Answer
Below is a step‑by‑step calculation of the two margins that the question asks about – the operating margin (a GAAP measure) and the EBITDA margin (a non‑GAAP measure that we can approximate with the “station operating income” that Saga reports).
All figures are taken from the press release for the second quarter of 2025 and the comparable quarter of 2024 that the release references.
| Metric (quarter) | 2025 (Q2) | 2024 (Q2) | Calculation |
|---|---|---|---|
| Net revenue | $28.2 M | $29.7 M | – |
| Operating income (GAAP) | $1.4 M | $2.1 M | – |
| Station operating income (non‑GAAP, used as a proxy for EBITDA) | $6.0 M | ≈ $6.41 M* | The release says “station operating income … decreased 6.4% to $6.0 M.” 6.0 M ÷ (1 – 0.064) = $6.41 M. |
| EBITDA (approx.) | $6.0 M | $6.41 M | EBITDA ≈ station operating income because depreciation & amortization are not disclosed separately. |
1. Operating‑margin change (GAAP)
[
\text{Operating margin} = \frac{\text{Operating income}}{\text{Net revenue}}
]
- 2025: (\frac{1.4}{28.2} = 0.0496) → 4.96 %
- 2024: (\frac{2.1}{29.7} = 0.0707) → 7.07 %
Year‑over‑year change
[
\Delta\text{margin} = 4.96\% - 7.07\% = -2.11\%\text{ (point drop)}
]
In relative terms the operating margin fell by about 30 % (2.11 % ÷ 7.07 % ≈ 0.30).
2. EBITDA‑margin change (non‑GAAP)
[
\text{EBITDA margin} = \frac{\text{EBITDA (≈ station operating income})}{\text{Net revenue}}
]
- 2025: (\frac{6.0}{28.2} = 0.2128) → 21.28 %
- 2024: (\frac{6.41}{29.7} = 0.2158) → 21.58 %
Year‑over‑year change
[
\Delta\text{margin} = 21.28\% - 21.58\% = -0.30\%\text{ (point drop)}
]
Relative to the 2024 level, the EBITDA margin slipped by roughly 1.4 % (0.30 % ÷ 21.58 % ≈ 0.014).
3. What the changes mean
| Margin | 2024 | 2025 | YoY Δ (points) | YoY Δ (percent) | Interpretation |
|---|---|---|---|---|---|
| Operating margin | 7.07 % | 4.96 % | –2.11 pp | –30 % | The company’s core profitability (after all operating costs) weakened noticeably, reflecting lower revenue and a smaller decline in operating expenses. |
| EBITDA margin | 21.58 % | 21.28 % | –0.30 pp | –1.4 % | EBITDA (proxied by station operating income) stayed roughly flat, indicating that the cash‑generating earnings before depreciation, interest and taxes held up despite the revenue dip. |
Take‑away:
- Operating margin contracted sharply (about 2.1 percentage‑points) because operating income fell faster than revenue.
- EBITDA margin edged down only modestly (≈ 0.3 percentage‑points), showing that the business’s ability to generate cash‑flow earnings remained relatively stable even as top‑line revenue slipped.
These figures illustrate that while the company is still generating a healthy EBITDA margin, the profitability measured by operating margin is under pressure in the second quarter of 2025 compared with the same quarter a year earlier.