MNTN

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET Chief Executive Officer - Mark Douglas Chief Financial Officer - Patrick Pohlen Need a quote from a Motley Fool analyst? Email [email protected] Operator: Hello and welcome to the MNTN Second Quarter 2026 Results Webcast. [Operator Instructions] I will now hand the conference over to Brinlea Johnson. Please go ahead. Brinlea Johnson: Good afternoon. Thank you for joining us for MNTN's Second Quarter 2026 Earnings Call. With me today is Mark Douglas, CEO, and Patrick Pohlen, CFO. Just to remind everyone, today's call includes forward-looking statements that are subject to risks and uncertainties, and actual results could materially differ from those anticipated in these forward-looking statements. For the risks and uncertainties that may affect future results, please see our most recently filed periodic report, which is also available on our website. We will also discuss non-GAAP financial measures on today's call. Reconciliations of these measures are available in our earnings materials on our website. With that, I'll turn the call over to Mark. Mark Douglas: Thank you for joining us today. MNTN delivered a strong second quarter with revenue of $82.5 million, representing 21% year-over-year growth, and adjusted EBITDA of $21.5 million, representing 48% year-over-year growth. Both of these metrics finished at the high end of our guidance. We're pleased with the quarter and are reiterating our 2026 full year outlook. Before I get into the details, I want to talk about our strategy. Performance TV is about giving businesses that historically haven't had access to television, a way to reach specific consumers across premium streaming inventory and measure whether that advertising is driving revenue. MNTN created this category, and now we're seeing Performance TV move from an early adopter market toward a mainstream part of the marketing mix. To capture that move, MNTN began expanding our sales organization in Q4 2025, strengthening our leadership in sales and increasing our investment in marketing. For the next stage of growth, MNTN is focused on 3 main priorities: expanding our products and continuing to invest in AI, broadening access to premium television, and strengthening our go-to-market organization. This isn't a change in strategy or new story for MNTN. It's the same opportunity we've been building towards over the past year, now with products and go-to-market structure ready to execute at greater scale. Turning to our product suite, I've said many times that half of the company's headcount is in engineering, and they've been building products. We released new versions of MNTN's Performance TV platform that create distinct versions for small business, mid-market, and upper mid-market. We found that different sized businesses need different levels of features and complexity, so we've divided the platform into 3 main tiers: Express, Pro, and Premium. MNTN Express was launched on April 1. Express is specifically built for small business distinct from mid-size advertisers. Brands can get live in minutes and do so from any device. We've had over 7,000 signups for Express in the first 120 days since we launched. Importantly, hundreds of those signups have become paying customers, and momentum continues. The revenue contribution from Express is small today in comparison to MNTN's overall business, but it's growing quickly and I believe will be a meaningful contributor to growth as we enter 2027. For mid-sized customers, we've added significant agentic AI technology into the platform that gives our customers even more automation and more performance. We surround them with AI tech to give our customers control of the daily decision-making. We're leveraging AI across the organization, especially within engineering, where we're AI-native, using AI to build faster while embedding AI throughout our product suite. We've talked about QuickFrame AI a number of times and its importance for enabling the SMB opportunity in Connected TV. QuickFrame AI is doing exactly what we planned: lowering creative barriers, increasing launch rates, and making it easier for businesses to create television-ready advertising. We've had over 37,000 QuickFrame AI signups in Q2, bringing us to over 73,000 signups year-to-date. We're seeing an incredibly diverse set of businesses across retail, financial services, health care, technology, education, and many other industries successfully leverage the technology to create their ads. There is broad interest in AI creative, and it's critical for Performance TV. We've always believed that MNTN customers should have access to and the ability to specify ad placement alongside the same premium television inventory as the world's largest brands. In January this year, we doubled down on premium inventory as part of our platform. Today, our customers have the ability to insert their ads alongside nearly every major sports league, in addition to the premium streaming shows on our network of partners. As a result of that focus on super premium content, we have many customers who advertise during the FIFA World Cup games, March Madness, and on MLB, NBA, NHL, and soon the NFL. For the first time, any size business can consistently get guaranteed access to television's biggest moments and make that part of their ad strategy. To fuel the growth of new customers, we are strengthening our go-to-market organization. The first half of this year has been focused on construction with additional leadership adding sales, marketing, and business development. We built vertical teams that understand the economics, objectives, creative needs, and customer acquisition dynamics of specific industries. That knowledge makes our sales process and the customer experience more effective. In summary, we expect the benefits of our strategic investments to contribute to stronger growth in the second half of the year and meaningfully in 2027 as the core business accelerates, complemented by new revenue streams from Express and Premium. Our focus remains simple: help more businesses advertise on television than ever before, while continuing to grow efficiently, profitably, and strengthen the category we created. Now, I'll turn it over to Patrick. Patrick Pohlen: Thank you, Mark. We reported strong second quarter results exceeding the midpoint of both our revenue and adjusted EBITDA guidance. Our solid performance reflects continued customer adoption of Performance TV, particularly by companies that had not previously advertised on television. Our second quarter revenue increased to $82.5 million, up 21% year-over-year. Second quarter gross margins improved to 80%, up 350 basis points over the prior year period. As you can see from the table in our earnings release, at the end of the second quarter, we had 4,225 active PTV customers when measured over their trailing 12 months. On a year-over-year basis, this represents growth of approximately 40%. As a reminder, the number of active PTV customers we add to the platform is largely within our control and is primarily driven by how aggressively we choose to invest in sales and marketing. We continually assess and calibrate that approach to ensure that we are onboarding customers with a strong product-market fit and a high probability of succeeding on our platform. As we adjust the pace of that expansion over time, the number of customers added is expected to fluctuate from quarter to quarter. Our expansion rate, which measures the spend of our current customers as compared to those same customers' spend a year ago, remains quite healthy and is still well north of 115%, further demonstrating that when our customers achieve their desired returns on advertising spend, they continue to increase their budgets with us. Total operating expenses for the second quarter were $59.2 million. For the second quarter, we achieved positive net income of $6.7 million for a GAAP EPS of $0.09. Adjusted EBITDA for the quarter increased to $21.5 million, up from $14.5 million in Q2 of 2025, an increase of 48%. The company's adjusted EBITDA margin grew to 26.1%, up 490 basis points compared to 21.2% in Q2 of 2025. The improvement reflects the combination of higher revenue and expanding gross margins, further underscoring the operating leverage built into our business model. While we remain focused on steadily improving profitability over time, our top priority continues to be investing behind growth rather than optimizing near-term adjusted EBITDA margins. To capitalize on this significant opportunity in this early-stage market, we plan on continuing to make disciplined but aggressive investments in sales and marketing to drive broader customer adoption. Our balance sheet remains strong, and we entered the quarter at $237.3 million in cash and cash equivalents with no borrowings outstanding. We ended the quarter with 74.2 million shares outstanding. As of August 3, 2026, MNTN's board of directors has authorized a stock repurchase program of up to $100 million worth of its Class A common stock through August 5, 2027. We think the stock represents a compelling value, and we believe this action signals our confidence in the company's long-term trajectory and further solidifies our commitment to providing value to our shareholders. Looking ahead, we remain confident in our momentum and the underlying health of our business as we progress through 2026 and beyond. For Q3 2026, we expect revenue to be between $86 million and $89 million, representing 25% year-over-year growth at the midpoint of $87.5 million. We expect adjusted EBITDA to be between $22 million and $25 million, reflecting continued leverage as we scale the business while continuing to remain disciplined in our investments. For the full year 2026, we are reiterating our revenue guidance range of $347 million to $357 million, representing over 24% year-over-year growth at the midpoint of $352 million, excluding the impact of the Maximum Effort divestiture. We also continue to expect adjusted EBITDA to be between $96 million and $101 million. To wrap up, we delivered another solid quarter and believe MNTN will continue to gain market share in the massive performance television market. We are confident that our future growth initiatives and the strength of our operating model will position MNTN to drive continued growth and profitability. With that, we'll open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Shyam Patil with Susquehanna. Shyam Patil: I had a couple of questions for you, Mark. In your prepared remarks, you talked about the go-to-market investments, and you talked about Express and Premium and the impact that you expect to see. I'm wondering if you could just talk a little bit more about this and just -- how you think about the impact of revenue growth over the course of this year and next year. And then second question, there's been some consolidation in the industry recently. I was wondering if you could just talk about this and perhaps what kind of impact it could be having on the PTV opportunity and just kind of any opportunities that it may be creating for you guys? Mark Douglas: Thanks, Shyam. I'll take both of those questions. So I think the first one is about Express and Premium and the impact this year and next year. So as I said in the opening remarks, we really felt that we needed to create versions of our product that were -- just like we were purpose-built for the overall SMB market and we were purpose-built for the different segments or the different tiers. So -- and that each tier, meaning small business, mid-size, and larger, they had unique -- similar needs in the overall need for Performance Television, but unique needs in terms of usability. So we are really confident and really happy with where we've delivered on that, especially with small business. That's something we've been focused on for a while, and we're happy to see the adoption. In terms of the impact this year and next year, they're definitely contributing. I think for next year, we see a really big opportunity because they're small now, but growing very quickly. I think you should look to 2027 to really start to see the larger impact coming from these 2 segments of the overall SMB opportunity. In terms of your question about the consolidation in the industry, the impact on the CTV opportunity, obviously, we're seeing that too. We're purpose-built for the SMB portion of that market. We believe we're very differentiated. We can essentially establish that created the concept of Performance TV and using streaming for small and mid-sized businesses. So kind of the validation that it's providing us. We think that some of the consolidation you're seeing is providing, we think, has really validated the opportunity. In terms of specific impact for us, it's just making the market even more aware of the opportunity here and I think creating even more green space for MNTN to execute. So we're pretty pleased with the -- essentially the consolidation that is occurring, and the larger opportunity and the greater green space that creates for the company. Operator: Your next question comes from the line of Andrew Boone with Citizens. Your line is open. Please go ahead. Andrew Boone: I wanted to also ask on SMB. If we think about the go-to-market strategy for SMB and the difference of that versus kind of a mid-market customer, is there any change that we should expect for sales, marketing, or any other aspects of kind of the organizational strategy or cost structure that we should be thinking about with this change? And then, Mark, just a big picture question. You mentioned sports in your prepared remarks. Can you just talk about the benefit of the World Cup? What did that bring for you guys in the quarter? And then talk about the sports opportunity more largely. Understood that's always been a draw, but how has that changed the conversation? Mark Douglas: Sure. Happy to answer those. So in terms of go-to-market for SMB, we've been very focused since we talked about in Q4 of last year the expansion of the sales team. And I think last quarter, we talked about continued investment in marketing. And so those -- and I talked today about kind of those themes. And so we think the opportunity here, the key thing is that we created an early adopter market. That market is now becoming mainstream. I mean by that, that more and more companies though previously had no access to television as a medium. And remember, television is the biggest entertainment medium in the world, meaning more people watch TV in a day than use social media than you can essentially do any other activity. And that was entirely cut off from the SMB market. And so the -- and so as we're seeing more companies know that they can be on TV and almost start to expect to be on TV, we wanted to invest more in sales and marketing in order to make sure we capture more of that opportunity. We did that by strengthening our leadership, by investing more in marketing and by -- and in terms of our own marketing, we've traditionally leveraged the MNTN platform for a lot of our marketing, meaning we stream TV ads in the homes of our future customers. We also use social media. And so there's an interesting dynamic in performance marketing that everyone uses each other's platforms. So they can uncover customers wherever they are. And so we're doing the same. For Express customers, meaning our smallest customers, we again lean on our own platform, we lean on social. For mid-market, it's pretty much the same. The investment is a little different, but the techniques are the same. And so we're really pleased with how that's going and we expect to continue to expand our investment there. In terms of sports, the reason sports, and it's not just sports, it's like reality television, it's home improvement. We