The company's profitability has deteriorated significantly, with gross margins plummeting from 20.0% in 2023Q4 to -1.4% in 2026Q1, reflecting an inability to cover fixed operating costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 105.77M | 107.11M | 112.92M | 112.77M | 114.89M | 108.34M | 95.81M | 123.07M | 124.83M | 118.15M | 142.59M | 132.86M | 134M | 129.48M | 130.26M | 127.3M | 127.82M | 120.8M | 139.96M | 144.02M | 142.95M | 140.79M | 134.64M | 121.3M | 114.78M | 103.96M | 101.75M | 90M | 75.9M | 66.3M | 56.2M |
| Revenue Growth % | -5.96% | -5.14% | 0.13% | -1.85% | 6.05% | 13.08% | -22.15% | -1.41% | 5.65% | -17.14% | 7.33% | -0.85% | 3.49% | -0.6% | 2.33% | -0.41% | 5.81% | -13.69% | -2.82% | 0.75% | 1.53% | 4.56% | 11% | 5.68% | 10.41% | 2.17% | 13.05% | 18.58% | 14.48% | 17.97% | 13.08% |
| Cost of Goods Sold | 95.58M | 96.96M | 96.91M | 90.2M | 87.54M | 83.25M | 81.59M | 92.69M | 93.73M | 87.76M | 101.54M | 97.27M | 98.42M | 92.98M | 90.29M | 93.36M | 92.75M | 94.65M | 105.81M | 106.3M | 104.4M | 104.41M | 94.91M | 29.07M | 26.73M | 24.46M | 22.21M | 20.3M | 16.9M | 15.2M | 36.7M |
| COGS % of Revenue | - | 90.52% | 85.82% | 79.98% | 76.19% | 76.83% | 85.15% | 75.32% | 75.08% | 74.28% | 71.21% | 73.21% | 73.45% | 71.81% | 69.31% | 73.34% | 72.57% | 78.35% | 75.6% | 73.81% | 73.03% | 74.16% | 70.49% | 23.97% | 23.29% | 23.53% | 21.83% | 22.56% | 22.27% | 22.93% | 65.3% |
| Gross Profit | 10.19M | 10.15M | 16.01M | 22.57M | 27.36M | 25.1M | 14.23M | 30.38M | 31.1M | 30.39M | 41.05M | 35.59M | 35.57M | 36.5M | 39.97M | 33.93M | 35.06M | 26.15M | 34.15M | 37.72M | 38.55M | 36.38M | 39.73M | 92.23M | 88.05M | 79.5M | 79.53M | 69.7M | 59M | 51.1M | 19.5M |
| Gross Margin % | 9.63% | 9.48% | 14.18% | 20.02% | 23.81% | 23.17% | 14.85% | 24.68% | 24.92% | 25.72% | 28.79% | 26.79% | 26.55% | 28.19% | 30.69% | 26.66% | 27.43% | 21.65% | 24.4% | 26.19% | 26.97% | 25.84% | 29.51% | 76.03% | 76.71% | 76.47% | 78.17% | 77.44% | 77.73% | 77.07% | 34.7% |
| Gross Profit Growth % | - | -36.6% | -29.06% | -17.48% | 9% | 76.41% | -53.17% | -2.32% | 2.34% | -25.97% | 15.35% | 0.04% | -2.54% | -8.68% | 17.79% | -3.22% | 34.08% | -23.43% | -9.46% | -2.15% | 5.97% | -8.43% | -56.92% | 4.75% | 10.76% | -0.05% | 14.11% | 18.14% | 15.46% | 162.05% | -19.75% |
| Operating Expenses | 1.84M | 12.32M | 13.66M | 11.09M | 14.29M | 10.05M | 15.48M | 11.57M | 11.42M | 11.71M | 9.59M | 10.63M | 7.69M | 8.17M | 7.96M | 7.59M | 7.27M | 7.45M | 9.47M | 9.8M | 8.56M | 9.34M | 8.34M | 63.66M | 59.17M | 57.71M | 54.4M | 49.4M | 42.6M | 38.5M | 8.8M |
| OpEx % of Revenue | - | 11.5% | 12.1% | 9.83% | 12.43% | 9.27% | 16.15% | 9.4% | 9.15% | 9.91% | 6.72% | 8% | 5.74% | 6.31% | 6.11% | 5.96% | 5.69% | 6.17% | 6.77% | 6.8% | 5.99% | 6.64% | 6.2% | 52.49% | 51.55% | 55.52% | 53.46% | 54.89% | 56.13% | 58.07% | 15.66% |
