10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ______

Commission file number 001-36558

Townsquare Media, Inc.

(Exact name of registrant as specified in its charter)

Delaware		27-1996555
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
One Manhattanville Road
Suite 202
Purchase,	New York	10577
(Address of Principal Executive Offices, including Zip Code)

(203) 861-0900

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share	TSQ	The New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ☒

As of August 4, 2023, the registrant had 16,565,174 outstanding shares of common stock consisting of: (i) 13,788,537 shares of Class A common stock, par value $0.01 per share; (ii) 815,296 shares of Class B common stock, par value $0.01 per share; and (iii) 1,961,341 shares of Class C common stock, par value $0.01 per share.

TOWNSQUARE MEDIA, INC.

INDEX

PART I FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	2
	Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022	3
	Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2023 and 2022	4
	Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022	6
	Notes to Unaudited Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	27
Item 4.	Controls and Procedures	41
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	43
	Signatures	44

1

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

TOWNSQUARE MEDIA, INC.

CONSOLIDATED BALANCE SHEETS

(in Thousands, Except Share and Per Share Data)

(unaudited)

	June 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	49,598	$	43,417
Accounts receivable, net of allowance of $5,507 and $5,946, respectively	62,537		61,234
Prepaid expenses and other current assets	12,432		16,037
Total current assets	124,567		120,688
Property and equipment, net	111,105		113,846
Intangible assets, net	246,222		276,838
Goodwill	161,481		161,385
Investments	9,181		19,106
Operating lease right-of-use assets	49,692		50,962
Other assets	1,366		1,197
Restricted cash	499		496
Total assets	$	704,113	$	744,518
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,707	$	4,127
Deferred revenue	10,058		10,669
Accrued compensation and benefits	10,183		14,831
Accrued expenses and other current liabilities	25,900		17,876
Operating lease liabilities, current	9,003		9,008
Accrued interest	14,836		15,203
Total current liabilities	74,687		71,714
Long-term debt, net of deferred finance costs of $5,229 and $6,324, respectively	512,606		524,442
Deferred tax liability	10,275		18,748
Operating lease liability, net of current portion	44,113		45,107
Other long-term liabilities	13,053		15,428
Total liabilities	654,734		675,439
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 300,000,000 shares authorized; 13,668,428 and 12,964,312 shares issued and outstanding, respectively	136		130
Class B common stock, par value $0.01 per share; 50,000,000 shares authorized; 815,296 and 815,296 shares issued and outstanding, respectively	8		8
Class C common stock, par value $0.01 per share; 50,000,000 shares authorized; 1,961,341 and 3,461,341 shares issued and outstanding, respectively	20		35
Total common stock	164		173
Treasury stock, at cost; 89,568 and 0 shares of Class A common stock, respectively	(1,135)		—
Additional paid-in capital	303,720		309,645
Accumulated deficit	(256,410)		(244,298)
Non-controlling interest	3,040		3,559
Total stockholders’ equity	49,379		69,079
Total liabilities and stockholders’ equity	$	704,113	$	744,518

See Notes to Unaudited Consolidated Financial Statements

2

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in Thousands, Except Per Share Data)

(unaudited)

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Net revenue	$	121,231	$	121,924	$	224,341	$	222,166
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization, and stock-based compensation	85,654		83,833		163,978		157,596
Depreciation and amortization	4,835		4,314		9,779		9,079
Corporate expenses	6,962		5,739		12,307		10,148
Stock-based compensation	2,106		839		3,878		1,708
Transaction and business realignment costs	311		824		603		1,276
Impairment of intangible assets, investments and long-lived assets	26,240		9,419		34,727		9,897
Net (gain) loss on sale and retirement of assets	(49)		89		(341)		(219)
Total operating costs and expenses	126,059		105,057		224,931		189,485
Operating (loss) income	(4,828)		16,867		(590)		32,681
Other expense (income):
Interest expense, net	9,314		10,044		18,872		20,071
Gain on repurchases of debt	(44)		(108)		(819)		(108)
Other (income) expense, net	(4,878)		806		(5,904)		2,394
(Loss) income from operations before tax	(9,220)		6,125		(12,739)		10,324
Income tax (benefit) provision	(6,520)		1,206		(8,098)		2,664
Net (loss) income	$	(2,700)	$	4,919	$	(4,641)	$	7,660
Net (loss) income attributable to:
Controlling interests	$	(3,200)	$	4,394	$	(5,621)	$	6,618
Non-controlling interests	$	500	$	525	$	980	$	1,042
Basic (loss) income per share	$	(0.19)	$	0.26	$	(0.33)	$	0.39
Diluted (loss) income per share	$	(0.19)	$	0.24	$	(0.33)	$	0.35
Weighted average shares outstanding:
Basic	17,221		16,986		17,212		16,891
Diluted	17,221		18,695		17,212		19,177
Cash dividend declared per share	$	0.1875	$	—	$	0.3750	$	—

See Notes to Unaudited Consolidated Financial Statements

3

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in Thousands, Except Share Data)

(unaudited)

	Shares of Common Stock			Treasury Stock
	Class A	Class B	Class C	Class A
	Shares	Shares	Shares	Shares	Common Stock		Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Non- Controlling Interest		Total
Balance at January 1, 2023	12,964,312	815,296	3,461,341	—	$	173	$	—	$	309,645	$	(244,298)	$	3,559	$	69,079
Net (loss) income	—	—	—	—	—		—		—		(2,421)		480		(1,941)
Dividends declared	—	—	—	—	—		—		—		(3,343)		—		(3,343)
Stock-based compensation	—	—	—	—	—		—		1,772		—		—		1,772
Common stock issued under exercise of stock options	5,000	—	—	—	—		—		31		—		—		31
ESPP shares issued	65,732	—	—	—	—		—		430		—		—		430
Issuance of restricted stock	82,263	—	—	—	1		—		(1)		—		—		—
Balance at March 31, 2023	13,117,307	815,296	3,461,341	—	$	174	$	—	$	311,877	$	(250,062)	$	4,039	$	66,028
Net (loss) income	—	—	—	—	—		—		—		(3,200)		500		(2,700)
Repurchase of stock(1)	—	—	(1,500,000)	—	(15)		—		(14,535)		—		—		(14,550)
Dividend declared	—	—	—	—	—		—		—		(3,148)		—		(3,148)
Stock-based compensation	—	—	—	—	—		—		2,106		—		—		2,106
Common stock issued under exercise of stock options	551,121	—	—	—	5		—		4,272		—		—		4,277
Treasury stock acquired at cost (2)	—	—	—	89,568	—		(1,135)		—		—		—		(1,135)
Cash distributions to non-controlling interests	—	—	—	—	—		—		—		—		(1,499)		(1,499)
Balance at June 30, 2023	13,668,428	815,296	1,961,341	89,568	$	164	$	(1,135)	$	303,720	$	(256,410)	$	3,040	$	49,379

(1) On June 16, 2023, the Company repurchased 1.5 million shares of the Company’s Class C common stock. For further discussion on the repurchase, see Note 10, Stockholders' Equity, in our Notes to Consolidated Financial Statements.

(2) Represents shares repurchased under the terms of the Company's stock repurchase plan pursuant to which the Company is authorized to repurchase up to $50 million of the Company’s issued and outstanding Class A common stock over a three-year period, the "2021 Stock Repurchase Plan."

Refer to Note 10, Stockholders' Equity, in the accompanying Notes to Consolidated Financial Statements for additional information related to the stock repurchases.

4

	Shares of Common Stock			Treasury Stock
	Class A	Class B	Class C	Class A
	Shares	Shares	Shares	Shares	Common Stock		Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Non- Controlling Interest		Total
Balance at January 1, 2022	12,573,654	815,296	3,461,341	—	$	169	$	—	$	302,724	$	(256,635)	$	3,326	$	49,584
Net income	—	—	—	—	—		—		—		2,224		517		2,741
Stock-based compensation	—	—	—	—	—		—		869		—		—		869
Common stock issued under exercise of stock options	94,422	—	—	—	1		—		646		—		—		647
Issuance of restricted stock (1)	191,456	—	—	—	2		—		1,807		—		—		1,809
Balance at March 31, 2022	12,859,532	815,296	3,461,341	—	$	172	$	—	$	306,046	$	(254,411)	$	3,843	$	55,650
Net income	—	—	—	—	—		—		—		4,394		525		4,919
Stock-based compensation	—	—	—	—	—		—		839		—		—		839
Common stock issued under exercise of stock options	17,179	—	—	—	—		—		112		—		—		112
Treasury stock acquired at cost (2)	—	—	—	25,623	—		(225)		—		—		—		(225)
Cash distributions to non-controlling interests	—	—	—	—	—		—		—		—		(1,820)		(1,820)
Balance at June 30, 2022	12,876,711	815,296	3,461,341	25,623	$	172	$	(225)	$	306,997	$	(250,017)	$	2,548	$	59,475

(1) Includes 150,000 shares issued in the form of stock awards that vested immediately.

(2) Represents shares repurchased under the 2021 Stock Repurchase Plan.

See Notes to Unaudited Consolidated Financial Statements

5

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in Thousands)

(unaudited)

	Six Months Ended June 30,
	2023		2022
Cash flows from operating activities:
Net (loss) income	$	(4,641)	$	7,660
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	9,779		9,079
Amortization of deferred financing costs	949		855
Non-cash lease expense (income)	52		(251)
Net deferred taxes and other	(8,473)		2,314
Provision for doubtful accounts	2,564		494
Stock-based compensation expense	3,878		1,708
Gain on repurchases of debt	(819)		(108)
Trade activity, net	(1,008)		(1,773)
Impairment of intangible assets, investments and long-lived assets	34,727		9,897
Realized gain on sale of digital assets	(839)		—
Gain on sale of investment	(5,210)		—
Unrealized (gain) loss on investment	(112)		2,172
Content rights acquired	—		(19,320)
Amortization of content rights	2,422		1,952
Change in content rights liabilities	(659)		18,278
Other	(596)		(283)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(3,453)		(5,984)
Prepaid expenses and other assets	4,548		(507)
Accounts payable	625		1,401
Accrued expenses	(1,946)		(3,917)
Accrued interest	(367)		(556)
Other long-term liabilities	(15)		(106)
Net cash provided by operating activities	31,406		23,005
Cash flows from investing activities:
Payment for acquisition	—		(18,419)
Purchase of property and equipment	(7,136)		(7,627)
Purchase of investments	—		(100)
Purchase of digital assets	—		(4,997)
Proceeds from sale of digital assets	2,975		—
Proceeds from insurance recoveries	372		11
Proceeds from sale of assets and investment related transactions	6,196		639
Net cash provided by (used in) investing activities	2,407		(30,493)
Cash flows from financing activities:
Repurchases of 2026 Notes	(11,966)		(18,850)
Dividend payments	(3,240)		—
Proceeds from stock options exercised	4,308		759
Withholdings for shares issued under the ESPP	430		—
Repurchases of stock	(15,572)		(225)
Cash distribution to non-controlling interests	(1,499)		(1,820)
Repayments of capitalized obligations	(90)		(56)
Net cash (used in) financing activities	(27,629)		(20,192)
Cash and cash equivalents and restricted cash:
Net increase (decrease) in cash, cash equivalents and restricted cash	6,184		(27,680)
Beginning of period	43,913		50,999
End of period	$	50,097	$	23,319

See Notes to Unaudited Consolidated Financial Statements

6

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in Thousands)

(unaudited)

	Six Months Ended June 30,
	2023		2022
Supplemental Disclosure of Cash Flow Information:
Cash payments:
Interest	$	19,054	$	19,508
Income taxes	817		859
Supplemental Disclosure of Non-cash Activities:
Dividends declared, but not paid during the period	$	3,148	$	—
Investments acquired in exchange for advertising (1)	—		1,500
Property and equipment acquired in exchange for advertising (1)	253		519
Accrued capital expenditures	114		1,517
Supplemental Disclosure of Cash Flow Information relating to Leases:
Cash paid for amounts included in the measurement of operating lease liabilities, included in operating cash flows	$	5,958	$	5,036
Right-of-use assets obtained in exchange for operating lease obligations	3,593		5,211
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	49,598	$	22,825
Restricted cash	499		494
	$	50,097	$	23,319

(1) Represents total advertising services provided by the Company in exchange for property and equipment and equity interests acquired during each of the six months ended June 30, 2023 and 2022, respectively.

See Notes to Unaudited Consolidated Financial Statements

7

TOWNSQUARE MEDIA, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Basis of Presentation

Description of the Business

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our integrated and diversified products and solutions enable local, regional and national advertisers to target audiences across multiple platforms, including digital, mobile, social, video, streaming, e-commerce, radio and events. Our assets include a subscription digital marketing services business (“Townsquare Interactive”), providing website design, creation and hosting, search engine optimization, social platforms and online reputation management for approximately 27,400 small to medium sized businesses; a robust digital advertising division (“Townsquare Ignite,” or “Ignite”), a powerful combination of a) an owned and operated portfolio of more than 400 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 356 local terrestrial radio stations in 74 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com and NJ101.5.com, and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com.

Current economic challenges, including high and sustained inflation, rising interest rates, and supply chain disruptions have caused and could continue to cause economic uncertainty and volatility. These factors could result in advertising and subscription digital marketing solutions cancellations, declines in the purchase of new advertising by our clients, declines in the addition of new digital marketing solutions subscribers, and increases to our operating expenses. We monitor economic conditions closely, and in response to observed or anticipated reductions in revenue, we may institute precautionary measures to address the potential impact to our consolidated financial position, consolidated results of operations, and liquidity, including wage reduction efforts and controlling non-essential capital expenditures.

The extent of the impact of current economic conditions will depend on future actions and outcomes, all of which remain fluid and cannot be predicted with confidence (including effects on advertising activity, consumer discretionary spending and our employees in the markets in which we operate).

Basis of Presentation

The accompanying Unaudited Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements and related notes thereto included in the Company's Annual Report on Form 10-K (the "2022 Annual Report on Form 10-K"). The accompanying unaudited interim Consolidated Financial Statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. All adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of results of operations and financial condition as of the end of the interim periods have been included. The results of operations for the three and six months ended June 30, 2023, cash flows for the six months ended June 30, 2023, and the Company’s financial condition as of such date are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition as of, any other interim period or for the fiscal year ending December 31, 2023. The Consolidated Balance Sheet as of December 31, 2022 is derived from the audited Consolidated Financial Statements at that date.

The presentation of immaterial amounts of broadcast and digital advertising revenue previously reported in the Other category for the three and six months ended June 30, 2022 has been reclassified to conform with the current period's presentation.

8

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its significant estimates, including those related to assumptions used in determining the fair value of assets and liabilities acquired in a business combination, impairment testing of intangible assets, valuation and impairment testing of long-lived tangible assets and investments, the present value of leasing arrangements, share-based payment expense and the calculation of allowance for credit losses and income taxes. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the result of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Actual amounts and results may differ materially from these estimates under different assumptions or conditions.

Note 2. Summary of Significant Accounting Policies

There have been no significant changes in the Company’s accounting policies since December 31, 2022. For the Company's detailed accounting policies please refer to the Consolidated Financial Statements and related notes thereto included in the Company's 2022 Annual Report on Form 10-K.

Recently Adopted Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. The guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument's contractual life. The new guidance became effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

The Company adopted the new guidance in the first quarter of 2023. In accordance with the guidance described above, the Company maintains an allowance for credit losses, which represents the portion of accounts receivable that is not expected to be collected over the duration of its contractual life. Credit losses are recorded when the Company believes a customer, or group of customers, may not be able to meet their financial obligations. A considerable amount of judgment is required in determining expected credit losses. Relevant factors include prior collection history with customers, the related aging of past due balances, projections of credit losses based on historical trends or past events, and the consideration of forecasts of future economic conditions. Allowances for credit losses are based on facts available and are re-evaluated and adjusted on a regular basis. Negative macroeconomic trends could result in an increase in credit losses if delays in the payment of outstanding receivables are observed or if future economic conditions differ from those considered in our forecasts. The adoption of this standard did not have a significant impact on the Consolidated Financial Statements.

The change in the allowance for credit losses for the six months ended June 30, 2023 was as follows (in thousands):

Balance at December 31, 2022	$	5,946
Provision for credit losses	2,564
Amounts written off against allowance, net of recoveries	(3,003)
Balance at June 30, 2023	$	5,507

Recently Issued Standards That Have Not Yet Been Adopted

There were no new accounting pronouncements issued during the three and six months ended June 30, 2023 that are expected to have a material impact on the Consolidated Financial Statements.

9

Note 3. Revenue Recognition

The following tables present a disaggregation of our revenue by reporting segment and revenue from political sources and all other sources (in thousands) for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30, 2023										Three Months Ended June 30, 2022
	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total		Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Net Revenue (ex Political)	$	21,268	$	41,080	$	53,361	$	5,117	$	120,826	$	22,983	$	37,021	$	55,636	$	4,768	$	120,408
Political	—		46		359		—		405		—		151		1,365		—		1,516
Net Revenue	$	21,268	$	41,126	$	53,720	$	5,117	$	121,231	$	22,983	$	37,172	$	57,001	$	4,768	$	121,924

	Six Months Ended June 30, 2023										Six Months Ended June 30, 2022
	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total		Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Net Revenue (ex Political)	$	42,829	$	74,772	$	99,086	$	7,036	$	223,723	$	44,833	$	66,193	$	103,476	$	5,716	$	220,218
Political	—		61		557		—		618		—		197		1,751		—		1,948
Net Revenue	$	42,829	$	74,833	$	99,643	$	7,036	$	224,341	$	44,833	$	66,390	$	105,227	$	5,716	$	222,166

Revenue from contracts with customers is recognized as an obligation until the terms of a customer contract are satisfied; generally this occurs with the transfer of control as we satisfy contractual performance obligations over time. Our contractual performance obligations include the performance of digital marketing solutions, placement of internet-based advertising campaigns, broadcast of commercials on our owned and operated radio stations, and the operation of live events. Revenue is measured at contract inception as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Our contracts are at a fixed price at inception and do not include any variable consideration or financing components by normal course of business practice. Sales, value add, and other taxes that are collected concurrently with revenue producing activities, are excluded from revenue.

The primary sources of net revenue are the sale of digital and broadcast advertising solutions on our owned and operated websites, radio stations’ online streams and mobile applications, radio stations, and on third-party websites through our in-house digital programmatic advertising platform. Through our digital programmatic advertising platform, we are able to hyper-target audiences for our local, regional and national advertisers by combining first and third-party audience and geographic location data, providing them the ability to reach a high percentage of their online audience. We deliver these solutions across desktop, mobile, connected TV, email, paid search and social media platforms utilizing display, video and native executions. We also offer subscription digital marketing solutions under the brand name Townsquare Interactive to small and mid-sized local and regional businesses in markets outside the top 50 across the United States, including the markets in which we operate radio stations. Townsquare Interactive offers traditional and mobile-enabled website development and hosting services, e-commerce platforms, search engine and online directory optimization services, online reputation monitoring, social media management, and website retargeting.

Political net revenue includes the sale of advertising for political advertisers. Contracted performance obligations under political contracts consist of the broadcast and placement of digital advertisements. Management views political revenue separately based on the episodic nature of election cycles and local issues calendars.

Net revenue for digital and broadcast advertisements are recognized as the contractual performance obligations for Townsquare services are satisfied. We measure progress towards the satisfaction of our contractual performance obligations in accordance with the contractual arrangement. We recognize the associated contractual revenue as delivery takes place and the right to invoice for services performed is met.

Our advertising contracts are short-term (less than one year) and payment terms are generally net 30-60 days for traditional customer contracts and net 60-90 days for national agency customer contracts. Our billing practice is to invoice customers on a monthly basis for services delivered to date (representing the right to invoice). Our contractual arrangements do not include rights of return and do not include any significant judgments by nature of the products and services.

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Net revenue from digital subscription-based contractual performance obligations is recognized ratably over time as our performance obligations are satisfied. Subscription-based service fees are typically billed in advance of the month of service at a fixed monthly fee that is contractually agreed upon at contract inception. The measure of progress in such arrangements is the number of days of successful delivery of the contracted service.

For all customer contracts, we evaluate whether we are the principal (i.e., report revenue on a gross basis) or the agent (i.e., report revenue on a net basis). Generally, we report revenue for advertising placed on Townsquare properties on a gross basis (the amount billed to our customers is recorded as revenue, and the amount paid to our publishers is recorded as a cost of revenue). We are the principal because we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory, being primarily responsible to our customers, having discretion in establishing pricing, or a combination of these factors. We also generate revenue through agency relationships in which revenue is reported net of agency commissions. Agency commissions are calculated based on a stated percentage applied to gross billing revenue for advertisers that use agencies.

The following tables provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	June 30, 2023		December 31,  2022
Accounts Receivable	$	62,537	$	61,234
Short-term contract liabilities (deferred revenue)	$	10,058	$	10,669
Contract Acquisition Costs	$	6,408	$	6,348

We receive payments from customers based upon contractual billing schedules; contract receivables are recognized in the period the Company provides services when the Company’s right to consideration is unconditional. Payment terms vary by the type and location of our customer and the products or services offered. Payment terms for amounts invoiced are typically net 30-60 days.

Our contract liabilities include cash payments received or due in advance of satisfying our performance obligations and digital subscriptions in which payment is received in advance of the service and month. These contract liabilities are recognized as revenue as the related performance obligations are satisfied. As of June 30, 2023, and December 31, 2022, the balance in the contract liabilities was $10.1 million and $10.7 million, respectively. The decrease in the contract liabilities balance at June 30, 2023 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.2 million and $8.5 million of recognized revenue for the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, we recognized $1.3 million and $7.7 million of revenue that was previously included in our deferred revenue balance. No significant changes in the time frame of the satisfaction of contract liabilities have occurred during the three and six months ended June 30, 2023.

Our capitalized contract acquisition costs include amounts related to sales commissions paid for signed contracts with perceived durations exceeding one year. We defer the related sales commission costs and amortize such costs to expense in a manner that is consistent with how the related revenue is recognized over the duration of the related contracts. We have evaluated the average customer contract duration (initial term and any renewals) to determine the appropriate amortization period for these contractual arrangements. Capitalized contract acquisition costs are recognized in prepaid expenses and other current assets in the accompanying consolidated balance sheets. As of June 30, 2023 and December 31, 2022, we had a balance of $6.4 million and $6.3 million, respectively, in capitalized contract acquisition costs and recognized $1.7 million and $3.3 million of amortization for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2022, we recognized $1.2 million and $2.4 million of amortization, respectively. No impairment losses have been recognized or changes made to the time frame for performance of the obligations related to deferred contract assets during the three and six months ended June 30, 2023 and 2022.

Arrangements with Multiple Performance Obligations

In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. When multiple performance obligations are identified, we identify how control transfers to the customer for each distinct contract obligation and

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determine the period when the obligations are satisfied. If obligations are satisfied in the same period, no allocation of revenue is deemed to be necessary. In the event performance obligations within a bundled contract do not run concurrently, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or by using expected cost-plus margins. Performance obligations that are not distinct at contract inception are combined.

Performance Obligations

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Amounts related to performance obligations with expected durations of greater than one year are at a fixed price per unit and do not include any upfront or minimum payments requiring any estimation or allocation of revenue.    

