Financial Data and Key Metrics Changes - Consolidated revenue growth improved to 2.9% on an acquisition-adjusted basis, with adjusted EBITDA for the quarter at $280.8 million, an increase of 3.5% year-over-year [3][9] - Adjusted funds from operations (AFFO) totaled $226.5 million, up 2.6% from the previous year, with diluted AFFO per share increasing 2.3% to $2.20 [9][14] - Acquisition-adjusted operating expenses increased by 3.7%, influenced by one-time severance costs and technology implementation expenses [8][9] Business Line Data and Key Metrics Changes - National and programmatic advertising grew by 5.5%, while local advertising saw a growth of 1.6% [4][16] - Digital billing grew by 5%, representing about 31% of total billboard billing, with same-store digital revenue increasing by 3.4% [5][9] - The company closed 18 acquisitions for nearly $47 million in Q3, bringing the year-to-date cash spend to nearly $134 million [6][12] Market Data and Key Metrics Changes - Billboard regions experienced low single-digit growth, with the Atlantic and Northeast regions improving by 3.8% and 3.3%, respectively [8] - Airport advertising grew by 5.8%, and logos increased by 5.2%, outperforming the broader portfolio [8] - Political advertising revenue for Q3 was $2.7 million, significantly lower than $6.1 million in the same quarter last year [15] Company Strategy and Development Direction - The company is optimistic about 2026, expecting political advertising to act as a tailwind and anticipating stronger pacing from national buyers [3][22] - The integration of Verde assets is progressing well, and the company plans to continue pursuing acquisitions in the middle-market airport space [5][49] - The company aims to maintain a strong balance sheet, with an investment capacity exceeding $1 billion while keeping leverage below 4 times net debt to EBITDA [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in finishing 2025 successfully and carrying momentum into 2026, despite macroeconomic uncertainties [6][10] - The company noted that the auto insurance vertical is showing signs of recovery, with large customers returning to spend [33] - Management highlighted the potential benefits of AI in enhancing operational efficiency and advertising effectiveness in the future [23] Other Important Information - The company anticipates total capital expenditures of $180 million for the year, with maintenance CapEx budgeted at $60 million [10][14] - A regular cash dividend of $1.55 per share is recommended for Q4, subject to board approval, with an expected total dividend of $6.20 per share for the year [14] Q&A Session Summary Question: Growth opportunities and M&A environment for 2026 - Management indicated strong growth drivers for 2026, including the momentum from acquisitions and improved pacing from national buyers [20][21] Question: Impact of AI on national growth - Management noted that while AI benefits will be realized in 2027, it is expected to enhance advertising effectiveness [23] Question: Political advertising during midterm cycles - Management provided historical context on political advertising revenue, indicating a significant increase expected in 2026 compared to 2022 [32] Question: Demand for World Cup advertising in 2026 - Management expressed optimism about the World Cup's impact on advertising revenue, especially when combined with political advertising [38] Question: Distribution from Vistar Media - Management confirmed that the distribution will be all cash, anticipated to be around $0.25 per share [39] Question: National customer spending trends - Management highlighted positive conversations with national accounts and a better outlook for 2026 compared to the previous year [46][47]