want to give our customers -- when you think of sports, the advertisers have to -- like for something like the World Cup, they have to be named and approved by the World Cup. So to start to be able to get small and mid-sized businesses into those level -- that level of sporting events took a lot of partnership conversations with some of the biggest media companies in the world who get the sports rights for these leagues and for these major events. And we were able to do that. The benefit to our customers is that inventory performs really well. There's often more than one person in front of the TV. There can be many people watching like a World Cup game or an NFL game or something like that. So you have an interesting dynamic in terms of performance. And I also think it validates MNTN as the market leader in this space, that we're not just -- yes, we're not putting our customers on remnant inventory. They're going on the best content in television to get the best performance in Performance Television. And so that's why it's so important to us. I think our customers are seeing it as a differentiator, and we're really pleased with that. Operator: Your next question comes from the line of Robert Coolbrith with Evercore ISI. Your line is open. Please go ahead. Robert Coolbrith: I just wanted to ask on QuickFrame AI. We had sort of formerly thought of that as just enabling technology. But just given this very strong early traction that you're seeing, I wanted to ask you on a couple of 3 topics related to that. Number one, if you could talk about -- are you thinking about this now as a standalone opportunity? We've certainly seen some other entrants in this space grow very large businesses very quickly, really just within the past few months. Is that part of the ambition here, given what you're seeing early? Secondly, I wanted to ask a little bit about the gross margin profile of that product. Anything you could tell us there? And then third, maybe also the funnel that QuickFrame AI can create for the core PTV business, given the amount of sign ups that are coming in. Are you seeing an ability to cross-sell or attach PTV once people have their creatives up and running? Mark Douglas: Sure. So I'll take those on one at a time. So in terms of standalone opportunity, it was always my belief that we had to create -- build QuickFrame AI not just to be a feature of the MNTN Performance TV platform, but to be successful in its own right. The importance of that is unless you do that, at some point you wouldn't be keeping up in terms of feature functionality if we didn't build it so that people saw value in it separate from Performance TV. So the QuickFrame product supports MNTN Performance TV, it supports YouTube ads, it supports social ads, all of those. So it's certainly a standalone opportunity in terms of usage of the product. In terms of monetization of the product, we're looking at that. There's obviously some opportunity there, but at this moment, we're making it available at no charge. And -- but we are closely looking at usage and essentially engagement on the product to make sure people are really actively using it and essentially getting value from it. So stay tuned on that. In terms of gross margin, there are some gross margin costs, but the overall effect to the business is pretty neutral because we're able to continue to get basically gross margin improved efficiency in our overall hosting environment in particular, which makes room for our use of all of the AI models that QuickFrame AI orchestrates in order to create TV quality, YouTube quality, and social quality ads. So it's essentially gross margin neutral. And then the funnel for core PTV, the answer is yes. The people we're bringing in on QuickFrame, that creates an opportunity for them to learn about Performance TV. One thing to keep in mind, though, is that a lot of the QuickFrame users are creators. They're not necessarily the marketers. So it creates a cross-sell opportunity to make -- so that if that creator is using QuickFrame and maybe they were creating something for social, they're now aware that, wait, I can create this asset for TV also. And I think often it's fun for them because they haven't ever created a TV ad. So there's definitely cross-sell opportunities. All of that is being closely looked at and kind of pursued as part of the growth of the QuickFrame AI product. Operator: Your next question comes from Matt Weber with Canaccord. Your line is open. Please go ahead. Matthew Weber: Just one me. On the strengthened measurement and activation ecosystem that now features partnerships with HubSpot, Northbeam, and Upwave, could you just update us on if those are premium add-ons that advertisers pay for, or if they're still part of the core platform? And then how do the economics of those partnerships work? Is there any other -- is there any impact to gross margin or other areas of the P&L as adoption scales? Mark Douglas: So it depends on the partnership in terms of the answer to your question. So for something like HubSpot or some of our partnerships, I'm not 100% specifically sure on HubSpot, but some of our partnerships we integrate in at no cost to our customers. So we use our buying power in the same way we use our buying power with the networks to secure advantageous pricing for our customers. We do that with some of our partnerships where that partnership is very broadly used across our entire customer base. And then other partnerships, where something like attribution, where the customer is deciding which third-party attribution partner they want to use, then we build partnerships with that company, like Northbeam as an example, and make sure that our customers get the best possible experience in MNTN's platform, but also the best possible data and experience in Northbeam's platform, but the customer has a separate direct relationship with Northbeam. So it depends on the partnership. In all those cases, again, we get so much leverage in our gross margins as we scale our business from our revenue growth that we're able, when it's appropriate, to absorb the cost rather than adding additional costs. We want our customers to have an experience where there is one cost to using MNTN, which is the cost of media, and they're not getting nickeled and dimed for little charges here and there which is more of the experience in the enterprise market, but we believe in the SMB market, you should pay one price and get everything you need to be successful. Operator: Your next question comes from the line of Andrew Marok with Raymond James. Andrew Marok: Maybe 2 for me please. Can you talk a bit about what to maybe expect in the second half from the flood of political spend that's coming down the pipe? I mean, not for MNTN specifically directly, but maybe more in terms of effect on the volatility of CPMs in the space and what that leads then into the ROAS calculations for your customers? And then second, on QuickFrame, with it now in market for a full quarter now in 3.0, how has that feedback been and maybe what sort of features might be on the roadmap as a result of that feedback? Mark Douglas: Sure. So in terms of second half political spending, traditionally, remember, MNTN is purpose-built for the SMB market. And so we traditionally have not participated in any significant way in political spending. We see that, that is dominated by some big agencies that we consider to be more enterprise clients. And so it doesn't have much of a direct impact on MNTN. In terms of the volatility on CPMs, that volatility tends to affect what we refer to as the open market. So MNTN, we have direct deals with nearly, if not all, kind of media companies in America that are ad-supported. Those deals are bought and executed programmatically, but they have kind of commitments in the form of pre-negotiated pricing for us to continue to spend on that platform. And so when you get these