Townsquare Media, Inc.TSQ
Townsquare Media, Inc. Segments Disclosure
Segment Information
Operating segments are organized internally by type of products and services provided. Based on the information reviewed by the Company's CEO in his capacity as Chief Operating Decision Maker ("CODM"), the Company has identified three segments: Subscription Digital Marketing Solutions, Digital Advertising and Broadcast Advertising. The remainder of our business is reported in the Other category.
The Company operates in one geographic area. The Company's assets and liabilities are managed within markets outside the top 50 across the United States where the Company conducts its business and are reported internally in the same manner as the Consolidated Financial Statements; thus, no additional information regarding assets and liabilities of the Company’s reportable segments is produced for the Company's CEO or included in these Consolidated Financial Statements. Intangible assets consist principally of FCC broadcast licenses and other definite-lived intangible assets and primarily support the Company’s Broadcast Advertising segment. For further information see Note 5, Goodwill and Other Intangible Assets, Net. The Company does not have any material inter-segment sales.
Segment profit is the primary measure the CODM utilizes in assessing segment performance and determining the allocation of resources. Segment Profit is defined as revenue less direct operating expenses, excluding depreciation, amortization, and stock-based compensation. The CODM is the primary individual in control of resource allocation, and the allocation determinations are made in consultation with each respective segment manager who is directly accountable to and maintains regular contact with the CODM to discuss operating activities, financial results, forecasts, or plans for the segment. The most significant allocation determinations made by the CODM pertain to account and sales support, capital spending and employee resource allocation. Segment profit is used to monitor budgeted versus actual results and is used in assessing performance of the segment and in establishing compensation. These determinations are made through regular reviews throughout the year, and on a weekly basis, the CODM considers actual results, as compared to budget and the prior period, when evaluating the allocation of resources.
Direct operating expenses represents our significant expense category and aligns with the segment level information that is regularly provided to the CODM. Segment profit excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the reportable segments' underlying operating performance, and primarily includes expenses related to corporate stewardship and administration activities, transaction related costs and non-cash impairment charges.
The following table presents the Company's reportable segment information, and includes the calculation of segment profit to operating income for the year ended December 31, 2025, (in thousands):
| Digital Advertising | Subscription Digital Marketing Solutions | Broadcast Advertising | Other | Corporate and Other Reconciling Items | Total | ||||||||||||||||||||||||||||||
| Net revenue | $ | 161,176 | $ | 74,843 | $ | 183,357 | $ | 8,004 | $ | — | $ | 427,380 | |||||||||||||||||||||||
| Direct operating expenses, excluding depreciation, amortization and stock-based compensation | 125,232 | 49,705 | 135,261 | 8,078 | — | 318,276 | |||||||||||||||||||||||||||||
| Segment Profit (Loss) | $ | 35,944 | $ | 25,138 | $ | 48,096 | $ | (74) | $ | — | $ | 109,104 | |||||||||||||||||||||||
| Depreciation and amortization | 876 | 2,030 | 10,142 | 93 | 5,267 | 18,408 | |||||||||||||||||||||||||||||
| Corporate expenses | — | — | — | — | 20,997 | 20,997 | |||||||||||||||||||||||||||||
| Stock-based compensation | 2,068 | 494 | 1,487 | 14 | 9,713 | 13,776 | |||||||||||||||||||||||||||||
| Transaction and business realignment costs | — | — | 797 | 23 | 10,830 | 11,650 | |||||||||||||||||||||||||||||
| Impairment of intangible assets, goodwill, investments and long-lived assets | 5,313 | — | 3,598 | — | — | 8,911 | |||||||||||||||||||||||||||||
| Net gain on sale and retirement of assets | — | — | (7,238) | — | (1,601) | (8,839) | |||||||||||||||||||||||||||||
| Operating income (loss) | $ | 27,687 | $ | 22,614 | $ | 39,310 | $ | (204) | $ | (45,206) | $ | 44,201 | |||||||||||||||||||||||
The following table presents the Company's reportable segment information, and includes the calculation of segment profit to operating income for the year ended December 31, 2024, (in thousands):
| Digital Advertising | Subscription Digital Marketing Solutions | Broadcast Advertising | Other | Corporate and Other Reconciling Items | Total | ||||||||||||||||||||||||||||||
| Net revenue | $ | 158,615 | $ | 75,343 | $ | 209,867 | $ | 7,157 | $ | — | $ | 450,982 | |||||||||||||||||||||||
| Direct operating expenses, excluding depreciation, amortization and stock-based compensation | 117,916 | 53,930 | 147,136 | 7,800 | — | 326,782 | |||||||||||||||||||||||||||||
| Segment Profit (Loss) | $ | 40,699 | $ | 21,413 | $ | 62,731 | $ | (643) | $ | — | $ | 124,200 | |||||||||||||||||||||||
| Depreciation and amortization | 954 | 2,424 | 11,060 | 122 | 5,107 | 19,667 | |||||||||||||||||||||||||||||
| Corporate expenses | — | — | — | — | 23,815 | 23,815 | |||||||||||||||||||||||||||||
| Stock-based compensation | 1,815 | 938 | 1,314 | 16 | 13,088 | 17,171 | |||||||||||||||||||||||||||||
| Transaction and business realignment costs | — | — | 511 | 23 | 4,371 | 4,905 | |||||||||||||||||||||||||||||
| Impairment of intangible assets, goodwill, investments and long-lived assets | 1,784 | — | 31,337 | 2,583 | 2,010 | 37,714 | |||||||||||||||||||||||||||||
| Net gain on sale and retirement of assets | — | — | (765) | — | — | (765) | |||||||||||||||||||||||||||||
| Operating income (loss) | $ | 36,146 | $ | 18,051 | $ | 19,274 | $ | (3,387) | $ | (48,391) | $ | 21,693 | |||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.