales are a red flag — time to bail on this radio dinosaur.**

AI Summary

Saga Communications Inc. (SGA) reported a net loss of $532,000 for the three months ended September 30, 2025, a significant decline from a net income of $1,267,000 in the same period of 2024. For the nine months ended September 30, 2025, the company posted a net loss of $979,000, compared to a net income of $2,191,000 in the prior year. Net operating revenue decreased to $28,166,000 for the quarter, down from $28,694,000 year-over-year, and fell to $80,607,000 for the nine-month period from $83,704,000. Station operating expenses increased by $1,965,000 to $24,674,000 for the quarter, primarily driven by a rise in Programming and Technical expenses to $9,338,000 from $7,528,000. The company classified $4,381,000 in assets as held for sale and $840,000 in liabilities as held for sale as of September 30, 2025, related to the probable sale of certain tower assets, which were subsequently sold in the fourth quarter of 2025. Cash and cash equivalents decreased by $1,800,000 to $17,060,000 during the nine months ended September 30, 2025.

Why It Matters

Saga Communications' shift from profit to loss, coupled with declining revenue and rising operating expenses, signals a challenging environment for investors in the traditional radio broadcasting sector. The increase in Programming and Technical expenses by $1,810,000 for the quarter suggests potential investments in content or technology, but these have yet to translate into improved top-line performance. The sale of tower assets, while generating cash, indicates a strategic divestment that could impact long-term infrastructure or operational capabilities. This performance contrasts with a competitive landscape where digital media continues to erode traditional advertising spend, putting pressure on companies like SGA to innovate or consolidate.

Risk Assessment

Risk Level: high — Saga Communications reported a net loss of $532,000 for the three months ended September 30, 2025, a stark reversal from a $1,267,000 net income in the prior year. This is compounded by a 1.8% decrease in net operating revenue to $28,166,000 for the quarter and a 2.9% decrease to $80,607,000 for the nine-month period, while station operating expenses increased by $1,965,000 to $24,674,000 for the quarter, indicating significant operational pressures.

Analyst Insight

Investors should consider divesting from SGA given the consistent net losses, declining revenue, and increasing operating costs. The sale of tower assets, while providing some liquidity, does not address the core business's deteriorating profitability and competitive challenges in the radio broadcasting industry.

Financial Highlights

debt To Equity

0.35

revenue

$28,166,000

operating Margin

-2.2%

total Assets

$218,352,000

total Debt

$5,000,000

net Income

-$532,000

eps

-$0.08

gross Margin

12.5%

cash Position

$17,060,000

revenue Growth

-1.8%

Revenue Breakdown

Key Numbers

• $532,000 — Net Loss (Q3 2025) (Swung from $1,267,000 net income in Q3 2024)
• $979,000 — Net Loss (YTD 2025) (Swung from $2,191,000 net income in YTD 2024)
• $28,166,000 — Net Operating Revenue (Q3 2025) (Decreased from $28,694,000 in Q3 2024)
• $80,607,000 — Net Operating Revenue (YTD 2025) (Decreased from $83,704,000 in YTD 2024)
• $24,674,000 — Station Operating Expenses (Q3 2025) (Increased from $22,709,000 in Q3 2024)
• $17,060,000 — Cash and Cash Equivalents (Sept 30, 2025) (Decreased from $18,860,000 at Dec 31, 2024)
• $4,381,000 — Assets Held for Sale (Sept 30, 2025) (New classification related to tower asset sales)
• $0.08 — Basic Loss Per Share (Q3 2025) (Compared to $0.20 basic income per share in Q3 2024)

