Urban One, Inc. (UONE) | Investment Case

1. Company Snapshot

1.a. Company Description

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States.The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital.The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners.

As of December 31, 2021, it owned and/or operated 64 broadcast stations, including 54 FM or AM stations, 8 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets.The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network.The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show.

This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities.The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands.The company was formerly known as Radio One, Inc.

and changed its name to Urban One, Inc.in May 2017.Urban One, Inc.

was founded in 1980 and is headquartered in Silver Spring, Maryland.

Show Full description

1.b. Last Insights on UONE

Urban One, Inc.'s recent performance was negatively impacted by a decline in advertising revenue, partly offset by a strong fundraising effort for St. Jude Children's Research Hospital. The company's Q4 2024 earnings release highlighted a 10% decrease in advertising revenue, driven by a decline in radio advertising. Additionally, the company's radiothon event raised $1.6 million for St. Jude, but this positive development was not enough to offset the decline in advertising revenue.

1.c. Company Highlights

Last Price	1.18
Change Percentage	-1.67%
Open	1.22
Previous Close	1.2
Market Cap ( Millions)	30
Volume	7970
Year High	1.9
Year Low	1.15
M A 50	1.28
M A 200	1.49

FCF Yield	116.41%
Dividend Yield	0.00%
ROE	-104.34%
Debt / Equity	47.97%
Net Debt / EBIDTA	97.12%
Price To Book	0.66
Price Earnings Ratio	-0.41
Price To FCF	0.86
Price To sales	0.08
EV / EBITDA	0.27

2. Urban One's Q3 2025 Earnings: A Softer Performance Across the Board

Urban One reported consolidated net revenue of $92.7 million for the third quarter of 2025, a 16% year-over-year decline. The Radio Broadcasting segment revenue was $34.7 million, down 12.6%, with net radio revenues excluding political down 8.1%. Consolidated adjusted EBITDA was $14.2 million, a 44.1% decrease. The company's adjusted EBITDA margin was significantly impacted by the decline in revenue. The actual EPS for the quarter was not disclosed.

Publication Date: Nov -29

                                    📋 Highlights
                                    Revenue Decline::
                                                Consolidated net revenue fell to $92.7M, a 16% YoY decrease, with Radio Broadcasting at $34.7M (-12.6% YoY).
EBITDA Adjustment::
                                                2025 EBITDA guidance reduced to $56–58M from $60M, with Q3 adjusted EBITDA at $14.2M (-44.1% YoY).
Cost-Cutting Measures::
                                                $3M annualized savings from a second round of layoffs, incurring $1.6M in Q3 severance costs.
Debt Repurchase::
                                                $4.5M spent to buy back 2028 notes at 52% discount, plus 176,591 Class A and 592,822 Class D shares.
2026 Outlook::
                                                Optimistic about political ad revenue and strategic shifts, but no large M&A deals currently pursued.

                                

Operational Adjustments and Cost Savings

The company implemented a second reduction in force in October, resulting in $3 million of annualized expense savings and $1.6 million of employee severance costs in Q3. This move is part of the company's efforts to address the challenges it is facing and to improve its operational efficiency. As the company noted during the earnings call, it is "exploring opportunities to build stability in its businesses."

Debt Repurchase and Capital Allocation

Urban One repurchased $4.5 million of its 2028 notes at an average price of 52% and 176,591 shares of Class A common stock and 592,822 shares of Class D common stock. The company's focus on delevering is evident in its decision to buy back debt at a discount. With a Net Debt / EBITDA ratio of 0.97, the company is making progress in reducing its leverage.

Valuation and Outlook

The company's valuation metrics provide some insight into what's priced in. With a P/S Ratio of 0.08 and an EV/EBITDA ratio of 0.24, the stock appears to be undervalued. Analysts estimate revenue growth to be flat at 0.0% for the next year. Looking ahead to 2026, Urban One is optimistic, citing a political year and changes in its operating strategy. The company's decision to keep its "powder dry" and wait for opportunities to present themselves in the near term suggests that it is being cautious in its approach.

Key Metrics

The company's Free Cash Flow Yield is 112.6%, indicating a significant amount of cash generation relative to its market capitalization. The ROIC of 2.3% suggests that the company is not generating strong returns on its invested capital. Overall, Urban One's Q3 2025 earnings report highlights the challenges the company is facing, but also its efforts to address them and position itself for future growth.

3. NewsRoom

Radio One (NASDAQ:UONE) Stock Crosses Below Two Hundred Day Moving Average – Time to Sell?

