Saga Communications, Inc. Reports 3rd Quarter 2026 Results and Declares $0.25 Per Share Quarterly Cash Dividend

A non-cash license impairment deepened quarterly losses, while long-term debt stood at zero at September 30.

Rhea-AI Summary

Saga Communications (Nasdaq: SGA) reported third-quarter 2026 revenue of $26.7 million, down from the same quarter last year, and declared a quarterly dividend. Revenue fell 5.4% from $28.2 million. A $9.2 million non-cash FCC license impairment contributed to a $7.1 million net loss, versus $532 thousand a year earlier; diluted loss per share widened to $1.11 from $0.08. Operating loss widened to $9.8 million from $626 thousand.

Nine-month revenue fell 5.8% to $75.9 million, and net loss reached $8.5 million versus $979 thousand. Operating activities used $1.445 million, compared with $5.482 million generated a year earlier. Long-term debt was zero at September 30. Cash and short-term investments totaled $22.4 million on November 9. The $0.25-per-share dividend is payable December 11, 2026, to holders of record November 23. Approximately $3.6 million of gross political revenue is sold for the fourth quarter.

15 points · 0 major

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2 major · 20 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointLong-term debt was zero at September 30, 2026, versus $5 million a year earlier.
• Moderate pointThird-quarter gross political revenue rose to $1.2 million from $73 thousand a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter gross political revenue sold totals approximately $3.6 million. 8% of market cap
• Moderate pointNine-month asset-sale results improved to a $2.540 million gain from a $298 thousand loss.
• Minor pointThird-quarter station operating expense decreased 1.7% to $24.2 million year over year.

10 minor points

• Minor pointNine-month gross political revenue rose to $1.9 million from $395 thousand a year earlier.
• Minor pointThird-quarter corporate administrative expense fell to $2.779 million from $2.820 million year over year.
• Minor pointNine-month corporate administrative expense fell to $8.431 million from $9.061 million year over year.
• Minor pointThird-quarter depreciation and amortization fell to $1.183 million from $1.307 million year over year.
• Minor pointNine-month depreciation and amortization fell to $3.541 million from $3.900 million year over year.
• Minor pointThird-quarter asset-sale gains increased to $990 thousand from $9 thousand a year earlier.
• Minor pointThird-quarter interest expense fell to $41 thousand from $108 thousand year over year.
• Minor pointNine-month interest expense fell to $224 thousand from $322 thousand year over year.
• Minor pointThird-quarter interest income rose to $295 thousand from $216 thousand year over year.
• Minor pointNine-month interest income rose to $1.107 million from $648 thousand year over year.

Negative

• Major pointThird-quarter net loss widened to $7.092 million, or $1.11 per diluted share, versus $532 thousand, or $0.08.
• Major pointThird-quarter operating loss widened to $9.775 million from $626 thousand a year earlier.
• Moderate pointThird-quarter revenue fell 5.4% to $26.7 million from $28.2 million a year earlier.
• Moderate pointThird-quarter non-GAAP station operating income fell to $2.4 million from $3.5 million year over year.
• Moderate pointNine-month operating cash flow turned negative at $1.445 million used, versus $5.482 million generated a year earlier.
• Moderate pointWorking capital fell to $24.378 million at September 30, 2026, from $31.951 million a year earlier.

14 minor points

• Minor pointFCC license values incurred a $9.212 million non-cash impairment charge in the third quarter.
• Minor pointNine-month revenue fell 5.8% to $75.9 million from $80.6 million a year earlier.
• Minor pointNine-month net loss widened to $8.526 million, or $1.34 per diluted share, versus $979 thousand, or $0.15.
• Minor pointNine-month operating loss widened to $12.414 million from $1.515 million a year earlier.
• Minor pointNine-month non-GAAP station operating income fell to $6.2 million from $11.7 million year over year.
• Minor pointNine-month station operating expense increased 1.2% to $69.7 million year over year.
• Minor pointCash and short-term investments declined to $22.4 million on November 9 from $23.5 million September 30, 2026.
• Minor pointStockholders' equity fell to $140.019 million at September 30, 2026, from $162.057 million a year earlier.
• Minor pointThird-quarter capital expenditures increased to $900 thousand from $600 thousand a year earlier.
• Minor pointNine-month capital expenditures increased to $2.922 million from $2.600 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Saga expects 2026 capital expenditures of approximately $3.0–$3.5 million.
• Minor pointTransferred tower leases reduced revenue by $188 thousand quarterly and $564 thousand for nine months ended September 30, 2026.
• Minor pointTower-related non-cash rent was $154 thousand quarterly, partly offset by $127 thousand non-cash interest income; nine-month rent was $561 thousand.
• Minor point. Forward-looking: it has not happened yet and may not happen.Saga expects ongoing tower-related non-cash rent expense of approximately $154 thousand quarterly and $616 thousand annually.

