Group 1 - Lamar Advertising Company (NASDAQ: LAMR) has seen a modest performance over the past year, with a gain of 2% alongside its dividend [1] - Ongoing concerns regarding the advertising market have negatively impacted the shares of Lamar Advertising [1]

Core Insights - Lamar Advertising Company (LAMR) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $2.22, exceeding the Zacks Consensus Estimate of $2.15 and up from $2.08 in the prior-year quarter [1][9] - Quarterly net revenues reached $579.3 million, reflecting a year-over-year increase of 2.5%, but fell short of the consensus estimate of $581.9 million [2][9] Financial Performance - Operating income for the quarter was $197.7 million, a 7.3% increase from $184.2 million in the same period last year [3] - Adjusted EBITDA rose 2.5% to $278.4 million, while acquisition-adjusted net revenues climbed 1.9% year over year [3] - Direct advertising expenses increased by 2% to $187.2 million, and general and administrative expenses rose by 2.8% to $86.7 million [4] Cash Flow and Liquidity - Free cash flow decreased by 2.2% year over year to $199.1 million [4] - Cash flow from operating activities for the three months ended June 30, 2025, was $229.5 million, compared to $127.7 million in the previous quarter [5] - As of June 30, 2025, total liquidity was $363 million, including $307.3 million available for borrowing and $55.7 million in cash [6] 2025 Outlook - LAMR revised its 2025 AFFO per share guidance to a range of $8.10 to $8.20, compared to the previous range of $8.13 to $8.28, with the Zacks Consensus Estimate currently at $8.19 [7] Market Sentiment - Despite the positive earnings report, shares of LAMR fell by 4% during the initial hours of trading, likely due to higher expenses impacting investor sentiment [2][9]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Lamar Advertising Company and its subsidiary for the quarter ended June 30, 2025 [Lamar Advertising Company Financial Statements](index=6&type=section&id=Lamar%20Advertising%20Company%20Financial%20Statements) Lamar Advertising Company reported total assets of **$6.67 billion** and net income of **$294.2 million** for the six months ended June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands of USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $457,538 | $425,268 | | **Net property, plant and equipment** | $1,606,639 | $1,600,809 | | **Total assets** | **$6,673,968** | **$6,586,549** | | **Total current liabilities** | $782,662 | $778,474 | | **Long-term debt, net** | $3,113,788 | $2,961,058 | | **Total liabilities** | $5,767,085 | $5,538,529 | | **Total stockholders' equity** | $906,883 | $1,048,020 | Condensed Consolidated Statements of Income Highlights (in thousands of USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net revenues** | $579,311 | $565,251 | $1,084,741 | $1,063,401 | | **Operating income** | $197,681 | $184,227 | $388,914 | $308,827 | | **Net income** | $155,016 | $137,594 | $294,245 | $216,093 | | **Diluted EPS** | $1.52 | $1.34 | $2.87 | $2.10 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands of USD) | Cash Flow Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $357,232 | $366,904 | | **Net cash used in investing activities** | ($33,776) | ($76,661) | | **Net cash used in financing activities** | ($317,469) | ($256,744) | | **Net increase in cash and cash equivalents** | $6,265 | $33,327 | [Notes to Condensed Consolidated Financial Statements (Lamar Advertising Company)](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Lamar%20Advertising%20Company)) Notes detail key accounting policies, the **$115.1 million** Vistar Media sale, and **$150.0 million** in stock repurchases Disaggregated Revenue by Source (in thousands of USD) | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Billboard advertising** | $512,317 | $502,144 | $957,214 | $941,529 | | **Logo advertising** | $23,251 | $21,517 | $44,889 | $42,259 | | **Transit advertising** | $43,743 | $41,590 | $82,638 | $79,613 | | **Total Net revenues** | **$579,311** | **$565,251** | **$1,084,741** | **$1,063,401** | - On February 3, 2025, the company sold its 20% minority interest in Vistar Media, Inc. for **$115.1 million** in cash, recognizing a gain of **$67.8 million**; an additional **$15.1 million** may be received from escrow[97](index=97&type=chunk) - During the six months ended June 30, 2025, the company repurchased **1,388,091 shares** of Class A common stock for **$150.0 million**, increasing the total authorized amount under the repurchase program to **$400.0 million**[108](index=108&type=chunk) - Subsequent to the quarter end, on July 2, 2025, the company acquired the assets of Verde Outdoor, including over **1,500 billboard faces**, in exchange for **1,187,500 Common Units** of Lamar LP[116](index=116&type=chunk) [Lamar Media Corp. Financial Statements](index=28&type=section&id=Lamar%20Media%20Corp.