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Note 4. Acquisitions and Divestitures

Acquisitions and Divestitures

On June 17, 2022, the Company acquired Cherry Creek Broadcasting LLC (“Cherry Creek”) for a cash purchase price of $18.5 million, net of closing adjustments. The purchase price was in excess of the fair value of net assets acquired, resulting in the recognition of goodwill. The Company finalized the allocation of the purchase price for Cherry Creek during the three months ended March 31, 2023. The table below summarizes the Cherry Creek purchase price allocation. The measurement period adjustments below reflect changes from the preliminary purchase acquisition date fair values of major classes of net assets acquired (in thousands):

	Amounts recognized at June 17, 2022 (Provisional)		Measurement Period Adjustments		Amounts recognized at March 31, 2023 (Adjusted)
Net tangible assets acquired	$	1,366	$	4,694	$	6,060
Intangible assets, net	8,676		187		8,863
Goodwill	8,377		(4,843)		3,534
Total Purchase Price	$	18,419	$	38	$	18,457

The intangible assets acquired based on the estimate of the fair values of the identifiable intangible assets are as follows:

	Amounts recognized at March 31, 2023		Remaining Useful Life at June 17, 2022 (in years)
Customer relationships	$	5,007	10
FCC licenses	2,889		Indefinite
Content Rights	642		7
Other intangibles	325		3
Total Acquired Intangible Assets	$	8,863

The estimate of the fair value of the customer relationships acquired in the Cherry Creek acquisition were determined using a risk-adjusted discounted cash flow model, specifically, the excess earnings method which considers the use of other assets in the generation of the projected cash flows of a specific asset to isolate the economic benefit generated by the customer relationships. The contribution of other assets, such as fixed assets, working capital and workforce, to overall cash flows was estimated through contributory asset capital charges. Therefore, the value of the acquired customer relationship is the present value of the attributed post-tax cash flows, net of the return on fair value attributed to tangible and other intangible assets.

The estimate of the fair value of the FCC licenses acquired in the Cherry Creek acquisition were determined utilizing observable market based transactions of similar broadcast licenses and their estimated replacement values.

Goodwill totaling $3.5 million represents the excess of the Cherry Creek purchase price over the fair value of net assets acquired, representing future economic benefits that are expected to be achieved as a result of the acquisition, and is included in the Broadcast Advertising and Digital Advertising segments. The Company believes the acquisition of Cherry Creek, which includes a portfolio of local media brands, will further its goal of becoming the number one local media company in markets outside of the Top 50 in the United States. In addition, the acquisition provides an opportunity to bring our digital assets and solutions to the Cherry Creek markets and accelerate their digital growth with our Digital First strategy.

Goodwill generated from the Cherry Creek acquisition is deductible for income tax purposes.

The results of Cherry Creek's operations have been included in our Consolidated Financial Statements, following the closing of the acquisition on June 17, 2022. Pro forma information has not been presented because the effect of the acquisition is not material.

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Simultaneously, due to FCC ownership limitations, the Company sold six radio stations in Missoula, MT for an immaterial amount and placed one radio station in Tri-Cities, WA in a divestiture trust. On July 19, 2022, the Company acquired a radio station in Tri-Cities, WA for an immaterial amount.

During the three and six months ended June 30, 2023, the Company sold assets associated with a radio broadcast station in Texarkana, TX for an immaterial amount.

Note 5. Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land and improvements	$	19,260	$	19,966
Buildings and leasehold improvements	58,517		57,386
Broadcast equipment	109,874		108,057
Computer and office equipment	24,646		24,211
Furniture and fixtures	22,934		22,968
Transportation equipment	20,258		20,703
Software development costs	42,254		39,489
Total property and equipment, gross	297,743		292,780
Less accumulated depreciation and amortization	(186,638)		(178,934)
Total property and equipment, net	$	111,105	$	113,846

Depreciation and amortization expense for property and equipment was $4.2 million and $4.0 million for the three months ended June 30, 2023 and 2022, respectively, and $8.6 million and $8.5 million for the six months ended June 30, 2023 and 2022, respectively.

During the three and six months ended June 30, 2023, the Company recognized a total of $0.2 million and $0.4 million in impairment charges, respectively, related to the intended sale of land and building in Battle Creek, MI and for certain long-lived assets, that were sold for immaterial amounts in five local markets.

During the three and six months ended June 30, 2023, the Company recognized an $0.3 million impairment charge to right of use assets associated with the abandonment of a portion of leased office space in Purchase, NY.

During the three months ended June 30, 2022, the Company entered into an agreement to sell land and a building in Quincy-Hannibal, IL. The Company recognized $0.8 million in impairment charges related to the agreement.

The Company had no material right of use assets related to its finance leases as of June 30, 2023 and December 31, 2022.

Note 6. Goodwill and Other Intangible Assets

Indefinite-lived intangible assets

Indefinite-lived assets consist of FCC broadcast licenses, goodwill and investment in digital assets.

FCC Broadcast Licenses

FCC licenses represent a substantial portion of the Company’s total assets. The FCC licenses are renewable in the ordinary course of business, generally for a maximum of eight years. The fair value of FCC licenses is primarily dependent on the future cash flows of the radio markets and other assumptions, including, but not limited to, forecasted revenue growth rates, profit margins and a risk-adjusted discount rate. The Company has selected December 31st as the annual testing date.

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The Company evaluates its FCC licenses for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. Due to increases in the weighted average cost of capital and changes in forecasted traditional broadcast revenue in the markets in which we operate, the Company quantitatively evaluated the fair value of its FCC licenses at June 30 and March 31, 2023.

The key assumptions used in applying the direct valuation method are summarized as follows:

	June 30, 2023
Discount Rate	13.5%
Long-term Revenue Growth Rate	0.0%
	Low	High
Mature Market Share*	20.8%	75.0%
Operating Profit Margin	20.0%	47.0%

	March 31, 2023
Discount Rate	12.2%
Long-term Revenue Growth Rate	0.0%
	Low	High
Mature Market Share*	21.7%	75.0%
Operating Profit Margin	20.0%	47.0%

* Market share assumption used when reliable third-party data is available. Otherwise, Company results and forecasts are utilized.

Based on the results of interim impairment assessments of our FCC licenses, as of June 30, 2023 we incurred impairment charges of $16.6 million and $24.8 million for the three and six months ended June 30, 2023, respectively, for FCC licenses in 20 of our 74 local markets. The impairment charges were primarily driven by increases in the discount rate applied in the valuation of our FCC licenses due to an increase in the weighted average cost of capital and decreases in third-party forecasts of broadcast revenues. The Company recorded an impairment charge of $5.2 million for FCC licenses in 6 of our 74 local markets for the three and six months ended June 30, 2022.

Unfavorable changes in key assumptions utilized in the impairment assessment of our FCC licenses may affect future testing results. For example, keeping all other assumptions constant, a 50-basis point increase in the weighted average cost of capital as of the date of our last quantitative assessment would cause the estimated fair values of our FCC licenses to decrease by $17.4 million which would have resulted in an additional impairment charge of $8.1 million as of June 30, 2023. Further, a 100-basis point decline in the long-term revenue growth rate would cause the estimated fair values of our FCC licenses to further decrease by $20.9 million which would have resulted in a further impairment charge of $11.1 million as of June 30, 2023. Assumptions used to estimate the fair value of our FCC licenses are also dependent upon the expected performance and growth of our traditional broadcast radio operations. In the event broadcast radio revenue experiences actual or anticipated declines, such declines will have a negative impact on the estimated fair value of our FCC licenses, and the Company could recognize additional impairment charges, which could be material.

Goodwill

For goodwill impairment testing, the Company has selected December 31st as the annual testing date. In addition to the annual impairment test, the Company regularly assesses whether a triggering event has occurred, which would require interim impairment testing. As of December 31, 2022, the fair values of our Local Markets, National Digital, Townsquare Ignite, Analytical Services, Townsquare Interactive and Live Events reporting units were in excess of their respective carrying values by approximately 18%, 243%, 90%, 211%, 252%, and 19%, respectively. The Amped reporting unit had no goodwill as of December 31, 2022.

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The Company considered whether any events have occurred or circumstances have changed from the last quantitative analysis performed as of December 31, 2022 that would indicate that the fair value of the Company's reporting units may be below their carrying amounts. Based on such analysis, the Company determined that there have been no indicators that the fair value of its reporting units may be below their carrying amounts as of June 30, 2023.

The following table presents changes in goodwill by segment during the six months ended June 30, 2023:

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Balance at December 31, 2022	$	77,000	$	77,687	$	2,715	$	3,983	$	161,385
Cherry Creek measurement period adjustment	—		—		96		—		96
Balance at June 30, 2023	$	77,000	$	77,687	$	2,811	$	3,983	$	161,481

Digital Assets

During the first quarter of 2022, the Company invested an aggregate of $5.0 million in digital assets. They were accounted for as indefinite-lived intangible assets in accordance with ASC 350, Intangibles - Goodwill and Other, included as a component of intangible assets, net on the Consolidated Balance Sheet. Any decrease in the digital assets' fair values below our carrying values at any time subsequent to acquisition was recognized as an impairment charge. No upward revisions for any market price increases were recognized.

In early March 2023, the Company sold its digital assets with a carrying value of $2.1 million, recognizing a gain on the sale of $0.8 million during the six months ended June 30, 2023, included as a component of Other (income) expense, net on the Consolidated Statements of Operations. During the three and six months ended June 30, 2022, the Company recorded $2.2 million and $2.6 million, respectively, in impairment losses due to changes in the fair value of the Company's digital assets observed during the period.

Definite-lived intangible assets

The Company’s definite-lived intangible assets were acquired primarily in various acquisitions as well as in connection with the acquisition of software and music licenses.

The following tables present details of our intangible assets as of June 30, 2023 and December 31, 2022, respectively (in thousands):

	June 30, 2023
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	227,318	$	—	$	227,318
Content rights and other intangible assets	1 - 9	34,940		(16,036)		18,904
Total		$	262,258	$	(16,036)	$	246,222

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	December 31, 2022
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	252,110	$	—	$	252,110
Digital assets	Indefinite	2,136		—		2,136
Content rights and other intangible assets	1 - 10	37,092		(14,500)		22,592
Total		$	291,338	$	(14,500)	$	276,838

Amortization of definite-lived intangible assets was $1.8 million and $1.4 million for the three months ended June 30, 2023 and 2022, respectively and $3.6 million and $2.5 million for the six months ended June 30, 2023 and 2022, respectively.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of June 30, 2023 is as follows (in thousands):

2023 (remainder)	$	3,507
2024	6,017
2025	2,304
2026	2,108
2027	1,978
Thereafter	2,990
	$	18,904

Note 7. Investments

Long-term investments consist of minority holdings in various companies. As management does not exercise significant influence over operating and financial policies of the investees, the investments are not consolidated or accounted for under the equity method of accounting. The initial valuation of equity securities is based upon an estimate of market value at the time of investment, or upon a combination of valuation analyses using both observable and unobservable inputs categorized as Level 2 and Level 3 within the ASC 820 framework.

In accordance with ASC 321, Investments - Equity Securities, the Company measures its equity securities at cost minus impairment, as their fair values are not readily determinable and the investments do not qualify for the net asset value per share practical expedient. The Company monitors its investments for any subsequent observable price changes in orderly transactions for the identical or a similar investment of the same investee, at which time the Company would adjust the then current carrying values of the related investment. Additionally, the Company evaluates its investments for any indicators of impairment.

Equity securities measured at cost minus impairment

During the three and six months ended June 30, 2023, the Company recorded a $9.2 million impairment charge for an existing investment based on the implied fair value of the investee, as the Company became aware of objective evidence to indicate that the fair value of its investment was below its carrying amount.

During the three months ended June 30, 2022, the Company recorded a $1.2 million impairment charge for an existing investee based on the implied fair value of the investee as a result of a private transaction.

On April 12, 2023, one of the Company's investees was acquired as a result of a private transaction. The Company recognized a $5.2 million gain on the transaction, based on total consideration received in the amount of $6.0 million.

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Equity securities measured at fair value

On July 2, 2021, one of the Company's investees completed its registration with the SEC and became a publicly traded company. Based on the market price of the investee's common stock as of June 30, 2023, the fair value of the Company's investment in the common stock of the investee was approximately $1.3 million. As a result, the Company recorded an unrealized gain of $0.2 million and $0.1 million, during the three and six months ended June 30, 2023, respectively. During the three and six months ended June 30, 2022, the Company recorded an unrealized loss of $0.7 million and $2.2 million, respectively, as a result of changes in the fair value of the investee's common stock.

Unrealized gains and losses are included as a component of other expense (income) on the Unaudited Consolidated Financial Statements. The market price of the investee's common stock is categorized as Level 1 within the ASC 820 framework.

Note 8. Long-Term Debt

Total debt outstanding is summarized as follows (in thousands):

	June 30, 2023		December 31, 2022
2026 Notes	$	517,835	$	530,766
Deferred financing costs	(5,229)		(6,324)
Total long-term debt	$	512,606	$	524,442

During the six months ended June 30, 2023, the Company voluntarily repurchased an aggregate $12.9 million principal amount of its 2026 Notes below par, plus accrued interest. The Company wrote-off approximately $0.1 million of unamortized deferred financing costs, recognizing a $44.0 thousand and $0.8 million net gain for three and six months ended June 30, 2023, respectively. The repurchased notes were canceled by the Company.

The 2026 Notes indenture contains certain covenants that may limit, among other things, our ability to; incur additional indebtedness, declare or pay dividends, redeem stock, transfer or sell assets, make investments or agree to certain restrictions on the ability of restricted subsidiaries to make payments to the Company. Certain of these covenants will be suspended if the 2026 Notes are assigned an investment grade rating by Standard & Poor’s Investors Ratings Services, Moody’s Investors Service, Inc. or Fitch Ratings, Inc. and no event of default has occurred and is continuing.

The Company was in compliance with its covenants under the 2026 Notes indenture as of June 30, 2023.

As of June 30, 2023, based on available market information, the estimated fair value of the 2026 Notes was $495.2 million. The Company used Level 2 measurements under the fair value measurement hierarchy established under Fair Value Measurement (Topic 820).

Annual maturities of the Company's long-term debt as of June 30, 2023 are as follows (in thousands):

2023 (remainder)	$	—
2024	—
2025	—
2026	517,835
2027	—
Thereafter	—
	$	517,835

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Note 9. Income Taxes

The Company's effective tax rate for the three months ended June 30, 2023 and 2022 was approximately 70.7% and 19.7%, respectively. The Company's effective tax rate for the six months ended June 30, 2023 and 2022 was approximately 63.6% and 25.8%, respectively.

The increase in the effective tax rate for the three and six months ended June 30, 2023 is primarily driven by certain non-deductible expenses and increases in the valuation allowance for deferred tax assets.

The effective tax rate may vary significantly from period to period, and can be influenced by many factors. These factors include, but are not limited to, changes to the statutory rates in the jurisdictions where the Company has operations and changes in the valuation of deferred tax assets and liabilities. The difference between the effective tax rate and the federal statutory rate of 21% primarily relates to certain non-deductible items, state and local income taxes and the valuation allowance for deferred tax assets.

Note 10. Stockholders' Equity

Stock Options

During the six months ended June 30, 2023, the Company granted 217,547 and 750,000 options with grant date fair values of $2.47 to $3.07 and $2.05 to $2.14, respectively. The options contain market conditions whereby the options will vest and become exercisable subject to the achievement of a specified volume weighted average trading price ("VWAP") over a specified period and continued employment through the performance period each as observed and summarized below, respectively:

VWAP over the last 20 trading days of the three-year performance period		VWAP over 30 consecutive trading days of the seven-year performance period
VWAP	Number of Shares that Vest	VWAP	Number of Shares that Vest
$8.74	65,147	$11.00	250,000
$10.75	71,429	$14.00	250,000
$13.05	80,971	$17.00	250,000
	217,547		750,000

No portion of the grants will vest unless the VWAP targets are achieved during the respective performance periods.

The Company also granted 168,067 and 1,343,000 options with grant date fair values of $3.99 and $3.97, respectively. The options have three-year and four-year vesting periods, respectively, each with ten-year terms.

The grant date fair value of stock options with market conditions is estimated using the Monte Carlo option pricing model, while stock options containing only service conditions is estimated using the Black-Scholes option pricing model. Each model requires an estimate of the expected term of the option, the expected volatility of the Company’s common stock price, dividend yield and the risk-free interest rate. The below table summarizes the assumptions used to estimate the fair value of the equity options granted:

	Monte Carlo Model		Black-Scholes Model
Expected volatility	50.0	%	51% - 52%
Expected term	5 - 7 years		6.01 - 6.38 years
Risk free interest rate	3.43% - 3.74%		3.42% - 4.02%
Expected dividend yield	0% - 9.15%		0.0	%

For options only containing service conditions, the expected term was calculated using the simplified method, defined as the midpoint between the vesting period and the contractual term of each award, due to the lack of sufficient and meaningful historical exercise data. For options with market-based conditions, the expected term was estimated based on

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when the options are expected to be exercised. The expected volatility was based on market conditions of the Company. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the option. On March 6, 2023, the board of directors approved a quarterly dividend of $0.1875 per share for holders of record as of March 27, 2023. Thus, for options with grant dates prior to March 6, 2023, the expected dividend yield was 0%.

The following table summarizes option activity for the six months ended June 30, 2023:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2022	9,478,698	$	7.80	4.62	$	2,798
Granted - service conditions	1,511,067	7.30
Granted - market conditions	967,547	7.93
Exercised	(556,121)	7.75			1,483
Forfeited and expired	(37,257)	7.48
Outstanding at June 30, 2023	11,363,934	$	7.75	5.24	$	47,264
Exercisable at June 30, 2023	6,748,883	$	8.03	2.97	$	26,173

The maximum contractual term of stock options is 10 years.

Restricted Stock Awards

During the six months ended June 30, 2023, the Company granted 68,876 shares to non-employee directors with a vesting period of one year, and 13,387 shares with a vesting period of three years. The grant date fair value of the grants were $7.55 and $7.47 per share, respectively. The fair value of the restricted stock awards is equal to the closing share price on the date of grant.

The following table summarizes restricted stock activity for the six months ended June 30, 2023:

	Number of Shares	Weighted Average Fair Value
Non-vested balance at January 1, 2023	93,181	$	9.63
Shares granted	82,263	7.54
Shares vested	(62,979)	9.52
Non-vested balance at June 30, 2023	112,465	$	8.16

Restricted Stock Units

The following table summarizes restricted stock unit activity for the six months ended June 30, 2023:

	Number of Shares	Weighted Average Fair Value
Non-vested balance at January 1, 2023	—	$	—
Shares granted - service conditions	218,543	7.55
Shares granted - market conditions	218,543	4.21
Shares vested	—	—
Non-vested balance at June 30, 2023	437,086	$	5.88

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During the six months ended June 30, 2023, the Company granted 218,543 stock units with a vesting period of three years and a grant date fair value of $7.55 per share. The fair value of the restricted stock awards is equal to the closing share price on the date of grant.

During the six months ended June 30, 2023, the Company granted 218,543 restricted stock units with a vesting period of three-years and grant date fair values of $3.51 to $4.91. The stock units contain market conditions whereby the stock units will vest subject to the achievement of a specified volume weighted average trading price ("VWAP"), subject to continued employment or service through the end of the performance period as observed and summarized below:

VWAP over the last 20 trading days of the three-year performance period
VWAP	Number of Shares that Vest
$8.74	72,840
$10.75	72,840
$13.05	72,863

The grant date fair value of the restricted stock units with market conditions is estimated using the Monte Carlo option pricing model. The below table summarizes the assumptions used to estimate the fair value of the restricted stock units granted:

	Monte Carlo Model
Expected volatility	50.0%
Risk free interest rate	3.72%
Expected dividend yield	0.0%

The expected volatility was based on market conditions of the Company. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the vesting period of the restricted stock units.

Employee Stock Purchase Plan

During the six months ended June 30, 2023, a total of 65,732 shares of Class A common stock were issued under the 2021 Employee Stock Purchase Plan (the "ESPP").

For the three months ended June 30, 2023 and 2022, the Company recognized approximately $2.1 million and $0.8 million, respectively, of stock-based compensation expense with respect to options, restricted stock awards, restricted stock units and the ESPP. For the six months ended June 30, 2023 and 2022, the Company recognized approximately $3.9 million and $1.7 million, respectively, of stock-based compensation expense with respect to options, restricted stock awards, restricted stock units and the ESPP.

As of June 30, 2023, total unrecognized stock-based compensation expense related to our stock options and restricted stock was $12.1 million and $2.7 million, respectively, and is expected to be recognized over a weighted average period of 2.5 years and 2.3 years respectively.

Dividends Declared and Paid

On August 7, 2023 the board of directors approved a dividend of $0.1875 per share. The dividend will be paid to holders of record as of October 2, 2023 on November 1, 2023.

On May 5, 2023 the board of directors approved a dividend of $0.1875 per share. The dividend was payable to holders of record as of June 30, 2023. The dividend of $3.0 million was paid on August 1, 2023.

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Stock Repurchase Agreement

On June 16, 2023, the Company entered into a stock repurchase agreement with MSG National Properties, LLC (“MSG”) to repurchase 1.5 million shares of the Company’s Class C common stock. Total consideration paid in the aggregate amount of $14.6 million, or $9.70 per share, are reflected as a reduction in capital during the three months ended June 30, 2023. The shares were retired upon repurchase. Following this transaction, MSG owned 1,708,139 shares of Common Stock in the Company (comprising 583,139 shares of Class A Common Stock and 1,125,000 shares of Class C Common Stock).

Stock Repurchase Plan

On December 16, 2021, the Board of Directors approved a stock repurchase plan, pursuant to which the Company is authorized to repurchase up to $50 million of the Company’s issued and outstanding Class A common stock over a thirty-six month period (the "2021 Stock Repurchase Plan"). Repurchases of common stock under the repurchase plan may be made, from time to time, in amounts and at prices the Company deems appropriate, subject to market conditions, applicable legal requirements, debt covenants and other considerations. Any such repurchases may be executed using open market purchases, privately negotiated agreements or other transactions, and may be funded from cash on hand, available borrowings or proceeds from potential debt or other capital markets sources.

During the six months ended June 30, 2023 a total of 89,568 shares were repurchased. As of June 30, 2023, a total of 115,191 shares were repurchased under the 2021 Stock Repurchase Plan.

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Note 11. Net (Loss) Income Per Share

Basic earnings per common share (“EPS”) is generally calculated as income available to common shareholders divided by the weighted average number of common shares outstanding. Diluted EPS is generally calculated as income available to common shareholders divided by the weighted average number of common shares outstanding plus the dilutive effect of common share equivalents. Stock-based compensation awards that are out-of-the-money and stock options and restricted stock units in which the market-based performance criteria have not been met as of the end of the respective reporting period are omitted from the calculation of Diluted EPS.

