Saga Communications (Nasdaq: SGA) posts Q1 2026 revenue drop and higher net loss
Rhea-AI Filing Summary
Saga Communications, Inc. reported weaker results for the quarter ended March 31, 2026. Net operating revenue fell 5.6% to $22.9 million from $24.2 million, while station operating income dropped 62.0% to $0.9 million. The company posted an operating loss of $3.3 million and a net loss of $2.4 million, compared with losses of $2.3 million and $1.6 million a year earlier. Diluted loss per share widened to $0.38 from $0.25. Saga paid a quarterly dividend of $0.25 per share in March 2026 (about $1.6 million) and declared another $0.25 dividend with a record date of May 22, 2026 and payable June 12, 2026. Cash and short-term investments were $30.4 million as of March 31, 2026 and $27.8 million as of May 4, 2026. Trailing twelve month consolidated EBITDA, a non-GAAP measure, was $4.0 million, and the consolidated net leverage ratio was reported at (1.51), reflecting net cash.
Positive
- None.
Negative
- Net revenue and profitability weakened materially, with net operating revenue down 5.6% to $22.9 million, station operating income down 62.0% to $0.9 million, and net loss widening to $2.4 million (loss per share $0.38) for the quarter ended March 31, 2026.
Insights
Revenue declined and losses widened, but Saga maintains dividends and a net cash position.
Saga Communications saw net operating revenue decline 5.6% to $22.9M, with station operating income down 62.0% to $0.9M. Operating loss increased to $3.3M and net loss to $2.4M, indicating pressure on profitability despite only modest expense changes.
The company still returned cash to shareholders, paying and declaring quarterly dividends of $0.25 per share, totaling about $1.6M for the March payment. As of March 31, 2026, cash and short-term investments of $30.4M and trailing twelve month consolidated EBITDA of $4.0M support liquidity.
Saga reports a consolidated net leverage ratio of (1.51), showing debt fully offset by unrestricted cash. Future quarterly filings and calls, including the May 7, 2026 conference call, will help clarify whether revenue declines and higher losses persist or stabilize.
8-K Event Classification
Key Figures
Key Terms
station operating income financial
non-GAAP financial measures financial
trailing twelve month consolidated EBITDA financial
consolidated net leverage ratio financial
barter revenue financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
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Item 2.02.Results of Operations and Financial Condition.
On May 7, 2026, Saga Communications, Inc. issued a press release announcing its financial results for the three months ended March 31, 2026. The press release, dated May 7, 2026, is attached as Exhibit 99.1 to this Form 8-K.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01.Financial Statements and Exhibits.
(d) | Exhibits. |
99.1 | Press Release dated May 7, 2026. |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
INDEX OF EXHIBITS
Exhibit No. | Description |
99.1 | Press Release dated May 7, 2026. |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SAGA COMMUNICATIONS, INC. |
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Dated: May 7, 2026 | By: | /s/ Samuel D. Bush |
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| Samuel D. Bush |
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| Executive Vice President and Chief |
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| Financial Officer |
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Exhibit 99.1
Saga Communications, Inc.
Reports 1st Quarter 2026 Results
Contact:
Samuel D. Bush
(313) 886-7070
Grosse Pointe Farms, MI – May 7, 2026 – Saga Communications, Inc. (Nasdaq - SGA) (the “Company” or “Saga”) today reported that net revenue decreased 5.6% to $22.9 million for the quarter ended March 31, 2026 compared to $24.2 million for the same period last year. Station operating expense decreased 0.2% for the quarter to $22.0 million compared to the same period last year. For the quarter, we had an operating loss of $3.3 million compared to $2.3 million for the same quarter last year and station operating income (a non-GAAP financial measure) decreased 62.0% to $0.9 million. Capital expenditures were $0.8 million for the quarter compared to $0.7 million for the same period last year. We had a net loss of $2.4 million for the quarter compared to $1.6 million for the first quarter last year. Diluted loss per share was $0.38 in the first quarter of 2026.