%20Financial%20Statements) Lamar Media Corp. reported total assets of **$6.66 billion** and net income of **$294.5 million** for the six months ended June 30, 2025 Lamar Media Corp. Condensed Consolidated Balance Sheet Highlights (in thousands of USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | $6,657,224 | $6,569,807 | | **Total liabilities** | $5,755,980 | $5,527,868 | | **Total stockholder's equity** | $901,244 | $1,041,939 | Lamar Media Corp. Condensed Consolidated Statements of Income Highlights (in thousands of USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net revenues** | $1,084,741 | $1,063,401 | | **Operating income** | $389,173 | $309,146 | | **Net income** | $294,504 | $216,412 | [Notes to Condensed Consolidated Financial Statements (Lamar Media Corp.)](index=32&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Lamar%20Media%20Corp.)) Lamar Media Corp. notes are consistent with the parent company, providing summarized financial information for debt agreement compliance - Most notes to the financial statements are omitted as they are substantially equivalent to those provided for the parent company, Lamar Advertising Company[130](index=130&type=chunk) - Summarized financial information for Lamar Media, its subsidiary guarantors, and non-guarantor subsidiaries is presented as required by its publicly issued notes, for which the subsidiaries provide full and unconditional guarantees[131](index=131&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results of operations for Lamar Advertising and Lamar Media, focusing on Q2 2025 performance and liquidity [Lamar Advertising Company MD&A](index=36&type=section&id=Lamar%20Advertising%20Company%20MD%26A) Lamar Advertising's MD&A highlights **2.0% revenue growth**, strong operating income from asset dispositions, and **$363.0 million** in liquidity Six-Month Performance Comparison (YTD 2025 vs YTD 2024) (in millions of USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $1,080 | $1,060 | +2.0% | | **Operating Income** | $388.9 | $308.8 | +26.0% | | **Net Income** | $294.2 | $216.1 | +36.2% | | **Adjusted EBITDA** | $488.6 | $483.5 | +1.1% | | **AFFO** | $389.6 | $371.8 | +4.8% | Three-Month Performance Comparison (Q2 2025 vs Q2 2024) (in millions of USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $579.3 | $565.3 | +2.5% | | **Operating Income** | $197.7 | $184.2 | +7.3% | | **Net Income** | $155.0 | $137.6 | +12.7% | | **Adjusted EBITDA** | $278.4 | $271.6 | +2.5% | | **AFFO** | $225.3 | $213.5 | +5.5% | - The company maintains total liquidity of **$363.0 million** as of June 30, 2025, comprising **$55.7 million** in cash and **$307.3 million** available under its revolving credit facility[194](index=194&type=chunk) - Key uses of cash in the first six months of 2025 included **$68.1 million** in capital expenditures, **$87.1 million** for acquisitions, and **$150.0 million** for stock repurchases[228](index=228&type=chunk)[231](index=231&type=chunk) [Lamar Media Corp. MD&A](index=54&type=section&id=Lamar%20Media%20Corp.%20MD%26A) Lamar Media's MD&A mirrors the parent, showing **2.0% revenue growth** and **1.0% Adjusted EBITDA increase** for the six-month period Lamar Media Six-Month Performance (YTD 2025 vs YTD 2024) (in millions of USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $1,080 | $1,060 | +2.0% | | **Operating Income** | $389.2 | $309.1 | +25.9% | | **Net Income** | $294.5 | $216.4 | +36.1% | | **Adjusted EBITDA** | $488.9 | $483.8 | +1.0% | | **AFFO** | $389.8 | $372.1 | +4.8% | Lamar Media Three-Month Performance (Q2 2025 vs Q2 2024) (in millions of USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $579.3 | $565.3 | +2.5% | | **Operating Income** | $197.8 | $184.4 | +7.3% | | **Net Income** | $155.2 | $137.8 | +12.6% | | **Adjusted EBITDA** | $278.5 | $271.7 | +2.5% | | **AFFO** | $225.4 | $213.7 | +5.5% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from **$1.28 billion** in variable-rate debt, with a 200 basis point increase raising interest expense by **$11.3 million** - As of June 30, 2025, the company had approximately **$1.28 billion** in variable-rate debt, representing **37.9%** of its total outstanding long-term debt[275](index=275&type=chunk) - A hypothetical **200 basis point (2.0%)** increase in interest rates would have increased interest expense by an estimated **$11.3 