Comscore Reports Third Quarter 2025 Results

Core Insights - Comscore, Inc. reported a revenue of $88.9 million for Q3 2025, reflecting a 0.5% increase from $88.5 million in Q3 2024, with significant growth in cross-platform solutions and local TV [5][9] - The company announced a recapitalization transaction aimed at eliminating annual dividends on preferred stock, which would enhance financial flexibility for investments in growth areas [2][9] - Adjusted EBITDA for the quarter was $11.0 million, down from $12.4 million in Q3 2024, resulting in adjusted EBITDA margins of 12.4% compared to 14.0% in the prior year [8][9] Financial Performance - Revenue from cross-platform solutions grew by 20% year-over-year, driven by new client commitments to multiyear measurement deals [2][9] - Local TV revenue experienced double-digit growth, attributed to key renewals and new business [2][9] - Net income for Q3 2025 was $0.5 million, a significant recovery from a net loss of $60.6 million in Q3 2024, primarily due to a non-cash goodwill impairment charge in the previous year [7][9] Operational Highlights - Core operating expenses increased by 4.4% to $86.6 million, mainly due to higher employee compensation and professional fees, partially offset by lower data costs [6][9] - The company is recalibrating its full-year revenue guidance to be roughly flat compared to the previous year, influenced by a data-strategy shift from a major customer [12][9] - Excluding the impact of the data-strategy shift, cross-platform revenue would have grown by 35% year-over-year in Q3 2025 [12][9] Balance Sheet and Liquidity - As of September 30, 2025, Comscore had cash, cash equivalents, and restricted cash totaling $29.9 million, with outstanding debt under its senior secured term loan at $44.7 million [11][9] - The company had no outstanding borrowings under its revolving credit facility, maintaining a remaining borrowing capacity of $15.0 million [11][9] Market Position and Strategy - Comscore aims to establish itself as the premier currency for local market transactions, with ongoing investments in cross-platform measurement capabilities [2][9] - The company is optimistic about its growth trajectory despite the recent adjustments in revenue guidance, indicating confidence in the continued adoption of its cross-platform solutions [2][9]