Breaking Down Beasley Broadcast Group, Inc. (BBGI) Financial Health: Key Insights for Investors

You're looking at Beasley Broadcast Group, Inc. (BBGI) and asking the right question: is their digital transformation fast enough to outrun the steep decline in traditional radio advertising? Honestly, the third quarter 2025 results show a company in a tough, high-stakes race, which is why we need to dig into the financials right now. The top-line pressure is real, with net revenue dropping 12.4% year-over-year to $51.0 million in Q3 2025, but the digital side is defintely showing promise, climbing 14.6% to $13.0 million and now accounting for 25% of total revenue. Still, that digital growth isn't enough yet to stop the bleeding; the company booked a net loss of around $3.6 million for the quarter, and that's before you even factor in the significant burden of their $220 million in total principal debt from Q1. This is a story of disciplined cost-cutting-they've slashed $15 million in year-to-date expenses-but the core challenge remains a structural one. We need to look closely at their cash flow and debt maturity schedule, because a digital pivot on a tight balance sheet is a high-wire act.

Revenue Analysis

You're looking at Beasley Broadcast Group, Inc. (BBGI) and wondering where the money is actually coming from, especially as the traditional radio business faces headwinds. The direct takeaway is this: traditional advertising revenue is shrinking, but the company is making a clear, strategic pivot to digital, which is showing strong growth. This shift is defintely a necessary move for long-term viability.

For the third quarter of the 2025 fiscal year, Beasley Broadcast Group reported net revenue of approximately $51.0 million. That's a serious drop, reflecting a 12.4% decrease year-over-year from the same quarter in 2024. Here's the quick math on the core segments, which shows you the two-speed nature of their business right now.

• Audio/Traditional: The core radio advertising business remains the largest segment, but it's the primary source of the revenue decline, driven by softness in the traditional agency advertising market.
• Digital: This segment is the clear growth engine, with revenue increasing by 14.6% year-over-year.
• Local Direct Sales: A key counter-balance to the agency decline, this segment, often bundled with digital packages, remains a significant contributor.

The breakdown of revenue contribution shows where the company is today versus where it needs to be. The traditional audio segment still accounts for the majority, but the digital piece is becoming too big to ignore. It's a classic legacy media story: the old business is contracting, but a smaller, higher-margin new business is expanding.

What this table hides is the strategic shift. Digital revenue hit $13.0 million and now accounts for a full 25% of net revenue, up from a lower percentage in the prior year. That's a massive jump in mix. The company is actively moving away from the national agency-driven business-which is notoriously volatile-toward more scalable, high-margin owned-and-operated digital revenue and local direct sales.

This pivot is the single most important factor for investors to track. For example, the digital segment's operating margin was a healthy 21%, which is a sign of operational discipline. Still, the overall revenue decline of 12.4% shows that the digital growth isn't yet big enough to offset the decay in the traditional radio ad market. The company is also streamlining its portfolio, like closing the sale of WPBB-FM for $8.0 million, to strengthen its balance sheet, which is a clear action to manage the transition. You can dive deeper into the full analysis in Breaking Down Beasley Broadcast Group, Inc. (BBGI) Financial Health: Key Insights for Investors.

Profitability Metrics

You need to know if Beasley Broadcast Group, Inc. (BBGI) is making money and how efficiently it's operating, especially as the industry shifts. The direct takeaway is that while the company's overall profitability remains challenged by a decline in traditional advertising, an aggressive pivot to digital is driving strong, high-margin growth in that segment, which is a critical long-term opportunity.

For the trailing twelve months (TTM) ended June 30, 2025, Beasley Broadcast Group, Inc. showed a 4.68% Operating Margin on revenue of $227.39 million. This margin is thin, and the company recorded a TTM Net Profit Margin of -3.72%, reflecting a net loss of $8.46 million. The good news? Management is aggressively cutting costs and the higher-margin digital business is expanding.

