Townsquare MediaTSQ -3.30%68 Gross Margin % is 21.91% as of Mar. 2026, which is 25% below its 10-year median of 29.36. GuruFocus rates TSQ with a GF Score™ of 68/100 and a GF Value™ of $8.54 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 953 Media - Diversified companies, Townsquare Media ranks worse than 70.09% on this metric.
The historical rank and industry rank for Townsquare Media's Gross Margin % or its related term are showing as below:
TSQ'
s Gross Margin % Range Over the Past 10 Years
Min: 23.96 Med: 29.36 Max: 31.02
Current: 25.25
During the past 13 years, the highestGross Margin % of Townsquare Media was 31.02%. The lowest was 23.96%. And the median was 29.36%.
TSQ's Gross Margin % is ranked worse than 70.09% of 953
companies
in the Media - Diversified industry
Industry Median: 38.9
vs TSQ: 25.25
Townsquare Media had a gross margin of 21.91% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Townsquare Media was -0.30% per year.
Townsquare Media (NYSE:TSQ) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Townsquare Media had a gross margin of 21.91% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Townsquare Media Gross Margin % Related Terms
Townsquare Media Gross Margin % Historical Data
* Premium members only.
The historical data trend for Townsquare Media's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSQ vs HFUS, MCHX, TJGC: Gross Margin % Comparison
For the Advertising Agencies subindustry, Townsquare Media's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Townsquare Media Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Townsquare Media's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Townsquare Media's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Townsquare Media (TSQ) has a Gross Margin % of 21.91% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Townsquare Media and its competitors. This is 25% below median its historical median of 29.36. Over the past decade, Townsquare Media's Gross Margin % has ranged from 23.96 to 31.02. According to the industry distribution chart, Townsquare Media ranks #668 out of 953 companies in the Media - Diversified industry, placing it in the top 70.1%.
Is Townsquare Media's Gross Margin % too high?
Townsquare Media's current Gross Margin % of 21.91% is 25% below median its 10-year median of 29.36. Over the past 10 years, this metric has ranged from a low of 23.96 to a high of 31.02. The Media - Diversified industry median Gross Margin % is 38.90. Townsquare Media's value of 21.91% is 43.7% below this industry median. Based on the distribution chart, Townsquare Media ranks #668 out of 953 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Townsquare Media has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Townsquare Media's Gross Margin % compare to HFUS and MCHX?
According to the Media - Diversified industry distribution chart, Townsquare Media ranks #668 out of 953 companies for Gross Margin %. This places Townsquare Media in the lower half of its industry. The industry median Gross Margin % is 38.90. Townsquare Media's value of 21.91% is 43.7% below this benchmark. Historically, Townsquare Media's own Gross Margin % has ranged from 23.96 to 31.02 over the past decade. While the company's 10-year median is 29.36 vs. the industry median of 38.90, Townsquare Media has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Townsquare Media's current Gross Margin % of 21.91% is 43.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Townsquare Media and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Townsquare Media's current Gross Margin % is 21.91%, which is 25% below median its own 10-year median of 29.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Townsquare Media stock overvalued right now?
Based on GuruFocus' analysis, Townsquare Media (TSQ) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.54, compared to a current price of $6.31 — trading 26.2% below its estimated fair value. The current Gross Margin % is 21.91%, which is 25% below median its 10-year median of 29.36 and 43.7% below the Media - Diversified industry median of 38.90. Townsquare Media's overall GF Score™ is 68/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Townsquare Media (TSQ), the current Gross Margin % is 21.91% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Townsquare Media (TSQ) Overvalued in 2026?
Based on GuruFocus' analysis, Townsquare Media stock appears to be undervalued.
The current stock price of $6.31 is trading 26.2% below its estimated GF Value™ of $8.54.
GuruFocus considers Townsquare Media to be Modestly Undervalued.
Key valuation signals for TSQ:
Gross Margin %: 21.91% (25% below median its 10-year median of 29.36)
GF Value™: $8.54 vs. price of $6.31 (26.2% below fair value)
Industry Position: 43.7% below the Media - Diversified median (#668 of 953)
No single metric tells the full story. See the TSQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Townsquare Media Inc is a radio, digital media, entertainment, and digital marketing solutions company principally focused on being the local advertising and marketing solutions platform in small and mid-sized markets across the United States. It has three segments which are Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. It earns the majority of the revenue from the Broadcasting Advertising segment, which includes its local, regional, and national advertising products and solutions delivered via terrestrial radio broadcast. Its portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com, and national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com.
68GF Score
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