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GROSSE POINTE FARMS, Mich., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Saga Communications, Inc. (Nasdaq - SGA) (the “Company” or “Saga”) today reported that net revenue decreased 5.4% to $26.7 million for the quarter ended September 30, 2026 compared to $28.2 million for the same period last year. Station operating expense decreased 1.7% for the quarter to $24.2 million compared to the same period last year. For the quarter, we had an operating loss of $9.8 million compared to an operating loss of $626 thousand for the same quarter last year and station operating income (a non-GAAP financial measure) was $2.4 million compared to $3.5 million for the same period last year. For the quarter, the Company recorded a non-cash impairment charge based on an evaluation of FCC license values of $9.2 million. Without the non-cash impairment charge, the Company’s operating loss would have been $563 thousand for the quarter compared to an operating loss of $626 thousand for the same period last year. Capital expenditures were $900 thousand for the quarter compared to $600 thousand for the same period last year. We had a net loss of $7.1 million for the quarter compared to a net loss of $532 thousand for the third quarter last year primarily as a result of the non-cash impairment charge disclosed above. Without the non-cash impairment charge, the Company’s net loss would have been approximately $240 thousand or $0.03 per share compared to a net loss of $0.08 per share for the third quarter last year.

The impairment was driven by an increase in interest rates which increased the discount rate used in the fair value calculation, a decrease in operating margins in our business and the industry as a whole and reductions in market revenue projections used in our fair value calculations.

Net revenue decreased 5.8% to $75.9 million for the nine-month period ended September 30, 2026 compared to $80.6 million for the same period last year. Station operating expense increased 1.2% for the nine-month period to $69.7 million compared to the same period last year. For the nine-month period, we had an operating loss of $12.4 million compared to an operating loss of $1.5 million for the same period last year, and station operating income (a non-GAAP financial measure) of $6.2 million compared to $11.7 million for the same period last year. Without the non-cash impairment charge for the nine-month period the Company’s operating loss would have been $3.2 million. Capital expenditures for the nine-months were $2.9 million compared to $2.6 million for the same period last year. We had a net loss of $8.5 million, or $1.34 per fully diluted share, for the nine month period primarily as a result of the non-cash impairment charge previously disclosed compared to a net loss of $979 thousand or $0.15 per share for the same period last year. Without the non-cash impairment charge, the Company’s net loss would have been approximately $1.7 million or $0.26 per fully diluted share compared to a net loss of $0.15 per share for the same period last year.

For the quarter ended September 30, 2026, we recorded $154 thousand of non-cash rent expense. This was attributable to the previously reported sale of 24 telecommunications towers and related property in October of last year for a total cash purchase price of $10.7 million, as amended in the second quarter of 2026 to provide for market rent under the related leases and promissory notes payable to the Company, which are offset against our lease payments. This non-cash rent expense is partially offset by non-cash interest income on the notes of $127 thousand for the quarter. The Company retains long term access to those assets with no cash expense. Without this non-cash expense our station operating expense would have decreased 2.3% for the quarter. For the nine-month period ended September 30, 2026 we recorded $561 thousand of non-cash rent expense. Going forward we expect to continue to record approximately $154 thousand per quarter and $616 thousand per year in non-cash rental expense attributable to the tower sale. Net revenues for the quarter and year to date ended September 30, 2026 were reduced by $188 thousand for the quarter and $564 thousand for the year to date due to the transfer of certain income producing leases associated with the towers that were sold. Adjusting for the sale net revenue would have decreased 4.7% for the quarter and 5.1% for the year.

Gross political revenue was $1.2 million and $73 thousand, respectively, for the third quarter in 2026 and 2025. Gross political revenue was $1.9 million for the nine-month period ended September 30, 2026 compared to $395 thousand for the comparable period last year. The Company has approximately $3.6 million of gross political revenue sold for the fourth quarter.