The following table sets forth the computations of basic and diluted net (loss) income per share for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share data):

	Three Months Ended  June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net (loss) income	$	(2,700)	$	4,919	$	(4,641)	$	7,660
Net income from non-controlling interest	500		525		980		1,042
Net (loss) income attributable to controlling interest	$	(3,200)	$	4,394	$	(5,621)	$	6,618
Denominator:
Weighted average shares of common stock outstanding	17,221		16,986		17,212		16,891
Effect of dilutive common stock equivalents	—		1,709		—		2,286
Weighted average diluted common shares outstanding	17,221		18,695		17,212		19,177
Basic (loss) income per share	$	(0.19)	$	0.26	$	(0.33)	$	0.39
Diluted (loss) income per share	$	(0.19)	$	0.24	$	(0.33)	$	0.35

The Company had the following dilutive securities that were not included in the computation of diluted net (loss) income per share as they were considered anti-dilutive (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Stock options	10,247	45	9,987	45
Stock options with unsatisfied market conditions	1,511	—	1,192	—
Restricted stock units	219	—	198	—
Restricted stock units with unsatisfied market conditions	219	—	198	—
Restricted stock awards	112	8	117	—
Shares expected to be issued under the 2021 Employee Stock Purchase Plan	35	—	41	—

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Note 12. Segment Reporting

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 6, Goodwill and Other Intangible Assets. The Company does not have any material inter-segment sales.

The Company's management evaluates segment operating income (loss), which 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 tables present the Company's reportable segment results for the three months ended June 30, 2023 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	21,268	$	41,126	$	53,720	$	5,117	$	—	$	121,231
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	15,243		26,782		38,983		4,646		—		85,654
Depreciation and amortization	327		168		3,382		33		925		4,835
Corporate expenses	—		—		—		—		6,962		6,962
Stock-based compensation	151		70		218		4		1,663		2,106
Transaction and business realignment costs	—		—		167		—		144		311
Impairment of intangible assets, investments and long-lived assets	—		—		16,743		—		9,497		26,240
Net gain on sale and retirement of assets	—		—		(49)		—		—		(49)
Operating income (loss)	$	5,547	$	14,106	$	(5,724)	$	434	$	(19,191)	$	(4,828)

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The following table presents the Company's reportable segment results for the three months ended June 30, 2022 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	22,983	$	37,172	$	57,001	$	4,768	$	—	$	121,924
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	16,293		26,102		37,544		3,894		—		83,833
Depreciation and amortization	313		145		3,157		49		650		4,314
Corporate expenses	—		—		—		—		5,739		5,739
Stock-based compensation	133		15		84		3		604		839
Transaction and business realignment costs	—		—		—		6		818		824
Impairment of intangible assets, investments and long-lived assets	—		—		5,951		—		3,468		9,419
Net loss on sale and retirement of assets	—		—		89		—		—		89
Operating income (loss)	$	6,244	$	10,910	$	10,176	$	816	$	(11,279)	$	16,867

The following tables present the Company's reportable segment results for the six months ended June 30, 2023 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	42,829	$	74,833	$	99,643	$	7,036	$	—	$	224,341
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	31,205		50,395		76,348		6,030		—		163,978
Depreciation and amortization	655		332		6,982		69		1,741		9,779
Corporate expenses	—		—		—		—		12,307		12,307
Stock-based compensation	279		115		382		6		3,096		3,878
Transaction and business realignment costs	—		—		360		11		232		603
Impairment of intangible assets, investments and long-lived assets	—		—		25,230		—		9,497		34,727
Net gain on sale and retirement of assets	—		—		(341)		—		—		(341)
Operating income (loss)	$	10,690	$	23,991	$	(9,318)	$	920	$	(26,873)	$	(590)

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The following tables present the Company's reportable segment results for the six months ended June 30, 2022 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	44,833	$	66,390	$	105,227	$	5,716	$	—	$	222,166
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	31,769		47,109		73,986		4,732		—		157,596
Depreciation and amortization	590		210		6,302		87		1,890		9,079
Corporate expenses	—		—		—		—		10,148		10,148
Stock-based compensation	265		30		171		6		1,236		1,708
Transaction and business realignment costs	—		—		—		12		1,264		1,276
Impairment of intangible assets, investments and long-lived assets	—		—		5,958		120		3,819		9,897
Net gain on sale and retirement of assets	—		—		(183)		—		(36)		(219)
Operating income (loss)	$	12,209	$	19,041	$	18,993	$	759	$	(18,321)	$	32,681

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following management’s discussion and analysis is intended to provide the reader with an overall understanding of our financial condition, results of operations, cash flows and sources and uses of cash. This section also includes general information about our business and a discussion of our management’s analysis of certain trends, risks and opportunities in our industry. In addition, we also provide a discussion of accounting policies that require critical judgments and estimates. This discussion should be read in conjunction with our Unaudited Consolidated Financial Statements and related notes appearing elsewhere in this quarterly report.

Note About Forward-Looking Statements

This report includes estimates, projections, statements relating to our business plans, objectives and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements often discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “believe,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by us include the impact of general economic conditions in the United States, or in the specific markets in which we currently do business including supply chain disruptions, inflation, labor shortages and the effect on advertising activity, industry conditions, including existing competition and future competitive technologies, the popularity of radio as a broadcasting and advertising medium, cancellations, disruptions or postponements of advertising schedules in response to national or world events, our ability to develop and maintain digital technologies and hire and retain technical and sales talent, our dependence on key personnel, our capital expenditure requirements, our continued ability to identify suitable acquisition targets, and consummate and integrate any future acquisitions, legislative or regulatory requirements, risks and uncertainties relating to our leverage and changes in interest rates, our ability to obtain financing at times, in amounts and at rates considered appropriate by us, our ability to access the capital markets as and when needed and on terms that we consider favorable to us and other factors discussed in this section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report and under “Risk Factors” in our 2022 Annual Report on Form 10-K, as well as other risks discussed from time to time in our filings with the SEC. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. The cautionary statements referred to in this section also should be considered in connection with any subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf. The forward-looking statements included in this report are made only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Format of Presentation

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the United States. Our integrated and diversified products and solutions enable local, regional and national advertisers to target audiences across multiple platforms, including digital, mobile, social, video, streaming, e-commerce, radio and events. Our assets include a subscription digital marketing services business (“Townsquare Interactive”), providing website design, creation and hosting, search engine optimization, social platforms and online reputation management as well as other monthly digital services for approximately 27,400 small to medium sized businesses; a robust digital advertising division (“Townsquare Ignite,” or “Ignite”), a powerful combination of a) an owned and operated portfolio of more than 400 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 356 local terrestrial radio stations in 74 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com and NJ101.5.com, and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com.

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We believe that our diversified product offering substantially differentiates us from our competition. This diversification allows us to provide superior solutions to our advertisers and engaging experiences for our audience, underpins our growth strategy and, we believe, helps to mitigate the risks associated with advertising revenue dependency.

The Company has identified three operating segments, which are Subscription Digital Marketing Solutions, Digital Advertising and Broadcast Advertising. The remainder of our business is reported in the Other category.

Subscription Digital Marketing Solutions

Our Subscription Digital Marketing Solutions segment encompasses Townsquare Interactive, our subscription digital marketing solutions business. Townsquare Interactive offers digital marketing solutions, on a subscription basis, to small and medium-sized business (“SMBs”) in markets outside the top 50 across the United States, including but importantly not limited to the markets in which we operate radio stations. We offer a variety of digital marketing solutions, which enables SMBs to choose the optimal features for their specific business.

Digital Advertising

Our Digital Advertising segment, marketed externally as Townsquare Ignite, is a combination of our owned and operated digital properties, our proprietary digital programmatic advertising platform, and an in-house demand and data management platform collecting valuable first party data.

Broadcast Advertising

Our Broadcast Advertising segment includes our portfolio of 356 local terrestrial radio stations. Our primary source of Broadcast Advertising net revenue is the sale of advertising on our local radio stations primarily to local and regional spot advertisers and also national spot and national network advertisers. We believe we are the largest and best-capitalized owner and operator of radio stations focused solely on markets outside the top 50 markets in the United States. Given the stability of radio’s audience, its broad reach and its relatively low cost as compared to competing advertising media such as television, we believe radio continues to offer an attractive value proposition to advertisers. The price point for radio advertising on a cost per thousand basis is lower than most other local media that deliver similar scale. This makes radio more affordable and accessible for the type of small and mid-sized businesses typically found in our local markets outside the top 50 markets in the U.S.

Other

We report the remainder of our revenue in the Other category, and it includes revenue from our live events. Our primary source of live events net revenue is ticket sales. Our live events also generate substantial revenue through the sale of sponsorships, food and other concessions, merchandise and other ancillary products and services.

Overall

We generate a majority of our advertising revenue by selling directly to local advertisers, as well as to local and regional advertising agencies which affords us the opportunity to better present our products, cross-sell products and more directly influence their advertising and marketing expenditure decisions. A significant percentage of our advertising revenue is generated from the sale of advertising to the automotive, financial services, health services, entertainment, and retail industries.

Our most significant expenses are sales personnel, programming, digital, marketing and promotional, engineering, and general and administrative expenses. We strive to control these expenses by closely monitoring and managing each of our local markets and through efficiencies gained from the centralization of finance, accounting, legal and human resources functions and management information systems. We also use our scale and diversified geographic portfolio to negotiate favorable rates with vendors where feasible.

A portion of our expenses are variable. These variable expenses primarily relate to sales costs, such as commissions and inventory costs, as well as certain programming costs, such as music license fees, and certain costs related to production. Other programming, digital, engineering and general and administrative expenses are primarily fixed costs.

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Seasonality

Our revenue varies throughout the year. Typically, we expect that our first calendar quarter will produce the lowest net revenue for the year, as advertising expenditures generally decline following the winter holidays. During even-numbered years, net revenue generally includes increased advertising expenditures by political candidates, political parties and special interest groups. Political spending is typically highest during the fourth quarter. Our operating results in any period may be affected by the incurrence of advertising and promotion expenses that typically do not have an effect on net revenue generation until future periods, if at all.

Macroeconomic Indicators

Current economic challenges, including high and sustained inflation, rising interest rates, and supply chain disruptions have caused and could continue to cause economic uncertainty and volatility. These factors could result in advertising and subscription digital marketing solutions cancellations, declines in the purchase of new advertising by our clients, declines in the addition of new digital marketing solutions subscribers, and increases to our operating expenses. We monitor economic conditions closely, and in response to observed or anticipated reductions in revenue, we may institute precautionary measures to address the potential impact to our consolidated financial position, consolidated results of operations, and liquidity, including wage reduction efforts and controlling non-essential capital expenditures.

The extent of the impact of current economic conditions will depend on future actions and outcomes, all of which remain fluid and cannot be predicted with confidence (including effects on advertising activity, consumer discretionary spending and our employees in the markets in which we operate).

OVERVIEW OF OUR PERFORMANCE

Highlights of Our Financial Performance

Certain key financial developments in our business for the three months ended June 30, 2023 as compared to the same period in 2022 are summarized below:

•Net revenue decreased $0.7 million, or 0.6%, primarily driven by a $3.3 million decrease in our Broadcast Advertising net revenue and a $1.7 million decrease in our Subscription Digital Marketing Solutions net revenue, largely offset by a $4.0 million increase in our Digital Advertising net revenue.

•Operating income decreased $21.7 million, or 128.6%, for the three months ended June 30, 2023. The decrease was due to a $16.8 million increase in non-cash impairment charges and a $1.8 million increase in direct operating expenses, primarily due to higher medical expenses and music license fees, as well as expenses related to an increase in the number of live events held during the current period.

•The Digital Advertising segment reported operating income of $14.1 million for the three months ended June 30, 2023, which represents an increase of $3.2 million, as compared to operating income of $10.9 million for the same period in 2022. The increase is primarily due to an increase in net revenue of $4.0 million, partially offset by an increase of $0.7 million in direct operating expenses. Subscription Digital Marketing Solutions reported operating income of $5.5 million, a decrease of $0.7 million from the three months ended June 30, 2022. Broadcast Advertising reported an operating loss of $5.7 million, as compared to operating income of $10.2 million for the three months ended June 30, 2022. The decrease of $15.9 million, is primarily due to an increase in non-cash impairment charges to our FCC licenses of $11.4 million and a decrease in net revenue of $3.3 million.

Certain key financial developments in our business for the six months ended June 30, 2023, as compared to the same period in 2022 are summarized below:

•Net revenue for the six months ended June 30, 2023 as compared to the same period in 2022, increased $2.2 million, or 1.0%, primarily driven by an $8.4 million increase in our Digital Advertising net revenue and a $1.3 million increase in Other net revenue due to an increase in the number of live events held during the period. These increases were partially offset by a decrease of $5.6 million in our Broadcast Advertising net revenue and a $2.0 million decrease in our Subscription Digital Marketing Solutions net revenue.

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•Operating income decreased $33.3 million, or 101.8%, for the six months ended June 30, 2023. Operating income decreased due to a $24.8 million increase in non-cash impairment charges and a $6.4 million increase in direct operating expenses, partially offset by an increase in net revenue of $2.2 million.

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Consolidated Results of Operations

Three months ended June 30, 2023 compared to three months ended June 30, 2022

The following table summarizes our historical consolidated results of operations:

($ in thousands)	Three Months Ended June 30,
Statement of Operations Data:	2023		2022		$ Change		% Change
Net revenue	$	121,231	$	121,924	$	(693)	(0.6)	%
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization, and stock-based compensation	85,654		83,833		1,821		2.2	%
Depreciation and amortization	4,835		4,314		521		12.1	%
Corporate expenses	6,962		5,739		1,223		21.3	%
Stock-based compensation	2,106		839		1,267		151.0	%
Transaction and business realignment costs	311		824		(513)		(62.3)	%
Impairment of intangible assets, investments and long-lived assets	26,240		9,419		16,821		178.6	%
Net (gain) loss on sale and retirement of assets	(49)		89		(138)		(155.1)	%
Total operating costs and expenses	126,059		105,057		21,002		20.0	%
Operating (loss) income	(4,828)		16,867		(21,695)		(128.6)	%
Other expense (income):
Interest expense, net	9,314		10,044		(730)		(7.3)	%
Gain on repurchases of debt	(44)		(108)		64		(59.3)	%
Other (income) expense, net	(4,878)		806		(5,684)		**
(Loss) income from operations before tax	(9,220)		6,125		(15,345)		(250.5)	%
Income tax (benefit) provision	(6,520)		1,206		(7,726)		(640.6)	%
Net (loss) income	$	(2,700)	$	4,919	$	(7,619)	(154.9)	%

** not meaningful

Segment Results

The following table presents the Company's reportable segment net revenue and direct operating expenses for the three months ended June 30, 2023 and 2022 (in thousands):

	Net Revenue								Direct Operating Expenses
	Three Months Ended  June 30,								Three Months Ended  June 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Subscription Digital Marketing Solutions	$	21,268	$	22,983	$	(1,715)	(7.5)	%	$	15,243	$	16,293	$	(1,050)	(6.4)	%
Digital Advertising	41,126		37,172		3,954		10.6	%	26,782		26,102		680		2.6	%
Broadcast Advertising	53,720		57,001		(3,281)		(5.8)	%	38,983		37,544		1,439		3.8	%
Other	5,117		4,768		349		7.3	%	4,646		3,894		752		19.3	%
Total	$	121,231	$	121,924	$	(693)	(0.6)	%	$	85,654	$	83,833	$	1,821	2.2	%

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Net Revenue

Net revenue for the three months ended June 30, 2023 decreased $0.7 million, or 0.6%, as compared to the same period in 2022. Our Broadcast Advertising net revenue decreased $3.3 million, or 5.8%, as compared to the same period in 2022, due in part to decreases in the purchase of new advertising by our clients and our Subscription Digital Marketing Solutions net revenue decreased $1.7 million, or 7.5%, as compared to the same period in 2022 due in part to a reduction of net subscribers during the three months ended June 30, 2023. These decreases were largely offset by an increase in our Digital Advertising net revenue of $4.0 million, or 10.6%, due to purchases of new advertising and an increase in our Other net revenue of $0.3 million.

Direct Operating Expenses

Direct operating expenses for the three months ended June 30, 2023 increased by $1.8 million, or 2.2%, as compared to the same period in 2022. Our Broadcast Advertising direct operating expenses increased $1.4 million, or 3.8%, driven by higher medical and music license fees. Our Digital Advertising direct operating expenses increased $0.7 million, or 2.6%, primarily driven by higher inventory costs and head count related expenses to support revenue growth. Other operating expenses increased $0.8 million, or 19.3%, due to an increase in live events held during 2023. These increases were partially offset by a $1.1 million, or 6.4%, decrease in our Subscription Digital Marketing Solutions direct operating expenses as compared to the same period in 2022 due to lower promotional costs.

Corporate Expenses

Corporate expenses are of a general corporate nature or managed on a corporate basis. These costs (net of allocations to the business segments) primarily represent corporate stewardship and administration activities. Corporate expenses for the three months ended June 30, 2023 increased $1.2 million, or 21.3%, as compared to the same period in 2022 primarily due to higher compensation.

Stock-based Compensation

Stock-based compensation expense for three months ended June 30, 2023 increased $1.3 million, or 151.0%, as compared to the same period in 2022, due to grants during the first quarter of 2023. For further discussion, see Note 10, Stockholders' Equity, in the Notes to Unaudited Consolidated Financial Statements.

Impairment of Intangible Assets, Investments and Long-Lived Assets

The Company recorded total impairment charges of $16.6 million related to FCC licenses in 20 of our 74 local markets during the three months ended June 30, 2023, as compared to impairment charges of $5.2 million to FCC licenses in six of our 74 local markets in the same period a year ago. The impairment charges were primarily driven by an increase in the discount rate applied in the valuation of our FCC licenses due to an increase in the weighted average cost of capital. For further discussion, see Note 6, Goodwill and Other Intangible Assets, in the Notes to Unaudited Consolidated Financial Statements.

During the three months ended June 30, 2023, the Company recorded an impairment charge of $9.2 million related to one of its equity securities, which is measured at cost minus impairment. The Company recorded an impairment charge of $1.2 million related to one of our investments during three months ended June 30, 2022. For further discussion, see Note 7, Investments, in the Notes to Unaudited Consolidated Financial Statements.

Unfavorable changes in key assumptions utilized in the impairment assessment of our FCC licenses may affect future testing results. For example, keeping all other assumptions constant, a 50-basis point increase in the weighted average cost of capital as of the date of our last quantitative assessment would cause the estimated fair values of our FCC licenses to decrease by $17.4 million which would have resulted in an additional impairment charge of $8.1 million as of June 30, 2023. Further, a 100-basis point decline in the long-term revenue growth rate would cause the estimated fair values of our FCC licenses to further decrease by $20.9 million which would have resulted in a further impairment charge of $11.1 million as of June 30, 2023. Assumptions used to estimate the fair value of our FCC licenses are also dependent upon the expected performance and growth of our traditional broadcast operations. In the event broadcast revenue experiences actual or anticipated declines, such declines will have a negative impact on the estimated fair value of our FCC licenses, and the Company could recognize additional impairment charges, which could be material.

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Interest Expense, net

The following table illustrates the components of our interest expense, net for the periods indicated (in thousands):

	Three Months Ended June 30,
	2023		2022
2026 Notes	$	8,909	$	9,296
Capital leases and other	326		310
Deferred financing costs	524		438
Interest income	(445)		—
Interest expense, net	$	9,314	$	10,044

Other expense (income), net

Realized Gain on Investment

During the three months ended June 30, 2023, one of the Company's investments was acquired in a private transaction. The Company recognized a $5.2 million gain on the transaction, based on total consideration received in the amount of $6.0 million. See Note 7, Investments, in our Notes to Consolidated Financial Statements for further discussion related to this investment.

Unrealized Loss on Investment

Other expense (income), net includes unrealized losses related to measuring the fair value of one of the Company's investees. During the three months ended June 30, 2023, the Company recorded an unrealized gain of $0.2 million, as compared to an unrealized loss of $0.7 million during the three months ended June 30, 2022. See Note 7, Investments, in our Notes to Consolidated Financial Statements for further discussion related to this investment.

(Benefit) Provision for income taxes

We recognized a benefit from income taxes of $6.5 million for the three months ended June 30, 2023, as compared to a provision for income taxes of $1.2 million for the same period in 2022. Our effective tax rate for the three months ended June 30, 2023 and 2022 was approximately 70.7% and 19.7%, respectively. The increase in the effective tax rate is primarily driven by certain non-deductible expenses and increases in the valuation allowance for deferred tax assets.

Our effective tax rate may vary significantly from period to period and can be influenced by many factors. These factors include, but are not limited to, changes to statutory rates in the jurisdictions where we have operations and changes in the valuation of deferred tax assets and liabilities. The difference between the effective tax rate and the federal statutory rate of 21%, primarily relates to certain non-deductible items, state and local income taxes and the valuation allowance for deferred tax assets.

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Consolidated Results of Operations

Six months ended June 30, 2023 compared to six months ended June 30, 2022

The following table summarizes our historical consolidated results of operations:

($ in thousands)	Six Months Ended  June 30,
Statement of Operations Data:	2023		2022		$ Change		% Change
Net revenue	$	224,341	$	222,166	$	2,175	1.0	%
Direct operating expenses, excluding depreciation, amortization, and stock-based compensation	163,978		157,596		6,382		4.0	%
Depreciation and amortization	9,779		9,079		700		7.7	%
Corporate expenses	12,307		10,148		2,159		21.3	%
Stock-based compensation	3,878		1,708		2,170		127.0	%
Transaction and business realignment costs	603		1,276		(673)		(52.7)	%
Impairment of intangible assets, investments and long-lived assets	34,727		9,897		24,830		250.9	%
Net gain on sale and retirement of assets	(341)		(219)		(122)		**
Total operating costs and expenses	224,931		189,485		35,446		18.7	%
Operating (loss) income	(590)		32,681		(33,271)		(101.8)	%
Other expense (income):
Interest expense, net	18,872		20,071		(1,199)		(6.0)	%
Gain on repurchases of debt	(819)		(108)		(711)		**
Other (income) expense, net	(5,904)		2,394		(8,298)		**
(Loss) income from operations before income taxes	(12,739)		10,324		(23,063)		(223.4)	%
Income tax (benefit) provision	(8,098)		2,664		(10,762)		(404.0)	%
Net (loss) income	$	(4,641)	$	7,660	$	(12,301)	(160.6)	%

** not meaningful

Segment Results

The following table presents the Company's reportable segment net revenue and direct operating expenses for the six months ended June 30, 2023 and 2022 (in thousands):

	Net Revenue								Direct Operating Expenses
	Six Months Ended  June 30,								Six Months Ended  June 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Subscription Digital Marketing Solutions	$	42,829	$	44,833	$	(2,004)	(4.5)	%	$	31,205	$	31,769	$	(564)	(1.8)	%
Digital Advertising	74,833		66,390		8,443		12.7	%	50,395		47,109		3,286		7.0	%
Broadcast Advertising	99,643		105,227		(5,584)		(5.3)	%	76,348		73,986		2,362		3.2	%
Other	7,036		5,716		1,320		23.1	%	6,030		4,732		1,298		27.4	%
Total	$	224,341	$	222,166	$	2,175	1.0	%	$	163,978	$	157,596	$	6,382	4.0	%

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Net Revenue

Net revenue for the six months ended June 30, 2023, increased $2.2 million, or 1.0%, as compared to the same period in 2022. Our Digital Advertising net revenue for the six months ended June 30, 2023, increased $8.4 million, or 12.7%, due to purchases of new advertising and our Other net revenue increased $1.3 million, or 23.1%, due to the increase in live events held during the period, as compared to the same period a year ago.