Here's the quick math on core profitability ratios compared to the broader Radio and Television Broadcasting and Communications Equipment industry (SIC 3663):

What this estimate hides is the structural change happening inside the company. Traditional radio has high fixed costs, which is why a revenue decline hits the bottom line hard. The company's overall gross profit margin isn't explicitly reported, but the nature of broadcasting is a high-margin business before factoring in selling, general, and administrative (SG&A) expenses. The industry average Gross Margin is around 37.1%, but the real story is in the digital segment.

Operational Efficiency and Digital Pivot

The company is defintely focused on cost management to offset revenue headwinds. In the second quarter of 2025, total net revenue declined by 12.3% year-over-year, yet the company still reported an Operating Income of $2.9 million. This is a clear sign of disciplined expense management, including $15 million in year-to-date expense reductions highlighted in the Q3 2025 report.

The operational efficiency gains are most evident in the digital segment, which is where the future opportunity lies:

• Digital revenue accounted for 25% of total net revenue in Q3 2025.
• The digital segment's operating margin expanded to 21% on a total company basis in Q3 2025.
• On a same-station basis, the digital segment operating margin was an impressive 28% in Q3 2025.

This expansion in the digital operating margin-from a low base-is a strong indicator of operational leverage (operating leverage is the relationship between a company's fixed and variable costs, meaning revenue growth can lead to faster profit growth). The traditional business is contracting, but the profit quality of the growing digital business is very high. The near-term risk is clear: the company recorded an Operating Loss of approximately $0.3 million in Q3 2025, and a Net Loss of approximately $3.6 million. The pivot needs to accelerate to outrun the decline in traditional audio advertising. This is a turnaround story, not a steady-state investment. For a deeper look at the balance sheet and strategic moves, check out the full post on Breaking Down Beasley Broadcast Group, Inc. (BBGI) Financial Health: Key Insights for Investors.

Next step: Dig into the company's debt structure and liquidity to ensure the cost cuts and digital growth can sustain the business until the pivot is complete.

Debt vs. Equity Structure

You're looking at Beasley Broadcast Group, Inc. (BBGI)'s balance sheet, and the first thing that jumps out is the heavy reliance on debt to run the business. This isn't unusual for capital-intensive media companies, but the sheer size of the debt load relative to shareholder equity is a clear risk factor you need to map out.

As of the second quarter of 2025, Beasley Broadcast Group, Inc.'s total debt stood at approximately $287.21 million, with total shareholder equity sitting around $141.0 million. That's a lot of leverage, and it's defintely something to watch.

Here's a quick look at the core financial leverage metrics from the 2025 fiscal year data:

The debt-to-equity (D/E) ratio is the clearest signal here. At 1.96 (or 196%), it means the company has nearly two dollars of debt for every dollar of shareholder equity. When you compare this to the broader Broadcasting industry average of about 1.23, Beasley Broadcast Group, Inc. is operating with significantly higher financial leverage than its peers. This high ratio means the company is more sensitive to interest rate hikes and economic downturns, plus it makes future borrowing more expensive.

The bulk of this is long-term debt, which is common in this sector since radio licenses and infrastructure are long-lived assets. The challenge is that a high D/E ratio, especially one that has been rising, suggests the company has been funding its operations and strategic shifts-like its push into digital-more through borrowing than through retained earnings or new equity issuance. Exploring Beasley Broadcast Group, Inc. (BBGI) Investor Profile: Who's Buying and Why?

The company has been actively managing this debt, which is a positive sign of financial discipline. In late 2024, they executed a key debt restructuring that demonstrates this balancing act between debt and equity funding:

• Purchased $68.0 million of their existing 8.625% Senior Secured Notes due 2026 via a Tender Offer.
• Issued $30.9 million of new 11.000% Superpriority Senior Secured Notes due 2028.

This move pushed out a maturity date and reduced the total principal amount of debt, but it also came with a higher interest rate on the new notes (11.000%), reflecting the current cost of capital for a highly leveraged business. This is the trade-off of debt financing: it avoids diluting shareholders with new stock, but it raises the interest expense, which totaled $3.3 million in Q3 2025. The company is clearly prioritizing debt management and cost reductions, targeting $25 million to $30 million in expense reductions in 2025.