million** for the six months ended June 30, 2025[275](index=275&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures are effective[277](index=277&type=chunk) - No material changes to internal control over financial reporting were identified during the last fiscal quarter[278](index=278&type=chunk) PART II — OTHER INFORMATION [Item 1A. Risk Factors](index=64&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of its 2024 Annual Report on Form 10-K - There have been no material changes to the company's risk factors since the filing of its 2024 Form 10-K[279](index=279&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,223,562 shares** in Q2 2025, increasing the repurchase program authorization to **$400 million** Share Repurchases for Q2 2025 (in USD) | Period | Total Shares Purchased | Average Price Paid Per Share | Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | April 2025 | 1,223,562 | $107.52 | $100,000,000 | | May 2025 | — | — | $250,000,000 | | June 2025 | — | — | $250,000,000 | | **Total Q2** | **1,223,562** | **$107.52** | **$250,000,000** | - On May 15, 2025, the Board of Directors increased the stock repurchase program authorization by **$150.0 million**, bringing the total to **$400.0 million**[280](index=280&type=chunk) [Item 5. Other Information](index=64&type=section&id=ITEM%205.%20Other%20Information) No information is reported under this item for the current period - None[281](index=281&type=chunk) [Item 6. Exhibits](index=65&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL data - Lists exhibits filed with the report, including CEO/CFO certifications (Sections 302 and 906) and XBRL data files[282](index=282&type=chunk)

Financial Data and Key Metrics Changes - Revenue growth accelerated in Q2 to 1.9% on a consolidated acquisition adjusted basis, marking the seventeenth consecutive quarter of acquisition adjusted revenue growth [4][10] - EBITDA increased by 2% on an acquisition adjusted basis, with a slight improvement in margins compared to Q2 of the previous year [4] - Adjusted funds from operations (AFFO) totaled $225.3 million in Q2, an increase of 5.5% from $213.5 million in the previous year [12] - Diluted AFFO per share increased by 6.7% to $2.22 per share compared to $2.08 per share in the previous year [12] - The company revised its full year AFFO per share guidance to a range of $8.1 to $8.2, a reduction of $0.55 from the prior range [6][17] Business Line Data and Key Metrics Changes - Billboard operations experienced low single-digit top line growth, while the airport and logos division significantly outpaced the broader portfolio, growing revenue by 11.76% and 6.1% respectively [11] - Local and regional sales accounted for approximately 79% of billboard revenue in Q2, continuing to grow for the seventeenth consecutive quarter [12] - Programmatic advertising increased by around 10% [7] Market Data and Key Metrics Changes - Categories of strength included services (up 8.2%), financial (up 11%), building and construction (up 16.3%), and insurance (up 22%) [20] - Weaker categories included education (down 3.8%), beverages (down 16%), and telecom (down 17%) [20] Company Strategy and Development Direction - The company is focusing on acquisitions, having spent $87 million on 20 acquisitions through Q2, with a total year-to-date cash acquisition amount of approximately $110 million [7] - The company completed a milestone UPREIT transaction, which is expected to be a tool for future acquisitions [8][39] - The management expressed optimism about the potential for increased M&A activity due to the favorable UPREIT structure [39][41] Management Comments on Operating Environment and Future Outlook - The current operating environment is described as solid but not spectacular, with increased activity in national RFPs and local proposals [5] - Management is cautious about October due to potential headwinds from political advertising [5][30] - The company expects back half growth to be better than the first half but not as strong as earlier expectations [6] Other Important Information - The company ended Q2 with approximately $3.4 billion in total consolidated debt and a weighted average interest rate of 4.7% [14] - Total leverage was 2.95 times net debt to EBITDA, among the lowest levels ever for the company [15] - The company paid a cash dividend of $1.55 per share in both the first and second quarters, with a recommendation to declare the same for the third quarter [18][19] Q&A Session Summary Question: Can you quantify the updated guidance for top line growth and visibility into the back half? - Management indicated that Q3 political