Key Players & Entities

• Saga Communications, Inc. (company) — registrant
• $532,000 (dollar_amount) — net loss for three months ended September 30, 2025
• $1,267,000 (dollar_amount) — net income for three months ended September 30, 2024
• $979,000 (dollar_amount) — net loss for nine months ended September 30, 2025
• $2,191,000 (dollar_amount) — net income for nine months ended September 30, 2024
• $28,166,000 (dollar_amount) — net operating revenue for three months ended September 30, 2025
• $28,694,000 (dollar_amount) — net operating revenue for three months ended September 30, 2024
• $24,674,000 (dollar_amount) — station operating expenses for three months ended September 30, 2025
• $22,709,000 (dollar_amount) — station operating expenses for three months ended September 30, 2024
• $4,381,000 (dollar_amount) — assets held for sale as of September 30, 2025

FAQ

Risk Factors

• Deterioration in Profitability [high — financial]: The company experienced a significant swing from net income to net loss in Q3 2025, reporting a loss of $532,000 compared to a $1,267,000 profit in Q3 2024. This trend continued year-to-date with a $979,000 loss versus a $2,191,000 profit.
• Rising Operating Expenses [medium — operational]: Station operating expenses increased by $1,965,000 to $24,674,000 in Q3 2025. This increase was largely driven by higher Programming and Technical expenses, which rose to $9,338,000 from $7,528,000 year-over-year.
• Decreasing Cash Position [medium — financial]: Cash and cash equivalents decreased by $1,800,000 to $17,060,000 during the nine months ended September 30, 2025, indicating a potential strain on liquidity.
• Asset Sales Impact [low — financial]: The company classified $4,381,000 in assets and $840,000 in liabilities as held for sale related to tower assets. While these were sold in Q4 2025, the classification and subsequent sale represent a strategic shift and potential impact on future revenue streams.
• Declining Revenue [medium — market]: Net operating revenue for the quarter decreased to $28,166,000 from $28,694,000 in the prior year. Year-to-date revenue also fell to $80,607,000 from $83,704,000.

Industry Context

Saga Communications operates in the highly competitive radio broadcasting industry. The sector faces ongoing challenges from digital media, changing advertising spending patterns, and increasing content costs. Consolidation within the industry continues, with larger players often having greater economies of scale.

Regulatory Implications

Broadcasting companies are subject to FCC regulations regarding licensing, content, and ownership. Changes in these regulations or increased compliance costs could impact operations and profitability. The company's reliance on broadcast licenses also presents a long-term regulatory risk.

What Investors Should Do

1. Monitor expense control measures
2. Analyze the impact of asset sales
3. Evaluate revenue diversification strategies
4. Assess liquidity and cash flow generation

Key Dates

• 2025-09-30: End of Q3 2025 — Reported net loss of $532,000 and net operating revenue of $28,166,000, with assets and liabilities held for sale classified.
• 2024-09-30: End of Q3 2024 — Reported net income of $1,267,000 and net operating revenue of $28,694,000, providing a key comparison point for current performance.
• 2025-12-31: End of Fiscal Year 2024 — Provided comparative balance sheet data, showing cash and cash equivalents of $18,860,000.

Glossary

Net operating revenue

The total revenue generated from the company's primary business operations, excluding any non-operating income or expenses. (Indicates the top-line performance of Saga Communications' broadcasting business.)

Station operating expenses

Costs directly associated with the operation of the company's broadcast stations, including programming, technical, and sales expenses. (Key driver of profitability; an increase here directly impacts operating income.)

Assets held for sale

Assets that management has committed to sell, are actively marketed, and are expected to be sold within one year. (Represents a strategic decision to divest certain assets, impacting the balance sheet and potentially future operations.)

Liabilities held for sale

Liabilities directly associated with assets classified as held for sale. (Paired with assets held for sale, these reflect the financial obligations tied to the divestiture.)

Retained earnings

The cumulative amount of net income that a company has retained over time, rather than distributing to shareholders as dividends. (A decrease in retained earnings, as seen here, indicates the company has incurred losses or paid out significant dividends.)

