Entravision(EVC) - 2025 Q2 - Quarterly Results

Financial Highlights 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] - Subsequent to the quarter's end, the company amended its credit agreement to accelerate debt reduction and enhance financial stability[3][4] - A quarterly cash dividend of $0.05 per share was approved, payable on September 30, 2025[4] - 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] Strategic Initiatives 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] * 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 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 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 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 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 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) |