Our Broadcast Advertising net revenue decreased $5.6 million, or 5.3%, due in part to decreases in the purchase of new advertising by our clients. Our Subscription Digital Marketing Solutions net revenue for six months ended June 30, 2023 decreased $2.0 million, or 4.5% as compared to the same period in 2022 due in part to a reduction of net subscribers.

Direct Operating Expenses

Direct operating expenses for the six months ended June 30, 2023, increased by $6.4 million, or 4.0%, as compared to the same period in 2022. Our Digital Advertising direct operating expenses for six months ended June 30, 2023 increased $3.3 million, or 7.0%, due to higher inventory and compensation costs due to the increase in revenue, and our Broadcast Advertising direct operating expenses increased $2.4 million, or 3.2%, driven by higher medical expenses and music license fees. Our Other direct operating expenses for the six months ended June 30, 2023, increased $1.3 million, or 27.4%, as compared to the same period in 2022, due to an increase in live events during the period, as compared to the same period a year ago.

Subscription Digital Marketing Solutions direct operating expenses for six months ended June 30, 2023 decreased $0.6 million, or 1.8%, as compared to the same period in 2022. The decrease was primarily driven by decreases in promotional expenses.

Corporate Expenses

Corporate expenses are of a general corporate nature or managed on a corporate basis. These costs (net of allocations to the business segments) primarily represent corporate stewardship and administration activities. Corporate expenses for the six months ended June 30, 2023 increased $2.2 million, or 21.3%, as compared to the same period in 2022 primarily due to higher compensation and professional fees.

Stock-based Compensation

Stock-based compensation expense for the six months ended June 30, 2023, increased $2.2 million, or 127.0%, as compared to the same period in 2022 due to grants during the first quarter of 2023. For further discussion, see Note 10, Stockholders' Equity, in the Notes to Unaudited Consolidated Financial Statements.

Impairment of Intangible Assets, Investments and Long-Lived Assets

The Company recorded total impairment charges of $24.8 million related to FCC licenses in 20 of our 74 local markets during the six months ended June 30, 2023, as compared to impairment charges of $5.2 million to FCC licenses in six of our 74 local markets in the same period a year ago. The impairment charges were primarily driven by increases in the discount rate applied in the valuation of our FCC licenses due to an increase in the weighted average cost of capital and decreases in third-party forecasts of broadcast revenues. For further discussion, see Note 6, Goodwill and Other Intangible Assets, in the Notes to Unaudited Consolidated Financial Statements.

During the six months ended June 30, 2023, the Company recorded an impairment charge of $9.2 million related to one of its equity securities, which is measured at cost minus impairment. The Company recorded an impairment charge of $1.2 million related to one of our investments during six months ended June 30, 2022. For further discussion, see Note 7, Investments, in the Notes to Unaudited Consolidated Financial Statements. During the six months ended June 30, 2022, we recorded a $2.6 million impairment charge resulting from changes in the fair value of the Company's digital assets. For further discussion, see Note 6, Goodwill and Other Intangible Assets, in the Notes to Unaudited Consolidated Financial Statements.

35

Interest Expense, net

The following table illustrates the components of our interest expense, net for the periods indicated (in thousands):

	Six Months Ended  June 30,
	2023		2022
2026 Notes	$	18,024	$	18,749
Capital leases and other	699		467
Deferred financing costs	949		855
Interest income	(800)		—
Interest expense, net	$	18,872	$	20,071

Gain on repurchase of debt

During the six months ended June 30, 2023, the Company voluntarily repurchased an aggregate $12.9 million principal amount of its 2026 Notes below par plus accrued interest. The Company wrote-off approximately $0.1 million of unamortized deferred financing costs, recognizing a total net gain of $0.8 million in connection with the voluntary repurchases of its 2026 Notes.

Other expense (income), net

Sale of Digital Assets

During the six months ended June 30, 2023, the Company sold its digital assets with a carrying value of $2.1 million, recognizing a gain on the sale of $0.8 million. For further discussion, see Note 6, Goodwill and Other Intangible Assets, in the Notes to Unaudited Consolidated Financial Statements.

Insurance Recoveries

During the six months ended June 30, 2023, the Company recorded total insurance recoveries of $0.4 million related to hurricane damages incurred in the Shreveport, LA market, recognizing a $0.4 million gain related to the amounts received.

Realized Gain on Investment

During the six months ended June 30, 2023, one of the Company's investments was acquired in a private transaction. The Company recognized a $5.2 million gain on the transaction, based on total consideration received in the amount of $6.0 million. See Note 7, Investments, in our Notes to Consolidated Financial Statements for further discussion related to this investment.

Unrealized (Gain) Loss on Investment

Other expense (income), net includes unrealized losses related to measuring the fair value of one of the Company's investees. During the six months ended June 30, 2023 the Company recorded an unrealized net gain of $0.1 million, as compared to an unrealized loss of $2.2 million during the six months ended June 30, 2022. See Note 7, Investments, in our Notes to Consolidated Financial Statements for further discussion related to this investment.

(Benefit) Provision for income taxes

We recognized a benefit from income taxes of $8.1 million for the six months ended June 30, 2023, as compared to a provision for income taxes of $2.7 million for the same period in 2022. Our effective tax rate for the period was approximately 63.6% for the six months ended June 30, 2023 as compared to 25.8% for the six months ended June 30, 2022.

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The increase in the effective tax rate is primarily driven by discrete items for the period, as well as non-deductible expenses and increases in the valuation allowance for certain interest expense carryforwards.

Our effective tax rate may vary significantly from period to period and can be influenced by many factors. These factors include, but are not limited to, changes to statutory rates in the jurisdictions where we have operations and changes in the valuation of deferred tax assets and liabilities. The difference between the effective tax rate and the federal statutory rate of 21.0%, primarily relates to certain non-deductible items, state and local income taxes and the valuation allowance for deferred tax assets.

37

Liquidity and Capital Resources

The following table summarizes our change in cash and cash equivalents (in thousands):

	Six Months Ended June 30,
	2023		2022
Cash and cash equivalents	$	49,598	$	22,825
Restricted cash	499		494
Cash provided by operating activities	31,406		23,005
Cash provided by (used in) investing activities	2,407		(30,493)
Cash used in financing activities	(27,629)		(20,192)
Net increase (decrease) in cash and cash equivalents and restricted cash	$	6,184	$	(27,680)

Operating Activities

Net cash provided by operating activities was $31.4 million for the six months ended June 30, 2023, as compared to $23.0 million for the same period in 2022. This increase was primarily related to lower prepaid expenses and accounts receivable due to the timing of payments.

Investing Activities

Net cash provided by investing activities was $2.4 million for the six months ended June 30, 2023 as compared to net cash used by investing activities of $30.5 million for the same period in 2022. The decrease in net cash used in investing activities was primarily due to the purchase of digital assets of $5.0 million and payment for the Cherry Creek acquisition of $18.4 million during 2022 that did not reoccur in the same period in 2023. During the six months ended June 30, 2023, the Company received cash proceeds of $6.2 million and $3.0 million related to sales of investments and digital assets, respectively.

Financing Activities

Net cash used in financing activities was $27.6 million for the six months ended June 30, 2023, as compared to net cash provided by financing activities of $20.2 million for the same period in 2022. The increase in net cash used in financing activities was primarily due to $14.6 million paid for the repurchase of 1.5 million shares of Class C common stock from MSG National Properties, LLC and $3.2 million dividend payments in 2023, partially offset lower repurchases of 2026 Notes and an increase in proceeds from stock options exercised.

Sources of Liquidity and Anticipated Cash Requirements

We fund our working capital requirements through a combination of cash flows from our operating, investing, and financing activities. Based on current and anticipated levels of operations and conditions in our markets and industry, we believe that our cash on hand and cash flows from our operating, investing, and financing activities will enable us to meet our working capital, capital expenditures, debt service, and other funding requirements for at least one year from the date of this report. Future capital requirements may be materially different than those currently planned in our budgeting and forecasting activities and depend on many factors, some of which are beyond our control. We have focused on and will continue to monitor our liquidity in response to current and future economic challenges and uncertainty.

As of June 30, 2023, we had $512.6 million of outstanding indebtedness, net of deferred financing costs of $5.2 million.

Based on the terms of our 2026 Notes, as of June 30, 2023, we expect our debt service requirements to be approximately $35.6 million over the next twelve months. See Note 8, Long-Term Debt, in our Notes to Consolidated Financial Statements for additional information related to our 2026 Notes.

38

As of June 30, 2023 we had $49.6 million of cash and cash equivalents, and $62.5 million of receivables from customers, which historically have had an average collection cycle of approximately 55 days. We had restricted cash of $0.5 million at June 30, 2023 and December 31, 2022, that was held as collateral in connection with certain agreements. From time to time, such restricted funds could be returned to us or we could be required to pledge additional cash.

On May 5, 2023, the board of directors approved a quarterly dividend of $0.1875 per share for holders of record as of June 30, 2023. The $3.0 million dividend was paid on August 1, 2023. On August 7, 2023 the board of directors approved a dividend of $0.1875 per share. The dividend will be paid to holders of record as of October 2, 2023 on November 1, 2023.

During the first half of 2023, the Company voluntarily repurchased an aggregate $12.9 million in principal amount of its 2026 Notes, below par.

On June 16, 2023, the Company repurchased 1.5 million shares of the Company’s Class C common stock in the aggregate amount of $14.6 million from MSG Entertainment Group, LLC ("MSG"). The shares were retired upon repurchase. Additionally, the Company repurchased approximately 0.1 million shares of Class A common stock for approximately $1.1 million, during the six months ended June 30, 2023.

Our anticipated uses of cash in the near term include working capital needs, interest payments, dividend payments, other obligations, and capital expenditures. The Company believes that the cash generated by its operations should be sufficient to meet its liquidity needs for at least the next 12 months. However, our ability to fund our working capital needs, debt payments, dividend payments, other obligations, capital expenditures, and to comply with financial covenants under our debt agreements, depends on our future operating performance and cash flow, which are in turn subject to prevailing economic conditions, increases or decreases in advertising spending, changes in the highly competitive industry in which we operate, which may be rapid, and other factors, many of which are beyond our control. To the extent that current and anticipated future sources of liquidity are insufficient to fund our future business activities and requirements, we may be required to seek additional equity or debt financing. The sale of additional equity would result in additional dilution to our stockholders, while the incurrence of debt financing would result in debt service obligations. Such debt instruments also could introduce covenants that might restrict our operations. We cannot assure you that we could obtain additional financing on favorable terms or at all.

Additionally, on a continuing basis, we evaluate and consider strategic acquisitions and divestitures to enhance our strategic and competitive position as well as our financial performance. Any future acquisitions, joint ventures or other similar transactions may require additional capital, which may not be available to us on acceptable terms, if at all.

We closely monitor the impact of capital and credit market conditions on our liquidity as it relates to our debt. We also routinely monitor the changes in the financial condition of our customers and the potential impact on our results of operations.

Other Liquidity Matters

Material changes to our commitments from those included in our 2022 Annual Report on Form 10-K are discussed in Note 6, Goodwill and Other Intangible Assets - Content Rights, in our Notes to Consolidated Financial Statements.

Off-Balance Sheet Arrangements

We have no material off-balance sheet arrangements or transactions.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our significant estimates, including those related to determining the fair value of assets and liabilities acquired in a business combination, impairment testing of intangible assets, valuation and impairment testing of long-lived tangible assets, the present value of leasing arrangements, share-based payment expense and the calculation of allowance for doubtful accounts and income taxes. We base our estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the result of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our estimates

39

may change, however, as new events occur and additional information is obtained, and any such changes will be recognized in the Consolidated Financial Statements. Actual results could differ from such estimates, and any such differences may be material to our financial statements.

We believe the accounting policies and estimates discussed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2022 Annual Report on Form 10-K reflects our more significant judgments and estimates used in the preparation of the Consolidated Financial Statements. There have been no material changes to the critical accounting policies and estimates as filed in such report.

Recent Accounting Standards

For a discussion of accounting standards updates that have been adopted or will be adopted in the future, please refer to Note 2, Summary of Significant Accounting Policies of the Notes to Unaudited Consolidated Financial Statements included under Item 1.

40

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), with the assistance of other members of management, have reviewed the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Our disclosure controls and procedures are intended to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is (1) recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms and (2) accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Based on this review, our CEO and CFO have concluded that the disclosure controls and procedures were effective as of June 30, 2023.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect every misstatement. An evaluation of effectiveness is subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may decrease over time.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal controls over financial reporting that occurred during the three months ended June 30, 2023 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

There are inherent limitations in the effectiveness of any control system, including the potential for human error and the possible circumvention or overriding of controls and procedures. Additionally, judgments in decision-making can be faulty and breakdowns can occur because of a simple error or mistake. An effective control system can provide only reasonable, not absolute, assurance that the control objectives of the system are adequately met. Accordingly, the management of the Company, including its Chief Executive Officer and Chief Financial Officer, does not expect that the control system can prevent or detect all error or fraud. Finally, projections of any evaluation or assessment of effectiveness of a control system to future periods are subject to the risks that, over time, controls may become inadequate because of changes in an entity’s operating environment or deterioration in the degree of compliance with policies or procedures.

41

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There is no current material pending litigation to which we are a party and no material legal proceedings were terminated, settled or otherwise resolved during the three and six months ended June 30, 2023. In the normal course of business, the Company is subject to various regulatory proceedings, lawsuits, claims and other matters related to intellectual property, personal injury, employee, or other matters. These matters are subject to many uncertainties and outcomes are not predictable with assurance. However, we do not believe that the ultimate resolution of these matters will have a material adverse effect on our financial position or results of operations.

Item 1A. Risk Factors

Please refer to Part I, Item 1A, “Risk Factors,” in our 2022 Annual Report on Form 10-K for information regarding known material risks that could affect our results of operations, financial condition and liquidity. In addition to these risks, other risks that we presently do not consider material, or other unknown risks, could materially adversely impact our business, financial condition and results of operations in a future period.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

2021 Share Repurchase Program

In December 2021, our Board of Directors approved a 3-year share repurchase program for up to $50 million. The following table provides certain information with respect to the Company's purchases of its common shares during the three months ended June 30, 2023:

Period	Total Number of Shares Purchased(1)	Average Price Paid per Share		Approximate dollar value of shares that may yet be purchased under the plan (in thousands)
April 1, 2023 through April 30, 2023	—	$	—	$	49,775
May 1, 2023 through May 31, 2023	16,335	$	8.99	$	49,628
June 1, 2023 through June 30, 2023 (2)	73,233	$	11.91	$	48,756
Total	89,568	$	11.38	$	48,756

(1) This column represents the total number of shares purchased as part of publicly announced plans.

(2) As disclosed in the Company’s Current Report on Form 8-K filed with the SEC on June 16, 2023, on June 16, 2023, the Company entered into a stock repurchase agreement with MSG National Properties, LLC (“MSG”) to repurchase 1.5 million shares of the Company’s Class C common stock for an aggregate purchase price of $14.6 million, or $9.70 per share. Following this transaction, MSG will own 1,708,139 shares of Common Stock in the Company (comprising 583,139 shares of Class A Common Stock and 1,125,000 shares of Class C Common Stock). The table above lists the repurchase of Class A common stock only since the Class A common stock is the only class of securities of the Company that is registered under Section 12 of the Exchange Act.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

42

Item 6. Exhibits

See Exhibit Index.

EXHIBIT INDEX

Exhibit	Description
31.1*	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
31.2*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
32.1**	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350
32.2**	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith

** Furnished herewith

43

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TOWNSQUARE MEDIA, INC.
Date: August 9, 2023
By:	/s/ Stuart Rosenstein
	Name: Stuart Rosenstein
	Title: Executive Vice President & Chief Financial Officer
By:	/s/ Robert Worshek
	Name: Robert Worshek
	Title: Senior Vice President, Chief Accounting Officer

44

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF

THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Stuart Rosenstein, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Townsquare Media, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 9, 2023	By:	/s/ Stuart Rosenstein
		Name: Stuart Rosenstein
		Title: Executive Vice President and Chief Financial Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF

THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Bill Wilson, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Townsquare Media, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 9, 2023	By:	/s/ Bill Wilson
		Name: Bill Wilson
		Title: Chief Executive Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Townsquare Media, Inc. (the “Company”) for the three months ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stuart Rosenstein, as Executive Vice President and Chief Financial Officer of Townsquare Media, Inc., hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Townsquare Media, Inc.

Dated: August 9, 2023	/s/ Stuart Rosenstein
	Name: Stuart Rosenstein
	Title: Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of Townsquare Media, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.     

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Townsquare Media, Inc. (the "Company") for the three months ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bill Wilson, as Chief Executive Officer of Townsquare Media, Inc., hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 9, 2023	/s/ Bill Wilson
	Name: Bill Wilson
	Title: Chief Executive Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of Townsquare Media, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.            

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-36558
Entity Registrant Name	Townsquare Media, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-1996555
Entity Address, Address Line One	One Manhattanville Road
Entity Address, Address Line Two	Suite 202
Entity Address, City or Town	Purchase,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10577
City Area Code	203
Local Phone Number	861-0900
Title of 12(b) Security	Class A Common Stock, $0.01 par value per share
Trading Symbol	TSQ
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001499832
Current Fiscal Year End Date	--12-31
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		13,788,537
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		815,296
Class C common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,961,341

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 49,598	$ 43,417
Accounts receivable, net of allowance of $5,507 and $5,946, respectively	62,537	61,234
Prepaid expenses and other current assets	12,432	16,037
Total current assets	124,567	120,688
Property and equipment, net	111,105	113,846
Intangible assets, net	246,222	276,838
Goodwill	161,481	161,385
Investments	9,181	19,106
Operating lease right-of-use assets	49,692	50,962
Other assets	1,366	1,197
Restricted cash	499	496
Total assets	704,113	744,518
Current liabilities:
Accounts payable	4,707	4,127
Deferred revenue	10,058	10,669
Accrued compensation and benefits	10,183	14,831
Accrued expenses and other current liabilities	25,900	17,876
Operating lease liabilities, current	9,003	9,008
Accrued interest	14,836	15,203
Total current liabilities	74,687	71,714
Long-term debt, net of deferred finance costs of $5,229 and $6,324, respectively	512,606	524,442
Deferred tax liability	10,275	18,748
Operating lease liability, net of current portion	44,113	45,107
Other long-term liabilities	13,053	15,428
Total liabilities	654,734	675,439
Stockholders’ equity:
Total common stock	164	173
Treasury stock, at cost; 89,568 and 0 shares of Class A common stock, respectively	(1,135)	0
Additional paid-in capital	303,720	309,645
Accumulated deficit	(256,410)	(244,298)
Non-controlling interest	3,040	3,559
Total stockholders’ equity	49,379	69,079
Total liabilities and stockholders’ equity	704,113	744,518
Class A common stock
Stockholders’ equity:
Total common stock	136	130
Class B common stock
Stockholders’ equity:
Total common stock	8	8
Class C common stock
Stockholders’ equity:
Total common stock	$ 20	$ 35

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts receivable allowance	$ 5,507	$ 5,946
Deferred financing costs	$ 5,229	$ 6,324
Class A common stock
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	300,000,000	300,000,000
Common shares issued (in shares)	13,668,428	12,964,312
Common shares outstanding (in shares)	13,668,428	12,964,312
Treasury shares common shares (in shares)	89,568	0
Class B common stock
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares issued (in shares)	815,296	815,296
Common shares outstanding (in shares)	815,296	815,296
Class C common stock
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares issued (in shares)	1,961,341	3,461,341
Common shares outstanding (in shares)	1,961,341	3,461,341

XML

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net revenue	$ 121,231	$ 121,924	$ 224,341	$ 222,166
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization, and stock-based compensation	85,654	83,833	163,978	157,596
Depreciation and amortization	4,835	4,314	9,779	9,079
Corporate expenses	6,962	5,739	12,307	10,148
Stock-based compensation	2,106	839	3,878	1,708
Transaction and business realignment costs	311	824	603	1,276
Impairment of intangible assets, investments and long-lived assets	26,240	9,419	34,727	9,897
Net (gain) loss on sale and retirement of assets	(49)	89	(341)	(219)
Total operating costs and expenses	126,059	105,057	224,931	189,485
Operating (loss) income	(4,828)	16,867	(590)	32,681
Other expense (income):
Interest expense, net	9,314	10,044	18,872	20,071
Gain on repurchases of debt	(44)	(108)	(819)	(108)
Other (income) expense, net	(4,878)	806	(5,904)	2,394
(Loss) income from operations before tax	(9,220)	6,125	(12,739)	10,324
Income tax (benefit) provision	(6,520)	1,206	(8,098)	2,664
Net (loss) income	(2,700)	4,919	(4,641)	7,660
Net (loss) income attributable to:
Controlling interests	(3,200)	4,394	(5,621)	6,618
Non-controlling interests	$ 500	$ 525	$ 980	$ 1,042
Diluted (loss) income per share (in dollars per share)	$ (0.19)	$ 0.24	$ (0.33)	$ 0.35
Weighted average shares outstanding:
Diluted (in shares)	17,221	18,695	17,212	19,177
Cash dividend declared per share (in dollars per share)	$ 0.1875	$ 0	$ 0.3750	$ 0
Common shares
Net (loss) income attributable to:
Basic (loss) income per share (in dollars per share)	$ (0.19)	$ 0.26	$ (0.33)	$ 0.39
Weighted average shares outstanding:
Basic (in shares)	17,221	16,986	17,212	16,891

