BURBANK, Calif.--(BUSINESS WIRE)--Entravision (NYSE: EVC), a media and advertising technology company, announced today that it will release its fourth quarter and full year 2025 financial results after market close on Thursday, March 5, 2026. The company will host a webinar to discuss its results followed by a question-and-answer session at 2 p.m. PT / 5 p.m. ET the same day. The webinar may be accessed on the company's Investor Relations website at investor.entravision.com or via webinar regis. ...

Group 1 - The core viewpoint of the article highlights significant developments regarding EVC, including contract negotiations, optimistic market outlook, and recent financial performance [1] Group 2 - The company has an active partnership agreement with Televisa Univision, which is set to expire on December 31, 2026, and discussions for renewal have commenced, indicating the importance of this long-term relationship for business stability [2] - Management expressed optimism about the political advertising market in 2026, particularly noting the potential impact of Latino voters in the elections across six southwestern states, which may present growth opportunities for the company [3] - For the third quarter of 2025, the company reported revenue of $120.6 million, reflecting a year-over-year increase of 24.16%. The company anticipates that fourth-quarter revenue and earnings will be consistent with the third quarter and plans to pay a dividend of $0.05 per share [4] - Between February 6 and 11, 2026, the company's stock price increased by 5.86%, outperforming the broader advertising and marketing sector, which saw a decline of 3.26%, indicating that market sentiment and sector dynamics are key factors influencing short-term stock price fluctuations [5]

Group 1 - The management of EVC highlighted an optimistic outlook for the political advertising market in 2026, particularly due to the significant role of Latino voters in the elections across six southwestern states, which may present growth opportunities [1] - EVC's partnership with Televisa Univision is currently valid until December 31, 2026, and discussions for renewal have commenced to continue their nearly 30-year collaboration [1] Group 2 - EVC's Q3 2025 financial report (ending September 30, 2025) showed revenue of $120.6 million, a year-on-year increase of 24.16%; however, the net profit attributable to shareholders was a loss of $9.659 million, with a net profit margin of -8.01%, although this represents a 10.90% improvement year-on-year [2] - The company expects Q4 revenue and earnings to be consistent with Q3, and plans to pay a dividend of $0.05 per share [2] - Despite ongoing losses, revenue growth and cost optimization may support future profitability improvements [2] Group 3 - Over the past 7 days (February 6 to February 11, 2026), EVC's stock price fluctuated by 5.86%, with a high of $3.13 on February 10 and a low of $2.91 on February 9; the closing price on February 11 was $3.07, reflecting a daily decline of 0.65%, but a cumulative increase of 2.51% over five days [3] - The average daily trading volume remained low at approximately $369,000, with a turnover rate of 0.09% to 0.23%, indicating relatively subdued trading activity [3] - During the same period, the U.S. advertising and marketing sector declined by 3.26%, with EVC's stock performance outperforming the industry [3]

Group 1 - The company expects revenue and earnings for the fourth quarter to be comparable to the third quarter, with a planned dividend of $0.05 per share [1] - The company is continuing to optimize the organizational structure of its media division to enhance operational efficiency [1] Group 2 - Management highlighted an optimistic outlook for the political advertising market in 2026, particularly due to the significant role of Hispanic voters in elections across six southwestern states, which may present growth opportunities [2] - The partnership agreement with Televisa Univision is currently valid until December 31, 2026, and discussions for renewal have commenced to extend a nearly 30-year collaboration [2]

Core Insights - Hemisphere Media Group and Entravision have formed a strategic partnership to launch WAPA Orlando, a new full power broadcast television station targeting the Orlando–Daytona Beach–Melbourne DMA [1][3] - The station aims to serve the Latino population in Central Florida, particularly the growing Puerto Rican community, which is now the second largest in the continental U.S. [3][4] Company Overview - Hemisphere Media Group is a leading U.S. multi-platform media company focused on the Hispanic and Latin American markets, operating various television and radio networks, including WAPA TV, the top broadcast network in Puerto Rico [9] - Entravision is a media and advertising technology company that provides marketing services targeting Latino audiences through a portfolio of television and radio stations, as well as digital advertising services [10] Partnership Details - The partnership will leverage Entravision's extensive news resources from 24 U.S. markets to enhance local news coverage for WAPA Orlando [2][5] - WAPA Orlando will utilize WAPA-TV's production infrastructure, which produces 80 hours of original content weekly, and will feature locally produced newscasts branded NotiCentro Orlando [4][6] Programming and Distribution - WAPA Orlando will broadcast programming from WAPA-TV, which has been the 1 TV network in Puerto Rico for 16 consecutive years, and will focus on news and entertainment relevant to the Latino community [3][4] - The station will be available through multichannel video programming distributors in the region, including Xfinity, Spectrum, AT&T U-Verse, DirecTV, and Dish [8] Future Plans - Initially, WAPA Orlando will launch with two daily locally-produced newscasts, with plans to expand to evening and late-night editions [4] - Entravision will also manage WAPA Orlando's digital strategy, including the development of a dedicated website and sales operations [6]

