Urban One, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Urban One 2026 Second Quarter Earnings Call. As a reminder, this conference is being recorded. We will begin this call with the following safe harbor statement. During this conference call, Urban One will be sharing with you certain projections or other forward-looking statements regarding future events or its future performance. Urban One cautions you that certain factors, including risks and uncertainties referred to in the 10 Ks, 10 Qs, and other reports it periodically files, with the Securities and Exchange Commission could cause the company's actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of August 4th, 2026. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation. In this call, Urban One may also discuss some non-GAAP financial measures in talking about its performance. These measures will be reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www.urbanone.com. A replay of the conference call will be available from 2 o'clock p.m. Eastern Time, August 4th, 2026 until 1159 p.m. Eastern Time on Tuesday, August 11th, 2026. Callers may access the replay by calling 1-800-770-2030. International callers may dial direct 1-609-800-9909. The replay access code is 3701023. Access to live audio and a replay of the conference will also be available on Urban One's corporate website at www.urbanone.com. The replay will be made available on the website for seven days after the call. No other recordings or copies of this call are authorized or may be relied upon. I will now turn the call over to Alfred C. Liggins, Chief Executive Officer of Urban One, who is joined by Peter Thompson, Chief Financial Officer. Mr. Liggins, please go ahead.

Also joining us as usual is Jody Drew, our Chief Financial Officer of TV One, Chris Simpson, our General Counsel, and Karen Wishart, our Chief Administrative Officer. As you've seen in the press release and the results that have come out, We have seen sequential improvements over Q1, but still we are in a rate of decline, less decline than Q1. However, still a tough first half of the year. We are expecting and many more. We are hopeful because of competitive races in Ohio, Texas, Georgia, North Carolina and Indiana. During the quarter we have continued to reduce our leverage with market repurchases of our debt An average price of approximately 42 cents on the dollar. That's about a $60.2 million long-term debt reduction and an annual interest savings of $4.6 million. and the first half of the year, we have decided to adjust our guidance down from 60 to the mid-50s, even though we still don't know exactly where politicals are going to come out. And also, we closed on our Dallas acquisition. I believe that was August 17th. And that's off to a good start, and that's going to contribute significantly to the last five and a half months. There's potential upside there, but still out of an abundance of caution and trying to be more accurately elected to bring the guy down. That could change, but at this point in time, we're saying mid-50s. I'm going to turn it over to Peter to go into the details of the numbers, and then we can open it up for Q&A. Peter?

Thanks, Alfred. So consolidated net revenues for three months under June 30th, 26 was approximately $85.8 million, which was a 6.4% decrease year over year. Net revenue for the radio broadcasting segment was $35.3 million, a decrease of 3.9% year over year. Excluding political, net revenue for radio was down 6.6% year over year. According to Miller Kaplan, our local ad sales were down 10.1% against the market that was down 7.8%. And our national advertising sales were down 1.5% against the market that was down 4.6%. So we outperformed on national and underperformed a little on local. Our largest ad category was services, which was down approximately 0.7%, primarily due to legal services. Government public category was up 14.5% as a result of political spending. And telecommunications category was up 16.9%. All the other major categories were down in the quarter. Net revenue for each media was $4.8 million in the same quarter, applying a 10.6% from the prior year. and Justin Ebedar, which was a loss of $1 million. And we just continued to see declines in network revenue available for us to participate in. Net revenue for digital segments down 8.4% at $9.4 million. Decrease was driven by the decrease in national direct revenue streams as a result of reductions in DEI-focused spending. and a lot of clients spending in general due to microeconomic concerns. We recognized approximately $37.1 million of revenue from our cable television segment during the quarter, a decrease of 7.4%. Cable television advertising sales were down 9.6%. We had strong competition from the NBA playoffs, and that contributed to prime delivery declines of 21% year-over-year for persons 25 to 54. and this along with a continued weak scatter market led to more commercial units continuing to be allocated to direct response at lower average unit rates. Cable television affiliate revenue was down by 4.5% driven by subscriber churn as linear cable continues to decline and that was partially offset by an increase in subscriber rates. Traditional linear cable TV subscribers at