| Selling, General & Admin | 12.13M | 12.32M | 12.61M | 10.97M | 14.3M | 10.04M | 11.57M | 11.46M | 11.36M | 11.66M | 10.98M | 10.09M | 8.9M | 8.17M | 7.96M | 7.59M | 7.27M | 7.94M | 9.98M | 9.8M | 8.87M | 8.17M | 8.34M | 56.66M | 52.64M | 47.6M | 44.92M | 41.4M | 36.2M | 32.6M | 3.3M |
| SG&A % of Revenue | - | 11.5% | 11.17% | 9.72% | 12.45% | 9.27% | 12.08% | 9.31% | 9.1% | 9.87% | 7.7% | 7.6% | 6.64% | 6.31% | 6.11% | 5.96% | 5.69% | 6.58% | 7.13% | 6.8% | 6.21% | 5.81% | 6.2% | 46.71% | 45.86% | 45.79% | 44.15% | 46% | 47.69% | 49.17% | 5.87% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -747K | 0 | 1.05M | 120K | -14K | 7K | 3.9M | 112K | 23K | 55K | 90.56M | 417K | 71K | 51K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.17M | 0 | 7M | 6.53M | 10.11M | 9.48M | 8M | 6.4M | 5.9M | 5.5M |
| Operating Income | 8.35M | -2.17M | 2.35M | 11.49M | 13.07M | 15.05M | -1.25M | 18.81M | 19.68M | 17.23M | 31.46M | 24.08M | 25.95M | 26.3M | 32.01M | 26.34M | 27.79M | 1.42M | -91.77M | 27.92M | 29.99M | 27.04M | 31.39M | 28.57M | 28.88M | 21.79M | 25.14M | 20.3M | 16.4M | 12.6M | 10.7M |
| Operating Margin % | 7.89% | -2.02% | 2.09% | 10.19% | 11.38% | 13.89% | -1.3% | 15.28% | 15.77% | 14.58% | 22.06% | 18.13% | 19.36% | 20.31% | 24.57% | 20.69% | 21.74% | 1.17% | -65.57% | 19.39% | 20.98% | 19.2% | 23.31% | 23.55% | 25.16% | 20.96% | 24.71% | 22.56% | 21.61% | 19% | 19.04% |
| Operating Income Growth % | - | -192.1% | -79.5% | -12.1% | -13.16% | 1305.04% | -106.64% | -4.44% | 14.24% | -45.24% | 30.65% | -7.19% | -1.33% | -17.85% | 21.52% | -5.2% | 1862.5% | 101.54% | -428.66% | -6.91% | 10.93% | -13.86% | 9.88% | -1.08% | 32.55% | -13.34% | 23.84% | 23.78% | 30.16% | 17.76% | 37.18% |
| EBITDA | 13.37M | 3.01M | 7.64M | 16.54M | 18.24M | 20.8M | 5.28M | 25.75M | 26.47M | 23.48M | 37.34M | 31.54M | 33.29M | 33.7M | 39.48M | 34.55M | 36.24M | 10.75M | -82.13M | 36.99M | 39.04M | 37.07M | 39.39M | 37.01M | 35.78M | 31.89M | 34.62M | 28.3M | 22.8M | 18.5M | 16.2M |
| EBITDA Margin % | 12.64% | 2.81% | 6.76% | 14.67% | 15.88% | 19.2% | 5.51% | 20.93% | 21.2% | 19.87% | 26.19% | 23.74% | 24.84% | 26.03% | 30.31% | 27.14% | 28.35% | 8.9% | -58.68% | 25.68% | 27.31% | 26.33% | 29.26% | 30.51% | 31.17% | 30.68% | 34.02% | 31.44% | 30.04% | 27.9% | 28.83% |
| EBITDA Growth % | 69.6% | -60.6% | -53.83% | -9.31% | -12.3% | 294.31% | -79.52% | -2.7% | 12.73% | -37.11% | 18.37% | -5.24% | -1.23% | -14.64% | 14.28% | -4.66% | 237.08% | 113.09% | -322.03% | -5.24% | 5.31% | -5.9% | 6.44% | 3.45% | 12.17% | -7.86% | 22.32% | 24.12% | 23.24% | 14.2% | 12.5% |
| D&A (Non-Cash Add-back) | 5.03M | 5.18M | 5.28M | 5.05M | 5.17M | 5.75M | 6.52M | 6.95M | 6.79M | 6.25M | 5.88M | 7.46M | 7.34M | 7.41M | 7.47M | 8.21M | 8.45M | 9.34M | 9.63M | 9.07M | 9.04M | 10.03M | 8.01M | 8.45M | 6.9M | 10.11M | 9.48M | 8M | 6.4M | 5.9M | 5.5M |
| EBIT | -11.28M | -2.17M | 4.92M | 13.05M | 14.13M | 15.7M | -868K | 19.43M | 19.68M | 18.68M | 21.11M | 23.94M | 26.02M | 26.35M | 31.73M | 24.48M | 31.16M | 1.21M | -91.84M | 27.65M | 29.99M | 27.04M | 31.36M | 28.57M | 28.88M | 21.79M | 25.14M | 20.3M | 16.4M | 12.6M | 10.7M |