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands		Total	Class A	Class B	Class C	Common Stock	Common Stock Class A	Common Stock Class B	Common Stock Class C	Treasury Stock	Treasury Stock Class A	Additional Paid-in Capital	Accumulated Deficit	Non- Controlling Interest
Beginning balance (in shares) at Dec. 31, 2021							12,573,654	815,296	3,461,341
Treasury stock, beginning balance (in shares) at Dec. 31, 2021											0
Beginning balance at Dec. 31, 2021		$ 49,584				$ 169				$ 0		$ 302,724	$ (256,635)	$ 3,326
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income		2,741											2,224	517
Stock-based compensation		869										869
Common stock issued under exercise of stock options (in shares)							94,422
Common stock issued under exercise of stock options		647				1						646
Issuance of restricted stock (in shares)	[1]						191,456
Issuance of restricted stock	[1]	1,809				2						1,807
Ending balance (in shares) at Mar. 31, 2022							12,859,532	815,296	3,461,341
Treasury stock, ending balance (in shares) at Mar. 31, 2022											0
Ending balance at Mar. 31, 2022		55,650				172				0		306,046	(254,411)	3,843
Beginning balance (in shares) at Dec. 31, 2021							12,573,654	815,296	3,461,341
Treasury stock, beginning balance (in shares) at Dec. 31, 2021											0
Beginning balance at Dec. 31, 2021		49,584				169				0		302,724	(256,635)	3,326
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income		7,660
Ending balance (in shares) at Jun. 30, 2022							12,876,711	815,296	3,461,341
Treasury stock, ending balance (in shares) at Jun. 30, 2022											25,623
Ending balance at Jun. 30, 2022		59,475				172				(225)		306,997	(250,017)	2,548
Beginning balance (in shares) at Mar. 31, 2022							12,859,532	815,296	3,461,341
Treasury stock, beginning balance (in shares) at Mar. 31, 2022											0
Beginning balance at Mar. 31, 2022		55,650				172				0		306,046	(254,411)	3,843
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income		4,919											4,394	525
Stock-based compensation		839										839
Common stock issued under exercise of stock options (in shares)							17,179
Common stock issued under exercise of stock options		112										112
Treasury stock acquired at cost (in shares)	[2]										25,623
Treasury stock acquired at cost	[2]	(225)								(225)
Cash distributions to non-controlling interests		(1,820)												(1,820)
Ending balance (in shares) at Jun. 30, 2022							12,876,711	815,296	3,461,341
Treasury stock, ending balance (in shares) at Jun. 30, 2022											25,623
Ending balance at Jun. 30, 2022		59,475				172				(225)		306,997	(250,017)	2,548
Beginning balance (in shares) at Dec. 31, 2022			12,964,312	815,296	3,461,341		12,964,312	815,296	3,461,341
Treasury stock, beginning balance (in shares) at Dec. 31, 2022			0								0
Beginning balance at Dec. 31, 2022		69,079				173				0		309,645	(244,298)	3,559
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income		(1,941)											(2,421)	480
Dividends declared		(3,343)											(3,343)
Stock-based compensation		1,772										1,772
Common stock issued under exercise of stock options (in shares)							5,000
Common stock issued under exercise of stock options		31										31
ESPP shares issued (in shares)							65,732
ESPP shares issued		430										430
Issuance of restricted stock (in shares)							82,263
Issuance of restricted stock		0				1						(1)
Ending balance (in shares) at Mar. 31, 2023							13,117,307	815,296	3,461,341
Treasury stock, ending balance (in shares) at Mar. 31, 2023											0
Ending balance at Mar. 31, 2023		66,028				174				0		311,877	(250,062)	4,039
Beginning balance (in shares) at Dec. 31, 2022			12,964,312	815,296	3,461,341		12,964,312	815,296	3,461,341
Treasury stock, beginning balance (in shares) at Dec. 31, 2022			0								0
Beginning balance at Dec. 31, 2022		69,079				173				0		309,645	(244,298)	3,559
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income		$ (4,641)
Common stock issued under exercise of stock options (in shares)		556,121
Ending balance (in shares) at Jun. 30, 2023			13,668,428	815,296	1,961,341		13,668,428	815,296	1,961,341
Treasury stock, ending balance (in shares) at Jun. 30, 2023			89,568								89,568
Ending balance at Jun. 30, 2023		$ 49,379				164				(1,135)		303,720	(256,410)	3,040
Beginning balance (in shares) at Mar. 31, 2023							13,117,307	815,296	3,461,341
Treasury stock, beginning balance (in shares) at Mar. 31, 2023											0
Beginning balance at Mar. 31, 2023		66,028				174				0		311,877	(250,062)	4,039
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income		(2,700)											(3,200)	500
Repurchase of stock (in shares)	[3]								(1,500,000)
Repurchase of stock	[3]	(14,550)				(15)						(14,535)
Dividends declared		(3,148)											(3,148)
Stock-based compensation		2,106										2,106
Common stock issued under exercise of stock options (in shares)							551,121
Common stock issued under exercise of stock options		4,277				5						4,272
Treasury stock acquired at cost (in shares)	[4]										89,568
Treasury stock acquired at cost	[4]	(1,135)								(1,135)
Cash distributions to non-controlling interests		(1,499)												(1,499)
Ending balance (in shares) at Jun. 30, 2023			13,668,428	815,296	1,961,341		13,668,428	815,296	1,961,341
Treasury stock, ending balance (in shares) at Jun. 30, 2023			89,568								89,568
Ending balance at Jun. 30, 2023		$ 49,379				$ 164				$ (1,135)		$ 303,720	$ (256,410)	$ 3,040

[1] Includes 150,000 shares issued in the form of stock awards that vested immediately

[2] Represents shares repurchased under the 2021 Stock Repurchase Plan.

[3] On June 16, 2023, the Company repurchased 1.5 million shares of the Company’s Class C common stock. For further discussion on the repurchase, see Note 10, Stockholders' Equity, in our Notes to Consolidated Financial Statements

[4] Represents shares repurchased under the terms of the Company's stock repurchase plan pursuant to which the Company is authorized to repurchase up to $50 million of the Company’s issued and outstanding Class A common stock over a three-year period, the "2021 Stock Repurchase Plan."

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Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2022	Jun. 16, 2023
Immediately
Issuance of stock (in shares)	150,000
Repurchased Plan | Class C
Stock repurchase (in shares)		1,500,000

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net (loss) income		$ (4,641)	$ 7,660
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		9,779	9,079
Amortization of deferred financing costs		949	855
Non-cash lease expense (income)		52	(251)
Net deferred taxes and other		(8,473)	2,314
Provision for doubtful accounts		2,564	494
Stock-based compensation expense		3,878	1,708
Gain on repurchases of debt		(819)	(108)
Trade activity, net		(1,008)	(1,773)
Impairment of intangible assets, investments and long-lived assets		34,727	9,897
Realized gain on sale of digital assets		(839)	0
Gain on sale of investment		(5,210)	0
Unrealized (gain) loss on investment		(112)	2,172
Content rights acquired		0	(19,320)
Amortization of content rights		2,422	1,952
Change in content rights liabilities		(659)	18,278
Other		(596)	(283)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable		(3,453)	(5,984)
Prepaid expenses and other assets		4,548	(507)
Accounts payable		625	1,401
Accrued expenses		(1,946)	(3,917)
Accrued interest		(367)	(556)
Other long-term liabilities		(15)	(106)
Net cash provided by operating activities		31,406	23,005
Cash flows from investing activities:
Payment for acquisition		0	(18,419)
Purchase of property and equipment		(7,136)	(7,627)
Purchase of investments		0	(100)
Purchase of digital assets		0	(4,997)
Proceeds from sale of digital assets		2,975	0
Proceeds from insurance recoveries		372	11
Proceeds from sale of assets and investment related transactions		6,196	639
Net cash provided by (used in) investing activities		2,407	(30,493)
Cash flows from financing activities:
Repurchases of 2026 Notes		(11,966)	(18,850)
Dividend payments		(3,240)	0
Proceeds from stock options exercised		4,308	759
Withholdings for shares issued under the ESPP		430	0
Repurchases of stock		(15,572)	(225)
Cash distribution to non-controlling interests		(1,499)	(1,820)
Repayments of capitalized obligations		(90)	(56)
Net cash (used in) financing activities		(27,629)	(20,192)
Cash and cash equivalents and restricted cash:
Net increase (decrease) in cash, cash equivalents and restricted cash		6,184	(27,680)
Beginning of period		43,913	50,999
End of period		50,097	23,319
Cash payments:
Interest		19,054	19,508
Income taxes		817	859
Supplemental Disclosure of Non-cash Activities:
Dividends declared, but not paid during the period		3,148	0
Investments acquired in exchange for advertising	[1]	0	1,500
Property and equipment acquired in exchange for advertising	[1]	253	519
Accrued capital expenditures		114	1,517
Supplemental Disclosure of Cash Flow Information relating to Leases:
Cash paid for amounts included in the measurement of operating lease liabilities, included in operating cash flows		5,958	5,036
Right-of-use assets obtained in exchange for operating lease obligations		3,593	5,211
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents		49,598	22,825
Restricted cash		499	494
Cash, cash equivalents, and restricted cash		$ 50,097	$ 23,319

[1] Represents total advertising services provided by the Company in exchange for property and equipment and equity interests acquired during each of the six months ended June 30, 2023 and 2022, respectively.

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Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

Description of the Business

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our integrated and diversified products and solutions enable local, regional and national advertisers to target audiences across multiple platforms, including digital, mobile, social, video, streaming, e-commerce, radio and events. Our assets include a subscription digital marketing services business (“Townsquare Interactive”), providing website design, creation and hosting, search engine optimization, social platforms and online reputation management for approximately 27,400 small to medium sized businesses; a robust digital advertising division (“Townsquare Ignite,” or “Ignite”), a powerful combination of a) an owned and operated portfolio of more than 400 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 356 local terrestrial radio stations in 74 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com and NJ101.5.com, and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com.

Current economic challenges, including high and sustained inflation, rising interest rates, and supply chain disruptions have caused and could continue to cause economic uncertainty and volatility. These factors could result in advertising and subscription digital marketing solutions cancellations, declines in the purchase of new advertising by our clients, declines in the addition of new digital marketing solutions subscribers, and increases to our operating expenses. We monitor economic conditions closely, and in response to observed or anticipated reductions in revenue, we may institute precautionary measures to address the potential impact to our consolidated financial position, consolidated results of operations, and liquidity, including wage reduction efforts and controlling non-essential capital expenditures.

The extent of the impact of current economic conditions will depend on future actions and outcomes, all of which remain fluid and cannot be predicted with confidence (including effects on advertising activity, consumer discretionary spending and our employees in the markets in which we operate).

Basis of Presentation

The accompanying Unaudited Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements and related notes thereto included in the Company's Annual Report on Form 10-K (the "2022 Annual Report on Form 10-K"). The accompanying unaudited interim Consolidated Financial Statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. All adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of results of operations and financial condition as of the end of the interim periods have been included. The results of operations for the three and six months ended June 30, 2023, cash flows for the six months ended June 30, 2023, and the Company’s financial condition as of such date are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition as of, any other interim period or for the fiscal year ending December 31, 2023. The Consolidated Balance Sheet as of December 31, 2022 is derived from the audited Consolidated Financial Statements at that date.

The presentation of immaterial amounts of broadcast and digital advertising revenue previously reported in the Other category for the three and six months ended June 30, 2022 has been reclassified to conform with the current period's presentation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its significant estimates, including those related to assumptions used in determining the fair value of assets and liabilities acquired in a business combination, impairment testing of intangible assets, valuation and impairment testing of long-lived tangible assets and investments, the present value of leasing arrangements, share-based payment expense and the calculation of allowance for credit losses and income taxes. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the result of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Actual amounts and results may differ materially from these estimates under different assumptions or conditions.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

There have been no significant changes in the Company’s accounting policies since December 31, 2022. For the Company's detailed accounting policies please refer to the Consolidated Financial Statements and related notes thereto included in the Company's 2022 Annual Report on Form 10-K.

Recently Adopted Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. The guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument's contractual life. The new guidance became effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

The Company adopted the new guidance in the first quarter of 2023. In accordance with the guidance described above, the Company maintains an allowance for credit losses, which represents the portion of accounts receivable that is not expected to be collected over the duration of its contractual life. Credit losses are recorded when the Company believes a customer, or group of customers, may not be able to meet their financial obligations. A considerable amount of judgment is required in determining expected credit losses. Relevant factors include prior collection history with customers, the related aging of past due balances, projections of credit losses based on historical trends or past events, and the consideration of forecasts of future economic conditions. Allowances for credit losses are based on facts available and are re-evaluated and adjusted on a regular basis. Negative macroeconomic trends could result in an increase in credit losses if delays in the payment of outstanding receivables are observed or if future economic conditions differ from those considered in our forecasts. The adoption of this standard did not have a significant impact on the Consolidated Financial Statements.

The change in the allowance for credit losses for the six months ended June 30, 2023 was as follows (in thousands):

Balance at December 31, 2022	$	5,946
Provision for credit losses	2,564
Amounts written off against allowance, net of recoveries	(3,003)
Balance at June 30, 2023	$	5,507

Recently Issued Standards That Have Not Yet Been Adopted

There were no new accounting pronouncements issued during the three and six months ended June 30, 2023 that are expected to have a material impact on the Consolidated Financial Statements.

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Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following tables present a disaggregation of our revenue by reporting segment and revenue from political sources and all other sources (in thousands) for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30, 2023										Three Months Ended June 30, 2022
	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total		Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Net Revenue (ex Political)	$	21,268	$	41,080	$	53,361	$	5,117	$	120,826	$	22,983	$	37,021	$	55,636	$	4,768	$	120,408
Political	—		46		359		—		405		—		151		1,365		—		1,516
Net Revenue	$	21,268	$	41,126	$	53,720	$	5,117	$	121,231	$	22,983	$	37,172	$	57,001	$	4,768	$	121,924

	Six Months Ended June 30, 2023										Six Months Ended June 30, 2022
	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total		Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Net Revenue (ex Political)	$	42,829	$	74,772	$	99,086	$	7,036	$	223,723	$	44,833	$	66,193	$	103,476	$	5,716	$	220,218
Political	—		61		557		—		618		—		197		1,751		—		1,948
Net Revenue	$	42,829	$	74,833	$	99,643	$	7,036	$	224,341	$	44,833	$	66,390	$	105,227	$	5,716	$	222,166

Revenue from contracts with customers is recognized as an obligation until the terms of a customer contract are satisfied; generally this occurs with the transfer of control as we satisfy contractual performance obligations over time. Our contractual performance obligations include the performance of digital marketing solutions, placement of internet-based advertising campaigns, broadcast of commercials on our owned and operated radio stations, and the operation of live events. Revenue is measured at contract inception as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Our contracts are at a fixed price at inception and do not include any variable consideration or financing components by normal course of business practice. Sales, value add, and other taxes that are collected concurrently with revenue producing activities, are excluded from revenue.

The primary sources of net revenue are the sale of digital and broadcast advertising solutions on our owned and operated websites, radio stations’ online streams and mobile applications, radio stations, and on third-party websites through our in-house digital programmatic advertising platform. Through our digital programmatic advertising platform, we are able to hyper-target audiences for our local, regional and national advertisers by combining first and third-party audience and geographic location data, providing them the ability to reach a high percentage of their online audience. We deliver these solutions across desktop, mobile, connected TV, email, paid search and social media platforms utilizing display, video and native executions. We also offer subscription digital marketing solutions under the brand name Townsquare Interactive to small and mid-sized local and regional businesses in markets outside the top 50 across the United States, including the markets in which we operate radio stations. Townsquare Interactive offers traditional and mobile-enabled website development and hosting services, e-commerce platforms, search engine and online directory optimization services, online reputation monitoring, social media management, and website retargeting.

Political net revenue includes the sale of advertising for political advertisers. Contracted performance obligations under political contracts consist of the broadcast and placement of digital advertisements. Management views political revenue separately based on the episodic nature of election cycles and local issues calendars.

Net revenue for digital and broadcast advertisements are recognized as the contractual performance obligations for Townsquare services are satisfied. We measure progress towards the satisfaction of our contractual performance obligations in accordance with the contractual arrangement. We recognize the associated contractual revenue as delivery takes place and the right to invoice for services performed is met.

Our advertising contracts are short-term (less than one year) and payment terms are generally net 30-60 days for traditional customer contracts and net 60-90 days for national agency customer contracts. Our billing practice is to invoice customers on a monthly basis for services delivered to date (representing the right to invoice). Our contractual arrangements do not include rights of return and do not include any significant judgments by nature of the products and services.

Net revenue from digital subscription-based contractual performance obligations is recognized ratably over time as our performance obligations are satisfied. Subscription-based service fees are typically billed in advance of the month of service at a fixed monthly fee that is contractually agreed upon at contract inception. The measure of progress in such arrangements is the number of days of successful delivery of the contracted service.

For all customer contracts, we evaluate whether we are the principal (i.e., report revenue on a gross basis) or the agent (i.e., report revenue on a net basis). Generally, we report revenue for advertising placed on Townsquare properties on a gross basis (the amount billed to our customers is recorded as revenue, and the amount paid to our publishers is recorded as a cost of revenue). We are the principal because we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory, being primarily responsible to our customers, having discretion in establishing pricing, or a combination of these factors. We also generate revenue through agency relationships in which revenue is reported net of agency commissions. Agency commissions are calculated based on a stated percentage applied to gross billing revenue for advertisers that use agencies.

The following tables provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	June 30, 2023		December 31,  2022
Accounts Receivable	$	62,537	$	61,234
Short-term contract liabilities (deferred revenue)	$	10,058	$	10,669
Contract Acquisition Costs	$	6,408	$	6,348

We receive payments from customers based upon contractual billing schedules; contract receivables are recognized in the period the Company provides services when the Company’s right to consideration is unconditional. Payment terms vary by the type and location of our customer and the products or services offered. Payment terms for amounts invoiced are typically net 30-60 days.

Our contract liabilities include cash payments received or due in advance of satisfying our performance obligations and digital subscriptions in which payment is received in advance of the service and month. These contract liabilities are recognized as revenue as the related performance obligations are satisfied. As of June 30, 2023, and December 31, 2022, the balance in the contract liabilities was $10.1 million and $10.7 million, respectively. The decrease in the contract liabilities balance at June 30, 2023 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.2 million and $8.5 million of recognized revenue for the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, we recognized $1.3 million and $7.7 million of revenue that was previously included in our deferred revenue balance. No significant changes in the time frame of the satisfaction of contract liabilities have occurred during the three and six months ended June 30, 2023.

Our capitalized contract acquisition costs include amounts related to sales commissions paid for signed contracts with perceived durations exceeding one year. We defer the related sales commission costs and amortize such costs to expense in a manner that is consistent with how the related revenue is recognized over the duration of the related contracts. We have evaluated the average customer contract duration (initial term and any renewals) to determine the appropriate amortization period for these contractual arrangements. Capitalized contract acquisition costs are recognized in prepaid expenses and other current assets in the accompanying consolidated balance sheets. As of June 30, 2023 and December 31, 2022, we had a balance of $6.4 million and $6.3 million, respectively, in capitalized contract acquisition costs and recognized $1.7 million and $3.3 million of amortization for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2022, we recognized $1.2 million and $2.4 million of amortization, respectively. No impairment losses have been recognized or changes made to the time frame for performance of the obligations related to deferred contract assets during the three and six months ended June 30, 2023 and 2022.

Arrangements with Multiple Performance Obligations

In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. When multiple performance obligations are identified, we identify how control transfers to the customer for each distinct contract obligation and

determine the period when the obligations are satisfied. If obligations are satisfied in the same period, no allocation of revenue is deemed to be necessary. In the event performance obligations within a bundled contract do not run concurrently, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or by using expected cost-plus margins. Performance obligations that are not distinct at contract inception are combined.

Performance Obligations

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Amounts related to performance obligations with expected durations of greater than one year are at a fixed price per unit and do not include any upfront or minimum payments requiring any estimation or allocation of revenue.

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Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Acquisitions and Divestitures

On June 17, 2022, the Company acquired Cherry Creek Broadcasting LLC (“Cherry Creek”) for a cash purchase price of $18.5 million, net of closing adjustments. The purchase price was in excess of the fair value of net assets acquired, resulting in the recognition of goodwill. The Company finalized the allocation of the purchase price for Cherry Creek during the three months ended March 31, 2023. The table below summarizes the Cherry Creek purchase price allocation. The measurement period adjustments below reflect changes from the preliminary purchase acquisition date fair values of major classes of net assets acquired (in thousands):

	Amounts recognized at June 17, 2022 (Provisional)		Measurement Period Adjustments		Amounts recognized at March 31, 2023 (Adjusted)
Net tangible assets acquired	$	1,366	$	4,694	$	6,060
Intangible assets, net	8,676		187		8,863
Goodwill	8,377		(4,843)		3,534
Total Purchase Price	$	18,419	$	38	$	18,457

The intangible assets acquired based on the estimate of the fair values of the identifiable intangible assets are as follows:

	Amounts recognized at March 31, 2023		Remaining Useful Life at June 17, 2022 (in years)
Customer relationships	$	5,007	10
FCC licenses	2,889		Indefinite
Content Rights	642		7
Other intangibles	325		3
Total Acquired Intangible Assets	$	8,863

The estimate of the fair value of the customer relationships acquired in the Cherry Creek acquisition were determined using a risk-adjusted discounted cash flow model, specifically, the excess earnings method which considers the use of other assets in the generation of the projected cash flows of a specific asset to isolate the economic benefit generated by the customer relationships. The contribution of other assets, such as fixed assets, working capital and workforce, to overall cash flows was estimated through contributory asset capital charges. Therefore, the value of the acquired customer relationship is the present value of the attributed post-tax cash flows, net of the return on fair value attributed to tangible and other intangible assets.

The estimate of the fair value of the FCC licenses acquired in the Cherry Creek acquisition were determined utilizing observable market based transactions of similar broadcast licenses and their estimated replacement values.

Goodwill totaling $3.5 million represents the excess of the Cherry Creek purchase price over the fair value of net assets acquired, representing future economic benefits that are expected to be achieved as a result of the acquisition, and is included in the Broadcast Advertising and Digital Advertising segments. The Company believes the acquisition of Cherry Creek, which includes a portfolio of local media brands, will further its goal of becoming the number one local media company in markets outside of the Top 50 in the United States. In addition, the acquisition provides an opportunity to bring our digital assets and solutions to the Cherry Creek markets and accelerate their digital growth with our Digital First strategy.

Goodwill generated from the Cherry Creek acquisition is deductible for income tax purposes.

The results of Cherry Creek's operations have been included in our Consolidated Financial Statements, following the closing of the acquisition on June 17, 2022. Pro forma information has not been presented because the effect of the acquisition is not material.

Simultaneously, due to FCC ownership limitations, the Company sold six radio stations in Missoula, MT for an immaterial amount and placed one radio station in Tri-Cities, WA in a divestiture trust. On July 19, 2022, the Company acquired a radio station in Tri-Cities, WA for an immaterial amount.

During the three and six months ended June 30, 2023, the Company sold assets associated with a radio broadcast station in Texarkana, TX for an immaterial amount.

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Property and Equipment, net

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land and improvements	$	19,260	$	19,966
Buildings and leasehold improvements	58,517		57,386
Broadcast equipment	109,874		108,057
Computer and office equipment	24,646		24,211
Furniture and fixtures	22,934		22,968
Transportation equipment	20,258		20,703
Software development costs	42,254		39,489
Total property and equipment, gross	297,743		292,780
Less accumulated depreciation and amortization	(186,638)		(178,934)
Total property and equipment, net	$	111,105	$	113,846

Depreciation and amortization expense for property and equipment was $4.2 million and $4.0 million for the three months ended June 30, 2023 and 2022, respectively, and $8.6 million and $8.5 million for the six months ended June 30, 2023 and 2022, respectively.

During the three and six months ended June 30, 2023, the Company recognized a total of $0.2 million and $0.4 million in impairment charges, respectively, related to the intended sale of land and building in Battle Creek, MI and for certain long-lived assets, that were sold for immaterial amounts in five local markets.

During the three and six months ended June 30, 2023, the Company recognized an $0.3 million impairment charge to right of use assets associated with the abandonment of a portion of leased office space in Purchase, NY.

During the three months ended June 30, 2022, the Company entered into an agreement to sell land and a building in Quincy-Hannibal, IL. The Company recognized $0.8 million in impairment charges related to the agreement.

The Company had no material right of use assets related to its finance leases as of June 30, 2023 and December 31, 2022.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Indefinite-lived intangible assets

Indefinite-lived assets consist of FCC broadcast licenses, goodwill and investment in digital assets.