The Company paid a quarterly dividend of $0.25 per share on March 20, 2026. The aggregate amount of the quarterly dividend was approximately $1.6 million. Simultaneous with this earnings release the Company issued a press release declaring a quarterly dividend of $0.25 per share with a record date of May 22, 2026 and a payable date of June 12, 2026. With payment of this most recent declaration Saga will have paid over $145 million in dividends to shareholders since the first special dividend was paid in 2012. The Company intends to pay regular quarterly cash dividends in the future.
The Company’s balance sheet reflects $30.4 million in cash and short-term investments as of March 31, 2026 and $27.8 million as of May 4, 2026. For the quarter ended March 31, 2026 the Company recorded capital expenditures of $780 thousand compared to $700 thousand for the same period last year. The Company expects to spend approximately $3.5 million on capital expenditures during 2026.
Saga’s 2026 First Quarter conference call will be held on Thursday, May 7, 2026 at 11:00 a.m. The dial-in number for the call is (973) 528-0008. Enter conference code 226287. 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. on May 7, 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, trailing 12-month consolidated EBITDA, and consolidated net leverage ratio. 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, as a primary measure for incentive-based compensation of executives and other members of management and as a measure of financial position. 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. 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 provides radio, digital, e-commerce, on-line news and non-traditional revenue initiatives. We provide services to national, regional and local advertisers to help them meet their growing advertising needs. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacom.com.
Saga Communications, Inc.
Selected Consolidated Financial Data
For the Three Months Ended
March 31, 2026 and 2025
(amounts in 000’s except per share data)
(Unaudited)
| | Three Months Ended |
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| | March 31, |
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| | 2026 | | 2025 | | ||
Operating Results | | | | | | | |
Net operating revenue | | $ | 22,867 | | $ | 24,212 | |
Station operating expense | |
| 22,012 | | | 21,963 | |
Corporate general and administrative | |
| 2,976 | | | 3,167 | |
Depreciation and amortization | | | 1,174 | | | 1,326 | |
Other operating (income) expense, net | | | (33) | | | 54 | |
Operating loss | |
| (3,262) | |
| (2,298) | |
Interest expense | |
| 91 | | | 107 | |
Interest income | |
| (234) | | | (222) | |
Other income | | | (55) | | | (23) | |
Loss before income tax expense | |
| (3,064) | |
| (2,160) | |
Income tax (benefit) expense | | | | | | | |
Current | | | 75 | | | (670) | |
Deferred | |
| (745) | | | 85 | |
| | | (670) | | | (585) | |
Net loss | | $ | (2,394) | | $ | (1,575) | |
| | | | | | | |
Loss per share: | | | | | | | |
Basic | | $ | (0.38) | | $ | (0.25) | |
Diluted | | $ | (0.38) | | $ | (0.25) | |
| | | | | | | |
Weighted average common shares | |
| 6,074 | | | 6,123 | |
Weighted average common and common equivalent shares | |
| 6,074 | | | 6,123 | |
| | | | | | | |
| | | | | | |
| March 31, | ||||
| | | | | | |
| 2026 | | 2025 | ||
Balance Sheet Data | | | | | | |
| | | | | |
Working capital | | | | | | | | $ | 30,742 | | $ | 28,838 |
Net fixed assets | | | | | | | | $ | 44,813 | | $ | 51,337 |
Net intangible assets and other assets | | | | | | | | $ | 105,463 | | $ | 122,362 |
Total assets | | | | | | | | $ | 198,030 | | $ | 219,305 |
Long-term debt | | | | | | | | $ | 5,000 | | $ | 5,000 |
Stockholders' equity | | | | | | | | $ | 148,312 | | $ | 163,560 |
Saga Communications, Inc.
