Urban One Cuts Gross Debt $60M, Acquires Dallas Firm as EBITDA Plunges
Urban One cut gross debt by $60 million to just over $300 million while projecting $40 million in free cash flow and closing its Service Broadcasting Dallas acquisition to boost scale. Consolidated revenue slid 15.8% year-over-year and adjusted EBITDA plunged 63.8% in Q1 2026.
1. Debt Reduction and Cash Flow Projections
Urban One repurchased $60 million of debt, lowering gross obligations to just over $300 million and saving $4.6 million in annual interest. The firm projects generating $40 million in free cash flow for 2026, bolstering liquidity and funding capacity.
2. Acquisition of Service Broadcasting
The company completed the acquisition of Service Broadcasting in Dallas to expand its reach within the African-American community, aiming to build a larger market cluster that will drive higher revenue scale and enhanced EBITDA contributions in a key geography.
3. Revenue and EBITDA Performance
In Q1 2026, consolidated revenue declined 15.8% year-over-year and adjusted EBITDA fell 63.8%. The radio segment saw national ad sales drop 8.2%, cable advertising revenue slid 24.9%, and digital revenue grew locally by 10.9% but overall digital sales fell 33.5%.
4. Asset Monetization Strategy
Management has listed land associated with AM towers through JLL and is evaluating offers to divest non-core real estate, aiming to monetize assets and further improve the balance sheet.