The Company’s balance sheet reflects $23.5 million in cash and short-term investments as of September 30, 2026 and $22.4 million as of November 9, 2026. The Company expects to spend approximately $3.0 – $3.5 million for capital expenditures during 2026.

The Company paid a quarterly dividend of $0.25 per share on October 16, 2026. The aggregate amount of the quarterly dividend was approximately $1.6 million.

Saga’s Board of Directors today declared a quarterly cash dividend of $0.25 per share, reflecting the Board’s continued commitment to a disciplined and balanced approach to capital allocation. The dividend will be paid on December 11, 2026 to shareholders of record on November 23, 2026. The aggregate amount of the payment will be approximately $1.6 million. Including the recently declared dividend, the Company will have paid over $148 million in dividends to shareholders since the first special dividend was paid in 2012.

The Board regularly evaluates Saga’s capital allocation priorities with a focus on maximizing long-term shareholder value. In maintaining the quarterly dividend, the Board determined that the Company’s current financial position provides flexibility to continue returning capital to shareholders while also investing in Saga’s strategic priorities and digital transformation and evaluating other opportunities to deploy capital. The Board will continue to assess dividends, share repurchases, investments in the business and other potential uses of capital based on the relative opportunities available to create long-term shareholder value.

Saga’s 2026 Third Quarter conference call will be held on Thursday, November 12, 2026 at 11:00 a.m Eastern time. The dial-in number for the call is (973) 528-0008. Enter conference code 707110. A recording and transcript of the call will be posted to the Company’s website as soon as it is available after the call.

The Company requests that all parties that have a question that they would like to submit to the Company please email the inquiry by 10:00 a.m. Eastern time on November 12, 2026 to SagaIR@sagacom.com. The Company will discuss, during the limited period of the conference call, those inquiries it deems of general relevance and interest. Only inquiries made in compliance with the foregoing directions will be discussed during the call.

Saga utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to assess its financial performance. The attached Selected Supplemental Financial Data tables disclose the Company’s reconciliation of non-GAAP measures: GAAP operating income to station operating income, GAAP net income to trailing twelve-month consolidated EBITDA, as well as other financial data. Such non-GAAP measures include station operating income and trailing 12-month consolidated EBITDA. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including, but not limited to, evaluating individual station and market-level performance, evaluating overall operations, evaluating the Company’s financial position, and as a primary but not exclusive measure for incentive-based compensation of executives and other members of management. Saga’s management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value. These measures are not measures of liquidity or of performance in accordance with GAAP and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis, including net operating revenue, operating income, and net income. Reconciliations for all the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Supplemental Financial Data tables.

This press release contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that are based upon current expectations and involve certain risks and uncertainties. Words such as “will,” “may,” “believes,” “intends,” “expects,” “anticipates,” “guidance,” and similar expressions are intended to identify forward-looking statements. The material risks facing our business are described in the reports Saga periodically files with the U.S. Securities and Exchange Commission, including, in particular, Item 1A of our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10Q. Readers should note that forward-looking statements may be impacted by several factors, including global, national, and local economic changes and changes in the radio broadcast industry in general as well as Saga’s actual performance. Actual results may vary materially from those described herein and Saga undertakes no obligation to update any information contained herein that constitutes a forward-looking statement.

Saga is a media company whose business is devoted to acquiring, developing and operating broadcast properties with a focus on providing opportunities complementary to our core radio business including digital, e-commerce, local on-line news services and non-traditional revenue initiatives. Saga owns or operates broadcast properties in 28 markets, including 82 FM and 28 AM radio stations and 78 metro signals. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacom.com.

Contact:
Samuel D. Bush
(313) 886-7070

Saga Communications, Inc. Selected Consolidated Financial Data For the Three and Nine Months Ended September 30, 2026 and 2025 (amounts in 000’s except per share data) (Unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2026				2025				2026				2025
Operating Results
Net operating revenue	$	26,656			$	28,166			$	75,925			$	80,607
Station operating expense		24,247				24,674				69,695				68,863
Corporate general and administrative		2,779				2,820				8,431				9,061
Depreciation and amortization		1,183				1,307				3,541				3,900
(Gain) loss on sale of assets, net		(990	)			(9	)			(2,540	)			298
Impairment of intangible assets		9,212				—				9,212				—
Operating loss		(9,775	)			(626	)			(12,414	)			(1,515	)
Interest expense		41				108				224				322
Interest income		(295	)			(216	)			(1,107	)			(648	)
Other expense (income), net		26				(81	)			(30	)			(105	)
Loss before income tax expense		(9,547	)			(437	)			(11,501	)			(1,084	)
Income tax (benefit) expense
Current		—				290				75				130
Deferred		(2,455	)			(195	)			(3,050	)			(235	)
		(2,455	)			95				(2,975	)			(105	)
Net loss	$	(7,092	)		$	(532	)		$	(8,526	)		$	(979	)
Loss per share:
Basic	$	(1.11	)		$	(0.08	)		$	(1.34	)		$	(0.15	)
Diluted	$	(1.11	)		$	(0.08	)		$	(1.34	)		$	(0.15	)
Weighted average common shares		6,101				6,164				6,089				6,156
Weighted average common and common equivalent shares		6,101				6,164				6,089				6,156

	September 30,
	2026			2025
Balance Sheet Data
Working capital	$	24,378		$	31,951
Net fixed assets	$	44,443		$	47,154
Net intangible assets and other assets	$	96,662		$	120,864
Total assets	$	183,046		$	218,352
Long-term debt	$	—		$	5,000
Stockholders' equity	$	140,019		$	162,057

Saga Communications, Inc. Selected Consolidated Financial Data Statement of Cash Flows For the Nine Months Ended September 30, 2026 and 2025 (amounts in 000’s except per share data) (Unaudited)
	Nine Months Ended
	September 30,
	2026				2025
	(Unaudited)
	(In thousands)
Cash flows from operating activities:
Net loss	$	(8,526	)		$	(979	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		3,541				3,900
Deferred income tax benefit		(3,050	)			(235	)
Amortization of deferred costs		15				24
Compensation expense related to restricted stock awards		1,554				1,648
Provision for credit losses		402				372
(Gain) Loss on sale of assets, net		(2,540	)			298
Extinguishment of deferred financing costs		34				—
Gain on insurance claim		(64	)			(105	)
Non-cash rent expense		561				—
Non-cash interest income		(508	)			—
Barter revenue (net)		(92	)			(147	)
Impairment of intangible assets		9,212				—
Deferred and other compensation		(268	)			(106	)
Changes in operating lease assets and liabilities (net)		(45	)			(64	)
Changes in assets and liabilities:
(Increase) decrease in current assets		(1,418	)			(1,005	)
(Decrease) increase in accounts payable, accrued expenses, and other liabilities		(253	)			1,881
Total adjustments		7,081				6,461
Net cash (used in) provided by operating activities		(1,445	)			5,482
Cash flows from investing activities:
Purchase of short-term investments		(18,879	)			(13,619	)
Redemption of short-term investments		18,879				13,619
Acquisition of property and equipment (Capital Expenditures)		(2,922	)			(2,600	)
Proceeds from sale and disposal of assets		3,993				37
Proceeds from insurance claims, redemption of investments and other		64				105
Net cash provided by (used in) investing activities		1,135				(2,458	)
Cash flows from financing activities:
Cash dividends paid		(3,176	)			(4,824	)
Payments on long term debt		(5,000	)			—
Purchase of treasury shares		(30	)			—
Net cash used in financing activities		(8,206	)			(4,824	)
Net decrease in cash and cash equivalents		(8,516	)			(1,800	)
Cash and cash equivalents, beginning of period		22,506				18,860
Cash and cash equivalents, end of period	$	13,990			$	17,060

Saga Communications, Inc. Selected Supplemental Financial Data Reconciliation of GAAP Operating Loss to Station Operating Income (a non-GAAP financial measure) For the Three and Nine Months Ended September 30, 2026 and 2025 (amounts in 000’s) (Unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2026				2025				2026					2025
Operating loss	$	(9,775	)		$	(626	)		$	(12,414	)			$	(1,515	)
Plus:
Corporate general and administrative		2,779				2,820				8,431					9,061
(Gain) loss on sale of assets, net		(990	)			(9	)			(2,540	)				298
Impairment of intangible assets		9,212				—				9,212					—
Depreciation and amortization		1,183				1,307				3,541					3,900
Station operating income	$	2,409			$	3,492			$	6,230				$	11,744
Other financial data
Depreciation and amortization:
Radio Stations	$	1,147			$	1,263			$	3,419				$	3,770
Corporate	$	36			$	44			$	122				$	130
Compensation expense related to restricted stock awards	$	488			$	518			$	1,554		(1)		$	1,648		(1)
(Gain) loss on sale of assets, net(2)	$	(990	)		$	(9	)		$	(2,540	)			$	298
Other income, net(2)	$	26			$	(81	)		$	(30	)			$	(105	)
Deferred income tax (benefit) expense(2)	$	(2,455	)		$	(195	)		$	(3,050	)			$	(235	)
Impairment of intangible assets(2)	$	9,212			$	—			$	9,212				$	—
Non-cash rent expense	$	154			$	—			$	561		(1)		$	—		(1)
Non-cash interest income	$	(127	)		$	—			$	(508	)	(1)		$	—		(1)
Acquisition of property and equipment (Capital Expenditures)	$	881			$	590			$	2,922		(1)		$	2,600		(1)
(1)  As presented in the Statement of Cash Flows in the Selected Consolidated Financial Data tables
(2)  As presented in the Operating Results in the Selected Consolidated Financial Data tables

Saga Communications, Inc. Selected Supplemental Financial Data Reconciliation of GAAP Net Loss to Trailing 12 Month Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”(1)) (a non-GAAP financial measure) September 30, 2026 (amounts in 000's) (Unaudited)
					Less:				Plus:				Trailing
	12 Months Ended				9 Months Ended				9 Months Ended				12 Months Ended
	December 31,				September 30,				September 30,				September 30,
	2025				2025				2026				2026
Net loss	$	(7,899	)		$	(979	)		$	(8,526	)		$	(15,446	)
Exclusions:
Gain (loss) on sale of assets, net		11,522				(298	)			2,540				14,360
Impairment of goodwill		(19,229	)			—				—				(19,229	)
Impairment of intangible assets		(1,168	)			—				(9,212	)			(10,380	)
Other income, net		1,088				900				1,229				1,417
Total exclusions		(7,787	)			602				(5,443	)			(13,832	)
Consolidated adjusted net loss		(112	)			(1,581	)			(3,083	)			(1,614	)
Plus:
Interest expense		420				322				224				322
Income tax benefit		(2,570	)			(105	)			(2,975	)			(5,440	)
Non-cash rent expense		54				—				561				615
Depreciation & amortization expense		5,178				3,900				3,541				4,819
Non-cash compensation		2,132				1,648				1,554				2,038
Trailing twelve month consolidated EBITDA	$	5,102			$	4,184			$	(178	)		$	740
(1)  We have continued to utilize the calculation prescribed by our previous Credit Facility for period to period comparison.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will Saga Communications pay its declared quarterly dividend?

Saga will pay its $0.25-per-share quarterly cash dividend on December 11, 2026, to shareholders of record on November 23, 2026. The aggregate payment will be approximately $1.6 million.

What were Saga Communications' third-quarter 2026 earnings results?

Saga reported a $7.092 million net loss, or $1.11 per diluted share, compared with a $532 thousand loss, or $0.08 per share, a year earlier. Revenue decreased 5.4% to $26.7 million from $28.2 million.

Why did Saga Communications record an FCC license impairment in the third quarter of 2026?

Saga attributed the non-cash FCC license impairment to higher interest rates that increased the valuation discount rate, lower operating margins in its business and the industry, and reduced market revenue projections used in its fair-value calculations.

How did Saga Communications perform excluding its third-quarter 2026 impairment charge?

Excluding the impairment, Saga's third-quarter operating loss would have been $563 thousand, versus $626 thousand a year earlier. Net loss would have been approximately $240 thousand, or $0.03 per share, compared with a loss of $0.08 per share a year earlier. These figures exclude the non-cash charge and are not GAAP results.

How did Saga Communications' tower sale affect third-quarter 2026 results?

Adjusting for the tower sale, Saga's third-quarter revenue would have decreased 4.7%, while nine-month revenue would have decreased 5.1%. Excluding the associated non-cash rent expense, quarterly station operating expense would have decreased 2.3%. Saga retains long-term access to the sold assets with no cash expense.