Selected Consolidated Financial Data
Statement of Cash Flows
For the Three Months Ended
March 31, 2026 and 2025
(amounts in 000’s except per share data)
(Unaudited)
| | Three Months Ended |
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| | March 31, |
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| | 2026 | | 2025 | | ||
| | (Unaudited) |
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| | (In thousands) | | ||||
Cash flows from operating activities: | | | | | | | |
Net loss | | $ | (2,394) | | $ | (1,575) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | |
Depreciation and amortization | | | 1,174 | | | 1,326 | |
Deferred income tax (benefit) expense | | | (745) | | | 85 | |
Amortization of deferred costs | | | 8 | | | 8 | |
Compensation expense related to restricted stock awards | | | 518 | | | 527 | |
Provision for credit losses | | | 154 | | | 174 | |
(Gain) Loss on sale of assets, net | | | (33) | | | 54 | |
Gain on insurance claims | | | (55) | | | (23) | |
Non-cash rent expense | | | 55 | | | — | |
Barter revenue (net) | | | (7) | | | (64) | |
Deferred and other compensation | | | (18) | | | (17) | |
Changes in operating lease assets and liabilities (net) | | | (18) | | | (68) | |
Changes in assets and liabilities: | | | | | | | |
(Increase) decrease in current assets | | | 944 | | | 546 | |
(Decrease) increase in accounts payable, accrued expenses, and other liabilities | | | 824 | | | 391 | |
Total adjustments | | | 2,801 | | | 2,939 | |
Net cash provided by operating activities | | | 407 | | | 1,364 | |
Cash flows from investing activities: | | | | | | | |
Purchase of short-term investments | | | (4,677) | | | (4,498) | |
Redemption of short-term investments | | | 4,677 | | | 4,498 | |
Acquisition of property and equipment (Capital Expenditures) | |
| (779) | |
| (696) | |
Proceeds from sale and disposal of assets | | | 463 | | | — | |
Proceeds from insurance claims, redemption of investments and other | |
| 55 | | | 23 | |
Net cash used in investing activities | |
| (261) | |
| (673) | |
Cash flows from financing activities: | | | | | | | |
Cash dividends paid | |
| (1,585) | |
| (1,604) | |
Purchase of treasury shares | |
| (13) | |
| — | |
Net cash used in financing activities | |
| (1,598) | |
| (1,604) | |
Net decrease in cash and cash equivalents | |
| (1,452) | |
| (913) | |
Cash and cash equivalents, beginning of period | |
| 22,506 | |
| 18,860 | |
Cash and cash equivalents, end of period | | $ | 21,054 | | $ | 17,947 | |
Saga Communications, Inc.
Selected Supplemental Financial Data
Reconciliation of GAAP Operating Loss to Station Operating Income
(a non-GAAP financial measure)
For the Three Months Ended
March 31, 2026 and 2025
(amounts in 000’s)
(Unaudited)
| | Three Months Ended |
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| | March 31, |
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| | 2026 | | 2025 | | ||
Operating loss | | $ | (3,262) | | $ | (2,298) | |
Plus: | |
| | |
| | |
Corporate general and administrative | |
| 2,976 | |
| 3,167 | |
Other operating (income) expense, net | | | (33) | | | 54 | |
Depreciation and amortization | | | 1,174 | | | 1,326 | |
Station operating income | | $ | 855 | | $ | 2,249 | |
| | | | | | | |
Other financial data | | | | | | | |
Depreciation and amortization: | | | | | | | |
Radio Stations | | $ | 1,131 | | $ | 1,283 | |
Corporate | | $ | 43 | | $ | 43 | |
Compensation expense related to restricted stock awards (1) | | $ | 518 | | $ | 527 | |
Other operating (income) expense, net (2) | | $ | (33) | | $ | 54 | |
Other income, net (2) | | $ | (55) | | $ | (23) | |
Deferred income tax (benefit) expense (2) | | $ | (745) | | $ | 85 | |
Non-cash rent expense (1) | | $ | 55 | | $ | — | |
Acquisition of property and equipment (Capital Expenditures) (1) | | $ | 779 | | $ | 696 | |
| | | | | | | |
| (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”) and