Core Viewpoint - The commentary on Entravision Communications Corporation (EVC) suggests that investors should focus on income generation through dividend reinvestment in the international TV and radio station operator, maintaining a Hold rating [1] Investment Strategy - The company emphasizes investing in undervalued, profitable stocks with strong balance sheets and minimal debt [1] - When opportunities arise, the strategy includes writing calls against positions to generate additional income [1] - Risk management is implemented through position sizing and the use of trailing stop losses over time [1]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - SMX (Security Matters) Public Limited Company (SMX) increased by 52% to $2.24 [3] - Entravision Communications Corporation (EVC) rose by 33% to $2.66 [3] - Babcock & Wilcox Enterprises, Inc. (BW) saw a 28% increase to $4.79 [3] - NeuroPace, Inc. (NPCE) gained 24% reaching $11.71 [3] - Kennedy-Wilson Holdings, Inc. (KW) also increased by 24% to $9.30 [3] - Rigel Pharmaceuticals, Inc. (RIGL) rose by 22% to $34.72 [3] - Digital Turbine, Inc. (APPS) increased by 21% to $7.20 [3] - Lumentum Holdings Inc. (LITE) saw a 15% increase to $218.06 [3] - AsiaStrategy (SORA) rose by 14% to $3.63 [3] - Marine Petroleum Trust (MARPS) increased by 7% to $5.05 [3] Premarket Losers - Biohaven Ltd. (BHVN) decreased by 42% to $7.96 [4] - Trex Company, Inc. (TREX) fell by 34% to $30.65 [4] - Soleno Therapeutics, Inc. (SLNO) saw a 23% decline to $49.00 [4] - Axon Enterprise, Inc. (AXON) decreased by 19% to $572.00 [4] - Clover Health Investments, Corp. (CLOV) fell by 19% to $2.82 [4] - Pinterest, Inc. (PINS) decreased by 18% to $26.91 [4] - SSR Mining Inc. (SSRM) saw a 17% decline to $17.91 [4] - Upstart Holdings, Inc. (UPST) decreased by 16% to $38.81 [4] - WF International Limited (WXM) fell by 12% to $2.25 [4] - Corsair Gaming, Inc. (CRSR) decreased by 11% to $6.66 [4]

Financial Data and Key Metrics Changes - On a consolidated basis, revenue increased by 24% to $120 million in Q3 2025 compared to Q3 2024 [3] - The company reported an operating loss of $9 million in Q3 2025, down from an operating profit of $8 million in Q3 2024, primarily due to restructuring costs and impairment charges [3][15] - The overall operating loss included a non-cash impairment charge of $5.7 million and restructuring costs of $3.2 million [15] Business Line Data and Key Metrics Changes - Media segment revenue declined by 26% to $44.5 million in Q3 2025 compared to Q3 2024, attributed to lower political revenue and weaker national advertising [4][9] - Advertising Technology and Services (ATS) segment revenue more than doubled to $76.1 million in Q3 2025, reflecting a 104% increase compared to Q3 2024 [5][10] - ATS operating profit was nearly $10 million in Q3 2025, significantly higher than the previous year, with a 378% increase [6][13] Market Data and Key Metrics Changes - The media business faced challenges due to advertiser uncertainty and the absence of significant political advertising in 2025, which was present in 2024 [9] - The ATS segment experienced exceptional performance with a sequential revenue growth of 38% from Q2 to Q3 2025 [10] Company Strategy and Development Direction - The company is focused on increasing local sales capacity and expanding digital sales operations in the media segment [5][7] - In the ATS segment, investments are being made to enhance technology and build AI capabilities, alongside increasing sales capacity [6][8] - The company aims to optimize its organizational structure and reduce expenses to align with revenue growth [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for improvement in operating performance and profitability, particularly in the media business [3] - The company is positioning itself for a strong political spending environment in 2026, emphasizing the importance of the Latino vote in upcoming elections [19][20] - Management expressed optimism about the future, particularly regarding political advertising opportunities and ongoing discussions to renew the affiliation agreement with TelevisaUnivision [22] Other Important Information - Corporate expenses decreased by 9% to $6.3 million in Q3 2025 compared to Q3 2024, with a year-to-date reduction of $9.5 million [16] - The company maintained a strong balance sheet with over $66 million in cash and marketable securities at the end of Q3 2025 [16] - Total debt payments of $15 million were made during 2025, reducing credit facility indebtedness to approximately $173 million [17] Q&A Session Summary Question: Can you comment on the outlook for political revenue in 2026? - Management is positioning for a strong political spending environment in 2026, highlighting the critical role of the Latino vote in key congressional races [19][20] Question: What's the status of renewing the affiliation agreement with TelevisaUnivision? - The affiliation agreement runs through December 31, 2026, and discussions for renewal are ongoing [21][22]

