Beasley Broadcast Group, Inc. — financial distress indicators
Financial-health summary
Beasley Broadcast Group, Inc.'s reported numbers place it in the 'Very weak' financial-health band (distress score 99/100). The main indicators are liabilities exceed assets (negative equity), cash runway under 12 months and losses in each of the last 3 years. Independently, the Ohlson accounting model puts its 1-year failure probability at 99% and the market-implied (Merton) default probability is 17.4%.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Total liabilities are 1.16× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
At the current free-cash-flow burn, cash covers ~6 months.
Going-concern standard: management must assess ability to continue for 12 months (ASC 205-40). Runway below that horizon forces dilution, asset sales or default.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Debt is 89% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 4.93 → model probability 99%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Merton distance-to-default 0.94 σ → PD 17.4%.
Investment-grade issuers typically have 1-year PD well below 1%.
Price is -61% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Operating margin fell from -33% to -112% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- Here’s What Weighed on Beasley Broadcast Group (BBGI) in Q3Yahoo Finance · 2026-10-07
- Beasley Broadcast Group Inc (BBGI) (Q2 2026) Earnings Call Highlights: Digital Growth Offsets ...Yahoo Finance · 2026-08-13
- BEASLEY BROADCAST GROUP TO REPORT Q2 2026 FINANCIAL RESULTS, HOST CONFERENCE CALL AND WEBCAST ON AUGUST 12Yahoo Finance · 2026-08-11
- Beasley Broadcast Group Announces Postponement of Reporting of Q2 2026 Financial Results and Date of Conference Call and WebcastYahoo Finance · 2026-08-09
- Navigating Beasley Broadcast Group’s (BBGI) Debt PositionYahoo Finance · 2026-07-10
- BEASLEY BROADCAST GROUP REPORTS FIRST QUARTER REVENUE OF $42.6 MILLIONYahoo Finance · 2026-05-13
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Beasley Broadcast Group, Inc.'s financial-health indicators show?
As of 2026-10-08, Beasley Broadcast Group, Inc.'s public financial data places it in the 'Very weak' band with a distress score of 99/100, driven by liabilities exceed assets (negative equity), cash runway under 12 months and losses in each of the last 3 years. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Beasley Broadcast Group, Inc.'s financial distress score?
99/100 ('Very weak'). Ohlson O-score 4.93 (model 1-year failure probability 99%). Merton distance-to-default 0.94 σ (model default probability 17.4%).
What works in Beasley Broadcast Group, Inc.'s favour?
No material mitigating factors were found in the available data.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Telecom & Media companies with distress indicators
- FreeCast, Inc. (CAST)Very weak 100/100
- Direct Digital Holdings, Inc. (DRCT)Very weak 100/100
- K Wave Media Ltd. (KWM)Very weak 100/100
- Reading International, Inc. (RDIB)Very weak 100/100
- SurgePays, Inc. (SURG)Very weak 100/100
- Upexi, Inc. (UPXI)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.