EVC

This article first appeared on GuruFocus. Consolidated Revenue: $227.9 million in Q2 2026, up 126% year-over-year. Consolidated Operating Income: $30.0 million in Q2 2026, compared to an operating loss of $0.8 million in Q2 2025. Media Segment Revenue: $45.1 million in Q2 2026, down 1% year-over-year. Media Segment Operating Loss: $3.3 million in Q2 2026, compared to an operating profit of $0.4 million in Q2 2025. Media Local Advertising Revenue: Increased 1% in Q2 2026, excluding political revenue. Media National Advertising Revenue: Decreased 19% in Q2 2026, excluding political revenue. Media Monthly Active Advertisers: Increased 3% year-over-year in Q2 2026. Media Revenue per Monthly Active Advertiser: Decreased 1% year-over-year in Q2 2026. Media Segment Operating Expenses: Increased $1.6 million (4%) year-over-year in Q2 2026. ATS Segment Revenue: $182.8 million in Q2 2026, up 230% year-over-year and up 18% sequentially from Q1 2026. ATS Segment Operating Profit: $40.0 million in Q2 2026, up 673% year-over-year and up 17% sequentially from Q1 2026. ATS Segment Operating Expenses: Increased 85% ($13.9 million) year-over-year in Q2 2026. Consolidated Segment Operating Profit: $36.7 million in Q2 2026, compared to $5.5 million in Q2 2025. Corporate Expenses: $6.6 million in Q2 2026, up 3% year-over-year. Cash and Marketable Securities: Over $83 million at the end of Q2 2026. Debt Payment: $5 million made in Q2 2026, reducing credit facility indebtedness to approximately $158 million. Dividends Paid: $4.6 million ($0.05 per share) in Q2 2026. Warning! GuruFocus has detected 4 Warning Signs with EVC. Is EVC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated revenue surged 126% year-over-year to $228 million in Q2 2026, driven by exceptional growth in the Advertising Technology & Services (ATS) segment. ATS segment revenue increased 230% year-over-year to $182.8 million, with operating profit soaring 673% to $40 million, reflecting strong operating leverage. The company maintains a strong balance sheet with over $83 million in cash and marketable securities, and continues to reduce debt, paying down $5 million in Q2 2026. Media segment is making progress on strategic initiatives, including a 3% increase in monthly active advertisers and growth in local digital ad sales, despite overall revenue dip. The company continues to return capital to shareholders, declaring a $0.05 per share dividend for Q3 2026, consistent with its capital allocation strategy. ATS segment is investing heavily in AI capabilities and expanding its sales team, positioning for future growth and new geographic territories. Corporate expenses have been significantly reduced, down 39% from Q2 2024, demonstrating disciplined cost management. Political advertising revenue outlook is promising with 85 days to election day, targeting nine critical races where the Latino vote is pivotal. The company is expanding its local sales team and digital marketing capabilities, which are expected to drive revenue growth in the Media segment. ATS segment expects continued year-over-year growth of over 100% in Q3 and Q4 2026, indicating strong momentum. Media segment revenue decreased 1% year-over-year to $45.1 million, with an operating loss of $3.3 million compared to a breakeven in Q2 2025. National advertising revenue in the Media segment declined 19% year-over-year, excluding political, indicating weakness in that area. Media segment operating expenses increased 4% year-over-year, driven by higher compensation costs, despite efforts to control costs. ATS segment revenue is expected to decrease sequentially from Q2 to Q3 2026, and results may be volatile due to concentration in large clients. The company faces uncertainty regarding the TelevisaUnivision affiliation renewal, with no new progress reported and the agreement expiring at the end of 2026. Media segment investments in sales team, digital capabilities, and new projects have not yet yielded profitability, requiring more work to improve operating performance. The company's reliance on a few large clients in the ATS segment could lead to significant revenue variability in any given quarter. Consolidated operating income, while positive, is still relatively modest at $30 million, and the Media segment's losses partially offset ATS gains. The company's forward-looking statements indicate potential challenges in maintaining the exceptional ATS growth rate, with expectations of a sequential decline in Q3. Despite overall growth, the Media segment's revenue per monthly active advertiser decreased 1%, indicating pricing pressure or mix shift. Q: Can you talk about new large customers showing up in AR and customer concentration? Are there any trends in Q3 or other major ramps going?A: Michael Christenson, CEO: We want to stick to required disclosure with respect to customers and do not want to get into the practice of discussing individual customers for competitive and business reasons. However, one of our priorities for growing the business is to compete and win for larger customers. Given the size of our business, these large customers can have an impact on the variability of our revenue, and we are prepared to accept that variability. Q: What is the outlook for political revenue in the upcoming election cycle?A: Michael Christenson, CEO: With 85 days until election day, we are working hard to directly engage with campaigns to convince them they must win the Latino vote. We have identified 9 critical races where the Latino vote will clearly determine the outcome, including the Texas US Senate race, governor's races in California, Nevada, and Texas, and several House races. The total spend on these races and its allocation to Spanish language media will determine how well we do compared to prior election years. Q: What is the status of the TelevisaUnivision affiliation renewal?A: Michael Christenson, CEO: There is nothing new to report at this time. The agreement runs through December 31, 2026, so we still have time. We have been partners for three decades, and our goal is to renew this agreement. Q: Can you provide more details on the ATS segment's performance and expectations for the rest of 2026?A: Mark Boelke, CFO & COO: ATS revenue in Q2 increased 230% versus Q2 '25 and 18% versus Q1 '26, which was exceptional. We do not expect to repeat the same level of performance over the next two quarters. We currently expect a decrease in revenue sequentially from Q2 to Q3, but we do expect Q3 and Q4 to have significant year-over-year growth of more than 100%. One of our priorities is to win larger clients, which will lead to some variability in