“It was a tough quarter,” said Urban One CEO Alfred C. Liggins, III, to open the company’s Q2 earnings call, but even with a sizeable revenue fall, local radio was a bit of a brighter spot, as national, digital, and timing at Reach Media weighed total results.
The Black-focused broadcaster reported a steep year-over-year revenue decline in the second quarter of 2025, with consolidated net revenue down 22.2% to $91.6 million. Liggins cited multiple timing-related and structural challenges, including ongoing advertiser pullback in both radio and digital segments, as net loss for the quarter widened to $77.9 million, compared to a net loss of $45.4 million in Q2 2024
Radio broadcast revenue fell 12.6% to $36.7 million. Excluding political ads, the segment was down 10.3% year-over-year. CFO Peter Thompson noted that Urban One’s local radio sales outperformed the broader market decline, falling only 5.6% compared to an 11% dip reported by Miller Kaplan. However, national radio advertising declined 23.6% against a 13.1% market drop, largely driven by retreating DEI dollars and systemic pressure on the broadcast sector.
Reach Media revenue fell 71.9% to $5.3 million, a shortfall Urban One attributed to moving the Tom Joyner Fantastic Voyage cruise to later this year. The event generated $9.6 million in Q2 2024.
Digital revenue declined 27.1% to $10.3 million, impacted by the expiration of an exclusive third-party audio streaming deal valued at $1.6 million and a $1.2 million drop in digital ad sales.
Urban One’s cable television segment, including TV One and Cleo TV, brought in $40.1 million, a 7.5% drop from the prior year. TV advertising revenue declined 4.2%.
Operating expenses fell 16.3% to $78.1 million, driven by event-related savings, lower employee compensation, and reduced marketing costs. However, a non-cash impairment charge of $130.1 million was recorded against FCC licenses and goodwill in the radio and digital segments, following a downward revision of long-term cash flow forecasts.
The company implemented first-round cost cuts earlier in the year and is now exploring a second round of reductions to be finalized by the end of Q3.