Year-Over-Year Comparison

Compared to the prior year, Saga Communications has seen a significant deterioration in financial performance. Net operating revenue declined by 1.8% for the quarter and 3.7% year-to-date. More critically, the company swung from a net income of $1,267,000 in Q3 2024 to a net loss of $532,000 in Q3 2025. Station operating expenses increased by $1,965,000 year-over-year, contributing to the reduced profitability. The balance sheet shows a decrease in cash and cash equivalents and the classification of assets and liabilities held for sale, indicating strategic changes and potential liquidity pressures.

Key Financial Figures

• $0.01 — stered Class A Common Stock, par value $0.01 per share SGA NASDAQ Global Market

Filing Documents

• sga-20250930x10q.htm (10-Q) — 1671KB
• sga-20250930xex31d1.htm (EX-31.1) — 19KB
• sga-20250930xex31d2.htm (EX-31.2) — 20KB
• sga-20250930xex32.htm (EX-32) — 8KB
• 0001104659-25-108489.txt ( ) — 7345KB
• sga-20250930.xsd (EX-101.SCH) — 50KB
• sga-20250930_cal.xml (EX-101.CAL) — 65KB
• sga-20250930_def.xml (EX-101.DEF) — 168KB
• sga-20250930_lab.xml (EX-101.LAB) — 436KB
• sga-20250930_pre.xml (EX-101.PRE) — 306KB
• sga-20250930x10q_htm.xml (XML) — 1329KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Condensed consolidated balance sheets — September 30, 2025 and December 31, 2024 3 Condensed consolidated statements of operations — Three and nine months ended September 30, 2025 and 2024 4 Condensed consolidated statements of stockholders' equity – Three and nine months ended September 30, 2025 and 2024 5 Condensed consolidated statements of cash flows — Nine months ended September 30, 2025 and 2024 7 Notes to unaudited condensed consolidated financial statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 34

OTHER INFORMATION

PART II OTHER INFORMATION 34

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35

Other Information

Item 5. Other Information 35

Exhibits

Item 6. Exhibits 36

SIGNATURES

SIGNATURES 37 EX-31.1 EX-31.2 EX-32 EX-101 INSTANCE DOCUMENT EX-101 SCHEMA DOCUMENT EX-101 CALCULATION LINKBASE DOCUMENT EX-101 LABELS LINKBASE DOCUMENT EX-101 PRESENTATION LINKBASE DOCUMENT EX-101 DEFINITION LINKBASE DOCUMENT 2 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements SAGA COMMUNICATIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (Unaudited) (Note) (In thousands) Assets Current assets: Cash and cash equivalents $ 17,060 $ 18,860 Assets held for sale 4,381 — Short-term investments 9,210 8,927 Accounts receivable, net 14,577 15,941 Prepaid expenses and other current assets 4,239 2,606 Barter transactions 867 752 Total current assets 50,334 47,086 Property and equipment 144,196 151,553 Less accumulated depreciation 97,042 99,646 Net property and equipment 47,154 51,907 Other assets: Broadcast licenses 91,478 91,497 Goodwill 19,229 19,229 Other intangibles, right of use assets, deferred costs and investments, net 10,157 12,006 Total assets $ 218,352 $ 221,725 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 3,110 $ 3,080 Liabilities held for sale 840 — Accrued expenses: Accrued payroll and payroll taxes 5,696 5,542 Other accrued expenses 7,836 7,006 Barter transactions 901 930 Total current liabilities 18,383 16,558 Deferred income taxes 26,132 26,007 Long-term debt 5,000 5,000 Other liabilities 6,780 8,238 Total liabilities 56,295 55,803 Commitments and contingencies (Note 11 and 14) — — Shareholders' equity: Common stock 82 82 Additional paid-in capital 75,265 74,334 Retained earnings 122,413 128,216 Treasury stock ( 35,703 ) ( 36,710 ) Total shareholders' equity 162,057 165,922 Total liabilities and shareholders' equity $ 218,352 $ 221,725 Note: The balance sheet as December 31, 2024 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. See accompanying notes to unaudite

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