Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - SMX (Security Matters) Public Limited Company (SMX) increased by 52% to $2.24 [3] - Entravision Communications Corporation (EVC) rose by 33% to $2.66 [3] - Babcock & Wilcox Enterprises, Inc. (BW) saw a 28% increase to $4.79 [3] - NeuroPace, Inc. (NPCE) gained 24% reaching $11.71 [3] - Kennedy-Wilson Holdings, Inc. (KW) also increased by 24% to $9.30 [3] - Rigel Pharmaceuticals, Inc. (RIGL) rose by 22% to $34.72 [3] - Digital Turbine, Inc. (APPS) increased by 21% to $7.20 [3] - Lumentum Holdings Inc. (LITE) saw a 15% increase to $218.06 [3] - AsiaStrategy (SORA) rose by 14% to $3.63 [3] - Marine Petroleum Trust (MARPS) increased by 7% to $5.05 [3] Premarket Losers - Biohaven Ltd. (BHVN) decreased by 42% to $7.96 [4] - Trex Company, Inc. (TREX) fell by 34% to $30.65 [4] - Soleno Therapeutics, Inc. (SLNO) saw a 23% decline to $49.00 [4] - Axon Enterprise, Inc. (AXON) decreased by 19% to $572.00 [4] - Clover Health Investments, Corp. (CLOV) fell by 19% to $2.82 [4] - Pinterest, Inc. (PINS) decreased by 18% to $26.91 [4] - SSR Mining Inc. (SSRM) saw a 17% decline to $17.91 [4] - Upstart Holdings, Inc. (UPST) decreased by 16% to $38.81 [4] - WF International Limited (WXM) fell by 12% to $2.25 [4] - Corsair Gaming, Inc. (CRSR) decreased by 11% to $6.66 [4]

Financial Data and Key Metrics Changes - On a consolidated basis, revenue increased by 24% to $120 million in Q3 2025 compared to Q3 2024 [3] - The company reported an operating loss of $9 million in Q3 2025, down from an operating profit of $8 million in Q3 2024, primarily due to restructuring costs and impairment charges [3][15] - The overall operating loss included a non-cash impairment charge of $5.7 million and restructuring costs of $3.2 million [15] Business Line Data and Key Metrics Changes - Media segment revenue declined by 26% to $44.5 million in Q3 2025 compared to Q3 2024, attributed to lower political revenue and weaker national advertising [4][9] - Advertising Technology and Services (ATS) segment revenue more than doubled to $76.1 million in Q3 2025, reflecting a 104% increase compared to Q3 2024 [5][10] - ATS operating profit was nearly $10 million in Q3 2025, significantly higher than the previous year, with a 378% increase [6][13] Market Data and Key Metrics Changes - The media business faced challenges due to advertiser uncertainty and the absence of significant political advertising in 2025, which was present in 2024 [9] - The ATS segment experienced exceptional performance with a sequential revenue growth of 38% from Q2 to Q3 2025 [10] Company Strategy and Development Direction - The company is focused on increasing local sales capacity and expanding digital sales operations in the media segment [5][7] - In the ATS segment, investments are being made to enhance technology and build AI capabilities, alongside increasing sales capacity [6][8] - The company aims to optimize its organizational structure and reduce expenses to align with revenue growth [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for improvement in operating performance and profitability, particularly in the media business [3] - The company is positioning itself for a strong political spending environment in 2026, emphasizing the importance of the Latino vote in upcoming elections [19][20] - Management expressed optimism about the future, particularly regarding political advertising opportunities and ongoing discussions to renew the affiliation agreement with TelevisaUnivision [22] Other Important Information - Corporate expenses decreased by 9% to $6.3 million in Q3 2025 compared to Q3 2024, with a year-to-date reduction of $9.5 million [16] - The company maintained a strong balance sheet with over $66 million in cash and marketable securities at the end of Q3 2025 [16] - Total debt payments of $15 million were made during 2025, reducing credit facility indebtedness to approximately $173 million [17] Q&A Session Summary Question: Can you comment on the outlook for political revenue in 2026? - Management is positioning for a strong political spending environment in 2026, highlighting the critical role of the Latino vote in key congressional races [19][20] Question: What's the status of renewing the affiliation agreement with TelevisaUnivision? - The affiliation agreement runs through December 31, 2026, and discussions for renewal are ongoing [21][22]