quarterly results. Q: What are the key drivers of the Media segment's operating loss in Q2 2026?A: Mark Boelke, CFO & COO: Media segment revenue was $45.1 million, down 1% compared to Q2 2025, primarily due to decreases in broadcast advertising revenue and spectrum usage rights revenue, partially offset by increases in digital advertising revenue and retransmission consent revenue. Total operating expenses increased $1.6 million, or 4%, primarily due to increased compensation expense. The segment had an operating loss of $3.3 million compared to an operating profit of $0.4 million in Q2 '25. Q: What are the operational priorities for the Media segment?A: Michael Christenson, CEO: Our operational priorities are to grow monthly active advertisers and revenue per monthly active advertiser. We have been executing several revenue-focused initiatives, including increasing the size of our local sales team, developing their capability to sell digital marketing solutions, expanding local news programming, and developing a direct sales capability for political campaign advertising. We are also working on new business projects like Altavision and the WAPA Orlando partnership. Q: How is the company managing expenses in the Media segment while investing in growth?A: Michael Christenson, CEO: Our team has worked hard to fund these investments by reducing expenses in areas other than direct selling and content production, including corporate expenses. Although we produced an operating loss in Q2 '26, our Media operating expenses were less than $2 million higher than Q2 '25 and lower than Q4 '24. We are committed to growing the Media business and earning a profit. Q: What is the company's capital allocation strategy?A: Mark Boelke, CFO & COO: Our strategy regarding allocation of cash is, first, reduce debt and maintain low leverage; and second, return capital to shareholders, primarily through dividends. In Q2 '26, we made a debt payment of $5 million, reducing our credit facility indebtedness to about $158 million. We also paid $4.6 million in dividends, or $0.05 per share, and the Board has approved another $0.05 dividend for Q3. Q: What is driving the increase in ATS operating expenses?A: Mark Boelke, CFO & COO: ATS total operating expenses increased 85% in Q2 '26 compared to Q2 '25, an increase of $13.9 million. This was primarily related to the increase in revenue, including increased cloud computing expenses from processing more transactions, higher sales commissions and performance compensation, and additional hires in sales, engineering, and ad operations to drive future growth and expand into new geographic territories. Q: How is the company investing in AI capabilities for the ATS platform?A: Michael Christenson, CEO: Our number one strategic and operational priority for the ATS segment has been to invest to build more powerful AI capabilities into our platform. We continue to invest in our product team and engineering team to improve the technology, as well as in our infrastructure capabilities. We are focused on generating operating leverage so that infrastructure costs will grow at a lower pace than revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Entravision Communications Corporation? Here are five stocks we like better. Entravision’s second-quarter revenue surged 126% year over year to $227.9 million, while consolidated operating income improved to $30 million from a $0.8 million loss, driven primarily by its Advertising Technology & Services segment. ATS revenue jumped 230% to $182.8 million and operating profit rose 673% to $40 million, although management expects sequential revenue declines in the third quarter and more variable results as it targets larger clients. The Media segment’s revenue slipped 1% to $45.1 million and posted a $3.3 million operating loss amid continued investment, while Entravision reduced debt by $5 million and approved another $0.05-per-share quarterly dividend. Entravision Communications (NYSE:EVC) reported sharply higher second-quarter revenue and operating profit, led by growth in its Advertising Technology & Services business, while its Media segment posted a modest revenue decline and an operating loss. Consolidated revenue rose 126% year over year to $227.9 million in the second quarter of 2026. The company reported consolidated segment operating profit of $36.7 million, compared with $5.5 million in the prior-year quarter. Consolidated operating income was $30 million, compared with an operating loss of $0.8 million a year earlier, according to Chief Financial Officer and Chief Operating Officer Mark Boelke. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Revenue in Entravision's Advertising Technology & Services, or ATS, segment increased 230% from the year-earlier period to $182.8 million. Revenue was also up 18% sequentially from the first quarter of 2026, as the business recorded increases in both monthly active accounts and revenue per monthly active account. ATS operating profit reached $40 million, up 673% from the second quarter of 2025 and 17% from the prior quarter. The segment's operating expenses increased by $13.9 million, or 85%, year over year, reflecting higher revenue-related costs, cloud computing expenses, sales commissions, performance compensation, and investments in staff. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Chief Executive Officer and Chair Michael Christenson said the company's top ATS priority has been to expand artificial-intelligence capabilities in its platform. Entravision continued to invest in product, engineering, infrastructure, sales and customer-service capacity during the quarter. “We’re very focused on generating operating leverage so that infrastructure costs will grow at a lower pace than revenue,” Christenson said. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Boelke said the company does not expect to repeat the same level of ATS performance in the final two quarters of 2026 and currently expects revenue to decline sequentially from the second to third quarter. Still, the company expects third- and fourth-quarter ATS revenue to grow more than 100% from the corresponding periods a year earlier. Management said its focus on winning larger clients could create quarterly variability because spending by major customers can materially affect results. Christenson declined to discuss individual customers or customer concentration beyond required SEC disclosures, citing competitive and business reasons. Entravision's Media segment generated $45.1 million in second-quarter revenue, down 1% from a year earlier. The decline primarily reflected lower broadcast advertising revenue and spectrum usage rights revenue, partly offset by higher digital advertising and retransmission-consent revenue. The Media segment reported an operating loss of $3.3 million, compared with operating profit of $0.4 million in the second quarter of 2025. The result improved from an operating loss of $5.2 million in the first quarter of 2026. Local advertising revenue rose 1% excluding political revenue, while national advertising revenue declined 19%. Monthly active local advertisers increased 3%, although revenue per monthly active advertiser decreased 1%. Media operating expenses increased $1.6 million, or 4%, from the prior-year quarter, primarily because of higher compensation costs. Christenson said the company has sought to fund growth initiatives through reductions in other expenses, including corporate costs, while continuing to invest in sales capacity and content production. The company's Media initiatives include expanding its local sales team, training sellers to market digital offerings such as search, social, streaming video and streaming audio, adding digital product specialists, increasing local news programming, and building a direct sales capability for political advertising. Entravision also has ongoing projects involving its LATV multicast television network and a partnership with Hemisphere Media Group for its WAPA Orlando station. “We are committed to growing our media business and earning a profit,” Christenson said, while acknowledging that the company has more work to do to improve the segment's operating performance and profitability. With 85 days remaining until election day, Christenson said Entravision is pursuing political advertising campaigns by emphasizing the importance of Latino voters. He identified nine races that management views as especially significant to the company's political revenue opportunity: The Texas U.S. Senate race; Governor races in California, Nevada and Texas; U.S. House races in Texas' 15th, 23rd, 28th and 34th districts; and Florida's 9th Congressional District. Christenson said Entravision's performance versus prior election years will depend on total spending in those races and the portion allocated to Spanish-language media. On the company's TelevisaUnivision affiliation agreement, Christenson said there was no update. The agreement runs through Dec. 31, 2026, and Entravision's goal is to renew it, he said. Entravision ended the quarter with more than $83 million in cash and marketable securities. During the quarter, it made a $5 million debt payment, reducing credit-facility indebtedness to about $158 million. The company paid $4.6 million in dividends during the second quarter, or $0.05 per share. Its board also approved a third-quarter dividend of $0.05 per share, payable Sept. 30, 2026, to shareholders of record as of Sept. 16, for a total expected payment of approximately $4.6 million. Boelke said the company's cash-allocation priorities are to reduce debt and maintain low leverage, followed by returning capital to shareholders primarily through dividends. Entravision Communications Corporation (NYSE: EVC) is a diversified Spanish-language media and advertising company headquartered in Santa Monica, California. The company develops and distributes multimedia content tailored to Hispanic audiences across the United States, leveraging a combination of traditional broadcasting and digital platforms to reach consumers and marketers seeking to engage this fast-growing demographic. In its broadcasting segment, Entravision owns and operates more than 50 television stations affiliated primarily with leading Spanish-language networks, as well as over 40 radio stations in key U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Entravision Communications Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Consolidated revenue growth of 126% was primarily driven by the Advertising Technology & Services (ATS) segment, which benefited from higher monthly active customers and increased revenue per customer. The Media segment experienced a 1% revenue decline, attributed to a 19% drop in national advertising revenue that offset a 1% gain in local advertising. Management is executing a Media turnaround focused on expanding the local sales team and training them to sell integrated digital marketing solutions like search, social, and streaming. Operational losses in Media reflect intentional investments in local news programming and direct sales capabilities for political campaign advertising. ATS segment profitability surged 673% as the company realized significant operating leverage, with revenue growth far outstripping the costs of infrastructure and AI technology investments. Strategic focus remains on building proprietary AI capabilities to improve ad tech platform performance and infrastructure efficiency. Management expects a sequential revenue decrease in the ATS segment from Q2 to Q3, though year-over-year growth is projected to remain above 100%. Future ATS results are expected to show increased variability as the company prioritizes winning larger clients whose spending patterns can fluctuate significantly. The company identified nine critical political races where the Latino vote is decisive, positioning these as primary drivers for second-half 2026 political revenue. Negotiations for the TelevisaUnivision affiliation renewal are ongoing ahead of the December 31, 2026 expiration, with management aiming to extend the 30-year partnership. Capital allocation will prioritize debt reduction and maintaining low leverage, followed by returning capital to shareholders via the $0.05 per share quarterly dividend. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Corporate expenses were reduced by 39% compared to Q2 2024, reflecting a multi-year effort to fund front-line sales and content investments through administrative efficiency. Infrastructure and cloud computing costs are expected to scale alongside ATS revenue growth, though management is targeting a lower growth rate for expenses than for top-line results. The Media segment's operating loss of $3.3 million was an improvement over the $5.2 million loss in Q1 2026, suggesting progress in expense alignment. Management declined to discuss individual customers or specific concentration levels beyond mandatory SEC disclosures for competitive reasons. Confirmed that winning larger customers is a top strategic priority, even though it introduces higher revenue variability into the ATS segment. Acknowledged that large client 'in and out' movements can have a meaningful impact on quarterly results given the current scale of the business.

