Saga violates debt covenant, obtains waiver; Q1 loss widens 42% as digital push accelerates

Filed May 8, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 9, 2025 · ~2 min read

Key Changes

• high

  Company breached fixed charge coverage ratio covenant (0.92 vs. required 1.15) at March 31, 2026, triggering event of default. Obtained one-time waiver May 7 but is negotiating amendment with no guarantee of success. Lenders could accelerate all debt if future compliance fails.

  MD&A: Liquidity & Risk Factors verify on EDGAR →
• high

  Q1 2026 revenue fell 5.6% to $22.9M and operating loss widened 42% to $3.3M, driven by declining local and national advertising. Digital revenue grew to 19% of gross revenue (from 14% prior year) but required $1M investment in fulfillment staff.

  MD&A: Results of Operations verify on EDGAR →
• high

  Material weakness in broadcast and digital revenue controls remediated; disclosure controls now effective as of March 31, 2026 after prior-period deficiencies in Traffic Management system segregation and documentation retention.

  Controls & Procedures verify on EDGAR →