Financial Performance - For the three-month period ended September 30, 2025, net revenue increased to $120.63 million, up from $97.16 million in the same period of 2024, representing a growth of 24%[17] - The company reported a net loss attributable to common stockholders of $9.66 million for the three-month period ended September 30, 2025, compared to a net loss of $11.98 million in the same period of 2024, showing an improvement of 19%[18] - Basic and diluted earnings per share from continuing operations for the three-month period ended September 30, 2025, was $(0.11), compared to $(0.12) in the same period of 2024[17] - Net income attributable to common stockholders for the nine-month period ended September 30, 2025, was $(60,962) thousand, compared to $(92,550) thousand for the same period in 2024, indicating an improvement[21] - Total revenue for the three-month period ended September 30, 2025, was $120,630,000, a 24.2% increase from $97,156,000 in the same period of 2024[123] Revenue Breakdown - Digital advertising revenue for the three-month period ended September 30, 2025, was $85,200,000, compared to $45,871,000 in 2024, representing an increase of 85.5%[123] - Broadcast advertising revenue for the three-month period ended September 30, 2025, was $25,496,000, down from $39,998,000 in 2024, a decrease of 36.5%[123] - The Advertising Technology & Services segment saw a significant revenue increase of 104% to $76.13 million for the three-month period ended September 30, 2025, compared to $37.35 million in 2024[140] - The media segment reported a 26% decrease in revenue to $44.51 million for the three-month period ended September 30, 2025, compared to $59.80 million in 2024[140] Assets and Liabilities - The total current assets decreased to $184.49 million as of September 30, 2025, compared to $186.30 million at the end of 2024, a decline of approximately 1%[16] - Total liabilities decreased slightly to $336.44 million as of September 30, 2025, from $341.26 million at the end of 2024, a reduction of about 1%[16] - The company’s total stockholders' equity decreased to $78.17 million as of September 30, 2025, compared to $146.02 million at the end of 2024, a decline of about 47%[16] Cash Flow and Liquidity - Cash and cash equivalents decreased to $61.76 million as of September 30, 2025, down from $95.91 million at the end of 2024, a decline of approximately 36%[16] - Cash flows from operating activities provided $861 thousand for the nine-month period ended September 30, 2025, a significant decrease from $61,922 thousand in 2024[21] - The Company’s liquidity position is supported by existing cash and projected operating cash flows, which are deemed adequate to meet operating needs over the next twelve months[38] Impairment and Charges - The company incurred an impairment charge of $5.71 million during the three-month period ended September 30, 2025[17] - The Company recorded a goodwill impairment charge of $43.3 million for the media reporting unit due to lower than anticipated political advertising revenue and higher projected future costs[60] - The Company recorded impairment charges of $17.9 million for FCC licenses and $35.4 million for goodwill in the digital segment during the first quarter of 2024[64] - The Company recorded a loss on lease abandonment of $16.1 million related to the acceleration of amortization of the right-of-use asset and $9.1 million for leasehold improvements in the first quarter of 2025[67] Restructuring and Operational Changes - The Company implemented a restructuring plan resulting in a reduction of 39 employees, approximately 5% of the media segment workforce, incurring severance charges of approximately $0.7 million[69] - Total restructuring charges recorded during the third quarter of 2025 amounted to $3.2 million, with a remaining restructuring liability of $0.8 million as of September 30, 2025[71] - The Company discontinued a significant portion of its operations in 2024, primarily affecting its former digital segment, following a strategic review of its digital strategy[25] Debt and Financing - The Company entered into a Credit Facility consisting of a $200.0 million senior secured Term A Facility and a $75.0 million Revolving Credit Facility, with $11.5 million drawn on the 2023 Closing Date[75] - As of September 30, 2025, the