| Net Interest Income | 498K | 470K | 699K | 1.27M | 280K | -268K | -192K | -125K | -315K | -903K | -744K | -855K | -1.06M | -1.3M | -1.73M | -3.42M | -5.62M | -4.95M | -7.17M | -8.95M | -9.38M | -7.59M | -4.52M | -4.78M | -5.49M | -7.04M | -6.79M | 0 | -4.6M | 0 | -3.9M |
| Interest Income | 916K | 904K | 1.05M | 1.44M | 410K | 16K | 148K | 610K | 631K | 0 | 0 | 33K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 418K | 434K | 348K | 173K | 130K | 284K | 340K | 735K | 946K | 903K | 744K | 888K | 1.06M | 1.3M | 1.73M | 3.42M | 5.62M | 4.95M | 7.17M | 8.95M | 9.38M | 7.59M | 4.52M | 4.78M | 5.49M | 7.04M | 6.79M | 0 | 4.6M | 0 | 3.9M |
| Other Income/Expense | -19.72M | -8.3M | 2.21M | 1.39M | 932K | 366K | 41K | -109K | -292K | -903K | -744K | -1.03M | -993K | -1.25M | -2.01M | -5.28M | -2.25M | -5.16M | -7.25M | -9.23M | -8.88M | -10.25M | -4.55M | -5.91M | -5.65M | -7.02M | -8.9M | -6.2M | -5.1M | -4.7M | -3.8M |
| Pretax Income | -11.37M | -10.47M | 4.57M | 12.88M | 14M | 15.42M | -1.21M | 18.7M | 19.39M | 16.33M | 30.69M | 23.05M | 24.95M | 25.04M | 30M | 21.06M | 25.54M | -3.74M | -99.01M | 18.69M | 21.11M | 16.78M | 26.83M | 22.66M | 23.23M | 14.77M | 16.24M | 14.1M | 11.3M | 7.9M | 6.9M |
| Pretax Margin % | -10.75% | -9.77% | 4.05% | 11.42% | 12.19% | 14.23% | -1.26% | 15.19% | 15.53% | 13.82% | 21.52% | 17.35% | 18.62% | 19.34% | 23.03% | 16.55% | 19.98% | -3.1% | -70.75% | 12.98% | 14.77% | 11.92% | 19.93% | 18.68% | 20.24% | 14.2% | 15.96% | 15.67% | 14.89% | 11.92% | 12.28% |
| Income Tax | -2.65M | -2.57M | 1.11M | 3.38M | 4.8M | 4.26M | 705K | 5.42M | 5.7M | -5.92M | 12.5M | 9.64M | 10.05M | 9.99M | 11.94M | 8.43M | 10.4M | -1.16M | -32.52M | 7.69M | 8.66M | 6.22M | 10.99M | 8.77M | 9.28M | 6.2M | 7.59M | 5.5M | 4.9M | 3.4M | 3M |
| Effective Tax Rate % | 23.34% | 24.55% | 24.29% | 26.21% | 34.28% | 27.63% | -58.36% | 28.99% | 29.4% | -36.26% | 40.74% | 41.81% | 40.27% | 39.9% | 39.8% | 40.03% | 40.73% | 31.03% | 32.85% | 41.14% | 41.04% | 37.04% | 40.96% | 38.72% | 39.93% | 41.99% | 46.74% | 39.01% | 43.36% | 43.04% | 43.48% |
| Net Income | -8.72M | -7.9M | 3.46M | 9.5M | 9.2M | 11.16M | -1.91M | 13.28M | 13.69M | 54.72M | 18.19M | 13.41M | 14.9M | 15.27M | 17.93M | 12.63M | 15.14M | -2.58M | -66.49M | 11M | 12.45M | 10.57M | 15.84M | 13.88M | 13.96M | 8.56M | 8.65M | 8.6M | 6.4M | 4.5M | 3.9M |
| Net Margin % | -8.24% | -7.37% | 3.06% | 8.42% | 8.01% | 10.3% | -2% | 10.79% | 10.97% | 46.31% | 12.75% | 10.1% | 11.12% | 11.8% | 13.76% | 9.92% | 11.84% | -2.14% | -47.51% | 7.64% | 8.71% | 7.5% | 11.77% | 11.45% | 12.16% | 8.24% | 8.5% | 9.56% | 8.43% | 6.79% | 6.94% |
| Net Income Growth % | -351.82% | -328.29% | -63.58% | 3.24% | -17.52% | 683.22% | -114.41% | -3% | -74.98% | 200.87% | 35.57% | -10% | -2.42% | -14.79% | 41.91% | -16.55% | 686.44% | 96.12% | -704.25% | -11.6% | 17.81% | -33.3% | 14.1% | -0.51% | 62.93% | -0.98% | 0.58% | 34.38% | 42.22% | 15.38% | 44.44% |
