The ink on Salem Media Group’s WaterStone acquisition agreement was barely dry when the company filed its Q1 2026 earnings, offering what may be one of its final public quarterly looks as the Christian broadcaster prepares to leave public markets for good.
Salem posted a net loss of $2.6 million, down from $7.1 million in Q1 2025. Total revenue fell 11.2% to $45.9 million, though $4.1 million of that decline reflects completed asset sales. Stripping out divestitures, revenue declined 3.6%.
The year-over-year loss improvement was driven largely by the absence of $3.7 million in restructuring costs in Q1 2025, tied to workforce reductions and contract terminations following its December 2024 announcement that it would sell its remaining seven CCM radio stations. Expenses fell $9.7 million, or 18.8%, with roughly $5 million attributable to those station sales and the remainder reflecting payroll, professional services, and health insurance reductions.
Digital revenue declined $1.6 million to $18.1 million. Publishing revenue fell to zero from $1.6 million in Q1 2025, following the July 2025 sale of Salem Author Services. Spot advertising crept up $0.3 million, excluding political revenue; political revenue rose 45% to $1.1 million, consistent with the 2026 midterms.
WaterStone agreed May 12 to acquire all outstanding Salem common shares at $1.00 per share, roughly a 250% premium over recent trading, in a deal expected to close in August pending shareholder and regulatory approvals. The transaction formalizes a relationship already underway: WaterStone held a 49.5% voting interest in Salem through prior preferred stock investments, and WaterStone President Richard von Gnechten had served as Salem’s Board Chairman since August 2025.