FCC Broadcast Licenses

FCC licenses represent a substantial portion of the Company’s total assets. The FCC licenses are renewable in the ordinary course of business, generally for a maximum of eight years. The fair value of FCC licenses is primarily dependent on the future cash flows of the radio markets and other assumptions, including, but not limited to, forecasted revenue growth rates, profit margins and a risk-adjusted discount rate. The Company has selected December 31st as the annual testing date.

The Company evaluates its FCC licenses for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. Due to increases in the weighted average cost of capital and changes in forecasted traditional broadcast revenue in the markets in which we operate, the Company quantitatively evaluated the fair value of its FCC licenses at June 30 and March 31, 2023.

The key assumptions used in applying the direct valuation method are summarized as follows:

	June 30, 2023
Discount Rate	13.5%
Long-term Revenue Growth Rate	0.0%
	Low	High
Mature Market Share*	20.8%	75.0%
Operating Profit Margin	20.0%	47.0%

	March 31, 2023
Discount Rate	12.2%
Long-term Revenue Growth Rate	0.0%
	Low	High
Mature Market Share*	21.7%	75.0%
Operating Profit Margin	20.0%	47.0%

* Market share assumption used when reliable third-party data is available. Otherwise, Company results and forecasts are utilized.

Based on the results of interim impairment assessments of our FCC licenses, as of June 30, 2023 we incurred impairment charges of $16.6 million and $24.8 million for the three and six months ended June 30, 2023, respectively, for FCC licenses in 20 of our 74 local markets. The impairment charges were primarily driven by increases in the discount rate applied in the valuation of our FCC licenses due to an increase in the weighted average cost of capital and decreases in third-party forecasts of broadcast revenues. The Company recorded an impairment charge of $5.2 million for FCC licenses in 6 of our 74 local markets for the three and six months ended June 30, 2022.

Unfavorable changes in key assumptions utilized in the impairment assessment of our FCC licenses may affect future testing results. For example, keeping all other assumptions constant, a 50-basis point increase in the weighted average cost of capital as of the date of our last quantitative assessment would cause the estimated fair values of our FCC licenses to decrease by $17.4 million which would have resulted in an additional impairment charge of $8.1 million as of June 30, 2023. Further, a 100-basis point decline in the long-term revenue growth rate would cause the estimated fair values of our FCC licenses to further decrease by $20.9 million which would have resulted in a further impairment charge of $11.1 million as of June 30, 2023. Assumptions used to estimate the fair value of our FCC licenses are also dependent upon the expected performance and growth of our traditional broadcast radio operations. In the event broadcast radio revenue experiences actual or anticipated declines, such declines will have a negative impact on the estimated fair value of our FCC licenses, and the Company could recognize additional impairment charges, which could be material.

Goodwill

For goodwill impairment testing, the Company has selected December 31st as the annual testing date. In addition to the annual impairment test, the Company regularly assesses whether a triggering event has occurred, which would require interim impairment testing. As of December 31, 2022, the fair values of our Local Markets, National Digital, Townsquare Ignite, Analytical Services, Townsquare Interactive and Live Events reporting units were in excess of their respective carrying values by approximately 18%, 243%, 90%, 211%, 252%, and 19%, respectively. The Amped reporting unit had no goodwill as of December 31, 2022.

The Company considered whether any events have occurred or circumstances have changed from the last quantitative analysis performed as of December 31, 2022 that would indicate that the fair value of the Company's reporting units may be below their carrying amounts. Based on such analysis, the Company determined that there have been no indicators that the fair value of its reporting units may be below their carrying amounts as of June 30, 2023.

The following table presents changes in goodwill by segment during the six months ended June 30, 2023:

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Balance at December 31, 2022	$	77,000	$	77,687	$	2,715	$	3,983	$	161,385
Cherry Creek measurement period adjustment	—		—		96		—		96
Balance at June 30, 2023	$	77,000	$	77,687	$	2,811	$	3,983	$	161,481

Digital Assets

During the first quarter of 2022, the Company invested an aggregate of $5.0 million in digital assets. They were accounted for as indefinite-lived intangible assets in accordance with ASC 350, Intangibles - Goodwill and Other, included as a component of intangible assets, net on the Consolidated Balance Sheet. Any decrease in the digital assets' fair values below our carrying values at any time subsequent to acquisition was recognized as an impairment charge. No upward revisions for any market price increases were recognized.

In early March 2023, the Company sold its digital assets with a carrying value of $2.1 million, recognizing a gain on the sale of $0.8 million during the six months ended June 30, 2023, included as a component of Other (income) expense, net on the Consolidated Statements of Operations. During the three and six months ended June 30, 2022, the Company recorded $2.2 million and $2.6 million, respectively, in impairment losses due to changes in the fair value of the Company's digital assets observed during the period.

Definite-lived intangible assets

The Company’s definite-lived intangible assets were acquired primarily in various acquisitions as well as in connection with the acquisition of software and music licenses.

The following tables present details of our intangible assets as of June 30, 2023 and December 31, 2022, respectively (in thousands):

	June 30, 2023
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	227,318	$	—	$	227,318
Content rights and other intangible assets	1 - 9	34,940		(16,036)		18,904
Total		$	262,258	$	(16,036)	$	246,222

	December 31, 2022
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	252,110	$	—	$	252,110
Digital assets	Indefinite	2,136		—		2,136
Content rights and other intangible assets	1 - 10	37,092		(14,500)		22,592
Total		$	291,338	$	(14,500)	$	276,838

Amortization of definite-lived intangible assets was $1.8 million and $1.4 million for the three months ended June 30, 2023 and 2022, respectively and $3.6 million and $2.5 million for the six months ended June 30, 2023 and 2022, respectively.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of June 30, 2023 is as follows (in thousands):

2023 (remainder)	$	3,507
2024	6,017
2025	2,304
2026	2,108
2027	1,978
Thereafter	2,990
	$	18,904

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Investments

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Long-term investments consist of minority holdings in various companies. As management does not exercise significant influence over operating and financial policies of the investees, the investments are not consolidated or accounted for under the equity method of accounting. The initial valuation of equity securities is based upon an estimate of market value at the time of investment, or upon a combination of valuation analyses using both observable and unobservable inputs categorized as Level 2 and Level 3 within the ASC 820 framework.

In accordance with ASC 321, Investments - Equity Securities, the Company measures its equity securities at cost minus impairment, as their fair values are not readily determinable and the investments do not qualify for the net asset value per share practical expedient. The Company monitors its investments for any subsequent observable price changes in orderly transactions for the identical or a similar investment of the same investee, at which time the Company would adjust the then current carrying values of the related investment. Additionally, the Company evaluates its investments for any indicators of impairment.

Equity securities measured at cost minus impairment

During the three and six months ended June 30, 2023, the Company recorded a $9.2 million impairment charge for an existing investment based on the implied fair value of the investee, as the Company became aware of objective evidence to indicate that the fair value of its investment was below its carrying amount.

During the three months ended June 30, 2022, the Company recorded a $1.2 million impairment charge for an existing investee based on the implied fair value of the investee as a result of a private transaction.

On April 12, 2023, one of the Company's investees was acquired as a result of a private transaction. The Company recognized a $5.2 million gain on the transaction, based on total consideration received in the amount of $6.0 million.

Equity securities measured at fair value

On July 2, 2021, one of the Company's investees completed its registration with the SEC and became a publicly traded company. Based on the market price of the investee's common stock as of June 30, 2023, the fair value of the Company's investment in the common stock of the investee was approximately $1.3 million. As a result, the Company recorded an unrealized gain of $0.2 million and $0.1 million, during the three and six months ended June 30, 2023, respectively. During the three and six months ended June 30, 2022, the Company recorded an unrealized loss of $0.7 million and $2.2 million, respectively, as a result of changes in the fair value of the investee's common stock.

Unrealized gains and losses are included as a component of other expense (income) on the Unaudited Consolidated Financial Statements. The market price of the investee's common stock is categorized as Level 1 within the ASC 820 framework.

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Long-Term Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Total debt outstanding is summarized as follows (in thousands):

	June 30, 2023		December 31, 2022
2026 Notes	$	517,835	$	530,766
Deferred financing costs	(5,229)		(6,324)
Total long-term debt	$	512,606	$	524,442

During the six months ended June 30, 2023, the Company voluntarily repurchased an aggregate $12.9 million principal amount of its 2026 Notes below par, plus accrued interest. The Company wrote-off approximately $0.1 million of unamortized deferred financing costs, recognizing a $44.0 thousand and $0.8 million net gain for three and six months ended June 30, 2023, respectively. The repurchased notes were canceled by the Company.

The 2026 Notes indenture contains certain covenants that may limit, among other things, our ability to; incur additional indebtedness, declare or pay dividends, redeem stock, transfer or sell assets, make investments or agree to certain restrictions on the ability of restricted subsidiaries to make payments to the Company. Certain of these covenants will be suspended if the 2026 Notes are assigned an investment grade rating by Standard & Poor’s Investors Ratings Services, Moody’s Investors Service, Inc. or Fitch Ratings, Inc. and no event of default has occurred and is continuing.

The Company was in compliance with its covenants under the 2026 Notes indenture as of June 30, 2023.

As of June 30, 2023, based on available market information, the estimated fair value of the 2026 Notes was $495.2 million. The Company used Level 2 measurements under the fair value measurement hierarchy established under Fair Value Measurement (Topic 820).

Annual maturities of the Company's long-term debt as of June 30, 2023 are as follows (in thousands):

2023 (remainder)	$	—
2024	—
2025	—
2026	517,835
2027	—
Thereafter	—
	$	517,835

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Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's effective tax rate for the three months ended June 30, 2023 and 2022 was approximately 70.7% and 19.7%, respectively. The Company's effective tax rate for the six months ended June 30, 2023 and 2022 was approximately 63.6% and 25.8%, respectively.

The increase in the effective tax rate for the three and six months ended June 30, 2023 is primarily driven by certain non-deductible expenses and increases in the valuation allowance for deferred tax assets.

The effective tax rate may vary significantly from period to period, and can be influenced by many factors. These factors include, but are not limited to, changes to the statutory rates in the jurisdictions where the Company has operations and changes in the valuation of deferred tax assets and liabilities. The difference between the effective tax rate and the federal statutory rate of 21% primarily relates to certain non-deductible items, state and local income taxes and the valuation allowance for deferred tax assets.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Stock Options

During the six months ended June 30, 2023, the Company granted 217,547 and 750,000 options with grant date fair values of $2.47 to $3.07 and $2.05 to $2.14, respectively. The options contain market conditions whereby the options will vest and become exercisable subject to the achievement of a specified volume weighted average trading price ("VWAP") over a specified period and continued employment through the performance period each as observed and summarized below, respectively:

VWAP over the last 20 trading days of the three-year performance period		VWAP over 30 consecutive trading days of the seven-year performance period
VWAP	Number of Shares that Vest	VWAP	Number of Shares that Vest
$8.74	65,147	$11.00	250,000
$10.75	71,429	$14.00	250,000
$13.05	80,971	$17.00	250,000
	217,547		750,000

No portion of the grants will vest unless the VWAP targets are achieved during the respective performance periods.

The Company also granted 168,067 and 1,343,000 options with grant date fair values of $3.99 and $3.97, respectively. The options have three-year and four-year vesting periods, respectively, each with ten-year terms.

The grant date fair value of stock options with market conditions is estimated using the Monte Carlo option pricing model, while stock options containing only service conditions is estimated using the Black-Scholes option pricing model. Each model requires an estimate of the expected term of the option, the expected volatility of the Company’s common stock price, dividend yield and the risk-free interest rate. The below table summarizes the assumptions used to estimate the fair value of the equity options granted:

	Monte Carlo Model		Black-Scholes Model
Expected volatility	50.0	%	51% - 52%
Expected term	5 - 7 years		6.01 - 6.38 years
Risk free interest rate	3.43% - 3.74%		3.42% - 4.02%
Expected dividend yield	0% - 9.15%		0.0	%

For options only containing service conditions, the expected term was calculated using the simplified method, defined as the midpoint between the vesting period and the contractual term of each award, due to the lack of sufficient and meaningful historical exercise data. For options with market-based conditions, the expected term was estimated based on

when the options are expected to be exercised. The expected volatility was based on market conditions of the Company. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the option. On March 6, 2023, the board of directors approved a quarterly dividend of $0.1875 per share for holders of record as of March 27, 2023. Thus, for options with grant dates prior to March 6, 2023, the expected dividend yield was 0%.

The following table summarizes option activity for the six months ended June 30, 2023:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2022	9,478,698	$	7.80	4.62	$	2,798
Granted - service conditions	1,511,067	7.30
Granted - market conditions	967,547	7.93
Exercised	(556,121)	7.75			1,483
Forfeited and expired	(37,257)	7.48
Outstanding at June 30, 2023	11,363,934	$	7.75	5.24	$	47,264
Exercisable at June 30, 2023	6,748,883	$	8.03	2.97	$	26,173

The maximum contractual term of stock options is 10 years.

Restricted Stock Awards

During the six months ended June 30, 2023, the Company granted 68,876 shares to non-employee directors with a vesting period of one year, and 13,387 shares with a vesting period of three years. The grant date fair value of the grants were $7.55 and $7.47 per share, respectively. The fair value of the restricted stock awards is equal to the closing share price on the date of grant.

The following table summarizes restricted stock activity for the six months ended June 30, 2023:

	Number of Shares	Weighted Average Fair Value
Non-vested balance at January 1, 2023	93,181	$	9.63
Shares granted	82,263	7.54
Shares vested	(62,979)	9.52
Non-vested balance at June 30, 2023	112,465	$	8.16

Restricted Stock Units

The following table summarizes restricted stock unit activity for the six months ended June 30, 2023:

	Number of Shares	Weighted Average Fair Value
Non-vested balance at January 1, 2023	—	$	—
Shares granted - service conditions	218,543	7.55
Shares granted - market conditions	218,543	4.21
Shares vested	—	—
Non-vested balance at June 30, 2023	437,086	$	5.88

During the six months ended June 30, 2023, the Company granted 218,543 stock units with a vesting period of three years and a grant date fair value of $7.55 per share. The fair value of the restricted stock awards is equal to the closing share price on the date of grant.

During the six months ended June 30, 2023, the Company granted 218,543 restricted stock units with a vesting period of three-years and grant date fair values of $3.51 to $4.91. The stock units contain market conditions whereby the stock units will vest subject to the achievement of a specified volume weighted average trading price ("VWAP"), subject to continued employment or service through the end of the performance period as observed and summarized below:

VWAP over the last 20 trading days of the three-year performance period
VWAP	Number of Shares that Vest
$8.74	72,840
$10.75	72,840
$13.05	72,863

The grant date fair value of the restricted stock units with market conditions is estimated using the Monte Carlo option pricing model. The below table summarizes the assumptions used to estimate the fair value of the restricted stock units granted:

	Monte Carlo Model
Expected volatility	50.0%
Risk free interest rate	3.72%
Expected dividend yield	0.0%

The expected volatility was based on market conditions of the Company. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the vesting period of the restricted stock units.

Employee Stock Purchase Plan

During the six months ended June 30, 2023, a total of 65,732 shares of Class A common stock were issued under the 2021 Employee Stock Purchase Plan (the "ESPP").

For the three months ended June 30, 2023 and 2022, the Company recognized approximately $2.1 million and $0.8 million, respectively, of stock-based compensation expense with respect to options, restricted stock awards, restricted stock units and the ESPP. For the six months ended June 30, 2023 and 2022, the Company recognized approximately $3.9 million and $1.7 million, respectively, of stock-based compensation expense with respect to options, restricted stock awards, restricted stock units and the ESPP.

As of June 30, 2023, total unrecognized stock-based compensation expense related to our stock options and restricted stock was $12.1 million and $2.7 million, respectively, and is expected to be recognized over a weighted average period of 2.5 years and 2.3 years respectively.

Dividends Declared and Paid

On August 7, 2023 the board of directors approved a dividend of $0.1875 per share. The dividend will be paid to holders of record as of October 2, 2023 on November 1, 2023.

On May 5, 2023 the board of directors approved a dividend of $0.1875 per share. The dividend was payable to holders of record as of June 30, 2023. The dividend of $3.0 million was paid on August 1, 2023.

Stock Repurchase Agreement

On June 16, 2023, the Company entered into a stock repurchase agreement with MSG National Properties, LLC (“MSG”) to repurchase 1.5 million shares of the Company’s Class C common stock. Total consideration paid in the aggregate amount of $14.6 million, or $9.70 per share, are reflected as a reduction in capital during the three months ended June 30, 2023. The shares were retired upon repurchase. Following this transaction, MSG owned 1,708,139 shares of Common Stock in the Company (comprising 583,139 shares of Class A Common Stock and 1,125,000 shares of Class C Common Stock).

Stock Repurchase Plan

On December 16, 2021, the Board of Directors approved a stock repurchase plan, pursuant to which the Company is authorized to repurchase up to $50 million of the Company’s issued and outstanding Class A common stock over a thirty-six month period (the "2021 Stock Repurchase Plan"). Repurchases of common stock under the repurchase plan may be made, from time to time, in amounts and at prices the Company deems appropriate, subject to market conditions, applicable legal requirements, debt covenants and other considerations. Any such repurchases may be executed using open market purchases, privately negotiated agreements or other transactions, and may be funded from cash on hand, available borrowings or proceeds from potential debt or other capital markets sources.

During the six months ended June 30, 2023 a total of 89,568 shares were repurchased. As of June 30, 2023, a total of 115,191 shares were repurchased under the 2021 Stock Repurchase Plan.

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Net (Loss) Income Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net (Loss) Income Per Share

Net (Loss) Income Per Share

Basic earnings per common share (“EPS”) is generally calculated as income available to common shareholders divided by the weighted average number of common shares outstanding. Diluted EPS is generally calculated as income available to common shareholders divided by the weighted average number of common shares outstanding plus the dilutive effect of common share equivalents. Stock-based compensation awards that are out-of-the-money and stock options and restricted stock units in which the market-based performance criteria have not been met as of the end of the respective reporting period are omitted from the calculation of Diluted EPS.

The following table sets forth the computations of basic and diluted net (loss) income per share for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share data):

	Three Months Ended  June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net (loss) income	$	(2,700)	$	4,919	$	(4,641)	$	7,660
Net income from non-controlling interest	500		525		980		1,042
Net (loss) income attributable to controlling interest	$	(3,200)	$	4,394	$	(5,621)	$	6,618
Denominator:
Weighted average shares of common stock outstanding	17,221		16,986		17,212		16,891
Effect of dilutive common stock equivalents	—		1,709		—		2,286
Weighted average diluted common shares outstanding	17,221		18,695		17,212		19,177
Basic (loss) income per share	$	(0.19)	$	0.26	$	(0.33)	$	0.39
Diluted (loss) income per share	$	(0.19)	$	0.24	$	(0.33)	$	0.35

The Company had the following dilutive securities that were not included in the computation of diluted net (loss) income per share as they were considered anti-dilutive (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Stock options	10,247	45	9,987	45
Stock options with unsatisfied market conditions	1,511	—	1,192	—
Restricted stock units	219	—	198	—
Restricted stock units with unsatisfied market conditions	219	—	198	—
Restricted stock awards	112	8	117	—
Shares expected to be issued under the 2021 Employee Stock Purchase Plan	35	—	41	—

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Segment Reporting

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

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 6, Goodwill and Other Intangible Assets. The Company does not have any material inter-segment sales.

The Company's management evaluates segment operating income (loss), which 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 tables present the Company's reportable segment results for the three months ended June 30, 2023 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	21,268	$	41,126	$	53,720	$	5,117	$	—	$	121,231
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	15,243		26,782		38,983		4,646		—		85,654
Depreciation and amortization	327		168		3,382		33		925		4,835
Corporate expenses	—		—		—		—		6,962		6,962
Stock-based compensation	151		70		218		4		1,663		2,106
Transaction and business realignment costs	—		—		167		—		144		311
Impairment of intangible assets, investments and long-lived assets	—		—		16,743		—		9,497		26,240
Net gain on sale and retirement of assets	—		—		(49)		—		—		(49)
Operating income (loss)	$	5,547	$	14,106	$	(5,724)	$	434	$	(19,191)	$	(4,828)

The following table presents the Company's reportable segment results for the three months ended June 30, 2022 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	22,983	$	37,172	$	57,001	$	4,768	$	—	$	121,924
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	16,293		26,102		37,544		3,894		—		83,833
Depreciation and amortization	313		145		3,157		49		650		4,314
Corporate expenses	—		—		—		—		5,739		5,739
Stock-based compensation	133		15		84		3		604		839
Transaction and business realignment costs	—		—		—		6		818		824
Impairment of intangible assets, investments and long-lived assets	—		—		5,951		—		3,468		9,419
Net loss on sale and retirement of assets	—		—		89		—		—		89
Operating income (loss)	$	6,244	$	10,910	$	10,176	$	816	$	(11,279)	$	16,867

The following tables present the Company's reportable segment results for the six months ended June 30, 2023 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	42,829	$	74,833	$	99,643	$	7,036	$	—	$	224,341
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	31,205		50,395		76,348		6,030		—		163,978
Depreciation and amortization	655		332		6,982		69		1,741		9,779
Corporate expenses	—		—		—		—		12,307		12,307
Stock-based compensation	279		115		382		6		3,096		3,878
Transaction and business realignment costs	—		—		360		11		232		603
Impairment of intangible assets, investments and long-lived assets	—		—		25,230		—		9,497		34,727
Net gain on sale and retirement of assets	—		—		(341)		—		—		(341)
Operating income (loss)	$	10,690	$	23,991	$	(9,318)	$	920	$	(26,873)	$	(590)

The following tables present the Company's reportable segment results for the six months ended June 30, 2022 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	44,833	$	66,390	$	105,227	$	5,716	$	—	$	222,166
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	31,769		47,109		73,986		4,732		—		157,596
Depreciation and amortization	590		210		6,302		87		1,890		9,079
Corporate expenses	—		—		—		—		10,148		10,148
Stock-based compensation	265		30		171		6		1,236		1,708
Transaction and business realignment costs	—		—		—		12		1,264		1,276
Impairment of intangible assets, investments and long-lived assets	—		—		5,958		120		3,819		9,897
Net gain on sale and retirement of assets	—		—		(183)		—		(36)		(219)
Operating income (loss)	$	12,209	$	19,041	$	18,993	$	759	$	(18,321)	$	32,681

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying Unaudited Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements and related notes thereto included in the Company's Annual Report on Form 10-K (the "2022 Annual Report on Form 10-K"). The accompanying unaudited interim Consolidated Financial Statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. All adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of results of operations and financial condition as of the end of the interim periods have been included. The results of operations for the three and six months ended June 30, 2023, cash flows for the six months ended June 30, 2023, and the Company’s financial condition as of such date are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition as of, any other interim period or for the fiscal year ending December 31, 2023. The Consolidated Balance Sheet as of December 31, 2022 is derived from the audited Consolidated Financial Statements at that date.

