Financial Data and Key Metrics Changes - Revenue in Q2 2026 was $15.2 million, with an operating loss of $975,000, improved from a loss of $1.7 million in the same quarter last year [11] - Net loss was $975,000, or $0.04 per share, compared to a net loss of $1.7 million, or $0.07 per share in the prior year [11] - Adjusted EBITDA was $1.1 million, a significant improvement from an adjusted EBITDA loss of $403,000 in the same quarter last year [11] - The company ended the quarter with zero debt and $2.8 million in cash and cash equivalents [11] Business Line Data and Key Metrics Changes - Podroll, the dynamic ad marketplace, saw a 71% increase, nearly tripling since last year, becoming a seven-figure revenue-generating tool [8] - Creator monetization initiatives, including Adam Carolla's channels, rose 51% from the previous quarter, indicating strong audience engagement [8] - Programmatic and Amazon's Art19 revenue increased by 14% from Q1 [8] Market Data and Key Metrics Changes - The company reported a record high total revenues for the quarter, marking a significant milestone [8] - The advertising environment is strong, with direct sales at an all-time high, leading to higher CPMs [36] Company Strategy and Development Direction - The company focuses on leveraging AI capabilities to enhance operations, including predictive ad analytics and streamlined ad management [13] - Strategic partnerships and acquisitions, such as collaboration with BuzzFeed and new podcast series, are part of the growth strategy [9] - The company aims to expand its audience through high-profile events and partnerships while maintaining a creator-first approach [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the high end of the revenue guidance of $55 to $60 million for fiscal 2026, contingent on continued consumption growth and successful ad deals [12][37] - The competitive environment is favorable, with the company positioned to attract higher-tier talent due to its strong market presence [31] Other Important Information - The company emphasizes the importance of compelling content, strategic monetization, and strong relationships with talent and advertisers [14] - The AI-driven tools are enhancing production, editing, and distribution efficiency, allowing creators to focus on high-quality content [10] Q&A Session Summary Question: How much of the ranking success is real growth versus consolidation among competitors? - Management noted that rankings can be tricky and are influenced by various factors, emphasizing that revenue growth and sell-out rates are more reliable performance indicators [17][18] Question: How much of the AI tools are newly applied versus previously existing? - Management indicated that AI has drastically changed in the last year, with many enhancements being newly applied to improve operational efficiencies [19][21] Question: Can you discuss the competitive environment and talent recruitment? - Management stated that the company is competitive in attracting talent, leveraging its reputation and stock-based compensation to entice creators [31][33] Question: Can you share details on the expanded Amazon partnership? - Management explained that the partnership grows as the company meets impression thresholds, leading to increased minimum guarantees from Amazon [34][35] Question: What is the early pulse check for the advertising environment? - Management reported strong direct sales performance, indicating a positive outlook for ad revenue during the holiday season [36] Question: What needs to be in place to achieve the high end of the revenue guidance? - Management emphasized the importance of continued consumption growth and successful ad deals to reach the revenue target [37]