BURBANK, Calif., August 10, 2026--(BUSINESS WIRE)--Entravision Communications Corporation (NYSE: EVC), a media and advertising technology company, today announced financial results for its second quarter ended June 30, 2026. "Net revenue in our Media segment decreased 1% in second quarter 2026 compared to second quarter 2025 due to lower broadcast advertising revenue and revenue from spectrum usage rights which were partially offset by an increase in digital advertising revenue and retransmission fees. Local advertising revenue increased 1% and national advertising revenue decreased 19%, excluding political revenue," said Michael Christenson, Chief Executive Officer. "Net revenue in our Advertising Technology & Services segment increased 230% in second quarter 2026 compared to second quarter 2025. The ATS segment had higher monthly active advertisers and higher revenue per monthly active advertiser. These results were driven by the investments in the AI capabilities of our platform and our expanded sales capacity." Mr. Christenson continued, "We repaid $5 million on our bank term loan in the second quarter of 2026, and we remain committed to reducing our debt and maintaining a strong balance sheet." Highlights Entravision reports its operating results for two segments. The Media segment provides video, audio and digital marketing services to local and national advertisers in the U.S. The Advertising Technology & Services ("ATS") segment provides programmatic advertising technology and services to advertisers and mobile app developers on a global basis. Consolidated net revenue increased 126% for second quarter 2026 compared to second quarter 2025, and increased 121% for six-month period ended June 30, 2026 compared to same period in 2025. Segment operating profit was $36.7 million for second quarter 2026, compared to operating profit of $5.5 million for second quarter 2025. Segment operating profit was $65.8 million for six-month period ended June 30, 2026 compared to operating profit of $9.4 million for six-month period ended June 30, 2025. Corporate expenses increased 3% for second quarter 2026 compared to second quarter 2025, primarily due an increase in non-cash stock-based compensation. Corporate expenses decreased 3% for six-month period ended June 30, 2026 compared to same period in 2025, primarily due to a decrease in audit fees and other professional services, partially offset by an increase in non-cash stock-based compensation. The company made a $5.0 million scheduled debt payment and paid a dividend of $4.6 million in second quarter 2026. The company had $83.4 million in cash and cash equivalents and marketable securities and $157.3 million of long-term debt and current maturities of long-term debt as of June 30, 2026. Entravision’s board of directors approved a quarterly cash dividend to shareholders of $0.05 per share on the company's Class A and Class U common stock. The dividend is payable on September 30, 2026 to shareholders of record as of the close of business on September 16, 2026. Notice of Conference Call Entravision will host a webinar to discuss its second quarter 2026 results on Monday, August 10, 2026 at 5:00 p.m. Eastern Time. The webinar may be accessed on company’s Investor Relations website at investor.entravision.com or via webinar registration. The webinar will also be archived on the company’s Investor Relations website under the Events section. About Entravision Entravision is a media and advertising technology company. In the U.S., we provide video, audio and digital marketing services to local and national advertisers through a portfolio of television and radio stations and digital advertising services that target Latino audiences. Our advertising technology business provides programmatic advertising technology and services to advertisers and app developers on a global basis. Entravision is the largest affiliate group of the Univision and UniMás television networks. The term "Entravision" as used in this press release refers to Entravision Communications Corporation. Shares of Entravision Class A Common Stock trade on the NYSE under the ticker: EVC. Learn more about us at entravision.com. Forward-Looking Statements This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the Securities and Exchange Commission. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810700855/en/ Contacts For more information, please contact:Mark BoelkeChief Financial Officer and Chief Operating [email protected] Roy NirVP, Financial Reporting and Investor [email protected]

Consolidated results: Revenue rose 114% to $197 million in 1Q 2026 and the company swung to operating income of about $21 million versus a loss a year earlier, with ATS as the primary driver. ATS segment: ATS revenue more than tripled to roughly $155 million (up ~204% YoY) and operating profit jumped to $34 million (up ~427%), as revenue growth outpaced higher cloud, commission and personnel costs while the company expands AI and sales capabilities. Media segment and initiatives: Media revenue was up 4% to $42.4 million but the operating loss widened to about $5 million due to higher digital costs; early-stage projects like Altavision and WAPA Orlando currently incur expenses with no significant incremental revenue, alongside restructuring actions to cut costs. Interested in Entravision Communications Corporation? Here are five stocks we like better. Entravision Communications (NYSE:EVC) reported sharply higher consolidated revenue in the first quarter of 2026, driven primarily by rapid growth in its Advertising Technology and Services (ATS) segment, while its Media segment posted a wider operating loss amid continued investment and higher costs tied to digital revenue. Chief Executive Officer Michael Christenson said consolidated revenue increased 114% to $197 million in 1Q 2026 compared to 1Q 2025. The company reported operating income of $21 million in the quarter, versus an operating loss in the prior-year period. Chief Financial Officer and Chief Operating Officer Mark Boelke later said consolidated operating income was $20.7 million in 1Q 2026, compared with an operating loss of $52.8 million in 1Q 2025. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Boelke said the two operating segments together generated consolidated segment operating profit of $29.1 million in 1Q 2026, up from $3.9 million in 1Q 2025, with ATS gains partially offset by weaker Media profitability. In the Media segment, Boelke reported revenue of $42.4 million, up 4% year over year. Christenson said the increase was “primarily due to higher digital advertising revenue and retransmission fees,” partially offset by lower broadcast advertising revenue and lower revenue from spectrum usage rights. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Christenson broke out advertising trends within Media, noting a 6% increase in local advertising revenue and an 18% decrease in national advertising revenue, excluding political revenue. He explained that local advertising is generated by Entravision’s local sellers across broadcast and digital marketing solutions, while national advertising is sold primarily through partners including TelevisaUnivision. Christenson said local advertising operations showed “4% higher monthly active advertisers” and a “2% increase in revenue per monthly active advertiser,” adding that the company’s operational priorities are to grow both monthly active advertisers and revenue per monthly active advertiser. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? On profitability, Media operating expenses increased by about $2 million year over year, and the segment posted an operating loss of $5 million in 1Q 2026 versus an operating loss of $3 million in 1Q 2025, according to Christenson. Boelke provided additional detail, saying Media segment total operating expense rose $2.1 million, or 6%, and the operating loss widened to $5.2 million from $2.6 million. He attributed the change mainly to higher cost of revenue “associated with the increase in digital advertising revenue” in the Media segment. Boelke also said the company is executing an organizational design plan begun in the third quarter of 2025 “intended to support revenue growth and reduce expenses” in Media. He listed actions including workforce reductions, reductions in professional expenses, and abandonment of several leased facilities. Entravision recorded a $1 million charge in the quarter related to these steps, reported as restructuring costs. Christenson highlighted two media initiatives aimed at generating incremental revenue, though he emphasized both remain early-stage and are not yet contributing significant incremental revenue. Altavision: Entravision is broadcasting a new network called Altavision on multicast capacity across its markets. Entravision produces the local news, provides sales and broadcasting infrastructure, and shares revenue with programming partner Grupo Multimedios of Monterrey, Mexico. Christenson said the initiative currently carries operating expenses but “no significant incremental revenue.” WAPA Orlando Channel 26: The company launched new programming on its full-power Orlando television station, WOTF-TV, in partnership with Hemisphere Media. Christenson said the launch is designed to serve Puerto Rican, Caribbean, Central and South American Spanish-speaking communities in Central Florida, noting that more than 500,000 Puerto Ricans live in the Orlando market. As with Altavision, he said the effort currently has operating expenses but “no significant incremental revenue.” Christenson also pointed to media investments made in 2025 and continued into 1Q 2026, including adding capacity to local sales teams, adding digital sales specialists, and expanding digital sales operations capabilities. He said the company believes it can serve local advertisers’ digital needs across “search, social, streaming video, and streaming audio,” alongside its traditional broadcast channels. Christenson said the company is “committed to growing our business and earning a profit” in Media, while acknowledging “we have more work to do to improve our operating performance and profitability.” He cited a new leadership team announced in March: Maria Martinez-Guzman, President of Entravision Media; Eduardo Maytorena, President of Entravision Audio; and Winter Horton, Chief Revenue Officer. ATS was the primary driver of the company’s consolidated growth. Christenson said ATS revenue was $155 million in 1Q 2026, up from $51 million in 1Q 2025, supported by more monthly active customers and higher revenue per monthly active customer. Boelke reported ATS revenue of $154.6 million, up 204% year over year and up 74% sequentially from 4Q 2025. He said the segment benefited from both a higher number of monthly active accounts and higher revenue per monthly active account, and noted continued execution on strategies including strengthening AI capabilities in the technology platform and expanding the sales team and geographic coverage. ATS operating expenses increased 72% year over year, up $9.8 million, which Boelke said was primarily related to the rise in revenue. He cited higher cloud computing costs associated with processing more transactions and using “stronger AI capabilities,” as well as higher commissions and performance compensation tied to revenue growth and performance metrics. He also said the business has hired additional sales, engineering, and ad operations staff in recent quarters. Despite the expense growth, profitability rose sharply. Christenson said ATS operating profit was $34 million in 1Q 2026 compared to $7 million in 1Q 2025. Boelke reported ATS operating profit of $34.3 million, up 427% year over year and up 178% sequentially, and said the segment’s revenue growth exceeded expense growth in both percentage and absolute dollars, supporting operating leverage. Boelke said corporate expenses were $7.2 million in 1Q 2026, down 8% year over year, primarily due to reductions in professional services and rent. He added that, compared with 1Q 2024, corporate expense in 1Q 2026 was 41% lower. On liquidity, Boelke said the company ended the quarter with more than $71 million in cash and marketable securities. He said the company’s cash allocation priorities are to reduce debt and maintain low leverage, and then return capital to shareholders “primarily through dividends.” Entravision made a $5 million debt payment in the quarter, reducing credit facility indebtedness to about $163 million at quarter-end, Boelke said. The company also paid $4.6 million in dividends, or $0.05 per share, in 1Q 2026. Boelke said the board approved a $0.05 per share dividend for the second quarter, payable June 30, 2026 to stockholders of record as of June 16, for an expected total payment of approximately $4.6 million. During the Q&A, Christenson discussed political advertising, saying the company is positioning itself for a “strong political and spending environment in 2026.” He pointed to major races in Entravision’s