interest rate on the Company's Term A Facility and the drawn portion of the Revolving Credit Facility was 7.26%[79] - The carrying amount of the Term Loan A Facility as of September 30, 2025, was $161.8 million, net of $0.7 million of unamortized debt issuance costs[89] Stock-Based Compensation - Stock-based compensation expense for the nine-month period ended September 30, 2025, was $8,102 thousand, compared to $12,422 thousand for the same period in 2024[21] - Stock-based compensation expense related to restricted stock units (RSUs) was $6.6 million for the nine-month period ended September 30, 2025, compared to $11.7 million for the same period in 2024, reflecting a decrease of approximately 43.5%[50] - The total unrecognized compensation expense related to PSUs as of September 30, 2025, was $2.4 million, expected to be recognized over a weighted-average period of 2.1 years[53] Discontinued Operations - The Company recorded a loss of $40.7 million from the sale of its EGP business, which was included in net income (loss) from discontinued operations[146] - The EGP business was classified as held for sale, with results presented as discontinued operations, reflecting a strategic shift impacting financial results[156] - For the nine-month period ended September 30, 2024, the net loss from discontinued operations was $77.9 million, with significant impairment charges of $49.4 million[157][162]

Revenue Performance - Consolidated net revenue increased by 24% to $120.63 million in Q3 2025 compared to Q3 2024, driven by a 104% increase in the Advertising Technology & Services segment [4]. - Media segment net revenue decreased by 26% to $44.51 million in Q3 2025, primarily due to lower political revenue and weaker national advertising [4]. - Net revenue for the three-month period ended September 30, 2025, was $120.63 million, a 24.2% increase from $97.16 million in the same period of 2024 [13]. Profitability - Advertising Technology & Services segment operating profit rose by 378% to $9.75 million in Q3 2025, reflecting increased advertising revenue and client spending [4]. - Segment operating profit decreased by 55% to $6.24 million in Q3 2025 compared to Q3 2024 [4]. - Operating income for the three-month period ended September 30, 2025, was $(9.09) million, compared to an operating income of $7.59 million in 2024 [13]. - The net loss attributable to common stockholders for the three-month period ended September 30, 2025, was $(9.66) million, an improvement from a net loss of $(11.98) million in 2024 [13]. Expenses and Charges - The company recorded a restructuring charge of $3.2 million in Q3 2025 as part of an ongoing organization design plan aimed at supporting revenue growth and reducing expenses [4]. - Total expenses for the three-month period ended September 30, 2025, were $129.72 million, compared to $89.57 million in 2024, reflecting a 44.8% increase [13]. - Corporate expenses decreased by 9% to $6.34 million in Q3 2025, mainly due to reductions in rent and professional services [4]. Cash Flow and Liquidity - Net cash provided by operating activities was $8.3 million for Q3 2025 [4]. - The company reported cash flows from operating activities of $8.28 million for the three-month period ended September 30, 2025, compared to $10.85 million in 2024 [17]. - Cash and cash equivalents decreased to $66.4 million as of September 30, 2025, down from $100.6 million at the end of 2024 [4]. - Cash and cash equivalents decreased to $61.76 million as of September 30, 2025, down from $95.91 million at the end of 2024 [15]. Debt and Liabilities - The company repaid $5 million on its bank term loan in Q3 2025, totaling $15 million in debt reduction for the year [3]. - Total liabilities were $336.44 million as of September 30, 2025, slightly down from $341.26 million at the end of 2024 [15]. Assets and Receivables - Trade receivables increased to $88.99 million as of September 30, 2025, compared to $68.32 million at the end of 2024, indicating a 30.4% rise [15]. - Total assets decreased to $414.60 million as of September 30, 2025, from $487.28 million at the end of 2024 [15]. Dividends - The company declared a quarterly cash dividend of $0.05 per share, payable on December 31, 2025 [5]. - The company declared cash dividends of $0.05 per common share for both the three-month periods ended September 30, 2025, and 2024 [13].

