Salem Media filed what could be its last earnings report as a public company, with shareholders now on record approving its sale to WaterStone. Q2 results showed a narrower net loss but continued revenue declines heading into an expected August close.
Salem’s board and shareholders have both signed off on the company’s $1.00-per-share sale to WaterStone, the Christian nonprofit foundation that Radio Ink first reported in May would take Salem private. The filing confirms shareholder approval has now been secured, leaving regulatory clearance as the only remaining condition before the deal closes, which Salem still expects to happen this month.
For the quarter ended June 30, net revenue fell 15.2% to $45.9 million from $54.1 million a year earlier, though $2.1 million of that decline reflects completed asset sales.
Net loss narrowed to $3.4 million from $17.6 million, driven largely by a smaller impairment charge and lower expenses. Political advertising revenue more than doubled to $1.3 million, consistent with 2026’s election-year cycle, while digital revenue declined $4.0 million.
Broadcast license impairment charges totaled $4.8 million for the quarter, down from $25.2 million a year earlier, tied to markets including Boston, Chicago, Cleveland, Columbus, Los Angeles, Miami, Orlando, Philadelphia, and San Francisco.
Salem’s cash position tightened sharply during the quarter, ending at $131,000 as of June 30, down from $2.4 million at the end of 2025. The company drew down its Asset-Based Revolving Credit Facility to $4.3 million outstanding, and a negative fixed charge coverage ratio triggered a $2 million availability block on the facility, a condition that remains in effect until Salem’s coverage ratio improves.
Lastly, Salem completed the $6 million sale and leaseback deal of its Texas office building, which houses the Salem Radio Network, Salem Surround, the Salem Podcast Network, SalemNOW, and SalemSí, recording a $1.7 million pre-tax gain.