markets, including governor races in California, Nevada, and Texas, as well as the Texas U.S. Senate race and “at least seven critical contested House races.” Asked about negotiations with TelevisaUnivision on the affiliation agreement, Christenson said there was “no new news” and noted the agreement runs through Dec. 31, 2026. “We’ve been partners for three decades, and our plan is to renew this agreement,” he said, adding there was no update at this time. Entravision Communications Corporation (NYSE: EVC) is a diversified Spanish-language media and advertising company headquartered in Santa Monica, California. The company develops and distributes multimedia content tailored to Hispanic audiences across the United States, leveraging a combination of traditional broadcasting and digital platforms to reach consumers and marketers seeking to engage this fast-growing demographic. In its broadcasting segment, Entravision owns and operates more than 50 television stations affiliated primarily with leading Spanish-language networks, as well as over 40 radio stations in key U.S. The article "Entravision Communications Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Tuesday, May 5, 2026 at 4:30 p.m. ET Chief Executive Officer — Michael Christenson Chief Financial Officer — Mark A. Boelke Head of Investor Relations — Roy Nir Need a quote from a Motley Fool analyst? Email [email protected] Michael Christenson: Thanks, Roy. And thank you to those of you joining this call today. We appreciate your interest in Entravision Communications Corporation and your support. As you saw in our press release, on a consolidated basis, Entravision Communications Corporation revenue increased 114% to $197 million in Q1 2026 compared to Q1 2025. We had operating income of $21 million in Q1 2026 compared to an operating loss in Q1 2025. We report our results for two segments, Media and Advertising Technology and Services, which we call ATS. This is the first quarter of our third year with this segment reporting. As you may know, we started in 2024. For our Media segment, revenue increased 4% in Q1 2026 compared to Q1 2025. This increase was primarily due to higher digital advertising revenue and retransmission fees. This was partially offset by lower broadcast advertising revenue and lower revenue from spectrum usage rights. Our Q1 2026 results included a 6% increase in local advertising revenue and an 18% decrease in national advertising revenue. These numbers exclude political revenue. Local advertising revenue is from our sellers working with local advertisers. They sell broadcast and digital marketing solutions. National advertising revenue is from our partners, primarily TelevisaUnivision, selling our broadcast to national advertisers and agencies. Our local advertising operations had 4% higher monthly active advertisers in Q1 2026 compared to Q1 2025, and a 2% increase in revenue per monthly active advertiser. Our operational priorities are to grow monthly active advertisers and revenue per monthly active advertiser. In terms of operating expenses and profitability, as we have discussed in the past, we made a number of important investments in our Media business in 2025 that we continued into Q1 2026. We added capacity to our local sales teams—more sellers—and we added digital sales specialists and digital sales operations capabilities. More digital. When we analyzed our local markets and our local advertiser base, we saw an opportunity to increase revenue by adding sales capacity. All of our local advertising customers are advertising in digital channels—search, social, streaming video, and streaming audio—and we believe we can serve their needs in those digital channels as well as our traditional broadcast video and audio channels. As we discussed in our fourth quarter report, we have two other important initiatives underway to generate incremental revenue. We are broadcasting a new network on our multicast capacity called Altavision across all of our markets. We produce the local news for Altavision, and we provide the sales and the broadcasting infrastructure. The balance of the programming is currently provided by Grupo Multimedios from Monterrey, Mexico, and we share the revenue. It is still early in the development of Altavision, so we have operating expenses but no significant incremental revenue. In addition, at the beginning of this year, we launched new programming on our full-power Orlando television station WOTF-TV, in partnership with Hemisphere Media. Hemisphere owns WAPA-TV, the number one television station in Puerto Rico. We launched WAPA Orlando channel 26 to serve the large and growing Puerto Rican, Caribbean, Central, and South American Spanish-speaking communities in Central Florida. More than 500 thousand Puerto Ricans live in the Orlando market, and we are very excited about this new revenue opportunity. Again, since it is early in the development of WAPA Orlando, we have operating expenses but no significant incremental revenue. Pulling this all together, in our Media segment, operating expenses increased $2 million in Q1 2026 compared to Q1 2025, so we had an operating loss of $5 million in Q1 2026 compared to an operating loss of $3 million in Q1 2025. As we discussed on prior calls, we are committed to growing our business and earning a profit. So we acknowledge that we have more work to do to improve our operating performance and profitability in our Media business. The new leadership team that we announced in March is evidence of this commitment: Maria Martinez Guzman, President of Entravision Media; Eduardo Meitorrena, President of Entravision Audio; and Winter Horton, our new Chief Revenue Officer. These new leaders are aligned on our core objectives: serve our audience as a trusted source of news, information, and entertainment, and serve our advertisers by connecting them with our audience. This team is committed to growing revenue and earning a profit. Now for our Advertising Technology and Services segment. ATS revenue was $155 million in Q1 2026 compared to $51 million in Q1 2025. We had more monthly active customers and more revenue per monthly active customer. We continued to invest in our ATS segment in Q1 2026 to grow revenue and operating profits. We invested in our engineering team to continue to improve our technology and build more powerful AI capabilities into our platform. And we invested to increase the capacity of our sales and customer service organizations. In addition, our infrastructure