Core Viewpoint - Shares in Entravision Communications (NYSE: EVC), primarily an adtech company with legacy Spanish-language TV and radio broadcasting assets, have performed well this summer [1] Group 1 - The positive performance of Entravision Communications' shares is attributed to its adtech business and broadcasting assets [1]

Financial Data and Key Metrics Changes - On a consolidated basis, Entravision increased revenue by 22% to $101 million in Q2 2025 compared to Q2 2024, with an operating loss of just under $1 million [4][12] - Corporate expenses were reduced by $4 million in Q2 2025 compared to Q2 2024, representing a 41% decrease [21] Business Line Data and Key Metrics Changes - Media segment revenue declined by 8% to $45.4 million in Q2 2025 compared to Q2 2024, attributed to fewer active local advertisers and economic uncertainty [5][12] - Advertising Technology and Services (ATS) revenue increased by 66% to $55.3 million in Q2 2025 compared to Q2 2024, driven by more customers and higher spend per customer [7][13] Market Data and Key Metrics Changes - The number of active local advertisers in Q2 2025 was higher than in Q1 2025, indicating a monthly revenue increase throughout 2025 [6] - The media business faced challenges due to political advertising fluctuations and economic conditions impacting advertiser confidence [12] Company Strategy and Development Direction - The company is focused on increasing local sales capacity and expanding digital sales capabilities in the media segment [11] - In ATS, the strategy includes investing in engineering and sales capacity to enhance technology and AI capabilities [8][10] Management Comments on Operating Environment and Future Outlook - Management acknowledged the need for improvement in operating performance and profitability, emphasizing ongoing investments in both media and ATS segments [4][11] - The company aims to achieve profitability in each operating segment and on a consolidated basis, with a focus on revenue growth and expense reduction [20][18] Other Important Information - The company has a strong balance sheet with over $69 million in cash and marketable securities at the end of Q2 2025 [22] - A voluntary debt prepayment of $1 million was made, reducing credit facility indebtedness to approximately $178 million [22] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [25]

PART I. FINANCIAL INFORMATION [Financial Statements](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Entravision's Q2 2025 financials reflect a net loss and negative operating cash flow, driven by strategic realignment and Q1 impairment charges [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets and stockholders' equity significantly decreased, while total liabilities saw a slight reduction Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $178,079 | $186,300 | | **Total Assets** | **$417,998** | **$487,278** | | **Total Current Liabilities** | $71,723 | $61,626 | | **Total Liabilities** | **$327,989** | **$341,258** | | **Total Stockholders' Equity** | **$90,009** | **$146,020** | - Assets held for sale of **$7.2 million** were recognized as of June 30, 2025, which were not present at year-end 2024[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Despite a 22% net revenue increase in Q2 2025, the company reported a net loss from continuing operations due to significant Q1 charges Statement of Operations Highlights (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenue** | $100,735 | $82,654 | $192,586 | $160,830 | | **Operating Income (Loss)** | ($848) | ($3,344) | ($53,618) | ($10,993) | | **Net Income (Loss) from Continuing Operations** | ($3,500) | $3,732 | ($51,275) | ($3,778) | | **Net Income (Loss) Attributable to Common Stockholders** | ($3,337) | ($31,680) | ($51,303) | ($80,570) | | **Diluted EPS from Continuing Operations** | ($0.04) | $0.04 | ($0.56) | ($0.04) | - For the six months ended June 30, 2025, the company recorded an impairment charge of **$23.7 million** and a loss on lease abandonment of **$25.2 million**, which were not present in the prior year period and significantly impacted the net loss[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the first six months of 2025, net cash used in operating activities was **$7.4 million**, a significant reversal from the prior year's positive cash flow Cash Flow Summary for Six-Month Periods Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | ($7,416) | $51,071 | | **Net cash provided by (used in) investing activities** | ($4,822) | ($26,937) | | **Net cash provided by (used in) financing activities** | ($19,163) | ($44,726) | | **Net increase (decrease) in cash** | ($31,401) | ($20,594) | - Significant non-cash charges in the first six months of 2025 included a **$23.7 million** impairment charge and a **$25.2 million** loss on lease abandonment, which were adjustments in the reconciliation of net loss to operating cash flow[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20%28UNAUDITED%29) Notes detail strategic realignment, Q1 2025 impairment and lease abandonment charges, a credit facility amendment, and a **$31.45 million** lawsuit - Effective July 1, 2024, the company realigned its operating segments into two reportable segments: Media and Advertising Technology & Services; prior