Action Item: Finance should model the impact of a 100 basis point (1.0%) rise in the cost of debt on the Q4 2025 interest expense to stress-test the current capital structure by the end of the week.

Liquidity and Solvency

You're looking at Beasley Broadcast Group, Inc. (BBGI)'s short-term financial health, and honestly, the picture is tight. Liquidity-the ability to meet near-term obligations-is technically solvent, but it relies heavily on non-operational cash injections. The core issue is that the company's operations are consuming cash, which forces management to rely on asset sales to pad the balance sheet.

Here's the quick math on their short-term position as of the end of Q3 2025:

• Current Ratio: The ratio of Current Assets to Current Liabilities stands at approximately 1.15 ($69.4 million / $60.4 million).
• Quick Ratio (Acid-Test): Given the negligible inventory in a media company, the Quick Ratio is essentially the same, at about 1.15.

A ratio just above 1.0 means that for every dollar of short-term debt, Beasley Broadcast Group, Inc. has $1.15 in assets that can be converted to cash within a year. This is a thin margin, not a comfortable buffer. You defintely want to see a higher number here, ideally closer to 1.5 or 2.0, to weather unexpected dips in advertising revenue.

Working Capital and Cash Flow Trends

The working capital trend is the real red flag. Working capital (Current Assets minus Current Liabilities) plummeted to roughly $9.0 million at the close of Q3 2025, representing a significant drop from the end of 2024. This contraction signals increasing pressure on the company's ability to fund its day-to-day operations without stress.

The cash flow statement overview for the nine months ended September 30, 2025, confirms this operational strain:

The negative net cash used in operating activities, at $5.31 million year-to-date, is the clearest indicator of fundamental operational stress. This means the core radio and digital business is not generating enough cash to cover its own expenses. To stabilize the cash position of $14.3 million, the company had to rely on proceeds from strategic asset divestitures, such as the $8.0 million sale of WPBB-FM that closed in Q3 2025. This is a triage strategy, not a sustainable business model. For a deeper dive into who is betting on this turnaround, you should read Exploring Beasley Broadcast Group, Inc. (BBGI) Investor Profile: Who's Buying and Why?

Potential Liquidity Concerns

The primary liquidity concern is the reliance on asset sales to offset the operating cash burn and service the massive long-term debt load of approximately $239.966 million. The Q3 interest expense alone was $3.3 million. If the planned sales of the Fort Myers market assets are delayed or fall through, or if the digital growth-which is strong at a 28% same-station growth rate in Q3 2025-doesn't accelerate fast enough to turn the operating cash flow positive, the company will face a significant liquidity crunch. Their short-term assets cover their short-term liabilities, but they do not cover the long-term liabilities, which is why the asset sales are so crucial right now.

Valuation Analysis

You're looking at Beasley Broadcast Group, Inc. (BBGI) and wondering if the market has it right. The direct takeaway is that, based on traditional metrics, the stock appears undervalued on a Price-to-Book basis, but its negative earnings and high Enterprise Value-to-EBITDA (EV/EBITDA) ratio signal significant operational risks. The market is pricing in distress, not growth.

The stock price trend over the last 12 months tells a clear story of decline. As of November 2025, Beasley Broadcast Group, Inc. was trading around $4.00 per share, representing a sharp drop of -52.38% over the past year. This steep fall, from a 52-week high of $10.42 to a low of $3.67, reflects investor concern over the company's revenue challenges and profitability in a rapidly evolving media landscape. It's been a tough year for this stock, defintely.

Is Beasley Broadcast Group, Inc. Overvalued or Undervalued?