costs continue to grow as our revenue grows, but we are beginning to see operating leverage with infrastructure costs growing at a slower pace than revenue. The combination of these investments in ATS increased operating expenses by $10 million in Q1 2026 compared to Q1 2025, or $40 million on an annualized basis. Operating profit for ATS was $34 million in Q1 2026 compared to $7 million in Q1 2025. So to summarize, in Media, we are investing to increase our local sales capacity and to expand our digital sales and digital sales operations capabilities—more sellers and more digital. In ATS, we are investing to add more engineers to advance our technology and to increase our sales and customer service capacity—more technology, better technology, more selling. We believe these investments will help us build a stronger company. I will now turn the call over to Mark A. Boelke to share more details of our financial results for Q1 2026. Mark? Mark A. Boelke: Thank you, Mike. I will start by reviewing the performance of each of our two reporting segments—again, Media and Advertising Technology and Services. In our Media segment, first quarter revenue was $42.4 million, which was up 4% compared to first quarter 2025. This increase was primarily due to increases in digital advertising revenue and retransmission consent revenue, partially offset by decreases in broadcast advertising revenue and spectrum usage rights revenue. We have undertaken initiatives focused on increasing our Media advertising revenue, and we are seeing momentum and progress in the execution of these initiatives, particularly in local ad sales and digital ad sales. Let us look at total operating expense for the Media business—that is the sum of direct operating expenses plus selling, general, and administrative expenses as those two line items are reported in our segment results. Media segment total operating expense in the first quarter increased $2.1 million compared to first quarter 2025, an increase of 6%. One of our goals in the Media segment is to optimize organizational structure and expenses to be aligned with revenue and to generate profit, as Mike noted. We continue to work on achieving this goal, and we have taken steps under an ongoing organizational design plan begun in Q3 2025 intended to support revenue growth and reduce expenses in our Media segment. Key components of this plan have included a reduction in our Media business workforce, reduction in professional expenses, and the abandonment of several leased facilities. We recorded a charge during the first quarter totaling $1 million for the expenses associated with moves under this plan, and these charges were reported as restructuring costs on our income statement. The Media segment had an operating loss of $5.2 million in Q1 2026 compared to an operating loss of $2.6 million in Q1 2025. The decrease was mainly due to higher cost of revenue associated with the increase in digital advertising revenue in our Media segment. We remain focused on providing compelling content, growing revenue, streamlining our organization, and reducing operating expenses during 2026 and beyond. At this time, I will turn to our Ad Tech and Services segment, or ATS. First quarter revenue for the ATS business was $154.6 million, an increase of 204% compared to first quarter 2025, and a sequential increase of 74% from fourth quarter 2025. We had a higher number of monthly active accounts and higher revenue per monthly active account. As discussed on previous calls and as Mike noted earlier, we have had success executing our strategies in the ATS business, including strengthening the AI capabilities that are part of our technology platform and expanding the ATS sales team and geographic sales coverage. ATS total operating expenses increased 72% in the first quarter 2026 compared to first quarter 2025, an increase of $9.8 million. The ATS expense increase was primarily related to the increase in revenue. For example, the expense of cloud computing services has increased as a result of processing more transactions and using stronger AI capabilities in the ad tech platform. There was an increase in sales commissions and performance compensation as a result of the revenue increase and achievement of other performance metrics. And the ATS business has also hired additional sales, engineering, and ad operations staff in recent quarters in order to drive ATS growth and expand into new geographic territories. One of our goals for the ATS business is to continue to grow revenue and generate positive operating leverage, and the ATS revenue increase exceeded the expense increase in terms of percentage and absolute dollars. Operating profit for the ATS segment was $34.3 million in Q1 2026. This was an increase of 427% versus Q1 2025, and a sequential increase of 178% from the prior quarter, Q4 2025. Combining our two operating segments, on a consolidated basis, revenue for first quarter 2026 was $197 million, up 114% compared to first quarter 2025. The two segments together generated a consolidated segment operating profit of $29.1 million in Q1 2026 compared to $3.9 million in Q1 2025. The increase was a result of operating profit in the ATS segment partially offset by a decreased operating profit in the Media segment. We had consolidated operating income of $20.7 million in Q1 2026 compared to an operating loss of $52.8 million in Q1 2025. Corporate expenses in first quarter 2026 were $7.2 million, an 8% decrease compared to first quarter 2025, or about $600 thousand. The decrease was primarily due to expense reductions in professional services and rent. We have taken significant steps to reduce corporate expenses over the past few years, and for additional context, looking back one additional year to 2024, corporate expense in 2026 was 41% lower than corporate expense in 2024. Entravision Communications Corporation’s balance sheet remains strong, with over $71 million in cash and marketable securities at the end of first quarter 2026. We are proud of our strong balance sheet, which we believe sets us apart from others in the industry. Our strategy regarding allocation of cash is, first, reduce debt and maintain low leverage, and second, return capital to our shareholders, primarily through dividends. In first quarter 2026, we made a debt payment of $5 million, reducing our credit facility indebtedness to about $163 million at the end of first quarter 2026. We remain committed to reducing our debt and maintaining a strong balance sheet. In