headwind is about 100 basis points and about 200 basis points in Q4, with a significant amount of political revenue from the previous year to replace [28][31] Question: Clarification on the reduction in AFFO guidance? - Management clarified that the reduction is due to both slower operational performance and the exit from the Vancouver contract [34][36] Question: Will the UPREIT structure accelerate M&A activity? - Management believes it will be a significant factor in increasing M&A activity, as it provides a tax-efficient option for sellers [39][41] Question: Why are airport and transit results holding up better? - Management noted that airports are experiencing strong growth due to a rebound in air travel, while transit operations have a different recovery profile [46][48] Question: Timeline for integrating acquired assets? - Integration timelines vary; expense synergies happen quickly for fill-in acquisitions, while revenue synergies take longer due to existing contracts [50][51]

Financial Performance - Lamar Advertising reported quarterly funds from operations (FFO) of $2.22 per share, exceeding the Zacks Consensus Estimate of $2.15 per share, and up from $2.08 per share a year ago, representing an FFO surprise of +3.26% [1] - The company posted revenues of $579.31 million for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 0.45%, compared to year-ago revenues of $565.25 million [2] - Over the last four quarters, Lamar has surpassed consensus FFO estimates two times but has not beaten consensus revenue estimates [2] Stock Performance and Outlook - Lamar shares have increased approximately 2.5% since the beginning of the year, while the S&P 500 has gained 7.8% [3] - The future stock price movement will largely depend on management's commentary during the earnings call and the company's FFO outlook [3][4] - The current consensus FFO estimate for the coming quarter is $2.18 on revenues of $589.51 million, and for the current fiscal year, it is $8.19 on revenues of $2.28 billion [7] Industry Context - The REIT and Equity Trust - Other industry, to which Lamar belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

[Company Overview and Business Update](index=1&type=section&id=Company%20Overview%20and%20Business%20Update) Lamar Advertising Company reported Q2 2025 results, noting slight revenue growth acceleration, a landmark UPREIT acquisition, and a revised full-year AFFO per share guidance [Introduction and CEO Commentary](index=1&type=section&id=Introduction%20and%20CEO%20Commentary) Lamar Advertising Company, a leading outdoor advertising owner, saw slight Q2 2025 revenue growth, completed a significant UPREIT acquisition, and adjusted its full-year AFFO guidance - Lamar Advertising Company (Nasdaq: LAMR) is a leading owner and operator of outdoor advertising and logo sign displays[2](index=2&type=chunk) - Revenue growth accelerated slightly in Q2 2025, with increases at both national and local levels[3](index=3&type=chunk) - Completed the first-ever UPREIT transaction in the billboard industry in early July[3](index=3&type=chunk) - Revised full-year diluted AFFO per share guidance from **$8.13-$8.28 to $8.10-$8.20**, anticipating continued year-over-year revenue improvement in H2 2025, though perhaps not as initially expected[3](index=3&type=chunk) [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) Lamar's Q2 2025 financial performance showed increased net revenues, operating income, and net income, with diluted AFFO per share growing by 6.7% [Second Quarter Ended June 30, 2025](index=1&type=section&id=Second%20Quarter%20Ended%20June%2030%2C%202025) Q2 2025 saw Lamar's net revenues rise 2.5% to $579.3 million, with operating income and net income also increasing significantly Second Quarter 2025 Key Financials (YoY Change) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Net Revenues | $579.3 | $565.3 | 2.5% | | Operating Income | $197.7 | $184.2 | 7.3% | | Net Income | $155.0 | $137.6 | 12.7% | | Net Income per Diluted Share| $1.52 | $1.34 | 13.4% | | Adjusted EBITDA | $278.4 | $271.6 | 2.5% | | Cash Flow from Operations | $229.5 | $256.3 | -10.4% | | Free Cash Flow | $199.1 | $203.5 | -2.2% | | FFO | $225.3 | $209.3 | 7.7% | | AFFO | $225.3 | $213.5 | 5.5% | | Diluted AFFO per Share | $2.22 | $2.08 | 6.7% | [Six Months Ended June 30, 2025](index=3&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) For H1 2025, net revenues grew 2.0% to $1.08 billion, and net income surged 36.2% due to a Vistar Media equity sale gain Six Months 2025 Key Financials (YoY Change) | Metric | 6M 2025 (Millions) | 6M 2024 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Net