like Q4 spikes or political spikes, they don't affect our pricing because that has already been negotiated with the network for the continued volume we continue to bring through the SMB market. But the inventory that's left over might get affected, and that's referred to as open market. And that has more volatility in price and more volatility in margin. So it won't -- neither of those will affect us. They may have some effect on anyone who's much more dependent on the open market, which we are not. I think we're over 99% private marketplace deals, meaning direct deals with the networks. In terms of QuickFrame 3.0 features, we essentially are doing releases every single week, if not multiple times a week. What you can expect is we have a team dedicated on QuickFrame, just to all of the iteration on the AI models themselves. The product orchestrates multiple models, scene by scene, in order to deliver the creative you get. We're getting feedback from our customers. We're watching their usage. We have our own vision. Another thing that we're putting a lot of emphasis on is having really fast use cases. I'll give you an example like you want to essentially get -- take an existing ad and you want to reinvent it as a new ad, but with the same characters in it or something like that. Just really fast paths to executing really specific use cases with the product. And we find when someone comes in the product and they have an idea of what they want to do, and we have something that exactly matches their needs. They're even happier with the use of the product, and we see more engagement. So -- but there's a lot of features coming. There's a pretty decent-sized team on QuickFrame, and they are iterating literally at AI speed, releases multiple times a week. Operator: [Operator Instructions] I see no further questions at this time. I'll now turn the call back to management for closing remarks. Mark Douglas: I just want to say thanks for everyone's time, and we're looking forward to Q3 in the second half of the year. And we'll, I'm sure, talk further before then and on our next earnings call. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Mntn, 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 Mntn wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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 $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. 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This article first appeared on GuruFocus. Revenue: $82.5 million, up 21% year-over-year. Gross Margin: Improved to 80%, up 350 basis points year-over-year. Net Income: Positive net income of $6.7 million, with GAAP EPS of $0.09. Adjusted EBITDA: $21.5 million, up 48% year-over-year. Adjusted EBITDA Margin: 26.1%, up 490 basis points from 21.2% in Q2 2025. Active PTV Customers: 4,225, up approximately 40% year-over-year. Expansion Rate: Well north of 115%. Total Operating Expenses: $59.2 million for the second quarter. Cash and Cash Equivalents: $237 million, with no borrowings outstanding. Shares Outstanding: 74.2 million. Q3 2026 Revenue Guidance: Between $86 million and $89 million, representing 25% year-over-year growth at the midpoint. Q3 2026 Adjusted EBITDA Guidance: Between $22 million and $25 million. Full Year 2026 Revenue Guidance: Reiterated at $347 million to $357 million, representing over 24% year-over-year growth at the midpoint. Full Year 2026 Adjusted EBITDA Guidance: Between $96 million and $101 million. Warning! GuruFocus has detected 8 Warning Signs with RRR. Is MNTN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong Q2 2026 results with revenue of $82.5 million, up 21% year-over-year, and adjusted EBITDA of $21.5 million, up 48% year-over-year, both at the high end of guidance. Gross margins improved to 80%, up 350 basis points year-over-year, reflecting strong operating leverage. Active PTV customers grew approximately 40% year-over-year to 4,225, with expansion rate well north of 115%, indicating strong customer retention and budget growth. Successful launch of Mountain Express for small businesses, with over 7,000 signups in the first 120 days and hundreds converting to paying customers, positioning for meaningful contribution in 2027. QuickFrame AI saw over 37,000 signups in Q2, bringing year-to-date total to over 73,000, lowering creative barriers and enabling cross-sell opportunities for Performance TV. Expanded access to premium inventory, including major sports leagues (FIFA World Cup, March Madness, MLB, NBA, NHL, NFL), enhancing customer value and differentiation. Board authorized a $100 million stock repurchase program, signaling confidence in the company's long-term trajectory. Q3 2026 revenue guidance of $86-89 million implies 25% year-over-year growth, and full-year guidance reiterated at $347-357 million (over 24% growth). Revenue contribution from Express is currently small and not expected to be meaningful until 2027, limiting near-term growth impact. The company is making aggressive investments in sales and marketing, which may pressure near-term adjusted EBITDA margins despite overall profitability improvement. Political spending in Q4 could cause CPM volatility in the open market, though the company is largely insulated due to direct deals. QuickFrame AI is currently offered at no charge, and monetization is still under evaluation, leaving potential revenue on the table. The number of active PTV customers added can fluctuate quarter-to-quarter due to deliberate calibration of sales and marketing investments, creating uncertainty in growth metrics. The company faces competition and industry consolidation, which, while validating the market, could intensify competitive pressures. Q: Can you discuss the impact of the go-to-market investments and the new Express and Premium product tiers on revenue growth this year and next year? Also, how is recent industry consolidation affecting the Performance TV opportunity? A: Mark Douglas (CEO): The new product tiers are contributing to growth now, but we expect a much larger impact in 2027 as these segments scale. Regarding consolidation, it validates the Performance TV opportunity and creates more green space for Mountain to execute, as we are purpose-built for the SMB portion of the market. Q: How is the go-to-market strategy for SMB customers different from mid-market, and what was the benefit of sports inventory like the World Cup in the quarter? A: Mark Douglas (CEO): We are investing more in sales and marketing to capture the mainstream shift, using our own platform and social media to reach customers. For sports, we secured access to premium inventory like the World Cup and NFL for our customers, which performs well and validates our position as a market leader, differentiating us from competitors using remnant inventory. Q: Is QuickFrame AI now considered a standalone opportunity? What is its gross margin profile, and how does it funnel into the core PTV business? A: Mark Douglas (CEO): QuickFrame AI is built to be successful on its own, supporting not just Performance TV but also YouTube and social ads. While it's currently free, we are monitoring usage for future monetization. The gross margin impact is neutral due to efficiencies in our hosting environment. It creates a cross-sell funnel for PTV, as users, including creators, become aware they can use the same assets for TV advertising. Q: Are partnerships like HubSpot and Northbeam premium add-ons that advertisers pay for, and how do the economics work? A: Mark Douglas (CEO): It depends on the partnership. Some, like HubSpot, are integrated at no cost to customers, leveraging our buying power. Others, like attribution partners such as Northbeam, involve a direct customer relationship. We aim to provide a single-cost experience for SMBs, absorbing costs where appropriate, rather than nickel-and-diming customers. Q: What should we expect from political spending in the second half, and how might it affect CPMs and ROAS for your customers? Also, what feedback have you received on QuickFrame 3.0? A: Mark Douglas (CEO): Political spending has minimal direct impact on Mountain as we focus on SMBs and have over 99% private marketplace deals with pre-negotiated pricing, insulating us from open market volatility. For QuickFrame, we are iterating weekly, focusing on fast use cases and incorporating customer feedback to enhance the product's AI orchestration. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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. Performance TV is transitioning from an early adopter phase to a mainstream marketing component, prompting MNTN to expand its sales organization and leadership to capture broader demand. The company restructured its platform into three distinct tiers—Express, Pro, and Premium—to address the specific usability and feature requirements of small, mid-market, and upper mid-market businesses. Strategic focus on 'super premium' content, including major sports leagues like the NFL and MLB, aims to provide SMBs with the same high-impact inventory typically reserved for the world's largest brands. QuickFrame AI is serving as a critical operational lever by lowering creative barriers and increasing ad launch rates for businesses across diverse sectors like retail and financial services. Management attributes the 350 basis point gross margin expansion to operating leverage inherent in the business model as revenue scales against a disciplined cost structure. The go-to-market strategy has shifted toward vertical-specific teams to better align sales processes with the unique economics and customer acquisition dynamics of different industries. Management expects the benefits of recent strategic investments in sales and product tiers to contribute to stronger growth in late 2026 and become a meaningful contributor in 2027. The company plans to continue disciplined but aggressive investments in sales and marketing, prioritizing market share capture over near-term adjusted EBITDA margin optimization. Revenue guidance for Q3 2026 of $86 million to $89 million assumes continued customer adoption and the scaling of new revenue streams from the Express and Premium tiers. Full-year 2026 outlook assumes a 24% year-over-year growth rate at the midpoint, excluding the impact of the Maximum Effort divestiture. Future product development will focus on 'agentic AI' to increase automation and performance for mid-market customers, giving them more control over daily decision-making. The Board of Directors authorized a stock repurchase program of up to $100 million through August 2027, signaling confidence in the company's long-term valuation. The divestiture of Maximum Effort is excluded from the core revenue growth comparisons to provide a clearer view of the underlying Performance TV trajectory. MNTN maintains a strong liquidity position with $237.3 million in cash and zero outstanding borrowings as of the end of Q2. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management views recent industry consolidation as a validation of the Connected TV market, creating more 'green space' for MNTN to execute its SMB-focused strategy. The company believes its purpose-built platform for small and mid-sized businesses remains highly differentiated from enterprise-focused competitors. QuickFrame AI is currently offered at no charge to drive engagement, though management is monitoring usage patterns for potential future monetization opportunities. The tool acts as a top-of-funnel lead generator, introducing creators to the platform who may eventually cross-sell into the core Performance TV media buying service. MNTN expects minimal impact from the second-half political spending surge because it does not rely on the 'open market' for inventory. Over 99% of the company's media is bought through private marketplace deals with pre-negotiated pricing, insulating customers from the CPM spikes typically seen in election cycles. For the Express (SMB) tier, MNTN leverages its own platform and social media for customer acquisition, while mid-market sales involve more specialized vertical leadership. The goal is to provide a simplified 'one price' experience for SMBs, avoiding the complex fee structures common in the enterprise advertising market.

Interested in MNTN Inc.? Here are five stocks we like better. MNTN reported strong Q2 results: Revenue rose 21% year over year to $82.5 million, while adjusted EBITDA increased 48% to $21.5 million. Gross margin expanded to 80%, and adjusted EBITDA margin reached 26.1%. Customer and product growth continued: Active Performance TV customers grew approximately 40% to 4,225, while MNTN Express recorded more than 7,000 signups in its first 120 days. QuickFrame AI surpassed 73,000 year-to-date signups, though it remains free as the company evaluates monetization. MNTN maintained its outlook and authorized buybacks: The company expects Q3 revenue of $86 million to $89 million and reaffirmed full-year revenue guidance of $347 million to $357 million. Its board also approved a share repurchase program of up to $100 million through August 2027. IPO Market Stays Hot With These 2 Debuting Stocks MNTN (NYSE:MNTN) reported second-quarter 2026 revenue of $82.5 million, up 21% from a year earlier, while adjusted EBITDA rose 48% to $21.5 million. Chief Executive Officer Mark Douglas said both figures came in at the high end of the company’s guidance range. The performance television advertising company posted GAAP net income of $6.7 million, or $0.09 per share. Gross margin improved to 80%, an increase of 350 basis points from the prior-year quarter, while adjusted EBITDA margin expanded 490 basis points to 26.1%. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Chief Financial Officer Patrick Pohlen said the quarter’s results reflected ongoing adoption of MNTN’s Performance TV offering, particularly among businesses that had not previously advertised on television. MNTN ended the quarter with 4,225 active Performance TV customers measured over the trailing 12 months, representing approximately 40% year-over-year growth. Pohlen said the pace of customer additions is largely driven by the company’s decisions around sales and marketing investment and may fluctuate from quarter to quarter. → 3 Drone Stocks That Should Soar After the Summer Slump The company’s expansion rate, which compares spending by existing customers with their spending a year earlier, remained “well north of 115%,” according to Pohlen. He said that customers tend to raise their budgets on the platform when they achieve their desired advertising returns. Douglas said MNTN is pursuing three priorities for its next stage of growth: Expanding its products and investments in artificial intelligence; Broadening access to premium television inventory; and Strengthening its sales, marketing and business-development organization. → Why Rare Earth Processing Could Be the Real 2027 Opportunity The company has introduced separate versions of its Performance TV platform for small businesses, mid-market advertisers and upper-mid-market customers. The tiers are called Express, Pro and Premium. MNTN Express, which launched April 1 and is designed for small businesses, recorded more than 7,000 signups in its first 120 days. Douglas said hundreds of those users became paying customers. While the product’s contribution to total revenue remains small, he said it is growing quickly and could become a meaningful growth contributor entering 2027. For mid-market customers, MNTN has added agentic AI capabilities intended to automate daily decision-making and improve advertising performance. Douglas said roughly half of the company’s headcount works in engineering and that MNTN is using AI both in product development and throughout its operations. QuickFrame AI, MNTN’s creative tool, generated more than 37,000 signups