To determine valuation, we look at the key multiples. Here's the quick math on the 2025 fiscal year data:

• Price-to-Book (P/B) Ratio: At approximately 0.10, this is extremely low. A P/B ratio below 1.0 suggests the stock is trading for less than the value of its net assets (Book Value), which is a classic signal of being undervalued.
• Price-to-Earnings (P/E) Ratio: The Trailing Twelve Months (TTM) P/E ratio as of November 2025 is -0.84. A negative P/E means the company is losing money (negative earnings per share), so this ratio is not useful for a standard valuation comparison and signals a fundamental problem with profitability.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is a better measure for companies with high debt or negative earnings. Beasley Broadcast Group, Inc.'s EV/EBITDA stands at about 12.50. Considering the average for the broadcasting industry is often lower, a 12.50x multiple suggests the market is assigning a relatively high valuation to the core operating profitability (EBITDA), likely due to the company's significant debt load increasing its Enterprise Value.

So, you have a stock that looks cheap on book value but expensive relative to its operating cash flow (EBITDA) and is fundamentally unprofitable. This is the profile of a deep value or turnaround play, but one with considerable risk.

Dividend Health and Analyst Consensus

Beasley Broadcast Group, Inc. is not a significant income play. The company pays a small annual dividend of $0.05 per share. Because the company has negative net income, the Payout Ratio is technically N/A or unsustainable. This is a token dividend, not a core reason to own the stock.

Analyst consensus is mixed, reflecting the conflicting valuation signals. While some forecasts show an improbable high target, the most balanced view pegs the consensus rating at Hold, with an average 12-month price target of $5.50. This suggests a modest potential upside of around 37.5% from the current price, but it's still a cautious outlook. The bearish sentiment is strong, with at least one analyst maintaining a 'Sell' rating. For a deeper dive into the company's long-term goals, you can review their Mission Statement, Vision, & Core Values of Beasley Broadcast Group, Inc. (BBGI).

Your next step should be to draft a 13-week cash view for Beasley Broadcast Group, Inc., focusing on debt service coverage, as the low P/B ratio is a siren song that often hides a deep liquidity problem.

Risk Factors

You're looking at Beasley Broadcast Group, Inc. (BBGI) and seeing a company in the middle of a tough, necessary transition. The direct takeaway? The financial risks-specifically debt and liquidity-are a near-term concern, but the biggest operational challenge is the accelerating decline in their core traditional advertising business. This is a classic media pivot, and the execution risk is high.

The external risks are clear: the entire radio industry is fighting for ad dollars against digital behemoths. Beasley's Q3 2025 net revenue dropped 12.4% to $51.0 million from the prior year, driven by what they called continued softness in the traditional agency advertising market. To be fair, this is an industry-wide headwind, but the Q4 2025 revenue is pacing down roughly 20% year-over-year (YoY), which is a serious deceleration. That's a tough environment for a company carrying significant debt.

Here's the quick math on the financial pressure. The company is operating with a substantial debt load, totaling around $275.35 million as of late 2025. This gives them a high debt-to-equity ratio of 170.2%. Plus, their operating cash flow is currently negative, and their interest payments are poorly covered by earnings before interest and taxes (EBIT), showing only a 0.5x coverage ratio. Honestly, that's a red flag for any seasoned analyst.

The most immediate financial risk is the debt maturity schedule. Beasley Broadcast Group, Inc. (BBGI) had to amend the terms for its Senior Secured Notes due 2028, extending a key maturity date to January 31, 2026, if its existing 8.625% Senior Secured Notes due 2026 remain outstanding. This amendment buys time, but it underscores the ongoing liquidity challenge. The cash position at the end of Q3 2025 was only $14.3 million.

• Market Decline: Traditional agency revenue is shrinking fast.
• Debt Load: Total debt of roughly $275.35 million is substantial.
• Liquidity: Near-term debt maturity risk on 2026 notes.
• Execution: Sales team retooling must reverse the unacceptable revenue decline.

The internal, operational risk is the speed and success of their digital transformation. While digital revenue is a bright spot-it grew 28% year-over-year in Q3 2025 and now accounts for roughly 25% of total revenue-it's not growing fast enough to offset the decline in the core business. The CEO called the overall same-station revenue decline of 11% in Q3 2025 "unacceptable," which tells you the scale of the internal execution challenge in pivoting the sales organization.