Revenues | $1,084.7 | $1,063.4 | 2.0% | | Operating Income | $388.9 | $308.8 | 25.9% | | Net Income | $294.2 | $216.1 | 36.2% | | Net Income per Diluted Share| $2.87 | $2.10 | 36.7% | | Adjusted EBITDA | $488.6 | $483.5 | 1.1% | | Cash Flow from Operations | $357.2 | $366.9 | -2.6% | | Free Cash Flow | $320.2 | $342.2 | -6.4% | | FFO | $381.5 | $357.8 | 6.6% | | AFFO | $389.6 | $371.8 | 4.8% | | Diluted AFFO per Share | $3.81 | $3.63 | 5.0% | - The **36.2% increase in net income** for the six months ended June 30, 2025, was primarily due to a **$67.8 million gain** from the sale of Lamar's equity interest in Vistar Media, Inc[12](index=12&type=chunk) [Acquisition-Adjusted Results](index=3&type=section&id=Acquisition-Adjusted%20Results) Acquisition-adjusted results for Q2 2025 showed a 1.9% net revenue increase and a 2.0% Adjusted EBITDA increase, reflecting organic performance Acquisition-Adjusted Results (YoY Change) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Acquisition-Adjusted Net Revenue | $579.3 | $568.4 | 1.9% | | Acquisition-Adjusted EBITDA | $278.4 | $272.9 | 2.0% | - Acquisition-adjusted results account for acquisitions and divestitures in the prior period to match the ownership timeframe in the current period, providing a more consistent comparison[11](index=11&type=chunk) [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Lamar maintained $363.0 million in total liquidity, including available credit and cash, with outstanding borrowings Liquidity as of June 30, 2025 | Metric | Amount (Millions) | | :----------------------------------------- | :---------------- | | Total Liquidity | $363.0 | | Available under Revolving Senior Credit Facility | $307.3 | | Cash and Cash Equivalents | $55.7 | | Borrowings Outstanding (Revolving Credit Facility) | $434.0 | | Outstanding (Accounts Receivable Securitization Program) | $250.0 | [Recent Developments](index=3&type=section&id=Recent%20Developments) Lamar Advertising Limited Partnership acquired Verde Outdoor assets in July 2025, adding over 1,500 billboard faces through a Common Units issuance - On July 2, 2025, Lamar Advertising Limited Partnership acquired Verde Outdoor assets, including over **1,500 billboard faces** across ten states[16](index=16&type=chunk) - The acquisition consideration involved issuing **1,187,500 Common Units** of Lamar LP to Verde Outdoor owners[16](index=16&type=chunk) - Common Units are redeemable by the holder after a general twelve-month holding period for cash or, at the Company's option, for shares of Class A common stock[17](index=17&type=chunk) [Revised Full-Year Guidance](index=3&type=section&id=Revised%20Full-Year%20Guidance) Lamar updated its 2025 full-year guidance, narrowing net income per diluted share and slightly lowering diluted AFFO per share ranges Revised 2025 Full-Year Guidance | Metric | Previous Range | Revised Range | | :-------------------------- | :------------- | :------------ | | Net Income per Diluted Share| N/A | $6.09 - $6.11 |\n| Diluted AFFO per Share | $8.13 - $8.28 | $8.10 - $8.20 | [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from projections - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections[19](index=19&type=chunk) - Key risks include significant indebtedness, the state of the economy and financial markets, demand for advertising, ability to obtain funding, REIT qualification, industry regulation, acquisition integration, and changes in accounting or tax laws[19](index=19&type=chunk) - Investors are cautioned not to place undue reliance on these statements, which speak only as of the document's date[19](index=19&type=chunk) [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section defines and explains Lamar's non-GAAP financial measures, such as Adjusted EBITDA and AFFO, as supplemental performance indicators with limitations - The Company uses non-GAAP measures like Adjusted EBITDA, Free Cash Flow, FFO, and AFFO to review performance, believing they are meaningful supplemental measures of operating performance[20](index=20&type=chunk)[22](index=22&type=chunk) - These non-GAAP measures should not be considered in isolation or as a substitute for their most directly comparable GAAP financial measures[20](index=20&type=chunk)[22](index=22&type=chunk) - Detailed definitions are provided for Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, FFO (per NAREIT), AFFO, Diluted AFFO per share, Outdoor operating income, Acquisition-adjusted results, and Acquisition-adjusted consolidated expense[21](index=21&type=chunk)[24](index=24&type=chunk) [Supplemental Financial