Beasley Broadcast's Revenue Plunges, Net Loss Widens to $2.8M

TL;DR

**BBGI is bleeding cash and selling assets; this stock is a short-term gamble, not a long-term hold.**

AI Summary

Beasley Broadcast Group Inc. (BBGI) reported a significant decline in net revenue and an increased net loss for the six months ended June 30, 2025. Net revenue decreased by 11.24% to $101,912,176 from $114,816,003 in the prior year period. The company's net loss widened substantially to $2,843,996, or $(1.59) per share, compared to a net loss of $268,051, or $(0.18) per share, for the six months ended June 30, 2024. This deterioration was primarily driven by a $12,885,967 decrease in Audio revenue, which fell to $77,972,240. Operating income also saw a sharp decline, dropping to $890,667 from $4,272,113 year-over-year. A notable strategic move was the agreement to sell WPBB-FM in Tampa, FL for $8.0 million in cash, expected to close in Q3 or Q4 2025, with assets held for sale totaling $7,316,486 as of June 30, 2025. The company also repurchased $1.5 million principal amount of Prior Notes for 65% of the principal amount, resulting in a $0.5 million gain on repurchase of long-term debt in Q2 2025. Despite a reduction in interest expense to $6,675,414 from $11,680,137, the overall financial performance indicates significant headwinds.

Why It Matters

This filing reveals a challenging period for Beasley Broadcast Group, with substantial declines in both revenue and profitability, signaling potential distress in the traditional radio broadcasting sector. For investors, the widening net loss and reduced operating income suggest a need for caution, especially given the competitive pressures from digital media. Employees might face increased uncertainty as the company divests assets like WPBB-FM. Customers, particularly advertisers, may see shifts in BBGI's market presence and offerings as it streamlines operations. The broader market will observe if this trend is indicative of a larger struggle for legacy media companies to adapt to evolving consumption habits.

Risk Assessment

Risk Level: high — The company's net loss significantly widened to $2,843,996 for the six months ended June 30, 2025, from $268,051 in the prior year, representing a more than tenfold increase. Operating income plummeted from $4,272,113 to $890,667, indicating severe operational challenges. Furthermore, cash flows from operating activities turned negative, from a positive $2,555,826 in 2024 to a negative $419,923 in 2025, signaling a deteriorating cash position.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to BBGI given the significant decline in revenue, widening net loss, and negative operating cash flow. Monitor the progress of the WPBB-FM sale and its impact on the balance sheet, but be wary of further asset divestitures as a sign of ongoing financial strain.

Financial Highlights

debt To Equity

N/A

revenue

$101,912,176

operating Margin

0.87%

total Assets

N/A

total Debt

$239,060,000

net Income

-$2,843,996

eps

-$1.59

gross Margin

N/A

cash Position

$13,720,000

revenue Growth

-11.24%

Revenue Breakdown

Key Numbers

• $101.9M — Net Revenue (Decreased by 11.24% for the six months ended June 30, 2025, from $114.8M in 2024.)
• $2.84M — Net Loss (Widened significantly for the six months ended June 30, 2025, from $0.27M in 2024.)
• $(1.59) — Net Loss Per Share (Increased for the six months ended June 30, 2025, from $(0.18) in 2024.)
• $890.7K — Operating Income (Decreased substantially for the six months ended June 30, 2025, from $4.27M in 2024.)
• $8.0M — WPBB-FM Sale Price (Expected cash proceeds from the sale of WPBB-FM in Tampa, FL.)
• $7.32M — Assets Held for Sale (Total value of assets held for sale as of June 30, 2025, primarily the FCC license for WPBB-FM.)
• $6.68M — Interest Expense (Decreased for the six months ended June 30, 2025, from $11.68M in 2024.)
• $0.5M — Gain on Debt Repurchase (Recorded in Q2 2025 from repurchasing $1.5M principal amount of Prior Notes.)
• $13.72M — Cash and Cash Equivalents (As of June 30, 2025, a decrease from $13.77M at December 31, 2024.)
• $239.06M — Long-Term Debt (As of June 30, 2025, a decrease from $247.12M at December 31, 2024.)