during the second quarter and surpassed 73,000 year-to-date signups. Douglas said businesses across retail, financial services, healthcare, technology and education have used the technology to produce television-ready ads. During the question-and-answer session, Douglas said QuickFrame AI was built to function as more than a feature of the Performance TV platform. The product can also support creative for YouTube and social-media advertising, he said. However, MNTN is currently offering QuickFrame AI at no charge while it evaluates usage and engagement. Douglas said the company sees monetization potential but did not provide details on timing or a pricing model. He also described the product’s overall gross-margin impact as “essentially gross margin neutral,” citing efficiencies in the company’s hosting environment that help offset AI-model costs. MNTN is making product releases weekly, and sometimes multiple times per week, he said. Douglas said MNTN has expanded access to premium streaming inventory, including advertising placements around major sports leagues and events. Customers have advertised during FIFA World Cup games, March Madness and programming tied to Major League Baseball, the National Basketball Association and the National Hockey League, with National Football League inventory expected to follow. He said the company’s agreements with major media partners allow smaller businesses to gain access to programming historically dominated by large advertisers. Sports inventory can perform well because multiple viewers may be watching a game at the same time, Douglas said. MNTN has also added leadership in sales, marketing and business development and built vertical teams to address the specific needs of industries. Douglas said the company is using its own platform and social media to market to prospective Express and mid-market customers. Regarding political advertising in the second half of the year, Douglas said MNTN historically has had limited direct exposure because political spending is generally dominated by larger agencies and enterprise customers. He said the company expects limited effects from political-driven volatility in connected-TV ad pricing because more than 99% of its inventory is purchased through private marketplace agreements with media companies rather than the open market. For the third quarter, MNTN expects revenue of $86 million to $89 million, representing 25% year-over-year growth at the midpoint of $87.5 million. The company forecast adjusted EBITDA of $22 million to $25 million. For the full year, MNTN reiterated its revenue outlook of $347 million to $357 million, excluding the impact of the Maximum Effort divestiture. The midpoint of $352 million would represent more than 24% annual growth, according to the company. MNTN also reaffirmed adjusted EBITDA guidance of $96 million to $101 million. The company ended the quarter with $237 million in cash and cash equivalents, no borrowings outstanding and 74.2 million shares outstanding. On Aug. 3, MNTN’s board authorized a repurchase program of up to $100 million of Class A common stock through Aug. 5, 2027. Pohlen said management believes the shares represent a compelling value and that the authorization reflects confidence in the company’s long-term outlook. MNTN is a software platform specializing in connected television (CTV) advertising, offering marketers the tools to plan, launch and measure streaming TV campaigns. Its platform enables brands to reach audiences across major OTT and CTV channels, helping advertisers target viewers based on demographic, behavioral and contextual data. The company's core product suite includes campaign management, real-time bidding and performance analytics. MNTN integrates with leading streaming services and ad exchanges, allowing clients to execute programmatic buys, track view-through conversions and optimize media spend through automated reporting dashboards. Founded by experienced digital advertising professionals, MNTN is headquartered in Austin, Texas, and primarily serves brands and agencies across the United States and Canada. 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 "MNTN Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

MNTN Inc. (MNTN) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.22 per share. This compares to a loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -50.00%. A quarter ago, it was expected that this company would post earnings of $0.12 per share when it actually produced earnings of $0.11, delivering a surprise of -8.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. MNTN Inc., which belongs to the Zacks Technology Services industry, posted revenues of $82.54 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.06%. This compares to year-ago revenues of $68.46 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. MNTN Inc. shares have lost about 20.2% since the beginning of the year versus the S&P 500's gain of 11%. While MNTN Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for MNTN Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $86.47 million in revenues for the coming quarter and $0.99 on $350.72 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Full Truck Alliance Co. Ltd. Sponsored ADR (YMM), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +5.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Full Truck Alliance Co. Ltd. Sponsored ADR's revenues are expected to be $458.67 million, up 1.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MNTN Inc. (MNTN) : Free Stock Analysis Report Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second quarter revenue grew 21% year-over-year to $82.5 million Second quarter gross margin improved to 80% from 77% in Q2 2025, a 350 basis point increase Delivered positive net income of $6.7 million and Adjusted EBITDA grew 48% year-over-year to $21.5 million in Q2 2026 Company’s board of directors authorized a stock repurchase program of up to $100 million NEW YORK, August 04, 2026--(BUSINESS WIRE)--MNTN (NYSE: MNTN), a technology platform that brings performance marketing to Connected TV, today announced its operational and financial results for the second quarter ended June 30, 2026. MNTN is redefining how brands use television - making TV advertising as measurable, precise, and performance-driven as search and social. MNTN’s software is unlocking television for millions of small to midsized businesses, allowing them to turn Connected TV into a core part of their growth strategy. Second Quarter 2026 Financial Highlights: (Unless otherwise noted, all comparisons are relative to the second quarter of 2025). Second quarter revenue grew 21% year-over-year to $82.5 million. Second quarter gross margin improved to 80% from 77% in Q2 2025, up 350 basis points year-over-year. Second quarter net income increased to $6.7 million, compared to a net loss of $26.2 million in the prior year period. Adjusted EBITDA increased to $21.5 million, representing 26% of revenue, compared to Adjusted EBITDA of $14.5 million, which was 21% of revenue, in Q2 2025. The Company ended the quarter with $237.3 million in cash and cash equivalents, and no borrowings outstanding. Stock Repurchase Program: On August 3, 2026, the Company’s board of directors authorized a stock repurchase program of up to $100 million shares of its Class A common stock through August 5, 2027. Repurchases may be made from time to time on the open market pursuant to one or more trading plans adopted in accordance with Rule 10b5-1 and in compliance with Rule 10b-18. The timing and amount of any repurchases will depend on market conditions, price and liquidity, applicable legal requirements, available capital, and other considerations. The stock repurchase program does not obligate the Company to repurchase any minimum number or dollar amount of Class A common stock and may be modified, suspended, or discontinued at any time. Below are tables