periods have been recast to conform to this new presentation[10](index=10&type=chunk)[127](index=127&type=chunk) - In Q2 2024, the company sold its Entravision Global Partners (EGP) business following Meta's decision to end its Authorized Sales Partners program; EGP results are reported as discontinued operations[9](index=9&type=chunk)[29](index=29&type=chunk)[135](index=135&type=chunk) - In Q1 2025, the company recorded a **$23.7 million** impairment charge related to two Mexico television stations which are now classified as assets held for sale[33](index=33&type=chunk)[67](index=67&type=chunk)[182](index=182&type=chunk) - In Q1 2025, the company recorded a **$25.2 million** loss on lease abandonment after vacating its Santa Monica corporate headquarters[69](index=69&type=chunk)[121](index=121&type=chunk)[182](index=182&type=chunk) - Subsequent to the quarter end, on July 15, 2025, the company amended its credit agreement to, among other things, increase the maximum permitted Total Net Leverage Ratio and reduce the minimum permitted Interest Coverage Ratio[155](index=155&type=chunk) - On July 22, 2025, the former landlord of the Santa Monica property filed a lawsuit against the company seeking at least **$31.45 million** in damages for an alleged breach of lease[157](index=157&type=chunk)[245](index=245&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes Q2 2025 revenue growth to Advertising Technology & Services, with liquidity sufficient despite EGP divestiture's cash flow impact - The company has been reorganized into two segments: Media (television, radio, digital marketing) and Advertising Technology & Services (programmatic ad services via Smadex and Adwake)[160](index=160&type=chunk) - The Media segment faces challenges from declining broadcast audiences and a shift in advertising from traditional to digital media[204](index=204&type=chunk) - The Advertising Technology & Services segment is experiencing a global trend of revenue shifting to programmatic, demanding more efficiency and lower costs from intermediaries[215](index=215&type=chunk) - The company made a voluntary prepayment of **$10 million** on its Credit Facility in June 2025[166](index=166&type=chunk)[227](index=227&type=chunk) - Cash flow from operations was negative **$7.4 million** for the first six months of 2025, a sharp contrast to the positive **$51.1 million** in the same period of 2024, primarily due to working capital changes and a higher net loss[228](index=228&type=chunk) [Segment Operations](index=46&type=section&id=Segment%20Operations) Q2 2025 Media segment revenue declined **8%** with **94%** profit drop, while Advertising Technology & Services revenue surged **66%** with **190%** profit increase Segment Performance - Q2 2025 vs Q2 2024 (in thousands) | Segment | Net Revenue (Q2'25) | Revenue % Change | Segment Operating Profit (Q2'25) | Profit % Change | | :--- | :--- | :--- | :--- | :--- | | **Media** | $45,413 | (8)% | $354 | (94)% | | **Advertising Technology & Services** | $55,322 | 66% | $5,179 | 190% | - Media segment revenue decline was primarily due to a **$3.2 million** decrease in broadcast advertising and a **$1.1 million** decrease in retransmission consent revenue[202](index=202&type=chunk) - Advertising Technology & Services segment direct operating expenses increased **94%** to **$10.9 million** in Q2 2025, driven by higher cloud infrastructure costs and salary/bonus expenses to support revenue growth[132](index=132&type=chunk)[216](index=216&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Company liquidity is sufficient for 12 months, supported by **$64.5 million** cash and amended credit facility, despite EGP divestiture's cash flow impact - As of June 30, 2025, the company had cash and cash equivalents of **$64.5 million** and marketable securities of **$4.8 million**[221](index=221&type=chunk) - The disposition of the EGP business is expected to continue to significantly lower consolidated revenue and materially adversely affect cash flow from operations in future periods[223](index=223&type=chunk) - Anticipated capital expenditures for the full year 2025 are approximately **$7.5 million**[230](index=230&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Market risk stems from **$177.8 million** variable-rate debt and foreign currency exposure; a 100 basis point SOFR increase impacts annual interest expense by **$1.8 million** - As of June 30, 2025, the company had **$177.8 million** of variable rate bank debt outstanding[234](index=234&type=chunk) - A hypothetical 100 basis point (1%) change in the SOFR interest rate would impact annual interest expense by **$1.8 million**[235](index=235&type=chunk) - The company has foreign currency risk from operations denominated in currencies other than the U.S. dollar, primarily the Euro, but does not currently engage in hedging[236](index=236&type=chunk)[238](index=238&type=chunk) [Controls and Procedures](index=54&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[239](index=239&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[242](index=242&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=56&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company faces ordinary legal proceedings, including a **$31.45 million** lawsuit from its former Santa Monica landlord for alleged lease breach - On July 22, 2025, the company was sued by its former landlord in Santa Monica for at least **$31,450,000** in damages related to a terminated lease[157](index=157&type=chunk)[245](index=245&type=chunk) [Risk Factors](index=56&type=section&id=ITEM%201A.