| Net Income (Continuing) | -8.72M | -7.9M | 3.46M | 9.5M | 9.2M | 11.16M | -1.91M | 13.28M | 13.69M | 22.25M | 12.91M | 9.15M | 14.9M | 15.05M | 18.06M | 12.88M | 15.46M | -2.58M | -66.49M | 11M | 12.45M | 10.57M | 15.84M | 13.88M | 13.96M | 8.56M | 8.65M | 8.6M | 6.4M | 4.5M | 3.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 32.47M | 5.28M | 4.27M | 0 | 223K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.44 | -1.28 | 0.55 | 1.55 | 1.52 | 1.85 | -0.33 | 2.23 | 2.35 | 9.27 | 3.09 | 2.29 | 2.55 | 2.64 | 2.37 | 2.23 | 2.68 | -0.46 | -10.53 | 1.65 | 1.83 | 1.53 | 2.25 | 1.95 | 1.98 | 1.23 | 1.25 | 1.22 | 0.94 | 0.68 | 0.58 |
| EPS Growth % | -359.33% | -332.73% | -64.52% | 1.97% | -17.84% | 660.61% | -114.8% | -5.11% | -74.65% | 200% | 34.93% | -10.2% | -3.41% | 11.39% | 6.28% | -16.79% | 682.61% | 95.63% | -738.18% | -9.84% | 19.61% | -32% | 15.38% | -1.52% | 60.98% | -1.6% | 2.46% | 29.79% | 38.24% | 17.24% | 41.46% |
| EPS (Basic) | - | -1.28 | 0.55 | 1.55 | 1.52 | 1.85 | -0.33 | 2.23 | 2.35 | 9.27 | 3.10 | 2.31 | 2.57 | 2.66 | 2.38 | 2.24 | 2.68 | -0.46 | -10.53 | 1.65 | 1.83 | 1.56 | 2.28 | 2.01 | 2.04 | 1.26 | 1.27 | 1.25 | 0.96 | 0.68 | 0.58 |
| Diluted Shares Outstanding | 6.07M | 6.15M | 6.08M | 6.04M | 5.97M | 5.92M | 5.87M | 5.83M | 5.83M | 5.81M | 5.77M | 5.74M | 5.75M | 5.75M | 7.56M | 5.66M | 5.64M | 5.61M | 6.31M | 6.7M | 6.82M | 6.89M | 7.06M | 7.1M | 7.07M | 6.96M | 7M | 6.94M | 6.77M | 6.71M | 6.77M |
| Basic Shares Outstanding | 6.07M | 6.15M | 6.08M | 6.04M | 5.97M | 5.92M | 5.87M | 5.83M | 5.83M | 5.8M | 5.76M | 5.71M | 5.7M | 5.68M | 7.55M | 5.65M | 5.64M | 5.61M | 6.31M | 6.7M | 6.81M | 6.83M | 6.92M | 6.94M | 6.88M | 6.82M | 6.85M | 6.8M | 6.62M | 6.58M | 6.77M |
| Dividend Payout Ratio | - | - | 650.87% | 209.21% | 215.01% | 17.16% | - | 64.94% | 86.66% | 9.71% | 41.97% | 47.8% | 69.91% | 67.61% | 39.11% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Secular Terrestrial Radio Decline
As indicated by the most recent quarterly data, Saga Communications experienced a 5.6% year-over-year revenue decline in 2026Q1, continuing a pattern of top-line erosion that suggests the company is struggling to maintain its competitive footing within the increasingly fragmented mid-market terrestrial radio advertising landscape.
The consistent revenue contraction across multiple quarters points to a structural challenge in capturing local advertising spend. Investors should monitor whether this trend reflects a broader secular shift away from traditional radio or specific regional economic headwinds impacting the company's core markets.
According to the reported income statement figures, Saga's gross margin plummeted to -1.4% in 2026Q1, a significant deterioration from the 20.0% levels observed in 2023Q4, highlighting the company's inability to effectively absorb fixed station operating costs amidst a shrinking top-line environment.
