2026 Second Quarter
Filed Aug 13, 2026Saga Communications, Inc. reported second-quarter net revenue of $26.4 million, down 6.5%, while station operating income decreased 50.6% to $3.0 million.
Quarterly revenue declined 6.5%, station operating expense increased 5.4%, operating income fell to $623 thousand from $1.4 million, and station operating income decreased 50.6% to $3.0 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net operating revenue, three months ended June 30GAAP | $ 26,402 | – | decreased 6.5% |
| Station operating expense, three months ended June 30GAAP | $ 23,436 | – | increased 5.4% |
| Corporate general and administrative, three months ended June 30GAAP | $ 2,676 | – | – |
| Depreciation and amortization, three months ended June 30GAAP | $ 1,184 | – | – |
| (Gain) loss on sale of assets, net, three months ended June 30GAAP | $ (1,517) | – | – |
| Operating income, three months ended June 30GAAP | $ 623 | – | – |
| Interest expense, three months ended June 30GAAP | $ 92 | – | – |
| Interest income, three months ended June 30GAAP | $ (578) | – | – |
| Income before income tax expense, three months ended June 30GAAP | $ 1,110 | – | – |
| Income tax expense, three months ended June 30GAAP | $ 150 | – | – |
| Net income, three months ended June 30GAAP | $ 960 | – | – |
| Diluted earnings per share, three months ended June 30GAAP | $ 0.15 | – | – |
| Station operating income, three months ended June 30non-GAAP | $ 2,966 | – | decreased 50.6% |
| Capital expenditures, three months ended June 30other | $ 1,262 | – | comparable to the same period last year |
| Net operating revenue, six months ended June 30GAAP | $ 49,269 | – | decreased 6.0% |
| Station operating expense, six months ended June 30GAAP | $ 45,448 | – | increased 2.8% |
| Operating loss, six months ended June 30GAAP | $ (2,639) | – | – |
| Net loss, six months ended June 30GAAP | $ (1,434) | – | – |
| Diluted loss per share, six months ended June 30GAAP | $ (0.23) | – | – |
| Station operating income, six months ended June 30non-GAAP | $ 3,821 | – | decreased 53.7% |
| Net cash used in operating activities, six months ended June 30GAAP | $ (1,277) | – | – |
| Net cash provided by investing activities, six months ended June 30GAAP | $ 338 | – | – |
| Net cash used in financing activities, six months ended June 30GAAP | $ (3,189) | – | – |
| Cash and cash equivalents, June 30GAAP | $ 18,378 | – | – |
| Trailing twelve month consolidated EBITDA, June 30non-GAAP | $ 1,696 | – | – |
2026 outlook
- NoteThe Company expects to spend approximately $3.0 – $3.5 million for capital expenditures during 2026.
- NoteThe Company expects to report approximately $154 thousand per quarter of non-cash rent expense as a part of station operating expense for the term of the lease agreements.
- Note$127 thousand per quarter of non-cash interest income in 2026.
- NoteThe Company intends to pay regular quarterly cash dividends in the future.
Capital returns
- The Company paid a quarterly dividend of $0.25 per share on June 12, 2026.
- The aggregate amount of the quarterly dividend was approximately $1.6 million.
- Cash dividends paid were $ (3,176) for the six months ended June 30, 2026, compared to $ (3,215) for the six months ended June 30, 2025.
- Purchase of treasury shares was $ (13) for the six months ended June 30, 2026.
- To date Saga has paid over $145 million in dividends to shareholders since the first special dividend was paid in 2012.
What drove it
- Net revenue decreased 6.5% to $26.4 million for the quarter ended June 30, 2026.
- Station operating expense increased 5.4% for the quarter, or 3.9% excluding non-cash rent expense.
- The Company recorded $352 thousand in non-cash rent expense in the quarter, including $154 thousand for the quarter ended June 30, 2026 and $99 thousand for each of the quarters ended March 31, 2026 and December 31, 2025.
- The Company recorded $381 thousand in non-cash interest income in the quarter, including $127 thousand for each of the quarters ended June 30, 2026, March 31, 2026 and December 31, 2025.
- A $ (1,517) gain on sale of assets, net, was recorded during the three months ended June 30, 2026.
Concerns
- Net revenue decreased 6.0% to $49.3 million for the six-month period ended June 30, 2026.
- The Company reported an operating loss of $2.6 million for the six-month period, compared to $889 thousand for the same period last year.
