Sidoti Highlights H1 Capital Structure Improvements at TNL Mediagene (NASDAQ: TNMG) in Update Note

Rhea-AI Summary

TNL Mediagene (NASDAQ: TNMG) highlighted capital-structure improvements in H1 2025 after a Sidoti update note. Key facts: debt reduced by $5.0M in 1H:25, cash on the balance sheet was $1.6M at the H1 close and $1.8M at the end of September, and the convertible note overhang was reduced to roughly $300,000. Sidoti says lower convertible exposure should cut conversion-driven selling and volatility, giving management more freedom for capital deployment and refocusing investor attention on operations.

Sidoti expects stability to support a return to M&A activity, targeting about two acquisitions per year as management pursues organic growth alongside potential deals.

Positive

• Outstanding debt cut by $5.0 million in 1H 2025
• Cash balance increased to $1.8 million by end-September
• Convertible overhang reduced to ~$300,000, lowering dilution risk

Negative

• Company carries a relatively small cash cushion of $1.8 million

Insights

Equity capital-structure analyst

Balance-sheet repairs cut debt, shrank convertible overhang and should reduce dilution pressure.

TNL Mediagene reduced outstanding debt by $5 million in H1 2025 and reported $1.6 million in cash at that period-end, rising to $1.8 million at the end of September, while the convertible note overhang fell to roughly $300,000. These moves directly tighten the company’s capital structure by lowering leverage and reducing the quantity of convertible securities that can force shares into the market.

Dependencies and risks remain clear: the analysis depends on the continued absence of new dilutive financings and on management executing operational plans; if new debt or convertibles reappear, the current relief would reverse. The reduced convertible balance should lower conversion-driven selling, but operating execution must follow for market confidence to sustain the improvement.

Watch concrete, monitorable items over the coming quarters: the reported $1.8 million cash level at end-September, any changes to the convertible note balance (~$300,000), and explicit progress toward the stated acquisition cadence of two deals per year. These items will indicate whether improved capital structure translates into sustained stability and resumed M&A activity.

TOKYO, Oct. 14, 2025 /PRNewswire/ -- TNL Mediagene (Nasdaq: TNMG) (the "Company"), a Tokyo-based next-generation digital media and data group in Asia, today announced that Sidoti & Company, LLC ("Sidoti") has published an update note highlighting improvements achieved at the Company in H1 2025.

"The balance sheet improved as TNMG reduced outstanding debt by $5 million in 1H:25 and ended with $1.6 million in cash on its balance sheet. At the end of September, cash on the balance sheet measured $1.8 million. The convertible note overhang has been reduced to roughly $300,000. We expect dilution risk to fall and conversion driven selling to abate, which should stabilize trading and give management greater freedom in capital deployment. We view the convertible note as the main source of recent volatility. With the balance reduced to roughly $300,000, dilution pressure and conversion driven selling should fade. A cleaner capital structure, together with period debt reduction and available cash, should sharpen investor focus on operating execution and support the eventual resumption of M&A while management continues to pursue organic growth initiatives. As stability returns, we expect the company to work back toward two acquisitions per year, consistent with the stated strategy," Sidoti analyst Daniel Harriman wrote.

Sidoti initiated research coverage of the Company in July this year.

The report, including disclosures, can be found here.

Important Note Regarding Analyst Reports

Please note that any opinions, estimates or forecasts regarding TNL Mediagene's performance made by research analysts, including Sidoti, are theirs alone and do not represent opinions, forecasts or predictions of TNL Mediagene or its management. TNL Mediagene does not by its reference or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

About Sidoti & Company

Sidoti & Company is a financial services firm specializing in independent equity research for small-cap and micro-cap companies, providing services like equity research, sales efforts, investor conferences, and corporate access to over 500 institutional clients. Founded over two decades ago, the firm is registered with FINRA and the SEC, with an emphasis on providing visibility and market efficiency for companies with market capitalizations between $50 million and $5 billion. Sidoti also operates a Company Sponsored Research (CSR) program and has launched Lighthouse Equity Research to serve specific company needs. Sidoti & Company initiated research coverage on the Company in a report published on July 2, 2025. The report was disseminated to customers of Sidoti & Company and a link to a copy of the report is available here: https://www.sidoti.com/tnmg

About TNL Mediagene

Headquartered in Tokyo, TNL Mediagene was formed in May 2023 through the merger of Taiwan's The News Lens Co., Ltd. and Japan's Mediagene Inc., two of the region's leading independent digital media groups. The company's operations span original and licensed media brands in Japanese, Chinese, and English, covering topics such as news, business, technology, science, food, sports, and lifestyle. It also offers AI-driven advertising services, marketing technology platforms, e-commerce, and innovative solutions tailored to the needs of advertising agencies. Known for its political neutrality, appeal to younger audiences, and high-quality content, TNL Mediagene has approximately 500 employees across Asia, with offices in Japan, Taiwan, and Hong Kong.

https://www.tnlmediagene.com/

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on beliefs and assumptions and on information currently available to TNL Mediagene. Forward-looking statements generally relate to future events or TNL Mediagene's future financial or operating performance. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "target," "seek" or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Forward-looking statements in this communication include, but are not limited to, statements about TNL Mediagene's future business plan and growth strategies and statements by TNL Mediagene's management. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including strategies or plans, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for TNL Mediagene to predict these events or how they may affect TNL Mediagene. In addition, risks and uncertainties are described in TNL Mediagene's filings with the Securities and Exchange Commission. These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. TNL Mediagene cannot assure you that the forward-looking statements in this communication will prove to be accurate. There may be additional risks that TNL Mediagene presently does not know or that TNL Mediagene currently does not believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by TNL Mediagene, its directors, officers or employees or any other person. Except as required by applicable law, TNL Mediagene does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date of this communication. You should, therefore, not rely on these forward-looking statements as representing the views of TNL Mediagene as of any date subsequent to the date of this communication.

View original content to download multimedia:https://www.prnewswire.com/news-releases/sidoti-highlights-h1-capital-structure-improvements-at-tnl-mediagene-nasdaq-tnmg-in-update-note-302583210.html

SOURCE TNL Mediagene

FAQ

How much debt did TNL Mediagene (NASDAQ: TNMG) reduce in H1 2025?

TNL Mediagene reduced outstanding debt by $5.0 million in 1H 2025.

What was TNL Mediagene's cash on hand at the end of September 2025?

Cash on the balance sheet measured $1.8 million at the end of September 2025.

How large is the convertible note overhang for TNMG after the reduction?

The convertible note overhang was reduced to roughly $300,000.

What does Sidoti say the convertible reduction means for TNMG shareholders?

Sidoti expects dilution risk to fall and conversion-driven selling to abate, which should stabilize trading.

Will TNL Mediagene resume acquisitions after H1 2025 improvements?

Sidoti expects the company to work back toward two acquisitions per year as stability returns.

Where can investors find Sidoti's coverage of TNL Mediagene (TNMG) initiated in July 2025?

Sidoti's report and disclosures are available through the firm's published research link referenced by the company.