TV1 as measured by Nielsen finished Q2 at 27.3 million compared to 34.3 million at the end of Q2 2025. Inclusive of virtual subscribers, TV1 finished with 30.5 million Nielsen subscribers compared to 35.4 million in the second quarter of 2025. Declined obviously being driven by linear Churn, Clio TV, and 27.2 million traditional linear Nielsen subs, and 31.1 million inclusive of virtual subscribers. Through the first four weeks of Q3 2026, TV1 is up by 4% in prime, persons 25, 54, delivering, compared to Q2 2026, and only down 3% compared to Q3 2025. Operating expenses, excluding depreciation, amortization, stock-based compensation, and impairment charges, were approximately $75 million for the three months, compared to approximately $78.1 million for the comparable period in 2025. This decrease was mainly driven by sales and marketing expense decreases in the operating segments. Radio expenses were down by 1.6%, or half a million dollars. driven primarily by lower revenue and lower bad debt reserves, so lower expenses connected to revenue, sales, commission, etc. Reach operating expenses were down 17% or $1.2 million primarily due to lower bad debt reserves. Operating expenses in the digital segment were down 8.7% driven by a decrease in traffic acquisition costs, commissions, headcount savings, and bad debt reserves. Operating expenses in the cable television segment were up 4.1%, driven by a combination of programming expenses and accounting for new executive agreements at TV1. Operating expenses in corporate were down by approximately 16.7%, driven by low professional service fees and other compensation-related costs. Consolidated adjusted EBITDA was $11.7 million, down 16%. Solidated broadcast and digital operating income was approximately $22.2 million, a decrease of 13.7% year-over-year. Interest expense in the P&L was down to approximately $2.1 million, down from $9.7 million last year. It's reflecting the debt repurchase accounting and lower effective interest rates under the troubled debt restructuring rules. We made cash interest payments of approximately $5 million during the quarter. The semiannual cash interest payment for the 2030 and 2031 notes was made on April 1st, and the next payment is due on October 1st for the full 180 days of accrued interest, which is approximately $12.1 million. During the three months ended June 30th, we repurchased approximately $23.5 million of our 2031 second lien notes at a weighted average price of $42. Thank you very much. which amortizes over the remaining term and we've separated that out in the press release so you can see what that is. We drew an additional $10 million in the second quarter under the asset-backed facility which resulted in total outstanding balance there of $20 million. We made a further additional draw of $7 million during the quarter and then we just repaid this week $5 million in the third quarter. So we're at $22 million drawn there, and we have current borrowing capacity of an incremental $24.1 million. We recognize approximately $13.9 million of goodwill impairment charge and approximately $300,000 of long-lived asset impairment charges related to REACH media. We recorded depreciation and amortization expense of approximately $6.2 million. which includes $4.4 million of amortization for the radio broadcasting license and TV1 trade name. Benefit from income taxes was approximately $1.7 million. We paid cash taxes, net of refunds in the amount of approximately $500,000 and capital expenditures for the quarter were approximately $1.7 million. Net loss was approximately $7 million or $1.58 per share. compared to a net loss of $77.9 million or $17.41 per share for the second quarter of 2025. During the three months, we did not repurchase any shares of Class A common stock and we repurchased 129,543 shares of Class D common stock for approximately $600,000 at an average price of $4.50. That was under the annual repurchase program for employee stock. We also executed stock-vest tax repurchases of 145,513 shares of Class D common stock, which is approximately $700,000, an average price of $4.52 during the quarter. As of June 30th, the current contract's outstanding debt balance was approximately $323.2 million, including the ABL draw. ended unrestricted cash was $15.4 million, resulting in net death of approximately $307.9 million, compared to $46.2 million of LTM reports of adjusted EBITDA. The total leverage ratio of 6.66 times. As we previously announced in March, we agreed to sell WMXG and WLNK radio Broadcast Licenses in Charlotte, North Carolina to unrelated third parties for approximately $0.7 million and $4.2 million, respectively. We completed both sales on June 1, 2026 and recognized a gain of $4.7 million. In April, we entered into an agreement to acquire Service Broadcasting Group in Dallas, Texas. including radio stations KKDA and KRNB for $22 million. At the same time, we also entered into an agreement to sell radio station KZMJ to Fusion Dallas LLC for $6 million. We completed on the sale of KZMJ on July 6th and recognized a gain of $3.2 million in the third quarter. We also completed the acquisition of Service Broadcasting Group on July 17, 2026. With that, I'll hand back to Alfred. Thank you, Peter.