- Station operating income decreased 53.7% to $3.8 million for the six-month period.
- Net cash used in operating activities was $ (1,277) for the six months ended June 30, 2026, compared to net cash provided by operating activities of $ 2,119 for the prior-year period.
- Net intangible assets and other assets were $ 105,930 as of June 30, 2026, compared to $ 122,118 as of June 30, 2025.
What to watch
- Whether net revenue continues to decline following the 6.5% second-quarter decrease.
- Station operating expense, including the expected approximately $154 thousand per quarter of non-cash rent expense.
- The expected $127 thousand per quarter of non-cash interest income in 2026, which the Company stated will change annually and reduce to a nominal value at the end of the full lease term.
- Capital expenditures against the Company's expectation to spend approximately $3.0 – $3.5 million during 2026.
- Cash and short-term investments following repayment in full of the $5.0 million revolving credit facility balance.
Balance sheet and cash flow
- The balance sheet reflected $27.8 million in cash and short-term investments as of June 30, 2026.
- As of August 10, 2026, the Company had $22.9 million in cash and short-term investments.
- The decrease was primarily due to repayment in full of the $5.0 million outstanding under the revolving credit facility.
- Long-term debt, including current portion of $5,000, was $ 5,000 as of June 30, 2026, compared to $ 5,000 as of June 30, 2025.
- Working capital was $ 25,592 as of June 30, 2026, compared to $ 29,054 as of June 30, 2025.
- Total assets were $ 196,807 as of June 30, 2026, compared to $ 218,873 as of June 30, 2025.
- Stockholders' equity was $ 148,229 as of June 30, 2026, compared to $ 163,680 as of June 30, 2025.
- Capital expenditures were $ 2,041 for the six months ended June 30, 2026, compared to $ 2,010 for the six months ended June 30, 2025.
- Net decrease in cash and cash equivalents was $ (4,128) for the six months ended June 30, 2026, compared to $ (3,069) for the six months ended June 30, 2025.
Analysis
Saga reported a weaker second quarter, with net operating revenue of $ 26,402 versus $ 28,229 in the prior-year period. Station operating expense increased to $ 23,436 from $ 22,226, and the release states that expense increased 5.4%, or 3.9% excluding non-cash rent expense. Against lower revenue and higher station expense, operating income declined to $ 623 from $ 1,409 and non-GAAP station operating income declined to $ 2,966 from $ 6,003.
Profitability benefited from a $ (1,517) gain on sale of assets, net, and from interest income of $ (578), compared with $ (210) in the prior-year quarter. The Company also recorded $381 thousand in non-cash interest income during the quarter. Even with these items, net income was $ 960, compared with $ 1,128, and diluted earnings per share were $ 0.15, compared with $ 0.18.
The six-month results show continued pressure. Net operating revenue was $ 49,269 versus $ 52,441, while station operating expense rose to $ 45,448 from $ 44,189. The Company reported an operating loss of $ (2,639), a net loss of $ (1,434), and station operating income of $ 3,821, compared with $ (889), $ (447), and $ 8,252, respectively, in the prior-year period. Net cash used in operating activities was $ (1,277), compared with net cash provided by operating activities of $ 2,119 in the prior-year period.
Capital spending was $ 1,262 for the quarter and $ 2,041 for the six-month period. The Company paid a $0.25 per share quarterly dividend on June 12, 2026, with an aggregate amount of approximately $1.6 million, and cash dividends paid were $ (3,176) for the six-month period. Cash and short-term investments were $27.8 million as of June 30, 2026 and $22.9 million as of August 10, 2026, with the decrease primarily attributed to repayment in full of the $5.0 million revolving credit facility balance.
Management expects approximately $3.0 – $3.5 million of capital expenditures during 2026. The release also identifies recurring accounting effects from the amended tower transaction, including expected approximately $154 thousand per quarter of non-cash rent expense and $127 thousand per quarter of non-cash interest income in 2026. The principal figures to monitor are revenue direction, expense growth relative to revenue, station operating income, operating cash flow, capital spending, and liquidity after the revolving credit facility repayment.
Not in the filing
stated, not guessed- Revenue by operating segment or market
- Gross profit and gross margin
- Non-GAAP earnings per share
- Quarterly operating cash flow
- Free cash flow
- Revenue guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Prior-quarter comparisons for reported operating metrics
- Previous-quarter outlook for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.