Consolidated Net Leverage Ratio (non-GAAP financial measures)
March 31, 2026
(amounts in 000's)
(Unaudited)
| | | | | Less: | | Plus: | | Trailing |
| | |||
| | 12 Months Ended | | 3 Months Ended | | 3 Months Ended | | 12 Months Ended |
| | ||||
| | December 31, | | March 31, | | March 31, | | March 31, |
| | ||||
| | 2025 | | 2025 | | 2026 | | 2026 |
| | ||||
Net loss | | $ | (7,899) | | $ | (1,575) | | $ | (2,394) | | $ | (8,718) | | |
Exclusions: | |
| | |
| | |
| | |
| | | |
Gain (loss) on sale of assets, net | |
| 11,522 | |
| (54) | |
| 33 | |
| 11,609 | | |
Impairment of goodwill | |
| (19,229) | |
| — | |
| — | |
| (19,229) | | |
Impairment of intangible assets | | | (1,168) | | | — | | | — | | | (1,168) | | |
Other income, net | |
| 1,088 | |
| 309 | |
| 296 | |
| 1,075 | | |
Total exclusions | |
| (7,787) | |
| 255 | |
| 329 | |
| (7,713) | | |
Consolidated adjusted net loss (1) | |
| (112) | |
| (1,830) | |
| (2,723) | |
| (1,005) | | |
Plus: | | | | | | | | | | | | | | |
Interest expense | |
| 420 | |
| 107 | |
| 91 | |
| 404 | | |
Income tax (benefit) expense | |
| (2,570) | |
| (585) | |
| (670) | |
| (2,655) | | |
Non-cash lease charges | | | 54 | | | — | | | 55 | | | 109 | | |
Depreciation & amortization expense | |
| 5,178 | |
| 1,326 | |
| 1,174 | |
| 5,026 | | |
Non-cash compensation | |
| 2,132 | |
| 527 | |
| 518 | |
| 2,123 | | |
Trailing twelve month consolidated EBITDA (1) | | $ | 5,102 | | $ | (455) | | $ | (1,555) | | $ | 4,002 | | |
| | | | | | | | | | | | | | |
Total long-term debt, including current maturities | | | | |
| | |
| | | $ | 5,000 | | |
Less: Unrestricted cash in excess of $10,000,000 (1) | | | | | | | | | | | | (11,054) | | |
Debt net of unrestricted cash (1) | | | | | | | | | | | $ | (6,054) | | |
| | | | | | | | | | | | | | |
Divided by trailing twelve month consolidated EBITDA (1) | | | | |
| | |
| | | $ | 4,002 | | |
Consolidated net leverage ratio (1) | | | | |
| | |
| | |
| (1.51) | | |
| | | | | | | | | | | | | | |
| (1) | As defined in the Company's credit facility. |
FAQ
How did Saga Communications (SGA) perform financially in Q1 2026?
Saga Communications reported softer Q1 2026 results, with net revenue down 5.6% to $22.9 million and a net loss of $2.4 million. Operating loss was $3.3 million, and diluted loss per share widened to $0.38, compared with $0.25 a year earlier.
What happened to Saga Communications’ profitability compared to last year?
Profitability deteriorated year over year. Station operating income fell 62.0% to $0.9 million, while operating loss increased to $3.3 million. Net loss widened from $1.6 million to $2.4 million, and diluted loss per share moved from $0.25 to $0.38.
What dividends did Saga Communications (SGA) pay and declare in 2026?
Saga paid a quarterly dividend of $0.25 per share on March 20, 2026, totaling about $1.6 million. It also declared another $0.25 dividend with a record date of May 22, 2026 and a payable date of June 12, 2026.
What is Saga Communications’ cash and debt position as of March 31, 2026?
As of March 31, 2026, Saga held $30.4 million in cash and short-term investments and had long-term debt of $5.0 million. Its consolidated net leverage ratio was reported at (1.51), reflecting more unrestricted cash than debt outstanding.
What non-GAAP metrics does Saga Communications highlight in this release?
Saga highlights non-GAAP measures including station operating income, trailing twelve month consolidated EBITDA, and consolidated net leverage ratio. For the period ended March 31, 2026, trailing twelve month consolidated EBITDA was $4.0 million, with reconciliations provided in supplemental tables.
How did Saga Communications’ operating cash flow change in Q1 2026?
Net cash provided by operating activities was $0.4 million in Q1 2026, compared with $1.4 million in Q1 2025. This decline reflects the wider net loss and changes in working capital and non-cash adjustments detailed in the cash flow statement.