Key Players & Entities

• BEASLEY BROADCAST GROUP INC (company) — registrant
• BBGI (company) — ticker symbol
• WPBB-FM (company) — radio station being sold
• Broadcast Music, Inc. (company) — investment sold in 2024
• Beasley Mezzanine Holdings, LLC (company) — issuer of new notes
• Wilmington Trust, National Association (company) — trustee and collateral agent
• FASB (regulator) — Financial Accounting Standards Board
• SEC (regulator) — Securities and Exchange Commission
• Nasdaq Capital Market (regulator) — exchange where BBGI Class A Common Stock is registered

FAQ

Risk Factors

• Declining Audio Revenue [high — market]: Net revenue decreased by 11.24% to $101.9M for the six months ended June 30, 2025, primarily due to an $12.9M drop in Audio revenue. This indicates a significant shift in listener habits or advertising spend away from traditional radio.
• Widening Net Loss [high — financial]: The company reported a net loss of $2.84M for the six months ended June 30, 2025, a substantial increase from a $0.27M loss in the prior year. This widening loss, coupled with a decrease in operating income from $4.27M to $0.89M, signals deteriorating profitability.
• High Debt Load [medium — financial]: As of June 30, 2025, long-term debt stood at $239.06M. While reduced from $247.12M at the end of 2024, the substantial debt level, even with reduced interest expense, continues to be a significant financial burden.
• Asset Sale and Divestiture [medium — operational]: The agreement to sell WPBB-FM for $8.0M and assets held for sale totaling $7.32M indicates a strategic shift, potentially to deleverage or focus on core assets. However, it also signifies a reduction in the company's asset base and revenue-generating capacity.
• Competition from Digital Media [high — market]: The continued decline in audio revenue suggests increasing competition from digital streaming services and online advertising platforms, which are capturing listener attention and advertising dollars.

Industry Context

The radio broadcasting industry is facing significant disruption from digital media, including streaming services and podcasts, leading to shifts in advertising spend and listener engagement. Companies like Beasley Broadcast Group are challenged to adapt their business models to compete in this evolving landscape.

Regulatory Implications

Broadcasting licenses are subject to FCC regulations. Changes in ownership, spectrum allocation, or advertising rules can impact revenue and operational flexibility. The sale of WPBB-FM is subject to FCC approval.

What Investors Should Do

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Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q, showing significant revenue decline and widened net loss.
• 2025-06-30: Assets Held for Sale — Totaled $7,316,486, primarily related to the WPBB-FM sale, indicating strategic asset disposition.
• 2025-06-30: Cash and Cash Equivalents — Stood at $13,720,000, a slight decrease from year-end 2024, highlighting stable but not growing liquidity.
• 2025-06-30: Long-Term Debt — Decreased to $239,060,000 from $247,120,000 at year-end 2024, reflecting debt reduction efforts.
• Q3 or Q4 2025: Expected Closing of WPBB-FM Sale — The sale for $8.0M is expected to provide cash and potentially reduce debt, but also shrinks the company's broadcast footprint.
• Q2 2025: Repurchase of Prior Notes — Repurchased $1.5M principal amount for 65% of face value, resulting in a $0.5M gain and reducing interest obligations.

Glossary

Audio Revenue

Revenue generated from traditional radio broadcasting operations. (This is the core revenue stream for Beasley Broadcast Group, and its significant decline is the primary driver of the company's poor performance.)

Digital Revenue

Revenue generated from online platforms, websites, and digital advertising. (This segment shows some growth, indicating a potential area for future expansion, though it is not yet enough to offset declines in traditional audio.)

Assets Held for Sale

Assets that management has committed to sell and are available for immediate sale, and are actively marketed. (The $7.32M in assets held for sale, primarily the WPBB-FM license, signifies a strategic divestiture and a reduction in the company's asset base.)