Schedules](index=7&type=section&id=Supplemental%20Financial%20Schedules) This section provides detailed financial schedules, including condensed consolidated statements of income, balance sheet, cash flow, and non-GAAP reconciliations [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This schedule presents unaudited condensed consolidated statements of income for Q2 and H1 2025 and 2024, detailing revenues and net income Condensed Consolidated Statements of Income (Selected Data, in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net revenues | $579,311 | $565,251 | $1,084,741 | $1,063,401 | | Total operating expense | $381,630 | $381,024 | $695,827 | $754,574 | | Operating income | $197,681 | $184,227 | $388,914 | $308,827 | | Net income | $155,016 | $137,594 | $294,245 | $216,093 | | Diluted earnings per share | $1.52 | $1.34 | $2.87 | $2.10 | [Selected Balance Sheet and Cash Flow Data](index=8&type=section&id=Selected%20Balance%20Sheet%20and%20Cash%20Flow%20Data) This schedule provides selected unaudited balance sheet data as of June 30, 2025, and cash flow data for Q2 and H1 2025 and 2024 Selected Balance Sheet Data (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $55,726 | $49,461 | | Total assets | $6,673,968 | $6,586,549 | | Total debt, net | $3,363,713 | $3,210,864 | | Total stockholders' equity | $906,883 | $1,048,020 | Selected Cash Flow Data (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cash flows provided by operating activities | $229,487 | $256,342 | $357,232 | $366,904 | | Cash flows used in investing activities | $99,202 | $31,645 | $33,776 | $76,661 | | Cash flows used in financing activities | $110,947 | $183,118 | $317,469 | $256,744 | [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP measures like Free Cash Flow and Adjusted EBITDA to their comparable GAAP measures for Q2 and H1 2025 and 2024 Reconciliation of Cash Flows Provided By Operating Activities to Free Cash Flow (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cash flows provided by operating activities | $229,487 | $256,342 | $357,232 | $366,904 | | Total capital expenditures | $(38,201) | $(22,648) | $(68,088) | $(52,130) | | Free cash flow | $199,082 | $203,508 | $320,196 | $342,192 | Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $155,016 | $137,594 | $294,245 | $216,093 | | Depreciation and amortization | $78,110 | $77,191 | $155,931 | $152,419 | | Adjusted EBITDA | $278,383 | $271,554 | $488,604 | $483,476 | Acquisition-Adjusted Results (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Acquisition-adjusted net revenue | $579,311 | $568,382 | $1,084,741 | $1,068,422 | | Acquisition-adjusted EBITDA | $278,383 | $272,941 | $488,604 | $485,181 | [Unaudited REIT Measures and Reconciliations to GAAP Measures](index=12&type=section&id=Unaudited%20REIT%20Measures%20and%20Reconciliations%20to%20GAAP%20Measures) This section reconciles FFO and AFFO to net income, including diluted AFFO per share for reported periods and revised 2025 full-year projections Adjusted Funds from Operations (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $155,016 | $137,594 | $294,245 | $216,093 | | Funds from operations | $225,342 | $209,273 | $381,484 | $357,779 | | Adjusted funds from operations | $225,282 | $213,517 | $389,590 | $371,754 | | Diluted AFFO per share | $2.22 | $2.08 | $3.81 | $3.63 | Revised Projected 2025 Adjusted Funds From Operations (in thousands) | Metric (in thousands) | Low (Year ended Dec 31, 2025) | High (Year ended Dec 31, 2025) | | :-------------------- | :---------------------------- | :----------------------------- | | Net income | $625,400 | $627,400 | | Funds from operations | $839,300 | $841,300 | | Adjusted funds from operations | $831,500 | $841,500 | | Diluted earnings per share | $6.09 | $6.11 | | Diluted AFFO per share | $8.10 | $8.20 | [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) Lamar Advertising Company scheduled a conference call for August 8, 2025, to discuss its operating results, providing details for participation via phone and webcast - A conference call to discuss operating results was scheduled for **Friday, August 8, 2025, at 8:00 a.m. central time**[25](index=25&type=chunk) Conference Call Details | Item | Detail | | :------------ | :---------------------------------------- | | All Callers | 1-800-420-1271 or 1-785-424-1634 | | Passcode | 63104 | | Live Webcast | ir.lamar.com | | Webcast Replay| ir.lamar.com (Available through Aug 15, 2025) | [General Company Information](index=6&type=section&id=General%20Company%20Information) Founded in 1902, Lamar Advertising is one of North America's largest outdoor advertising companies, offering a wide range of billboard, transit, and airport advertising formats, including the largest network of digital billboards in the U.S - Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America[26](index=26&type=chunk) - Operates over **366,000 displays** across the United States and Canada[26](index=26&type=chunk) - Offers various advertising formats including billboard, interstate logo, transit, and airport advertising, and boasts the largest network of digital billboards in the U.S. with over **5,200 displays**[26](index=26&type=chunk)

Group 1 - Lamar Advertising Company will release its second quarter earnings report for the period ended June 30, 2025, before the market opens on August 8, 2025 [1] - A conference call will be hosted by Lamar on August 8, 2025, at 8:00 a.m. Central time to discuss the company's results and answer operational questions [1] - Instructions for dialing into the conference call include two phone numbers and a passcode, with a live webcast available on the company's investor relations website [1]

Core Insights - Lamar Advertising (LAMR) has acquired Verde Outdoor assets, adding over 1,500 billboard faces, including 80 digital displays, across 10 states in key markets [1][9] - The acquisition was executed as an Umbrella Partnership Real Estate Investment Trust (UPREIT) transaction, marking a first in the billboard industry [2] - Verde Outdoor owners will receive dividends equivalent to Lamar's common stock and can convert their units into cash or shares of Class A common stock [3] Company Overview - Lamar holds a significant national presence in outdoor advertising and is a leading provider of logo signs in the U.S. [4] - The acquisition emphasizes Lamar's strategy to enhance its digital platform through acquisitions and technological advancements in the out-of-home (OOH) advertising sector [4] - The company has expanded its digital network to approximately 5,100 displays, positioning itself to leverage growing programmatic advertising channels [5] Market Performance - Over the past three months, Lamar's shares have increased by 7.4%, slightly trailing the industry's growth of 7.8% [6]

Core Insights - Lamar Advertising Company has completed its first-ever UPREIT transaction in the billboard industry by acquiring Verde Outdoor's assets [1][5] - The acquisition adds over 1,500 billboard faces, including 80 digital displays, across 10 states, enhancing Lamar's market presence in the Midwest, Southeast, and Mid-Atlantic regions [2] Company Overview - Verde Outdoor was established in 2021 and has rapidly expanded through strategic acquisitions and organic development, particularly in Sioux City, Charleston, Savannah, Hudson Valley, and the Mid-Atlantic [3] - The transaction involved Verde contributing its assets to Lamar Advertising Limited Partnership, with Verde's owners receiving common units of Lamar LP that track the value of Lamar's Class A common stock [4] Transaction Structure - The UPREIT structure allows Lamar to issue partnership units to billboard owners on a tax-deferred basis, facilitating acquisitions [5] - The CEO of Lamar highlighted the significance of this deal and expressed optimism about using the UPREIT structure for future acquisitions [6]

Core Insights - Lamar Advertising (LAMR) shares have increased by 18.4% over the past three months, outperforming the industry growth of 10.1% [1][8] - The company has a strong presence in outdoor advertising across the U.S. and Canada, supported by a diversified tenant base, which contributes to stable revenues [1][3] - The focus on expanding digital capabilities and acquisitions positions the company for long-term growth [2][4][5] Company Performance - Lamar completed 10 acquisitions worth $22.1 million in the first quarter of 2025, enhancing its market position [4] - The company operates approximately 5,100 digital billboards, making it the largest network of digital displays in the U.S. [5] - Lamar has raised its dividend eight times in the last five years, with a five-year annualized dividend growth rate of 24.17% [6][8] Shareholder Value - The company has repurchased common stock worth $150 million year to date, with an additional $150 million approved for repurchase, totaling $250 million remaining under the program [9] - These share repurchase efforts are aimed at enhancing shareholder value and boosting investor confidence [9] Industry Trends - Out-of-home (OOH) advertising is experiencing rapid growth and increasing market share compared to other media forms [4] - Higher technology investments are expected to further support the growth of OOH advertising in the coming years [4]