%20RISK%20FACTORS) The report states there are no new risk factors to disclose for the period - The report states there are no new risk factors to disclose[246](index=246&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No shares repurchased in Q2 2025; **$11.3 million** of **$20 million** share repurchase program utilized to date - No shares were repurchased during the first six months of 2025[248](index=248&type=chunk) - As of June 30, 2025, the company has used **$11.3 million** of its **$20 million** authorized share repurchase program[248](index=248&type=chunk) [Other Information](index=56&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No Rule 10b5-1 trading arrangements were adopted or terminated; Board approved revised indemnification agreement for directors and officers - On August 1, 2025, the Board approved a revised, more comprehensive indemnification agreement for its directors and executive officers[252](index=252&type=chunk) [Exhibits](index=59&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including executive compensation, credit agreement amendments, and certifications

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the second quarter of 2025, Entravision reported a 22% increase in consolidated net revenue year-over-year, driven by strong performance in its Advertising Technology & Services segment. Despite a decline in the Media segment's revenue and overall segment operating profit, the company demonstrated financial discipline by reducing corporate expenses, making a $10 million voluntary debt prepayment, and declaring a quarterly dividend of $0.05 per share Q2 2025 vs Q2 2024 Key Performance Indicators | Metric | Q2 2025 vs Q2 2024 | Note | | :--- | :--- | :--- | | **Consolidated Net Revenue** | ▲ 22% | Driven by Ad Tech & Services segment | | **Media Segment Net Revenue** | ▼ 8% | Due to lower broadcast advertising and retransmission consent revenue | | **Ad Tech & Services Net Revenue** | ▲ 66% | Reflects expanded sales capacity and AI integration | | **Segment Operating Profit** | ▼ 28% | Media segment profit decline offset Ad Tech growth | | **Corporate Expenses** | ▼ 41% | Reductions in salaries, severance, and professional services | - The company made a voluntary debt prepayment of **$10 million** and paid a dividend of **$4.5 million** in Q2 2025[4](index=4&type=chunk) - Subsequent to the quarter's end, the company amended its credit agreement to accelerate debt reduction and enhance financial stability[3](index=3&type=chunk)[4](index=4&type=chunk) - A quarterly cash dividend of **$0.05 per share** was approved, payable on September 30, 2025[4](index=4&type=chunk) - Cash, cash equivalents, and marketable securities totaled **$69.3 million** as of June 30, 2025, compared to **$100.6 million** at the end of 2024[4](index=4&type=chunk) [Strategic Initiatives](index=3&type=section&id=Strategic%20Initiatives) For 2025 and beyond, Entravision is focused on five key strategies: enhancing its role as a trusted news provider, growing local and digital advertising sales, expanding its high-growth Advertising Technology & Services business, maintaining strict expense control, and preserving a strong balance sheet with low leverage - Key strategic pillars for 2025 and beyond include[8](index=8&type=chunk) * **Trusted Content:** Doubled local news production over the past year to serve audiences * **Local & Digital Growth:** Invested in new sales leadership and personnel to drive local and digital ad sales * **Ad Tech Expansion:** Focus on strengthening proprietary technology and hiring key sales personnel, especially in the U.S * **Expense Control:** Invest in revenue-driving areas while controlling support and corporate costs * **Strong Balance Sheet:** Maintain long-term financial stability and low leverage [Segment Performance](index=4&type=section&id=Segment%20Performance) The company's two segments showed divergent performance in Q2 2025. The Advertising Technology & Services segment was the primary growth engine, with revenue increasing 66% and operating profit surging 190% year-over-year. Conversely, the Media segment experienced an 8% revenue decrease and a 94% drop in operating profit Segment Results for the Three-Month Period Ended June 30, 2025 (in thousands) | Segment | Net Revenue (in thousands) | % Change YoY | Operating Profit (Loss) (in thousands) | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | **Media** | $45,413 | (8)% | $354 | (94)% | | **Advertising Technology & Services** | $55,322 | 66% | $5,179 | 190% | | **Consolidated** | $100,735 | 22% | $5,533 | (28)% | Segment Results for the Six-Month Period Ended June 30, 2025 (in thousands) | Segment | Net Revenue (in thousands) | % Change YoY | Operating Profit (Loss) (in thousands) | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | **Media** | $86,390 | (9)% | $(2,260) | N/A | | **Advertising Technology & Services** | $106,196 | 61% | $11,687 | 241% | | **Consolidated** | $192,586 | 20% | $9,427 | (24)% | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated statements of operations, balance sheets, and cash flows. The statements detail the company's financial performance and position for the three and six-month periods ended June 30, 2025, compared to the same periods in 2024 [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, Entravision reported a net loss of $3.3 million, or ($0.04) per share, a significant improvement from a net loss of $31.7 million in Q2 2024. The six-month results show a net loss of $51.3 million, heavily impacted by non-cash impairment and lease abandonment charges totaling nearly $49 million recorded in the first half of the year Q2 2025 Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | **Net Revenue** | $100,735 | $82,654 | | **Operating Income (Loss)** | $(848) | $(3,344) | | **Net Income (Loss) Attributable to Common Stockholders** | $(3,337) | $(31,680) | | **Net Income (Loss) Per Share, Basic and Diluted** | $(0.04) | $(0.35) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's balance sheet shows total assets of $418.0 million and total liabilities of $328.0 million. Cash and cash equivalents decreased to $64.5 million from $95.9 million at the end of 2024, while long-term debt was reduced to $172.1 million from $187.0 million Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Cash and cash equivalents** | $64,508 | $95,914 | | **Total current assets** | $178,079 | $186,300 | | **Total assets** | $417,998 | $487,278 | | **Long-term debt, less current maturities** | $172,110 | $186,958 | | **Total liabilities** | $327,989 | $341,258 | | **Total stockholders' equity** | $90,009 | $146,020 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, net cash provided by operating activities was $7.8 million. Net cash used in financing activities was $14.6 million, primarily due to a $10.0 million debt repayment and $4.5 million in dividend payments. For the first six months of 2025, net cash used in operating activities was $7.4 million Consolidated Statement of Cash Flows Highlights - Three Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $7,828 | $17,696 | | **Net cash used in investing activities** | $(2,347) | $(33,036) | | **Net cash used in financing activities** | $(14,581) | $(27,929) | | **Net decrease in cash** | $(9,100) | $(43,269) |

Group 1 - The shares of Entravision Communications (NYSE: EVC) have declined to previous lows since the last article was published in November [1] - The decline in share price occurs despite the company's involvement in advertising technology and broadcasting [1] Group 2 - The article reflects the author's personal opinions and does not involve any compensation from the company mentioned [1]

Financial Data and Key Metrics Changes - The company reported a consolidated revenue increase of 17% to $91.9 million in Q1 2025 compared to Q1 2024 [4][14] - Excluding non-cash accounting charges, the operating loss was $3.9 million in Q1 2025 [4][25] - The net loss attributable to common stockholders was $48 million, primarily due to non-cash charges [25] Business Line Data and Key Metrics Changes - Media segment revenue decreased by 10% to $41 million in Q1 2025 compared to Q1 2024, attributed to reduced ad spending from local advertisers [5][15] - Advertising Technology and Services (ATS) segment revenue increased by 57% to $50.9 million in Q1 2025 compared to Q1 2024, driven by more customers and higher spend per customer [9][14] Market Data and Key Metrics Changes - The media segment experienced a decline in active local advertisers, although the average spend per advertiser increased slightly [5] - The ATS segment's growth was supported by investments in technology and sales capacity, leading to significant revenue growth [9][21] Company Strategy and Development Direction - The company is focusing on increasing local sales capacity and expanding digital sales operations in the media segment [7][11] - In the ATS segment, the strategy includes investing in engineering to enhance technology and AI capabilities [9][11] - The overall goal is to optimize organizational structure and reduce expenses while driving revenue growth [12][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for improvement in operating performance, particularly in the media segment [4][22] - There is optimism regarding the ATS segment's growth opportunities, with expectations for continued revenue increases [14][21] - The company has not changed forecasts or strategic plans in response to recent trade policy changes [30][32] Other Important Information - Corporate expenses were reduced by 36% to $7.8 million in Q1 2025 compared to Q1 2024 [22][23] - The company incurred non-cash charges totaling $48.9 million due to asset write-downs and office relocation [24][25] - The company maintains a strong balance sheet with $78 million in cash and marketable securities [25][26] Q&A Session Summary Question: How has Entravision's business been impacted by recent changes in trade policy and tariffs? - Management indicated that the advertising services business is not directly subject to tariffs, and many advertisers are local service businesses not impacted by tariffs [30][31] - No changes have been made to forecasts or strategic plans in response to trade policy changes [32]