Financial Performance - For the three-month period ended September 30, 2025, net revenue increased to $120.63 million, up from $97.16 million in the same period of 2024, representing a growth of 24%[17] - The company reported a net loss attributable to common stockholders of $9.66 million for the three-month period ended September 30, 2025, compared to a net loss of $11.98 million in the same period of 2024, showing an improvement of 19%[18] - Basic and diluted earnings per share from continuing operations for the three-month period ended September 30, 2025, was $(0.11), compared to $(0.12) in the same period of 2024[17] - Net income attributable to common stockholders for the nine-month period ended September 30, 2025, was $(60,962) thousand, compared to $(92,550) thousand for the same period in 2024, indicating an improvement[21] - Total revenue for the three-month period ended September 30, 2025, was $120,630,000, a 24.2% increase from $97,156,000 in the same period of 2024[123] Revenue Breakdown - Digital advertising revenue for the three-month period ended September 30, 2025, was $85,200,000, compared to $45,871,000 in 2024, representing an increase of 85.5%[123] - Broadcast advertising revenue for the three-month period ended September 30, 2025, was $25,496,000, down from $39,998,000 in 2024, a decrease of 36.5%[123] - The Advertising Technology & Services segment saw a significant revenue increase of 104% to $76.13 million for the three-month period ended September 30, 2025, compared to $37.35 million in 2024[140] - The media segment reported a 26% decrease in revenue to $44.51 million for the three-month period ended September 30, 2025, compared to $59.80 million in 2024[140] Assets and Liabilities - The total current assets decreased to $184.49 million as of September 30, 2025, compared to $186.30 million at the end of 2024, a decline of approximately 1%[16] - Total liabilities decreased slightly to $336.44 million as of September 30, 2025, from $341.26 million at the end of 2024, a reduction of about 1%[16] - The company’s total stockholders' equity decreased to $78.17 million as of September 30, 2025, compared to $146.02 million at the end of 2024, a decline of about 47%[16] Cash Flow and Liquidity - Cash and cash equivalents decreased to $61.76 million as of September 30, 2025, down from $95.91 million at the end of 2024, a decline of approximately 36%[16] - Cash flows from operating activities provided $861 thousand for the nine-month period ended September 30, 2025, a significant decrease from $61,922 thousand in 2024[21] - The Company’s liquidity position is supported by existing cash and projected operating cash flows, which are deemed adequate to meet operating needs over the next twelve months[38] Impairment and Charges - The company incurred an impairment charge of $5.71 million during the three-month period ended September 30, 2025[17] - The Company recorded a goodwill impairment charge of $43.3 million for the media reporting unit due to lower than anticipated political advertising revenue and higher projected future costs[60] - The Company recorded impairment charges of $17.9 million for FCC licenses and $35.4 million for goodwill in the digital segment during the first quarter of 2024[64] - The Company recorded a loss on lease abandonment of $16.1 million related to the acceleration of amortization of the right-of-use asset and $9.1 million for leasehold improvements in the first quarter of 2025[67] Restructuring and Operational Changes - The Company implemented a restructuring plan resulting in a reduction of 39 employees, approximately 5% of the media segment workforce, incurring severance charges of approximately $0.7 million[69] - Total restructuring charges recorded during the third quarter of 2025 amounted to $3.2 million, with a remaining restructuring liability of $0.8 million as of September 30, 2025[71] - The Company discontinued a significant portion of its operations in 2024, primarily affecting its former digital segment, following a strategic review of its digital strategy[25] Debt and Financing - The Company entered into a Credit Facility consisting of a $200.0 million senior secured Term A Facility and a $75.0 million Revolving Credit Facility, with $11.5 million drawn on the 2023 Closing Date[75] - As of September 30, 2025, the interest rate on the Company's Term A Facility and the drawn portion of the Revolving Credit Facility was 7.26%[79] - The carrying amount of the Term Loan A Facility as of September 30, 2025, was $161.8 million, net of $0.7 million of unamortized debt issuance costs[89] Stock-Based Compensation - Stock-based compensation expense for the nine-month period ended September 30, 2025, was $8,102 thousand, compared to $12,422 thousand for the same period in 2024[21] - Stock-based compensation expense related to restricted stock units (RSUs) was $6.6 million for the nine-month period ended September 30, 2025, compared to $11.7 million for the same period in 2024, reflecting a decrease of approximately 43.5%[50] - The total unrecognized compensation expense related to PSUs as of September 30, 2025, was $2.4 million, expected to be recognized over a weighted-average period of 2.1 years[53] Discontinued Operations - The Company recorded a loss of $40.7 million from the sale of its EGP business, which was included in net income (loss) from discontinued operations[146] - The EGP business was classified as held for sale, with results presented as discontinued operations, reflecting a strategic shift impacting financial results[156] - For the nine-month period ended September 30, 2024, the net loss from discontinued operations was $77.9 million, with significant impairment charges of $49.4 million[157][162]