The presentation of immaterial amounts of broadcast and digital advertising revenue previously reported in the Other category for the three and six months ended June 30, 2022 has been reclassified to conform with the current period's presentation.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its significant estimates, including those related to assumptions used in determining the fair value of assets and liabilities acquired in a business combination, impairment testing of intangible assets, valuation and impairment testing of long-lived tangible assets and investments, the present value of leasing arrangements, share-based payment expense and the calculation of allowance for credit losses and income taxes. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the result of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Recently Adopted Accounting Standards and Recently Issued Standards That Have Not Yet Been Adopted

Recently Adopted Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. The guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument's contractual life. The new guidance became effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

The Company adopted the new guidance in the first quarter of 2023. In accordance with the guidance described above, the Company maintains an allowance for credit losses, which represents the portion of accounts receivable that is not expected to be collected over the duration of its contractual life. Credit losses are recorded when the Company believes a customer, or group of customers, may not be able to meet their financial obligations. A considerable amount of judgment is required in determining expected credit losses. Relevant factors include prior collection history with customers, the related aging of past due balances, projections of credit losses based on historical trends or past events, and the consideration of forecasts of future economic conditions. Allowances for credit losses are based on facts available and are re-evaluated and adjusted on a regular basis. Negative macroeconomic trends could result in an increase in credit losses if delays in the payment of outstanding receivables are observed or if future economic conditions differ from those considered in our forecasts. The adoption of this standard did not have a significant impact on the Consolidated Financial Statements.

Recently Issued Standards That Have Not Yet Been Adopted

There were no new accounting pronouncements issued during the three and six months ended June 30, 2023 that are expected to have a material impact on the Consolidated Financial Statements.

Revenue Recognition

The primary sources of net revenue are the sale of digital and broadcast advertising solutions on our owned and operated websites, radio stations’ online streams and mobile applications, radio stations, and on third-party websites through our in-house digital programmatic advertising platform. Through our digital programmatic advertising platform, we are able to hyper-target audiences for our local, regional and national advertisers by combining first and third-party audience and geographic location data, providing them the ability to reach a high percentage of their online audience. We deliver these solutions across desktop, mobile, connected TV, email, paid search and social media platforms utilizing display, video and native executions. We also offer subscription digital marketing solutions under the brand name Townsquare Interactive to small and mid-sized local and regional businesses in markets outside the top 50 across the United States, including the markets in which we operate radio stations. Townsquare Interactive offers traditional and mobile-enabled website development and hosting services, e-commerce platforms, search engine and online directory optimization services, online reputation monitoring, social media management, and website retargeting.

Political net revenue includes the sale of advertising for political advertisers. Contracted performance obligations under political contracts consist of the broadcast and placement of digital advertisements. Management views political revenue separately based on the episodic nature of election cycles and local issues calendars.

Net revenue for digital and broadcast advertisements are recognized as the contractual performance obligations for Townsquare services are satisfied. We measure progress towards the satisfaction of our contractual performance obligations in accordance with the contractual arrangement. We recognize the associated contractual revenue as delivery takes place and the right to invoice for services performed is met.

Our advertising contracts are short-term (less than one year) and payment terms are generally net 30-60 days for traditional customer contracts and net 60-90 days for national agency customer contracts. Our billing practice is to invoice customers on a monthly basis for services delivered to date (representing the right to invoice). Our contractual arrangements do not include rights of return and do not include any significant judgments by nature of the products and services.

Net revenue from digital subscription-based contractual performance obligations is recognized ratably over time as our performance obligations are satisfied. Subscription-based service fees are typically billed in advance of the month of service at a fixed monthly fee that is contractually agreed upon at contract inception. The measure of progress in such arrangements is the number of days of successful delivery of the contracted service.

For all customer contracts, we evaluate whether we are the principal (i.e., report revenue on a gross basis) or the agent (i.e., report revenue on a net basis). Generally, we report revenue for advertising placed on Townsquare properties on a gross basis (the amount billed to our customers is recorded as revenue, and the amount paid to our publishers is recorded as a cost of revenue). We are the principal because we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory, being primarily responsible to our customers, having discretion in establishing pricing, or a combination of these factors. We also generate revenue through agency relationships in which revenue is reported net of agency commissions. Agency commissions are calculated based on a stated percentage applied to gross billing revenue for advertisers that use agencies.

Arrangements with Multiple Performance Obligations

In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. When multiple performance obligations are identified, we identify how control transfers to the customer for each distinct contract obligation and

determine the period when the obligations are satisfied. If obligations are satisfied in the same period, no allocation of revenue is deemed to be necessary. In the event performance obligations within a bundled contract do not run concurrently, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or by using expected cost-plus margins. Performance obligations that are not distinct at contract inception are combined.

Performance Obligations

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Amounts related to performance obligations with expected durations of greater than one year are at a fixed price per unit and do not include any upfront or minimum payments requiring any estimation or allocation of revenue.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Schedule of the Change in the Allowance for Doubtful Accounts

The change in the allowance for credit losses for the six months ended June 30, 2023 was as follows (in thousands):

Balance at December 31, 2022	$	5,946
Provision for credit losses	2,564
Amounts written off against allowance, net of recoveries	(3,003)
Balance at June 30, 2023	$	5,507

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present a disaggregation of our revenue by reporting segment and revenue from political sources and all other sources (in thousands) for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30, 2023										Three Months Ended June 30, 2022
	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total		Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Net Revenue (ex Political)	$	21,268	$	41,080	$	53,361	$	5,117	$	120,826	$	22,983	$	37,021	$	55,636	$	4,768	$	120,408
Political	—		46		359		—		405		—		151		1,365		—		1,516
Net Revenue	$	21,268	$	41,126	$	53,720	$	5,117	$	121,231	$	22,983	$	37,172	$	57,001	$	4,768	$	121,924

	Six Months Ended June 30, 2023										Six Months Ended June 30, 2022
	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total		Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Net Revenue (ex Political)	$	42,829	$	74,772	$	99,086	$	7,036	$	223,723	$	44,833	$	66,193	$	103,476	$	5,716	$	220,218
Political	—		61		557		—		618		—		197		1,751		—		1,948
Net Revenue	$	42,829	$	74,833	$	99,643	$	7,036	$	224,341	$	44,833	$	66,390	$	105,227	$	5,716	$	222,166

Schedule of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers

The following tables provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	June 30, 2023		December 31,  2022
Accounts Receivable	$	62,537	$	61,234
Short-term contract liabilities (deferred revenue)	$	10,058	$	10,669
Contract Acquisition Costs	$	6,408	$	6,348

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Acquisitions and Divestitures (Tables)

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Purchase Price Allocation

The measurement period adjustments below reflect changes from the preliminary purchase acquisition date fair values of major classes of net assets acquired (in thousands):

	Amounts recognized at June 17, 2022 (Provisional)		Measurement Period Adjustments		Amounts recognized at March 31, 2023 (Adjusted)
Net tangible assets acquired	$	1,366	$	4,694	$	6,060
Intangible assets, net	8,676		187		8,863
Goodwill	8,377		(4,843)		3,534
Total Purchase Price	$	18,419	$	38	$	18,457

Schedule of Intangible Assets Acquired as Part of Asset Acquisition

The intangible assets acquired based on the estimate of the fair values of the identifiable intangible assets are as follows:

	Amounts recognized at March 31, 2023		Remaining Useful Life at June 17, 2022 (in years)
Customer relationships	$	5,007	10
FCC licenses	2,889		Indefinite
Content Rights	642		7
Other intangibles	325		3
Total Acquired Intangible Assets	$	8,863

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Property and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land and improvements	$	19,260	$	19,966
Buildings and leasehold improvements	58,517		57,386
Broadcast equipment	109,874		108,057
Computer and office equipment	24,646		24,211
Furniture and fixtures	22,934		22,968
Transportation equipment	20,258		20,703
Software development costs	42,254		39,489
Total property and equipment, gross	297,743		292,780
Less accumulated depreciation and amortization	(186,638)		(178,934)
Total property and equipment, net	$	111,105	$	113,846

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Assumptions Used in Annual Impairment Assessments

The key assumptions used in applying the direct valuation method are summarized as follows:

	June 30, 2023
Discount Rate	13.5%
Long-term Revenue Growth Rate	0.0%
	Low	High
Mature Market Share*	20.8%	75.0%
Operating Profit Margin	20.0%	47.0%

	March 31, 2023
Discount Rate	12.2%
Long-term Revenue Growth Rate	0.0%
	Low	High
Mature Market Share*	21.7%	75.0%
Operating Profit Margin	20.0%	47.0%

* Market share assumption used when reliable third-party data is available. Otherwise, Company results and forecasts are utilized.

Schedule of Goodwill

The following table presents changes in goodwill by segment during the six months ended June 30, 2023:

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Total
Balance at December 31, 2022	$	77,000	$	77,687	$	2,715	$	3,983	$	161,385
Cherry Creek measurement period adjustment	—		—		96		—		96
Balance at June 30, 2023	$	77,000	$	77,687	$	2,811	$	3,983	$	161,481

Schedule of Finite-Lived Intangible Assets

The following tables present details of our intangible assets as of June 30, 2023 and December 31, 2022, respectively (in thousands):

	June 30, 2023
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	227,318	$	—	$	227,318
Content rights and other intangible assets	1 - 9	34,940		(16,036)		18,904
Total		$	262,258	$	(16,036)	$	246,222

	December 31, 2022
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	252,110	$	—	$	252,110
Digital assets	Indefinite	2,136		—		2,136
Content rights and other intangible assets	1 - 10	37,092		(14,500)		22,592
Total		$	291,338	$	(14,500)	$	276,838

Schedule of Indefinite-Lived Intangible Assets

The following tables present details of our intangible assets as of June 30, 2023 and December 31, 2022, respectively (in thousands):

	June 30, 2023
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	227,318	$	—	$	227,318
Content rights and other intangible assets	1 - 9	34,940		(16,036)		18,904
Total		$	262,258	$	(16,036)	$	246,222

	December 31, 2022
	Weighted Average Useful Life (in Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible Assets:
FCC licenses	Indefinite	$	252,110	$	—	$	252,110
Digital assets	Indefinite	2,136		—		2,136
Content rights and other intangible assets	1 - 10	37,092		(14,500)		22,592
Total		$	291,338	$	(14,500)	$	276,838

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of June 30, 2023 is as follows (in thousands):

2023 (remainder)	$	3,507
2024	6,017
2025	2,304
2026	2,108
2027	1,978
Thereafter	2,990
	$	18,904

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Total debt outstanding is summarized as follows (in thousands):

	June 30, 2023		December 31, 2022
2026 Notes	$	517,835	$	530,766
Deferred financing costs	(5,229)		(6,324)
Total long-term debt	$	512,606	$	524,442

Schedule of Annual Maturities of Long-term Debt

Annual maturities of the Company's long-term debt as of June 30, 2023 are as follows (in thousands):

2023 (remainder)	$	—
2024	—
2025	—
2026	517,835
2027	—
Thereafter	—
	$	517,835

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Share-Based Compensation Arrangements by Share-Based Payment Award

The options contain market conditions whereby the options will vest and become exercisable subject to the achievement of a specified volume weighted average trading price ("VWAP") over a specified period and continued employment through the performance period each as observed and summarized below, respectively:

VWAP over the last 20 trading days of the three-year performance period		VWAP over 30 consecutive trading days of the seven-year performance period
VWAP	Number of Shares that Vest	VWAP	Number of Shares that Vest
$8.74	65,147	$11.00	250,000
$10.75	71,429	$14.00	250,000
$13.05	80,971	$17.00	250,000
	217,547		750,000

The stock units contain market conditions whereby the stock units will vest subject to the achievement of a specified volume weighted average trading price ("VWAP"), subject to continued employment or service through the end of the performance period as observed and summarized below:

VWAP over the last 20 trading days of the three-year performance period
VWAP	Number of Shares that Vest
$8.74	72,840
$10.75	72,840
$13.05	72,863

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

The below table summarizes the assumptions used to estimate the fair value of the equity options granted:

	Monte Carlo Model		Black-Scholes Model
Expected volatility	50.0	%	51% - 52%
Expected term	5 - 7 years		6.01 - 6.38 years
Risk free interest rate	3.43% - 3.74%		3.42% - 4.02%
Expected dividend yield	0% - 9.15%		0.0	%

The below table summarizes the assumptions used to estimate the fair value of the restricted stock units granted:

	Monte Carlo Model
Expected volatility	50.0%
Risk free interest rate	3.72%
Expected dividend yield	0.0%

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes option activity for the six months ended June 30, 2023:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2022	9,478,698	$	7.80	4.62	$	2,798
Granted - service conditions	1,511,067	7.30
Granted - market conditions	967,547	7.93
Exercised	(556,121)	7.75			1,483
Forfeited and expired	(37,257)	7.48
Outstanding at June 30, 2023	11,363,934	$	7.75	5.24	$	47,264
Exercisable at June 30, 2023	6,748,883	$	8.03	2.97	$	26,173

The following table summarizes restricted stock unit activity for the six months ended June 30, 2023:

	Number of Shares	Weighted Average Fair Value
Non-vested balance at January 1, 2023	—	$	—
Shares granted - service conditions	218,543	7.55
Shares granted - market conditions	218,543	4.21
Shares vested	—	—
Non-vested balance at June 30, 2023	437,086	$	5.88

Schedule of Nonvested Restricted Stock Shares Activity

The following table summarizes restricted stock activity for the six months ended June 30, 2023:

	Number of Shares	Weighted Average Fair Value
Non-vested balance at January 1, 2023	93,181	$	9.63
Shares granted	82,263	7.54
Shares vested	(62,979)	9.52
Non-vested balance at June 30, 2023	112,465	$	8.16

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Net (Loss) Income Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share, Basic and Diluted

The following table sets forth the computations of basic and diluted net (loss) income per share for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share data):

	Three Months Ended  June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net (loss) income	$	(2,700)	$	4,919	$	(4,641)	$	7,660
Net income from non-controlling interest	500		525		980		1,042
Net (loss) income attributable to controlling interest	$	(3,200)	$	4,394	$	(5,621)	$	6,618
Denominator:
Weighted average shares of common stock outstanding	17,221		16,986		17,212		16,891
Effect of dilutive common stock equivalents	—		1,709		—		2,286
Weighted average diluted common shares outstanding	17,221		18,695		17,212		19,177
Basic (loss) income per share	$	(0.19)	$	0.26	$	(0.33)	$	0.39
Diluted (loss) income per share	$	(0.19)	$	0.24	$	(0.33)	$	0.35

The Company had the following dilutive securities that were not included in the computation of diluted net (loss) income per share as they were considered anti-dilutive (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Stock options	10,247	45	9,987	45
Stock options with unsatisfied market conditions	1,511	—	1,192	—
Restricted stock units	219	—	198	—
Restricted stock units with unsatisfied market conditions	219	—	198	—
Restricted stock awards	112	8	117	—
Shares expected to be issued under the 2021 Employee Stock Purchase Plan	35	—	41	—

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables present the Company's reportable segment results for the three months ended June 30, 2023 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	21,268	$	41,126	$	53,720	$	5,117	$	—	$	121,231
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	15,243		26,782		38,983		4,646		—		85,654
Depreciation and amortization	327		168		3,382		33		925		4,835
Corporate expenses	—		—		—		—		6,962		6,962
Stock-based compensation	151		70		218		4		1,663		2,106
Transaction and business realignment costs	—		—		167		—		144		311
Impairment of intangible assets, investments and long-lived assets	—		—		16,743		—		9,497		26,240
Net gain on sale and retirement of assets	—		—		(49)		—		—		(49)
Operating income (loss)	$	5,547	$	14,106	$	(5,724)	$	434	$	(19,191)	$	(4,828)

The following table presents the Company's reportable segment results for the three months ended June 30, 2022 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	22,983	$	37,172	$	57,001	$	4,768	$	—	$	121,924
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	16,293		26,102		37,544		3,894		—		83,833
Depreciation and amortization	313		145		3,157		49		650		4,314
Corporate expenses	—		—		—		—		5,739		5,739
Stock-based compensation	133		15		84		3		604		839
Transaction and business realignment costs	—		—		—		6		818		824
Impairment of intangible assets, investments and long-lived assets	—		—		5,951		—		3,468		9,419
Net loss on sale and retirement of assets	—		—		89		—		—		89
Operating income (loss)	$	6,244	$	10,910	$	10,176	$	816	$	(11,279)	$	16,867

The following tables present the Company's reportable segment results for the six months ended June 30, 2023 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	42,829	$	74,833	$	99,643	$	7,036	$	—	$	224,341
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	31,205		50,395		76,348		6,030		—		163,978
Depreciation and amortization	655		332		6,982		69		1,741		9,779
Corporate expenses	—		—		—		—		12,307		12,307
Stock-based compensation	279		115		382		6		3,096		3,878
Transaction and business realignment costs	—		—		360		11		232		603
Impairment of intangible assets, investments and long-lived assets	—		—		25,230		—		9,497		34,727
Net gain on sale and retirement of assets	—		—		(341)		—		—		(341)
Operating income (loss)	$	10,690	$	23,991	$	(9,318)	$	920	$	(26,873)	$	(590)

The following tables present the Company's reportable segment results for the six months ended June 30, 2022 (in thousands):

	Subscription Digital Marketing Solutions		Digital Advertising		Broadcast Advertising		Other		Corporate and Other Reconciling Items		Total
Net revenue	$	44,833	$	66,390	$	105,227	$	5,716	$	—	$	222,166
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	31,769		47,109		73,986		4,732		—		157,596
Depreciation and amortization	590		210		6,302		87		1,890		9,079
Corporate expenses	—		—		—		—		10,148		10,148
Stock-based compensation	265		30		171		6		1,236		1,708
Transaction and business realignment costs	—		—		—		12		1,264		1,276
Impairment of intangible assets, investments and long-lived assets	—		—		5,958		120		3,819		9,897
Net gain on sale and retirement of assets	—		—		(183)		—		(36)		(219)
Operating income (loss)	$	12,209	$	19,041	$	18,993	$	759	$	(18,321)	$	32,681

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Organization and Basis of Presentation (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) market business website radio_station	Jun. 30, 2022 USD ($) market	Jun. 30, 2023 USD ($) market business website radio_station	Jun. 30, 2022 USD ($) market
Organization and Basis of Presentation [Line Items]
Number of small and medium sized markets in which entity operates | business	27,400		27,400
Number of radio stations | radio_station	356		356
Net revenue	$ 121,231	$ 121,924	$ 224,341	$ 222,166
Operating segments | Other
Organization and Basis of Presentation [Line Items]
Net revenue	$ 5,117	4,768	$ 7,036	5,716
Operating segments | As Reported | Other
Organization and Basis of Presentation [Line Items]
Net revenue		$ 0		$ 0
United States
Organization and Basis of Presentation [Line Items]
Number of markets | market	74	74	74	74
Minimum
Organization and Basis of Presentation [Line Items]
Number of local websites (more than) | website	400		400

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Summary of Significant Accounting Policies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 5,946
Provision for credit losses	2,564
Amounts written off against allowance, net of recoveries	(3,003)
Ending balance	$ 5,507

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Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net revenue	$ 121,231	$ 121,924	$ 224,341	$ 222,166
Subscription Digital Marketing Solutions
Disaggregation of Revenue [Line Items]
Net revenue	21,268	22,983	42,829	44,833
Digital Advertising
Disaggregation of Revenue [Line Items]
Net revenue	41,126	37,172	74,833	66,390
Broadcast Advertising
Disaggregation of Revenue [Line Items]
Net revenue	53,720	57,001	99,643	105,227
Other
Disaggregation of Revenue [Line Items]
Net revenue	5,117	4,768	7,036	5,716
Net Revenue (ex Political)
Disaggregation of Revenue [Line Items]
Net revenue	120,826	120,408	223,723	220,218
Net Revenue (ex Political) | Subscription Digital Marketing Solutions
Disaggregation of Revenue [Line Items]
Net revenue	21,268	22,983	42,829	44,833
Net Revenue (ex Political) | Digital Advertising
Disaggregation of Revenue [Line Items]
Net revenue	41,080	37,021	74,772	66,193
Net Revenue (ex Political) | Broadcast Advertising
Disaggregation of Revenue [Line Items]
Net revenue	53,361	55,636	99,086	103,476
Net Revenue (ex Political) | Other
Disaggregation of Revenue [Line Items]
Net revenue	5,117	4,768	7,036	5,716
Political
Disaggregation of Revenue [Line Items]
Net revenue	405	1,516	618	1,948
Political | Subscription Digital Marketing Solutions
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Political | Digital Advertising
Disaggregation of Revenue [Line Items]
Net revenue	46	151	61	197
Political | Broadcast Advertising
Disaggregation of Revenue [Line Items]
Net revenue	359	1,365	557	1,751
Political | Other
Disaggregation of Revenue [Line Items]
Net revenue	$ 0	$ 0	$ 0	$ 0

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Revenue Recognition - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Short-term contract liabilities (deferred revenue)	$ 10,058,000		$ 10,058,000		$ 10,669,000
Revenue recognized	1,200,000	$ 1,300,000	8,500,000	$ 7,700,000
Deferred costs	6,408,000		6,408,000		$ 6,348,000
Recognized amortization	1,700,000	1,200,000	3,300,000	2,400,000
Impairment loss	$ 0	$ 0	$ 0	$ 0
Minimum
Disaggregation of Revenue [Line Items]
Payment terms (in days)			30 days
Minimum | Short-term contracts
Disaggregation of Revenue [Line Items]
Payment terms for local advertising contracts (in days)			30 days
Payment terms for national agency advertising contracts (in days)			60 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms (in days)			60 days
Maximum | Short-term contracts
Disaggregation of Revenue [Line Items]
Payment terms for local advertising contracts (in days)			60 days
Payment terms for national agency advertising contracts (in days)			90 days

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Revenue Recognition - Summary of Receivables, Contract Assets and Contract Liabilities from Contracts (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts Receivable	$ 62,537	$ 61,234
Short-term contract liabilities (deferred revenue)	10,058	10,669
Contract Acquisition Costs	$ 6,408	$ 6,348

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Acquisitions and Divestitures - Narrative (Details) $ in Thousands		6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 17, 2022 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 24, 2022 radio_station
FCC Broadcast | Disposal Group, Disposed of by Sale, Not Discontinued Operations | MONTANA
Asset Acquisition, Contingent Consideration [Line Items]
Number of radio station disposed | radio_station					6
FCC Broadcast | Disposal Group, Disposed of by Sale, Not Discontinued Operations | WASHINGTON
Asset Acquisition, Contingent Consideration [Line Items]
Number of radio station disposed | radio_station					1
Cherry Creek Broadcasting LLC
Asset Acquisition, Contingent Consideration [Line Items]
Asset acquisition consideration transferred | $	$ 18,419		$ 18,457	$ 18,500
Asset acquisition, consideration transferred, goodwill | $	$ 8,377	$ 3,500	$ 3,534

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Acquisitions and Divestitures - Schedule of Purchase Price Allocation (Details) - Cherry Creek Broadcasting LLC - USD ($) $ in Thousands		6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 17, 2022	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023
Business Acquisition [Line Items]
Net tangible assets acquired	$ 1,366		$ 6,060
Intangible assets, net	8,676		8,863
Goodwill	8,377	$ 3,500	3,534
Total Purchase Price	$ 18,419		18,457	$ 18,500
Measurement Period Adjustments
Business Acquisition [Line Items]
Net tangible assets acquired			4,694
Intangible assets, net			187
Goodwill			(4,843)
Total Purchase Price			$ 38