What are they doing about it? The mitigation strategies are a mix of cost-cutting and asset optimization. They are aggressively cutting costs, targeting a full-year 2025 reduction in station operating and corporate expenses between $25 million and $30 million. Year-to-date, they've already realized $15 million in expense reductions. They are also selling non-core assets to boost liquidity, like the Q3 2025 sale of WPBB-FM in Tampa for $8.0 million, with the sale of their Ft. Myers market assets pending FCC approval. These steps are defintely necessary to manage the debt, but they also shrink the asset base, which is the trade-off.

The table below summarizes the core financial risks and the company's stated actions based on 2025 fiscal data:

The regulatory risk is minor but present, mainly tied to securing FCC approval for the planned station sales, which is key to their liquidity plan. Also, there's the ongoing requirement to maintain Nasdaq listing compliance. If you're looking for a deeper dive into who is betting on this turnaround, you should be Exploring Beasley Broadcast Group, Inc. (BBGI) Investor Profile: Who's Buying and Why?

Growth Opportunities

The future of Beasley Broadcast Group, Inc. (BBGI) isn't in traditional radio's past; it's defintely in the high-margin digital audio space. While the core broadcast business faces macro-economic headwinds, with Q3 2025 total revenue declining to $50.98 million (a 12.4% year-over-year drop), the company's strategic pivot is showing clear signs of life and margin expansion. You need to focus on this pivot.

The digital segment is the undisputed growth engine, now accounting for approximately 25% of total revenue in Q3 2025, a significant jump from 19% a year prior. This isn't just a revenue story; it's a margin story. Digital segment operating margin expanded sharply to 28% on a same-station basis in Q3 2025, the highest in the company's history. That's a huge operating leverage win.

Here's the quick math on the digital surge:

• Digital Revenue (Q3 2025): Grew approximately 28% year-over-year on a same-station basis.
• Audio Plus Revenue (Q3 2025): Reached over $1.2 million, representing over 200% growth from Q2 2025.

Key Growth Drivers and Strategic Initiatives

Beasley Broadcast Group's strategy is clear: shrink the cost base of the legacy business while aggressively scaling the higher-margin digital products. This is a classic turnaround playbook. They're not just hoping for a market recovery; they're structurally changing the business model.

The company is targeting full-year 2025 station operating and corporate expense reductions of between $25 million and $30 million. That kind of cost discipline is crucial when the analyst consensus for 2025 revenue is around $252.4 million, which still points to a projected net loss of about -$8,463,203 for the year. The expense cuts are what keep the lights on and fund the future.

Strategic growth is being driven by:

• Product Innovation: The proprietary streaming solution, Audio Plus, is a key product innovation, capturing a growing share of digital advertising dollars.
• Sales Re-tooling: They are aggressively retooling their sales organization, adding dedicated digital Account Executives (AEs) and digital sales managers to pivot toward direct, data-driven client relationships.
• Portfolio Optimization: The sale of non-core radio stations, like those in Fort Myers and Tampa for $26 million, strengthens the balance sheet and provides liquidity for digital investment.
• Strategic Partnerships: A new multiyear partnership with University of Michigan Athletics is a concrete example of leveraging their local broadcast footprint to create multi-platform digital revenue streams.

Competitive Advantages

Beasley Broadcast Group's competitive edge is a blend of old-school local influence and new-school digital monetization. They have a deep, loyal listener base fostered by established local audio brands and popular on-air personalities across 10 U.S. markets. This local connection is gold for attracting local advertisers.

The real differentiator, though, is their ability to translate that local influence into a high-margin digital business. The rapid expansion of their digital operating margin to 28% proves they can monetize digital audiences more efficiently than before. This hybrid model-traditional influence plus digital reach-positions them as a key player in the evolving local media landscape.

The shift to a self-serve digital platform, a key initiative for late 2025, aims to cut out intermediaries, giving advertisers real-time control and analytics, and allowing Beasley Broadcast Group to capture more of the advertising value chain. This is how you build a durable, diversified revenue base. For a deeper dive into who is betting on this turnaround, you should read Exploring Beasley Broadcast Group, Inc. (BBGI) Investor Profile: Who's Buying and Why?