Revenue Performance - Consolidated net revenue increased by 24% to $120.63 million in Q3 2025 compared to Q3 2024, driven by a 104% increase in the Advertising Technology & Services segment [4]. - Media segment net revenue decreased by 26% to $44.51 million in Q3 2025, primarily due to lower political revenue and weaker national advertising [4]. - Net revenue for the three-month period ended September 30, 2025, was $120.63 million, a 24.2% increase from $97.16 million in the same period of 2024 [13]. Profitability - Advertising Technology & Services segment operating profit rose by 378% to $9.75 million in Q3 2025, reflecting increased advertising revenue and client spending [4]. - Segment operating profit decreased by 55% to $6.24 million in Q3 2025 compared to Q3 2024 [4]. - Operating income for the three-month period ended September 30, 2025, was $(9.09) million, compared to an operating income of $7.59 million in 2024 [13]. - The net loss attributable to common stockholders for the three-month period ended September 30, 2025, was $(9.66) million, an improvement from a net loss of $(11.98) million in 2024 [13]. Expenses and Charges - The company recorded a restructuring charge of $3.2 million in Q3 2025 as part of an ongoing organization design plan aimed at supporting revenue growth and reducing expenses [4]. - Total expenses for the three-month period ended September 30, 2025, were $129.72 million, compared to $89.57 million in 2024, reflecting a 44.8% increase [13]. - Corporate expenses decreased by 9% to $6.34 million in Q3 2025, mainly due to reductions in rent and professional services [4]. Cash Flow and Liquidity - Net cash provided by operating activities was $8.3 million for Q3 2025 [4]. - The company reported cash flows from operating activities of $8.28 million for the three-month period ended September 30, 2025, compared to $10.85 million in 2024 [17]. - Cash and cash equivalents decreased to $66.4 million as of September 30, 2025, down from $100.6 million at the end of 2024 [4]. - Cash and cash equivalents decreased to $61.76 million as of September 30, 2025, down from $95.91 million at the end of 2024 [15]. Debt and Liabilities - The company repaid $5 million on its bank term loan in Q3 2025, totaling $15 million in debt reduction for the year [3]. - Total liabilities were $336.44 million as of September 30, 2025, slightly down from $341.26 million at the end of 2024 [15]. Assets and Receivables - Trade receivables increased to $88.99 million as of September 30, 2025, compared to $68.32 million at the end of 2024, indicating a 30.4% rise [15]. - Total assets decreased to $414.60 million as of September 30, 2025, from $487.28 million at the end of 2024 [15]. Dividends - The company declared a quarterly cash dividend of $0.05 per share, payable on December 31, 2025 [5]. - The company declared cash dividends of $0.05 per common share for both the three-month periods ended September 30, 2025, and 2024 [13].