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Acquisitions and Divestitures - Fair Value of Identifiable Intangible Asset (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Jun. 17, 2022
Business Acquisition [Line Items]
Fair value of intangible assets acquired		$ 8,863
FCC licenses
Business Acquisition [Line Items]
Fair value of intangible assets acquired		2,889
Customer relationships
Business Acquisition [Line Items]
Fair value of intangible assets acquired	$ 5,007
Finite-lived intangible asset, useful life			10 years
Content Rights
Business Acquisition [Line Items]
Fair value of intangible assets acquired		642
Finite-lived intangible asset, useful life			7 years
Other intangibles
Business Acquisition [Line Items]
Fair value of intangible assets acquired		$ 325
Finite-lived intangible asset, useful life			3 years

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Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 297,743	$ 292,780
Less accumulated depreciation and amortization	(186,638)	(178,934)
Total property and equipment, net	111,105	113,846
Land and improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	19,260	19,966
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	58,517	57,386
Broadcast equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	109,874	108,057
Computer and office equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	24,646	24,211
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	22,934	22,968
Transportation equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	20,258	20,703
Software development costs
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 42,254	$ 39,489

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Property and Equipment, net - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) market	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 4,200,000	$ 4,000,000	$ 8,600,000	$ 8,500,000
Impairment charge to operating lease right-of-use assets	300,000		300,000
Finance lease, right-of-use asset	0		0		$ 0
Battle Creek, MI | Discontinued Operations, Disposed of by Sale
Property, Plant and Equipment [Line Items]
Impairment charges to long-lived assets	$ 200,000		$ 400,000
Number of local markets | market			5
Quincy Hannibal, IL | Disposal Group, Held-for-Sale, Not Discontinued Operations
Property, Plant and Equipment [Line Items]
Impairment on assets of the disposal group		$ 800,000

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Goodwill and Other Intangible Assets - Narrative (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2023 USD ($) market	Jun. 30, 2022 USD ($) market	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) market	Jun. 30, 2022 USD ($) market	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Indefinite-lived Intangible Assets [Line Items]
Impairment charge	$ 16,600,000	$ 5,200,000		$ 24,800,000	$ 5,200,000
Number of local markets with impairment charge incurred | market	20	6		20	6
Goodwill	$ 161,481,000			$ 161,481,000			$ 161,385,000
Digital assets						$ 2,100,000
Digital assets, impairment charges		$ 2,200,000			$ 2,600,000
Amortization of intangible assets	$ 1,800,000	$ 1,400,000		$ 3,600,000	$ 2,500,000
Local Markets
Indefinite-lived Intangible Assets [Line Items]
Fair value in excess of carrying amount percentage							18.00%
National Digital
Indefinite-lived Intangible Assets [Line Items]
Fair value in excess of carrying amount percentage							243.00%
Townsquare Ignite
Indefinite-lived Intangible Assets [Line Items]
Fair value in excess of carrying amount percentage							90.00%
Analytical Services
Indefinite-lived Intangible Assets [Line Items]
Fair value in excess of carrying amount percentage							211.00%
Broadcast Advertising
Indefinite-lived Intangible Assets [Line Items]
Fair value in excess of carrying amount percentage							252.00%
Live Events
Indefinite-lived Intangible Assets [Line Items]
Fair value in excess of carrying amount percentage							19.00%
Local Advertising Businesses
Indefinite-lived Intangible Assets [Line Items]
Goodwill							$ 0
Weighted Average Cost Of Capital
Indefinite-lived Intangible Assets [Line Items]
Point increase, assumptions	5000.00%			5000.00%
Long-Term Revenue Growth
Indefinite-lived Intangible Assets [Line Items]
Point decrease assumptions	10000.00%			10000.00%
United States
Indefinite-lived Intangible Assets [Line Items]
Number of markets | market	74	74		74	74
FCC licenses
Indefinite-lived Intangible Assets [Line Items]
Renewal period				8 years
FCC licenses | Weighted Average Cost Of Capital
Indefinite-lived Intangible Assets [Line Items]
Estimated fair value, assumptions				$ 17,400,000
IImpairment charge, assumptions				8,100,000
FCC licenses | Long-Term Revenue Growth
Indefinite-lived Intangible Assets [Line Items]
Estimated fair value, assumptions				20,900,000
IImpairment charge, assumptions				11,100,000
Digital assets
Indefinite-lived Intangible Assets [Line Items]
Payments to acquire investments			$ 5,000,000
Gain (loss) on sale of investments				$ 800,000

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Goodwill and Other Intangible Assets - Schedule of Assumptions Used in Annual Impairment Assessments (Details)	Jun. 30, 2023	Mar. 31, 2023
Discount Rate
Finite-Lived Intangible Assets [Line Items]
Intangible assets, measurement input	0.135	0.122
Long-term Revenue Growth Rate
Finite-Lived Intangible Assets [Line Items]
Intangible assets, measurement input	0.000	0.000
Mature Market Share | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, measurement input	0.208	0.217
Mature Market Share | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, measurement input	0.750	0.750
Operating Profit Margin | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, measurement input	0.200	0.200
Operating Profit Margin | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, measurement input	0.470	0.470

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Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 161,385
Cherry Creek measurement period adjustment	96
Goodwill, ending balance	161,481
Operating segments | Subscription Digital Marketing Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	77,000
Cherry Creek measurement period adjustment	0
Goodwill, ending balance	77,000
Operating segments | Digital Advertising
Goodwill [Roll Forward]
Goodwill, beginning balance	77,687
Cherry Creek measurement period adjustment	0
Goodwill, ending balance	77,687
Operating segments | Broadcast Advertising
Goodwill [Roll Forward]
Goodwill, beginning balance	2,715
Cherry Creek measurement period adjustment	96
Goodwill, ending balance	2,811
Operating segments | Other
Goodwill [Roll Forward]
Goodwill, beginning balance	3,983
Cherry Creek measurement period adjustment	0
Goodwill, ending balance	$ 3,983

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Goodwill and Other Intangible Assets - Schedule of Finite Lived and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (16,036)	$ (14,500)
Net Carrying Amount	18,904
Intangible assets, gross carrying amount total	262,258	291,338
Intangible assets, net carrying amount total	246,222	276,838
FCC licenses
Indefinite-lived Intangible Assets [Line Items]
Indefinite intangible asset	227,318	252,110
Digital assets
Indefinite-lived Intangible Assets [Line Items]
Indefinite intangible asset		2,136
Content rights and other intangible assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	34,940	37,092
Accumulated Amortization	(16,036)	(14,500)
Net Carrying Amount	$ 18,904	$ 22,592
Content rights and other intangible assets | Minimum
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (in Years)	1 year	1 year
Content rights and other intangible assets | Maximum
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (in Years)	9 years	10 years

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Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (remainder)	$ 3,507
2024	6,017
2025	2,304
2026	2,108
2027	1,978
Thereafter	2,990
Net Carrying Amount	$ 18,904

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Investments (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Apr. 12, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Impairment on investments		$ 9.2	$ 1.2	$ 9.2	$ 1.2
Gain on the sale of its investments	$ 5.2
Proceeds from sale of equity securities	$ 6.0
Fair value of investment		1.3		1.3
Unrealized gain		$ 0.2		$ 0.1
Unrealized loss			$ 0.7		$ 2.2

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Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
2026 Notes	$ 517,835	$ 530,766
Deferred financing costs	(5,229)	(6,324)
Total long-term debt	$ 512,606	$ 524,442

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Long-Term Debt - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Instrument [Line Items]
Gain on repurchase of notes	$ 44,000	$ 108,000	$ 819,000	$ 108,000
2026 Notes
Debt Instrument [Line Items]
Repurchased of 2026 notes	12,900,000		12,900,000
Write-off of deferred financing costs	100,000		100,000
Gain on repurchase of notes	44,000		800,000
Fair value of debt	$ 495,200,000		$ 495,200,000

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Long-Term Debt - Schedule of Annual Maturities of Long Term Debt (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Debt Disclosure [Abstract]
2023 (remainder)	$ 0
2024	0
2025	0
2026	517,835
2027	0
Thereafter	0
Long-term debt	$ 517,835

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Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	70.70%	19.70%	63.60%	25.80%

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Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	Aug. 01, 2023	Mar. 06, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Aug. 07, 2023	May 05, 2023
Class of Stock [Line Items]
Dividends (in dollars per share)		$ 0.1875						$ 0.1875
Stock-based compensation			$ 2,106	$ 839	$ 3,878	$ 1,708
Dividends payable			3,148	0	$ 3,148	0
Subsequent Event
Class of Stock [Line Items]
Dividends (in dollars per share)							$ 0.1875
Dividends, cash	$ 3,000
Black-Scholes Model
Class of Stock [Line Items]
Expected dividend yield		0.00%
Stock options
Class of Stock [Line Items]
Maximum contractual term of stock options					10 years
Compensation cost not yet recognized			12,100		$ 12,100
Compensation cost not yet recognized, period for recognition					2 years 6 months
Stock options | Black-Scholes Model
Class of Stock [Line Items]
Expected dividend yield					0.00%
Stock options | Executive Officer
Class of Stock [Line Items]
Granted (in shares)					217,547
Stock options | Non Employee Directors
Class of Stock [Line Items]
Granted (in shares)					750,000
Stock options | Minimum
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 3.99
Award vesting period (in years)					3 years
Stock options | Minimum | Executive Officer
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 2.47
Stock options | Minimum | Non Employee Directors
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					2.05
Stock options | Maximum
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 3.97
Award vesting period (in years)					4 years
Stock options | Maximum | Executive Officer
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 3.07
Stock options | Maximum | Non Employee Directors
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 2.14
Performance-Based Stock Option
Class of Stock [Line Items]
Granted (in shares)					967,547
Performance-Based Stock Option | Minimum
Class of Stock [Line Items]
Granted (in shares)					168,067
Performance-Based Stock Option | Maximum
Class of Stock [Line Items]
Granted (in shares)					1,343,000
Shares expected to be issued under the 2021 Employee Stock Purchase Plan
Class of Stock [Line Items]
Maximum contractual term of stock options					10 years
Shares expected to be issued under the 2021 Employee Stock Purchase Plan | 2021 Employee Stock Purchase Plan | Class A
Class of Stock [Line Items]
ESPP shares issued (in shares)					65,732
Restricted stock awards
Class of Stock [Line Items]
Award vesting period (in years)					3 years
Vested (in shares)					13,387
Restricted stock awards | Non Employee Directors
Class of Stock [Line Items]
Granted (in shares)					68,876
Award vesting period (in years)					1 year
Restricted stock awards | Minimum
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 7.55
Restricted stock awards | Maximum
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 7.47
Restricted stock units
Class of Stock [Line Items]
Granted (in shares)					218,543
Grant date fair value of restricted stock (in dollars per share)					$ 7.55
Award vesting period (in years)					3 years
Stock-based compensation			2,100	$ 800	$ 3,900	$ 1,700
Compensation cost not yet recognized			$ 2,700		$ 2,700
Compensation cost not yet recognized, period for recognition					2 years 3 months 18 days
Restricted stock units | Minimum
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 3.51
Restricted stock units | Maximum
Class of Stock [Line Items]
Grant date fair value of restricted stock (in dollars per share)					$ 4.91

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Stockholders' Equity - Vesting Shares (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Stock options | VWAP over the last 20 trading days of the three-year performance period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	217,547
Stock options | VWAP over the last 20 trading days of the three-year performance period | Year One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 8.74
Vested (in shares)	65,147
Stock options | VWAP over the last 20 trading days of the three-year performance period | Year Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 10.75
Vested (in shares)	71,429
Stock options | VWAP over the last 20 trading days of the three-year performance period | Year Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 13.05
Vested (in shares)	80,971
Stock options | VWAP over 30 consecutive trading days of the seven-year performance period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	750,000
Stock options | VWAP over 30 consecutive trading days of the seven-year performance period | Year One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 11.00
Vested (in shares)	250,000
Stock options | VWAP over 30 consecutive trading days of the seven-year performance period | Year Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 14.00
Vested (in shares)	250,000
Stock options | VWAP over 30 consecutive trading days of the seven-year performance period | Year Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 17.00
Vested (in shares)	250,000
Restricted stock units | VWAP over the last 20 trading days of the three-year performance period | Year One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 8.74
Vested (in shares)	72,840
Restricted stock units | VWAP over the last 20 trading days of the three-year performance period | Year Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 10.75
Vested (in shares)	72,840
Restricted stock units | VWAP over the last 20 trading days of the three-year performance period | Year Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in dollars per share) | $ / shares	$ 13.05
Vested (in shares)	72,863

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Stockholders' Equity - Assumptions Used to Estimate Fair Value of Equity Options Granted (Details)		6 Months Ended
	Mar. 06, 2023	Jun. 30, 2023
Monte Carlo Model | Stock options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected volatility		50.00%
Risk free interest rate, minimum		3.43%
Risk free interest rate, maximum		3.74%
Monte Carlo Model | Restricted stock units
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected volatility		50.00%
Risk free interest rate		3.72%
Expected dividend yield		0.00%
Monte Carlo Model | Minimum | Stock options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected term (in years)		5 years
Expected dividend yield		0.00%
Monte Carlo Model | Maximum | Stock options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected term (in years)		7 years
Expected dividend yield		9.15%
Black-Scholes Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected dividend yield	0.00%
Black-Scholes Model | Stock options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk free interest rate, minimum		3.42%
Risk free interest rate, maximum		4.02%
Expected dividend yield		0.00%
Black-Scholes Model | Minimum | Stock options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected volatility		51.00%
Expected term (in years)		6 years 3 days
Black-Scholes Model | Maximum | Stock options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected volatility		52.00%
Expected term (in years)		6 years 4 months 17 days

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Stockholders' Equity - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Options
Beginning balance, outstanding (in shares) | shares	9,478,698
Exercised (in shares) | shares	(556,121)
Forfeited and expired (in shares) | shares	(37,257)
Ending balance, outstanding (in shares) | shares	11,363,934	9,478,698
Options, exercisable (in shares) | shares	6,748,883
Weighted Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 7.80
Exercised (in dollars per share) | $ / shares	7.75
Forfeited and expired (in dollars per share) | $ / shares	7.48
Ending balance (in dollars per share) | $ / shares	7.75	$ 7.80
Weighted average exercise price, exercisable (in dollars per share) | $ / shares	$ 8.03
Weighted Average Remaining Contractual Life (years)
Weighted average remaining contractual life (years)	5 years 2 months 26 days	4 years 7 months 13 days
Weighted average remaining contractual life (years), exercisable	2 years 11 months 19 days
Aggregate Intrinsic Value (in thousands)
Aggregate intrinsic value, outstanding beginning balance | $	$ 2,798
Aggregate intrinsic value, exercised | $	1,483
Aggregate intrinsic value, outstanding ending balance | $	47,264	$ 2,798
Aggregate intrinsic value, exercisable | $	$ 26,173
Time-Based Stock Option
Options
Granted (in shares) | shares	1,511,067
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares	$ 7.30
Performance-Based Stock Option
Options
Granted (in shares) | shares	967,547
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares	$ 7.93

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Stockholders' Equity - Restricted Stock Activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted stock awards
Number of Shares
Beginning balance (in shares) | shares	93,181
Shares granted (in shares) | shares	82,263
Shares vested (in shares) | shares	(62,979)
Ending balance (in shares) | shares	112,465
Weighted Average Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 9.63
Shares granted (in dollars per share) | $ / shares	7.54
Shares vested (in dollars per share) | $ / shares	9.52
Ending balance (in dollars per share) | $ / shares	$ 8.16
Restricted stock units
Number of Shares
Beginning balance (in shares) | shares	0
Shares vested (in shares) | shares	0
Ending balance (in shares) | shares	437,086
Weighted Average Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 0
Shares vested (in dollars per share) | $ / shares	0
Ending balance (in dollars per share) | $ / shares	$ 5.88
Service Conditions
Number of Shares
Shares granted (in shares) | shares	218,543
Weighted Average Fair Value
Shares granted (in dollars per share) | $ / shares	$ 7.55
Market Conditions
Number of Shares
Shares granted (in shares) | shares	218,543
Weighted Average Fair Value
Shares granted (in dollars per share) | $ / shares	$ 4.21

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Stockholder's Equity - Stock Repurchase Agreement (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 16, 2023	Jun. 30, 2023	Dec. 31, 2022
MSG National Properties LLC
Class of Stock [Line Items]
Common shares outstanding (in shares)	1,708,139
Class C
Class of Stock [Line Items]
Common shares outstanding (in shares)		1,961,341	3,461,341
Class C | MSG National Properties LLC
Class of Stock [Line Items]
Stock repurchase (in shares)	1,500,000
Common shares outstanding (in shares)	1,125,000
Repurchase amount	$ 14.6
Securities repurchased (in dollars per share)	$ 9.70
Class A
Class of Stock [Line Items]
Common shares outstanding (in shares)		13,668,428	12,964,312
Class A | MSG National Properties LLC
Class of Stock [Line Items]
Common shares outstanding (in shares)	583,139

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Stockholder's Equity - Stock Repurchase Plan (Details) - USD ($)		3 Months Ended	6 Months Ended	18 Months Ended
	Dec. 16, 2021	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2023
2021 Stock Repurchase Plan
Class of Stock [Line Items]
Repurchase of stock (in shares)			89,568	115,191
Class A
Class of Stock [Line Items]
Stock repurchase program, period in force	36 months
Repurchased Plan | Class A
Class of Stock [Line Items]
Stock repurchase program, authorized amount		$ 50,000,000	$ 50,000,000	$ 50,000,000
Stock repurchase program, period in force		3 years
Repurchased Plan | Maximum
Class of Stock [Line Items]
Stock repurchase program, authorized amount	$ 50,000,000

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Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net (loss) income	$ (2,700)	$ (1,941)	$ 4,919	$ 2,741	$ (4,641)	$ 7,660
Net income from non-controlling interest	500		525		980	1,042
Net (loss) income attributable to controlling interest	$ (3,200)		$ 4,394		$ (5,621)	$ 6,618
Denominator:
Effect of dilutive common stock equivalents (in shares)	0		1,709		0	2,286
Weighted average diluted common shares outstanding (in shares)	17,221		18,695		17,212	19,177
Diluted (loss) income per share
Diluted (loss) income per share (in dollars per share)	$ (0.19)		$ 0.24		$ (0.33)	$ 0.35
Shares expected to be issued under the 2021 Employee Stock Purchase Plan
Diluted (loss) income per share
Antidilutive securities (in shares)	35		0		41	0
Stock options
Diluted (loss) income per share
Antidilutive securities (in shares)	10,247		45		9,987	45
Stock options with unsatisfied market conditions
Diluted (loss) income per share
Antidilutive securities (in shares)	1,511		0		1,192	0
Restricted stock units
Diluted (loss) income per share
Antidilutive securities (in shares)	219		0		198	0
Restricted stock units with unsatisfied market conditions
Diluted (loss) income per share
Antidilutive securities (in shares)	219		0		198	0
Restricted stock awards
Diluted (loss) income per share
Antidilutive securities (in shares)	112		8		117	0
Common shares
Denominator:
Weighted average shares of common stock outstanding (in shares)	17,221		16,986		17,212	16,891
Basic (loss) income per share
Basic (loss) income per share (in dollars per share)	$ (0.19)		$ 0.26		$ (0.33)	$ 0.39

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Segment Reporting - Narrative (Details)	6 Months Ended
	Jun. 30, 2023 segment area
Segment Reporting [Abstract]
Number of operating segments | segment	3
Number of geographic areas | area	1

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Segment Reporting - Schedule of Reportable Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Net revenue	$ 121,231	$ 121,924	$ 224,341	$ 222,166
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	85,654	83,833	163,978	157,596
Depreciation and amortization	4,835	4,314	9,779	9,079
Corporate expenses	6,962	5,739	12,307	10,148
Stock-based compensation	2,106	839	3,878	1,708
Transaction and business realignment costs	311	824	603	1,276
Impairment of intangible assets, investments and long-lived assets	26,240	9,419	34,727	9,897
Net gain (loss) on sale and retirement of assets	(49)	89	(341)	(219)
Operating (loss) income	(4,828)	16,867	(590)	32,681
Corporate and Other Reconciling Items
Segment Reporting Information [Line Items]
Net revenue	0	0	0	0
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	0	0	0	0
Depreciation and amortization	925	650	1,741	1,890
Corporate expenses	6,962	5,739	12,307	10,148
Stock-based compensation	1,663	604	3,096	1,236
Transaction and business realignment costs	144	818	232	1,264
Impairment of intangible assets, investments and long-lived assets	9,497	3,468	9,497	3,819
Net gain (loss) on sale and retirement of assets	0	0	0	(36)
Operating (loss) income	(19,191)	(11,279)	(26,873)	(18,321)
Subscription Digital Marketing Solutions | Operating segments
Segment Reporting Information [Line Items]
Net revenue	21,268	22,983	42,829	44,833
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	15,243	16,293	31,205	31,769
Depreciation and amortization	327	313	655	590
Corporate expenses	0	0	0	0
Stock-based compensation	151	133	279	265
Transaction and business realignment costs	0	0	0	0
Impairment of intangible assets, investments and long-lived assets	0	0	0	0
Net gain (loss) on sale and retirement of assets	0	0	0	0
Operating (loss) income	5,547	6,244	10,690	12,209
Digital Advertising | Operating segments
Segment Reporting Information [Line Items]
Net revenue	41,126	37,172	74,833	66,390
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	26,782	26,102	50,395	47,109
Depreciation and amortization	168	145	332	210
Corporate expenses	0	0	0	0
Stock-based compensation	70	15	115	30
Transaction and business realignment costs	0	0	0	0
Impairment of intangible assets, investments and long-lived assets	0	0	0	0
Net gain (loss) on sale and retirement of assets	0	0	0	0
Operating (loss) income	14,106	10,910	23,991	19,041
Broadcast Advertising | Operating segments
Segment Reporting Information [Line Items]
Net revenue	53,720	57,001	99,643	105,227
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	38,983	37,544	76,348	73,986
Depreciation and amortization	3,382	3,157	6,982	6,302
Corporate expenses	0	0	0	0
Stock-based compensation	218	84	382	171
Transaction and business realignment costs	167	0	360	0
Impairment of intangible assets, investments and long-lived assets	16,743	5,951	25,230	5,958
Net gain (loss) on sale and retirement of assets	(49)	89	(341)	(183)
Operating (loss) income	(5,724)	10,176	(9,318)	18,993
Other | Operating segments
Segment Reporting Information [Line Items]
Net revenue	5,117	4,768	7,036	5,716
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	4,646	3,894	6,030	4,732
Depreciation and amortization	33	49	69	87
Corporate expenses	0	0	0	0
Stock-based compensation	4	3	6	6
Transaction and business realignment costs	0	6	11	12
Impairment of intangible assets, investments and long-lived assets	0	0	0	120
Net gain (loss) on sale and retirement of assets	0	0	0	0
Operating (loss) income	$ 434	$ 816	$ 920	$ 759