Prior Notes

Refers to specific long-term debt instruments previously issued by the company. (The repurchase of these notes at a discount generated a gain and reduced future interest expense, a positive financial maneuver amidst declining revenues.)

Operating Income

Profitability from a company's core business operations before interest and taxes. (The sharp decline in operating income from $4.27M to $0.89M highlights significant operational challenges and reduced profitability from the core business.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, Beasley Broadcast Group Inc. reported an 11.24% decrease in net revenue to $101.9M, a significant deterioration from the prior year. This revenue decline, primarily driven by a substantial drop in Audio revenue, led to a widening net loss of $2.84M, compared to a $0.27M loss in the prior period. Operating income also saw a sharp contraction, falling to $0.89M from $4.27M. While interest expense decreased due to debt repurchases, the overall financial performance indicates significant headwinds and a bearish outlook.

Key Financial Figures

• $0.001 — tered Class A Common Stock, par value $0.001 per share BBGI Nasdaq Capital Marke

Filing Documents

• bbgi-20250630.htm (10-Q) — 1526KB
• bbgi-ex10_2.htm (EX-10.2) — 53KB
• bbgi-ex31_1.htm (EX-31.1) — 15KB
• bbgi-ex31_2.htm (EX-31.2) — 15KB
• bbgi-ex32_1.htm (EX-32.1) — 9KB
• bbgi-ex32_2.htm (EX-32.2) — 9KB
• 0000950170-25-107986.txt ( ) — 6419KB
• bbgi-20250630.xsd (EX-101.SCH) — 764KB
• bbgi-20250630_htm.xml (XML) — 1262KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations. 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 21 Item 4.

Controls and Procedures

Controls and Procedures. 21 PART II OTHER INFORMATION Item 1. Legal Proceedings. 22 Item 1A. Risk Factors. 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 22 Item 3. Defaults Upon Senior Securities. 22 Item 4. Mine Safety Disclosures. 22 Item 5. Other Information. 22 Item 6. Exhibits . 23

SIGNATURES

SIGNATURES 24 BEASLEY BROADCAST GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, June 30, 2024 2025 ASSETS Current assets: Cash and cash equivalents $ 13,772,720 $ 13,723,924 Accounts receivable, less allowance for credit losses of $ 1,698,285 in 2024 and $ 1,723,043 in 2025 51,551,945 51,280,045 Prepaid expenses 3,139,678 5,255,801 Other current assets 825,794 2,479,647 Total current assets 69,290,137 72,739,417 Property and equipment, net 47,000,978 44,067,245 Operating lease right-of-use assets 33,233,714 31,395,558 FCC licenses 392,259,831 385,074,211 Other intangibles, net 2,082,098 1,968,468 Assets held for sale — 7,316,486 Other assets 5,340,067 5,476,590 Total assets $ 549,206,825 $ 548,037,975 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 21,037,797 $ 26,029,302 Operating lease liabilities 8,688,874 8,438,422 Other current liabilities 23,260,496 28,098,948 Current portion of long-term debt — 2,795,000 Total current liabilities 52,987,167 65,361,672 Due to related parties 24,307 8,951 Long-term debt 247,117,717 239,055,035 Operating lease liabilities 31,402,424 29,929,186 Deferred tax liabilities 63,747,937 62,451,668 Other long-term liabilities 6,707,566 6,707,566 Total liabilities 401,987,118 403,514,078 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; none issued — — Class A common stock, $ 0.001 par value; 150,000,000 shares authorized; 1,152,366 issued and 957,876 outstanding in 2024; 1,170,419 issued and 970,857 outstanding in 2025 18,173 18,191 Class B common stock, $ 0.001 par value; 75,000,000 shares authorized; 833,137 issued and outstanding in 2024 and 2025 16,662 16,662 Additional paid-in capital 156,595,835 156,771,045 T