Arena (US:AREN)2025-11-19 21:17Financial Performance - Q3 2025 revenue was $29.8 million, down from $33.6 million in Q3 2024, with gross margins above 50%[4] - Net income increased to $6.9 million, a 73% rise from $4.0 million in Q3 2024, resulting in a net margin of 23.2%[4] - Adjusted EBITDA for Q3 2025 was $11.9 million, a 6.3% increase from $11.2 million in Q3 2024[4] - The trailing twelve-month income from continuing operations was $30.5 million, equating to earnings per share of $0.64[4] - For the three months ended September 30, 2025, the net income was $6.865 million, compared to $3.956 million in the same period of 2024, representing a 73.5% increase[14] - Adjusted EBITDA for the three months ended September 30, 2025, was $11.902 million, up from $11.157 million in 2024, indicating a growth of 6.7%[14] Revenue Growth - Non-advertising revenue for Athlon Sports and Men's Journal grew nearly 200% in Q3 2025, driven by off-property distribution and syndication[4] - TheStreet's audience reach increased by 20% in Q3 2025, with revenue from content syndication up 200% compared to Q3 2024[4] - Parade's traffic rose by 25% year-over-year, with non-advertising revenue more than doubling (+111%) compared to Q3 2024[4] Cost Management - Interest expense (net) for the three months ended September 30, 2025, was $2.857 million, a decrease from $3.159 million in 2024, reflecting a reduction of 9.5%[14] - Depreciation and amortization for the three months ended September 30, 2025, was $2.321 million, slightly down from $2.379 million in 2024, a decrease of 2.4%[14] - Stock-based compensation for the three months ended September 30, 2025, was $86, significantly lower than $732 in 2024, a reduction of 88.2%[14] - The company reported no income or loss from discontinued operations for the three months ended September 30, 2025, compared to a loss of $822 in 2024[14] Strategic Initiatives - The company reduced net leverage below 2x after making $10 million in principal payments year to date[4] - The Arena Group acquired digital assets and IP of ShopHQ and Lindy's Sports in October 2025, funded with cash on hand[5] - The new intelligence platform, Encore, is expected to connect user behavior across ads, newsletters, and content, with over 40,000 new users registering daily[6] - The company anticipates future revenues and income growth, alongside cost reductions and market expansion strategies[16] - The company is focused on product introductions and capital requirements to support its growth strategy[16] Forward-Looking Statements - Forward-looking statements indicate potential risks and uncertainties that may affect future performance[17] - The company does not undertake any obligation to publicly release revisions to forward-looking statements except as required by law[18]