addition, we paid $4.6 million in dividends to stockholders in the first quarter, or $0.05 per share. For 2026, our Board of Directors has approved a $0.05 dividend per share, payable on June 30, 2026, to stockholders of record as of June 16, 2026, for a total payment of approximately $4.6 million. I would like to thank you all for joining our call today. At this time, Mike and I would like to open the call for questions from the investment community. Roy, I will turn it back over to you. Roy Nir: Thank you, Mark. We will now open the call for questions. As a reminder, if you have a question, please use the Q&A function and submit your question. Please hold as we review questions. Mike, the first question is regarding the outlook for political revenue in 2026. Any updates since the last call that you can provide? Michael Christenson: Yes. Thanks, Roy. I guess next quarter, we will put political comments in the prepared remarks. We are 182 days away from Election Day 2026. As everyone knows, primaries are underway across the country, and we are positioning ourselves for a strong political spending environment in 2026. For Entravision Communications Corporation, we have big races in our markets—governor races in Nevada and Texas. Those are the three biggest governor races for us, but we have some others. Then we have the Texas U.S. Senate race, and we have at least seven critical contested House races. So we will be busy this year focusing on political revenue. As everyone knows, this will be one of the most consequential congressional elections in our lifetime. We believe that the Latino vote will be critical to the outcome of all these elections. Studies we have shared with our clients and that studies have shown that Latinos are the most persuadable segment of the electorate, and we have a powerful channel for reaching that audience. So political will be an increasing focus for us as we go through the rest of this year. Roy Nir: Thank you, Mike. The next question we received was related to the status of the negotiations with TU and the affiliation agreement. Can you provide any update on that? Michael Christenson: No new news on the affiliation agreement for this call. This affiliation agreement runs through December 31, 2026, so we have time. We have been partners for three decades, and our plan is to renew this agreement, but there is no news on that at this time. Roy Nir: Thank you, Mike. Again, please hold as we review any potential questions. At this time, we do not have any additional questions. We would like to thank you all for joining our call today. We welcome our investors to connect with us through the Investor Relations page on our corporate website, entravision.com, where you will have access to a transcript of this call, the press release containing our first quarter financial results, and a copy of our Quarterly Report filed with the SEC on Form 10-Q. We look forward to speaking with you again when we report our second quarter results. Thank you very much. You may now disconnect. Before you buy stock in Entravision Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Entravision Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $490,864!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,789!* Now, it’s worth noting Stock Advisor’s total average return is 963% — a market-crushing outperformance compared to 201% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 5, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Entravision (EVC) Q1 2026 Earnings Transcript was originally published by The Motley Fool

The Advertising Technology and Services (ATS) segment drove consolidated growth, benefiting from increased monthly active accounts and higher revenue per customer. Media segment performance was characterized by a shift toward digital advertising and retransmission fees, which helped offset declines in traditional national and broadcast advertising. Management attributed Media segment operating losses to deliberate investments in local sales capacity and digital operations to capture search, social, and streaming demand. The company is pivoting its Media strategy toward high-growth Hispanic markets, exemplified by the launch of WAPA Orlando to serve the expanding Puerto Rican and Caribbean communities. Operational leverage is beginning to materialize in the ATS segment as infrastructure costs, while growing, are now increasing at a slower pace than revenue. A new leadership team was installed in March 2026 to specifically address Media segment profitability and align organizational structure with revenue opportunities. Management expects a significant political revenue tailwind in the latter half of 2026, focusing on three major governor races including Nevada and Texas, the Texas U.S. Senate race, and at least seven critical House races. The company is positioning its audience as the 'most persuadable segment' of the electorate to capture high-stakes congressional campaign spending. Ongoing development of the Altavision multicast network and WAPA Orlando is expected to transition from an expense-heavy phase to incremental revenue generation. Capital allocation priorities remain focused on debt reduction and maintaining a consistent dividend policy to preserve a strong balance sheet relative to industry peers. The company intends to renew its long-standing affiliation agreement with TelevisaUnivision before its expiration on December 31, 2026. A $1 million restructuring charge was recorded in Q1 2026 related to workforce reductions and the abandonment of leased facilities under an organizational design plan. Corporate expenses were reduced by 41% compared to 2024 levels, reflecting a multi-year effort to streamline professional services and rent costs. Increased cloud computing and AI infrastructure costs are noted as a necessary variable expense tied directly to the scaling of the ATS platform. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is positioning for a strong environment driven by governor races in Nevada and Texas and at least seven contested House seats. The strategy relies on the thesis that the Latino vote is the most persuadable segment, making Entravision's channels critical for campaign reach. Management stated there is 'no new news' regarding the renewal, noting the current agreement does not expire until December 31, 2026. The company expressed a clear intent to renew the partnership, citing a three-decade history with the partner. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.