The collapse in gross margins suggests that the company's cost structure is highly inflexible, with station-level expenses failing to scale down in proportion to revenue losses. This lack of margin resilience warrants further investigation into whether management can optimize its transmitter and talent footprint to stabilize profitability.
Based on financial filings, the company's operating margin reached -14.4% in 2026Q1, demonstrating that the business currently lacks the necessary operating leverage to convert revenue into profit, as fixed overhead costs continue to outpace the company's ability to generate sufficient gross profit to cover them.
The negative operating income indicates that the current scale of operations is insufficient to support the existing cost base. Without a meaningful rebound in advertising volume or a drastic reduction in SG&A, the company may continue to face significant pressure on its bottom-line performance.
As reported in recent financial statements, Saga continues to issue stock-based compensation, with $484,000 recorded in 2025Q4 alone, which further complicates the assessment of true operational profitability when the company is already reporting net losses and struggling with negative cash flow from core broadcasting activities.
The presence of stock-based compensation during periods of net losses suggests a disconnect between executive compensation and operational performance. Investors should scrutinize these non-cash expenses to determine the extent to which they mask the underlying cash-burn rate of the business.
While the company maintains a strong balance sheet with minimal debt, the persistent negative net margins, such as the -10.5% reported in 2026Q1, suggest that the market's focus on cash reserves may be ignoring the long-term risk of operational insolvency if revenue trends do not improve.
Short-sellers might argue that the company's cash pile is merely a buffer for ongoing operational decay rather than a strategic asset. The reliance on legacy terrestrial assets in a digital-first world poses a fundamental threat that a conservative balance sheet alone cannot mitigate.
Quick answers to the most common questions about buying SGA stock.
For fiscal year 2025, Saga Communications, Inc. (SGA) reported total revenue of $107.1M. This represents a 90.6% increase compared to $56.2M in 1996.
Saga Communications, Inc. (SGA) reported a net loss of $7.9M for the fiscal year ending 2025.
Saga Communications, Inc. (SGA) reported an operating income of $-2.2M, resulting in an operating profit margin of -2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Saga Communications, Inc. (SGA) generated $10.2M in gross profit for the year, representing a gross profit margin of 9.5%. This demonstrates the company's core pricing power and production efficiency.