Dec -03

Source: defenseworld.net

URBAN ONE, INC. ANNOUNCES EARLY RESULTS OF OFFERS AND CONSENT SOLICITATION

Dec -02

Source: prnewswire.com

URBAN ONE, INC. ANNOUNCES OFFERS AND CONSENT SOLICITATION

Nov -14

Source: prnewswire.com

Urban One, Inc. (UONEK) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

URBAN ONE, INC. REPORTS THIRD QUARTER 2025 RESULTS

Nov -04

Source: prnewswire.com

Warner Bros. Discovery (NASDAQ:WBD) & Radio One (NASDAQ:UONE) Head to Head Review

Oct -26

Source: defenseworld.net

Urban One, Inc. Third Quarter 2025 Results Conference Call

Oct -14

Source: prnewswire.com

Black Cultural Influence is the Blueprint and Brand Trust is the Key -- Urban One Conducts Landmark 'Cultural ROI' Study, Urges Brands: Get Real or Get Left Behind

Sep -30

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.30%)

6. Segments

Cable Television

Expected Growth: 4.5%

Growing demand for diverse content, increasing African American population, and rising cord-cutting trend driving demand for niche channels like TV One, Cleo TV, and News One.

Radio Broadcasting

Expected Growth: 4.2%

Urban One's radio broadcasting segment is expected to grow driven by increasing demand for urban-oriented content, expanding African-American demographics, and the company's strong brand presence in the market.

Digital

Expected Growth: 10.2%

Growing demand for digital media, increasing African American population, and rising online engagement drive the growth of Digital from Urban One, Inc. The platform's unique content offerings and targeted audience approach contribute to its expanding user base.

Reach Media

Expected Growth: 4.5%

Growing demand for targeted advertising and increasing focus on diversity and inclusion drive growth in Reach Media's advertising and marketing solutions, catering to African American audiences.

Corporate/Eliminations

Expected Growth: 2.5%

Urban One's Corporate/Eliminations segment is expected to grow steadily, driven by increasing consolidation and elimination of intercompany transactions and balances, resulting in improved financial statement accuracy and transparency.

7. Detailed Products

Radio Broadcasting

Urban One, Inc. owns and operates 59 broadcast stations in 15 urban markets, offering a diverse range of music, news, and entertainment programming.

Reach Media

A subsidiary of Urban One, Inc. that syndicates radio programming to over 30 million listeners weekly, including the popular 'Rickey Smiley Morning Show' and 'The DL Hughley Show'.

TV One

A cable and satellite television network that offers a range of original programming, including scripted and unscripted shows, documentaries, and movies.

Clearchannel Digital

A digital marketing agency that provides services including website design, social media management, and search engine optimization.

Event Production

Urban One, Inc. produces and promotes large-scale events, including the 'Urban One Honors' and the 'Cathy Hughes Gospel Music Festival'.

8. Urban One, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Urban One, Inc. faces moderate threat from substitutes due to the availability of alternative media platforms and entertainment options.

Bargaining Power Of Customers

Urban One, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Urban One, Inc. relies on a few major suppliers for content and broadcasting services, giving them moderate bargaining power.

Threat Of New Entrants

The media and entertainment industry is highly competitive, and new entrants can easily disrupt the market, posing a significant threat to Urban One, Inc.'s market share.

Intensity Of Rivalry

The media and entertainment industry is highly competitive, with many established players, leading to intense rivalry and competition for market share and advertising revenue.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	69.85%
Debt Cost	7.21%
Equity Weight	30.15%
Equity Cost	7.21%
WACC	7.21%
Leverage	231.67%

11. Quality Control: Urban One, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Scripps

A-Score: 4.8/10

Value: 9.8

Growth: 7.1

Quality: 6.8

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

fuboTV

A-Score: 4.5/10

Value: 6.0

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

iHeartMedia

A-Score: 3.7/10

Value: 7.0

Growth: 1.2

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

1-Year Total Return ->

Urban One

A-Score: 3.6/10

Value: 9.6

Growth: 1.6

Quality: 3.2

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

MediaCo Holding

A-Score: 3.2/10

Value: 7.5

Growth: 2.8

Quality: 4.9

Yield: 0.0

Momentum: 3.5

Volatility: 0.7

1-Year Total Return ->

Cumulus Media

A-Score: 2.0/10

Value: 9.0

Growth: 1.0

Quality: 2.2

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.83%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.21%

Urban One, Inc. - US91705J1051

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on UONE

1.c. Company Highlights

Weak Momentum

Cheaper

Medium Volatility

More Volatile

Lower Quality

Lower Growth

Average Quality

Average Yield

Stable Momentum

2. Urban One's Q3 2025 Earnings: A Softer Performance Across the Board

Operational Adjustments and Cost Savings

Debt Repurchase and Capital Allocation

Valuation and Outlook

Key Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.30%)

6. Segments

Cable Television

Expected Growth: 4.5%

Radio Broadcasting

Expected Growth: 4.2%

Digital

Expected Growth: 10.2%

Reach Media

Expected Growth: 4.5%

Corporate/Eliminations

Expected Growth: 2.5%

7. Detailed Products

Radio Broadcasting

Reach Media

TV One

Clearchannel Digital

Event Production

8. Urban One, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Urban One, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.18$

Current Price

1.18$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA