comScore(SCOR) - 2025 Q2 - Quarterly Results

Executive Summary Second Quarter 2025 Performance Overview Comscore reported solid execution in Q2 2025, driven by significant growth in cross-platform revenue and continued double-digit growth in local TV, maintaining full-year guidance and achieving expanded U.S. JIC certification - CEO Jon Carpenter highlighted solid execution in H1 2025, building the future of cross-platform measurement[4] - Cross-platform revenue grew 60%, driven by Proximic and adoption of cross-platform content measurement offering[4][10] - Local TV offering achieved double-digit growth, supported by key renewals and new business, and remains the only MRC-accredited local TV offering[4][10] - Comscore earned expanded U.S. JIC certification, being the only offering in market that is both MRC accredited and JIC certified[10] Q2 2025 Key Financial Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :----------------------- | :----------------- | :----------------- | :--------- | | Revenue | $89.4 | $85.8 | +4.1% | | Net Loss | $(9.5) | $(1.7) | -458.8% | | Adjusted EBITDA | $8.9 | $7.2 | +25% | Business and Financial Highlights (Q2 Summary Results) Second quarter revenue increased by 4.1% year-over-year, primarily driven by growth in Content & Ad Measurement, particularly cross-platform solutions and local TV, partially offset by lower revenue from national TV, syndicated digital products, and Research & Insight Solutions, while net loss widened and Adjusted EBITDA improved Q2 2025 Revenue Breakdown | Revenue Segment | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Total Revenue | $89.4 | $85.8 | +4.1% | | Content & Ad Measurement | $76.8 | $72.2 | +6.3% | | Research & Insight Solutions | $12.6 | $13.6 | -7.4% | - Content & Ad Measurement revenue growth was driven by higher renewals and new business in local TV and an increase in cross-platform revenue, alongside a key contract with a large enterprise media client[6] - Increases in Content & Ad Measurement were offset by lower revenue from national TV and syndicated digital products[6] - Core operating expenses increased 4.6% to $90.4 million (from $86.5 million in Q2 2024), mainly due to higher employee compensation, partially offset by lower data costs[7] Q2 2025 Profitability Metrics | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Net Loss Margin (Q2 2025) | Net Loss Margin (Q2 2024) | | :----------------------- | :----------------- | :----------------- | :------------------------ | :------------------------ | | Net Loss | $(9.5) | $(1.7) | (10.6)% | (2.0)% | | Loss per share (common) | $(2.73) | $(1.19) | N/A | N/A | | Adjusted EBITDA | $8.9 | $7.2 | 10.0% | 8.3% | - Net loss was primarily due to foreign currency fluctuations, income taxes, and interest on senior debt[10] - Adjusted EBITDA metric was modified in Q1 2025 to exclude the impact of foreign currency transactions[9] Balance Sheet and Liquidity As of June 30, 2025, Comscore maintained a cash position of $29.5 million, including restricted cash, with outstanding debt principal of $44.8 million and $15.0 million available under its revolving credit facility Balance Sheet and Liquidity as of June 30, 2025 | Metric | Amount (Millions) | | :-------------------------------- | :---------------- | | Cash, cash equivalents & restricted cash | $29.5 | | Outstanding debt principal (senior secured term loan) | $44.8 | | Revolving credit facility (outstanding borrowings) | $0.0 | | Revolving credit facility (remaining capacity) | $15.0 | 2025 Outlook Comscore is maintaining its full-year revenue and adjusted EBITDA guidance for 2025, anticipating growth in local TV and cross-platform to be offset by declines in syndicated digital and other areas, with Q3 revenue expected to be roughly flat year-over-year due to revenue recognition timing - Maintaining full-year revenue and adjusted EBITDA guidance from the previous quarter[12] - Guidance reflects growth opportunities in local TV and cross-platform, offset by expected declines in syndicated digital and other areas[12] - Third-quarter revenue is expected to be roughly flat to the prior year, considering the timing of revenue recognition from a key contract[12] - GAAP net income (loss) or net income (loss) margin are not provided on a forward-looking basis due to uncertainties in predicting certain expenses and impacts[13] Financial Statements Condensed Consolidated Balance Sheets The balance sheet shows a decrease in total assets from $430.2 million at year-end 2024 to $415.9 million as of June 30, 2025, primarily due to a reduction in cash and accounts receivable, while total liabilities remained relatively stable and stockholders' deficit increased Condensed Consolidated Balance Sheets (Selected Items) | Metric (In thousands) | As of June 30, 2025 | As of Dec 31, 2024 | Change | | :-------------------------------- | :------------------ | :----------------- | :----- | | Cash and cash equivalents | $25,993 | $29,937 | $(3,944) | | Total current assets | $96,451 | $108,057 | $(11,606) | | Total assets | $415,886 | $430,247 | $(14,361) | | Total current liabilities | $139,786 | $131,304 | $8,482 | | Total liabilities | $230,085 | $231,040 | $(955) | | Total stockholders' equity (deficit) | $(21,669) | $(8,263) | $(13,406) | Condensed Consolidated Statements of Operations and Comprehensive Loss For Q2 2025, Comscore reported a 4.1% increase in revenue to $89.4 million, but net loss significantly widened to $9.5 million from $1.7 million in Q2 2024, primarily due to higher foreign currency losses, interest expense, and income tax provision, with loss per common share increasing to $(2.73) Condensed Consolidated Statements of Operations (Selected Items) | Metric (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $89,389 | $85,837 | $175,098 | $172,632 | | Total expenses from operations | $91,070 | $87,765 | $178,845 | $176,437 | | Loss from operations | $(1,681) | $(1,928) | $(3,747) | $(3,805) | | Net loss | $(9,492) | $(1,708) | $(13,485) | $(2,762) | | Basic and diluted EPS | $(2.73) | $(1.19) | $(4.41) | $(2.28) | - The significant increase in net loss was influenced by a foreign currency transaction loss of $3.8 million in Q2 2025 compared to a loss of $0.2 million in Q2 2024, and increased interest expense[22] Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash provided by operating activities decreased to $10.0 million from $15.6 million in the prior year, while net cash used in investing activities remained stable and net cash used in financing activities decreased significantly due to lower contingent consideration payments and no payments on the line of credit Condensed Consolidated Statements of Cash Flows (Selected Items) | Metric (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $9,994 | $15,603 | | Net cash used in investing activities | $(11,392) | $(12,120) | | Net cash used in financing activities | $(4,576) | $(10,960) | | Net decrease in cash, cash equivalents and restricted cash | $(3,942) | $(8,093) | | Cash, cash equivalents and restricted cash at end of period | $29,526 | $14,843 | - The decrease in net cash from operating activities was partly due to changes in accounts receivable and contract liabilities[24] Segment Revenue Analysis In Q2 2025, Content & Ad Measurement revenue grew 6.3% to $76.8 million, primarily driven by a 60.0% increase in Cross-Platform solutions, while Research & Insight Solutions revenue declined by 7.4% to $12.6 million Revenue by Offering (Q2 2025 vs Q2 2024) | Offering (In thousands) | Q2 2025 | % of Revenue (Q2 2025) | Q2 2024 | % of Revenue (Q2 2024) | $ Variance | % Variance | | :---------------------- | :------ | :--------------------- | :------ | :--------------------- | :--------- | :--------- | | Content & Ad Measurement | $76,753 | 85.9% | $72,189 | 84.1% | $4,564 | 6.3% | | Syndicated Audience | $63,953 | 71.5% | $64,189 | 74.8% | $(236) | (0.4)% | | Cross-Platform | $12,800 | 14.3% | $8,000 | 9.3% | $4,800 | 60.0% | | Research & Insight Solutions | $12,636 | 14.1% | $13,648 | 15.9% | $(1,012) | (7.4)% | | Total revenues | $89,389 | 100.0% | $85,837 | 100.0% | $3,552 | 4.1% | Revenue by Offering (Six Months Ended June 30, 2025 vs 2024) | Offering (In thousands) | YTD 2025 | % of Revenue (YTD 2025) | YTD 2024 | % of Revenue (YTD 2024) | $ Variance | % Variance | | :---------------------- | :------- | :---------------------- | :------- | :---------------------- | :--------- | :--------- | | Content & Ad Measurement | $149,919 | 85.6% | $144,809 | 83.9% | $5,110 | 3.5% | | Syndicated Audience | $127,457 | 72.8% | $128,789 | 74.6% | $(1,332) | (1.0)% | | Cross-Platform | $22,462 | 12.8% | $16,020 | 9.3% | $6,442 | 40.2% | | Research & Insight Solutions | $25,179 | 14.4% | $27,823 | 16.1% | $(2,644) | (9.5)% | | Total revenues | $175,098 | 100.0% | $172,632 | 100.0% | $2,466 | 1.4% | - Syndicated Audience revenue includes movies business, which grew from $9.3 million in the second quarter of 2024 to $9.6 million in the second quarter of 2025[27] Non-GAAP Financial Measures Use of Non-GAAP Financial Measures (Explanation) Comscore uses non-GAAP financial measures like adjusted EBITDA and adjusted EBITDA margin to provide investors with additional insights into its core operating performance and trends, emphasizing that these should be considered alongside GAAP measures, not as substitutes - Non-GAAP measures (adjusted EBITDA and adjusted EBITDA margin) are used by management to evaluate core operating performance and trends[18] - These measures provide useful information to investors but have limitations and should not be considered in isolation or as a substitute for GAAP results[18] Adjusted EBITDA Reconciliation The reconciliation shows that non-GAAP adjusted EBITDA for Q2 2025 increased to $8.9 million (10.0% margin) from $7.2 million (8.3% margin) in Q2 2024, primarily due to adjustments for foreign currency transaction losses, stock-based compensation, and transformation costs Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA | Metric (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP net loss | $(9,492) | $(1,708) | $(13,485) | $(2,762) | | EBITDA | $1,965 | $5,421 | $5,502 | $11,475 | | Loss (gain) from foreign currency transactions | $3,803 | $248 | $5,546 | $(715) | | Stock-based compensation expense | $1,748 | $1,011 | $2,486 | $2,389 | | Transformation costs | $1,035 | $0 | $2,042 | $75 | | Non-GAAP adjusted EBITDA | $8,915 | $7,158 | $16,285 | $14,327 | | Net loss margin | (10.6)% | (2.0)% | (7.7)% | (1.6)% | | Non-GAAP adjusted EBITDA margin | 10.0% | 8.3% | 9.3% | 8.3% | - Adjusted EBITDA for 2025 and comparable prior periods excludes the impact of foreign currency transactions[25] Corporate Information About Comscore Comscore is a global, trusted partner for media planning, transacting, and evaluation across various platforms, providing data-driven insights to quantify multiscreen behavior and support business decisions - Comscore is a global partner for planning, transacting, and evaluating media across digital, linear TV, over-the-top, and theatrical viewership[15] - Empowers media buyers and sellers with advanced audience insights to quantify multiscreen behavior and make confident business decisions[15] - Recognized as a leader in measuring digital and TV audiences and advertising at scale, and an emerging third-party source for comprehensive cross-platform measurement[15] Cautionary Note Regarding Forward-Looking Statements This section advises investors that the press release contains forward-looking statements subject to risks and uncertainties that could cause actual events to differ materially from expectations, and the company disclaims any obligation to update these statements - The press release contains forward-looking statements regarding expectations, forecasts, plans, and opinions for 2025 revenue, adjusted EBITDA margin, growth drivers, and market conditions[16] - These statements involve risks and uncertainties, including changes in business relationships, market conditions, ad spending, regulatory standards, and product adoption rates[16] - Investors are cautioned not to place undue reliance on these statements, and the company does not undertake any duty to publicly update them[17] Investor Relations Provides contact information for media and investor inquiries - Media contact: Marie Scoutas, press@comscore.com[19] - Investor contact: John Tinker, 212-203-2129, jtinker@comscore.com[19]