reconciling revenue growth and gross margin including and excluding the impact of the Maximum Effort divestiture on April 1, 2025. An additional table below outlines the growth in trailing twelve month active PTV customer count. "We delivered another strong quarter with 21% year-over-year revenue growth as Performance TV continues to move from an early-adopter market to a mainstream part of advertisers' marketing mix," said Mark Douglas, CEO of MNTN. "Over the last several quarters, we've been building MNTN for the next stage of that opportunity by expanding our platform, investing in AI across our products, strengthening our go-to-market organization, and increasing access to premium television. Those investments are beginning to come together, and we're focused on helping more businesses advertise on television than ever before while continuing to grow efficiently and strengthen the category we created." Recent Highlights: Active Performance TV customers grew 40% year-over-year in the trailing twelve months ended June 30, 2026, as compared to the trailing twelve months ended June 30, 2025, reflecting continued expansion across MNTN’s small and mid-sized business customer base. Strengthened measurement and activation ecosystem through partnerships with HubSpot, Northbeam, and Upwave, providing advertisers with premium inventory, independent verification, and deeper campaign insights. Continued to advance AI innovation, with Adobe integrating QuickFrame AI into GenStudio for Performance Marketing and Google recognizing QuickFrame AI as an early adopter of its latest Gemini Omni Flash models. These are recognitions that reflect our strategy of bringing the industry’s latest AI advancements to marketers first. Expanded access to premium streaming inventory across major Q2 cultural moments including the FIFA World Cup on Telemundo, HBO's House of Dragon, viral hit Love Island and the Tour de France, giving Performance TV advertisers new first-time opportunities to drive measurable outcomes alongside TV’s best programming. "We reported strong Adjusted EBITDA growth of 48% year over year, generating solid net income and further highlighting the operating leverage in our model as we scale," said Patrick Pohlen, CFO of MNTN. "We are continuing to invest strategically in sales, marketing, and product development to drive sustained growth, all while maintaining a disciplined focus on profitability. Our stock repurchase program announced today reiterates our confidence in MNTN’s ability to generate long-term sustainable growth and free cash flow, while maintaining a robust balance sheet, with $237.3 million in cash and cash equivalents and no outstanding borrowings." Third Quarter 2026 Outlook: Revenue is expected to be between $86 million and $89 million, representing expected year-over-year growth of 25% at the midpoint. Adjusted EBITDA is expected to be between $22 million and $25 million. Full Year 2026 Outlook: Revenue is expected to be between $347 million and $357 million, representing expected year-over-year growth of 24% at the midpoint excluding the impact of the Maximum Effort divestiture, and 21% year-over-year growth on a GAAP basis. Adjusted EBITDA is expected to be between $96 million and $101 million. Live Webcast Details: MNTN management will host a live webcast to discuss these results and provide a business update on Tuesday, August 4, 2026 at 4:30 p.m. Eastern Time. Date: Tuesday, August 4, 2026 Time: 4:30 PM (ET) / 1:30 PM (PT) Hosts: Mark Douglas, CEO and Patrick Pohlen, CFO Webcast: The live webcast, pre-registration for the event, and any related materials can be accessed from both the Quarterly Results and the Events & Presentations page of the MNTN investor relations website at https://ir.mountain.com/. A replay of the webcast will also be accessible through the MNTN investor relations website shortly following the call and will be available for at least seven days. About MNTN, Inc.MNTN (NYSE: MNTN) is the Hardest Working Software in Television™, bringing unrivaled performance and simplicity to Connected TV advertising. Our self-serve technology makes running TV ads as easy as search and social and helps brands drive measurable conversions, revenue, site visits, and more. MNTN was named one of Fast Company’s Most Innovative Companies and Next Big Things in Tech and was recently featured on the cover of INC’s Best in Business Issue. For more information, please visit https://mountain.com/. Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact contained in this press release should be considered forward-looking statements, including, but not limited to, statements regarding our future results of operations and financial position, including our third quarter and full year 2026 revenues and Adjusted EBITDA outlook and expectations regarding gross margin improvement, assumptions, prospects, business strategy, and plans and objectives of management for future operations, the performance of our products and benefits to customers, potential partnerships, opportunity and demand, and industry and market trends. Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: our dependence on the growth and expansion of CTV and performance marketing using CTV, including if the adoption of CTV by customers develops more slowly than we expect, as well as the reduced growth and expansion of our PTV platform; our dependence on a limited number of large customers and our ability to attract new customers, expand existing customer usage of our platform or achieve our customers’ return on ad spend and other specific campaign goals; our dependence on demand for advertising, including factors that affect the level of demand and resulting amount of spend on general and digital advertising, such as economic downturns, geopolitical conflicts, supply chain shortages, interest rate volatility, labor shortages, actual or perceived instability in the banking industry and inflation and any health epidemics or other contagious outbreaks; our results of operations may fluctuate significantly and may not meet our expectations or those of securities analysts and investors; seasonal fluctuations in the demand for digital advertising and our solutions; our short operating history in PTV; inability to manage our growth effectively, and maintain the quality of our platform as we expand; failure of our sales and marketing efforts to yield the results we seek; our product development and innovation may be inefficient or ineffective; our customers’ material reduction of the use of our platform; errors, defects, or unintended performance problems with our platform; changes or developments in the laws, regulations and industry requirements related to data privacy, data protection, information security and consumer protection, and failure to comply with such laws, regulations and industry requirements; inability to collect, use, and disclose data, including the use of pixels or other similar technologies; the use of digital advertising is rejected by consumers, through opt-in, opt-out, or ad-blocking technologies or other means that limit the effectiveness of our platform; inability to increase the scale and efficiency of our technology infrastructure to support our growth and transaction volumes; incurrence of cyberattacks or privacy or data breaches resulting in platform outages or disruptions; failure to detect or prevent fraud on our platform, or malware intrusion into the systems or devices of our customers and their audiences; the intensely competitive market that we operate in; inability to maintain our corporate culture as we grow or as we adapt to an entirely remote work environment, including if we fail to attract, retain, and motivate key personnel; inability to identify and integrate future acquisitions and new technologies; our reliance on technological intermediaries to purchase ad inventory on behalf of customers; our use of and development of artificial intelligence technologies; the impact of any health epidemics contagious outbreaks, the ongoing conflicts in Ukraine, the Middle East and tensions between China and Taiwan, and changes in the macroeconomic conditions on global markets, including inflation and interest rate volatility, the advertising industry and our results of operations, and the response by governments and other third parties; unfavorable or otherwise costly outcomes of lawsuits and claims that arise from the extensive laws and regulations to which we are subject; risks related to taxation matters; risks related to the ownership of our Class A common stock; and other important factors discussed in Part II, Item 1A. "Risk Factors" in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, as any such factors may be updated from time to time in our other filings with the SEC, including, without limitation, our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026, accessible on the SEC’s website at www.sec.gov and our Investor Relations page on our website at https://ir.mountain.com. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Non-GAAP Financial Measures We use certain non-GAAP financial measures, including EBITDA and Adjusted EBITDA in this press release. EBITDA is defined as net income (loss) adjusted to exclude depreciation and amortization expense, interest income (expense), net, and income tax provision. Adjusted EBITDA is defined as net income (loss) adjusted to exclude depreciation and amortization expense, interest income (expense), net, and income tax provision, as further adjusted to exclude stock-based compensation expense, fair value adjustments on outstanding warrants, contingent liabilities and embedded derivatives, acquisition costs including legal costs associated with prior acquisitions, legal settlements, restructuring costs and loss on debt extinguishment, which are items that we believe are not indicative of our core operating performance. Adjusted EBITDA is a supplemental measure of our performance, is not defined by or presented in accordance with GAAP and should not be considered in isolation or as an alternative to net loss, net loss margin or any other performance measure prepared in accordance with GAAP. Adjusted EBITDA is presented because we believe it provides useful supplemental information to investors, analysts, and rating agencies regarding our operating performance and our capacity to incur and service debt and is frequently used by these parties in evaluating companies in our industry. By presenting Adjusted EBITDA we provide a basis for comparison of our business operations between periods by excluding items that we do not believe are indicative of our core operating performance. We believe that investors’ understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing our ongoing results of operations. Additionally, management uses Adjusted EBITDA as a supplemental measure of our performance because it assists us in comparing the operating performance of our business on a consistent basis between periods, as described above. Although we use Adjusted EBITDA as described above, Adjusted EBITDA has significant limitations as analytical tools. Some of these limitations include: such measure does not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; such measure does not reflect changes in, or cash requirements for, our working capital needs; such measure does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt; such measure does not reflect our tax expense or the cash requirements to pay our taxes; although amortization is a non-cash charge, the assets being amortized will often have to be replaced in the future and such measure does not reflect any cash requirements for such replacements; and other companies in our industry may calculate such measure differently than we do, thereby further limiting its usefulness as comparative measures. Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using this non-GAAP measure only supplementally. As noted in the table below, Adjusted EBITDA includes adjustments for items that we believe are not indicative of our core operating performance. It is reasonable to expect that these items will occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period-to-period, do not directly relate to the ongoing operations of our business and complicate comparisons of our internal operating results between periods and with the operating results of other companies over time. Each of the normal recurring adjustments and other adjustments described in this paragraph and in the reconciliation table below help management with a measure of our core operating performance over time by removing items that are not related to day-to-day operations. Nevertheless, because of the limitations described above, management does not view Adjusted EBITDA in isolation and also uses other measures, such as revenue, operating loss and net loss, to measure operating performance. Set forth below are reconciliations of the Company’s most directly comparable financial measures calculated in accordance with GAAP to these non-GAAP financial measures. A reconciliation of the Company’s non-GAAP financial measure guidance to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation and certain other items reflected in our reconciliation of historical non-GAAP financial measures, the amounts of which could be material. Website DisclosureInvestors and others should note that MNTN announces material financial and operational information to its investors using press releases, SEC filings and public conference calls and webcasts, as well as its investor relations site at ir.mountain.com. MNTN may also use its website as a distribution channel of material information about the company. In addition, you may automatically receive email alerts and other information about MNTN when you enroll your email address by visiting the "Investor Email Alerts" option under the Resources tab on ir.mountain.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804192898/en/ Contacts Investor Relations Contact [email protected] Media Contact [email protected]

MNTN, Inc.'s (NYSE:MNTN) earnings announcement last week was disappointing for investors, despite the decent profit numbers. Our analysis says that investors should be optimistic, as the strong profit is built on solid foundations. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. For the year to March 2026, MNTN had an accrual ratio of -0.39. Therefore, its statutory earnings were very significantly less than its free cashflow. Indeed, in the last twelve months it reported free cash flow of US$49m, well over the US$23.4m it reported in profit. MNTN shareholders are no doubt pleased that free cash flow improved over the last twelve months. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. See our latest analysis for MNTN That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. MNTN's profit was reduced by unusual items worth US$26m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. This is what you'd expect to see where a company has a non-cash charge reducing paper profits. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. In the twelve months to March 2026, MNTN had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be. Considering both MNTN's accrual ratio and its unusual items, we think its statutory earnings are unlikely to exaggerate the company's underlying earnings power. After considering all this, we reckon MNTN's statutory profit probably understates its earnings potential! Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Case in point: We've spotted 1 warning sign for MNTN you should be aware of. Our examination of MNTN has focussed on certain factors that can make its earnings look better than they are. And it has passed with flying colours. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Interested in MNTN Inc.? Here are five stocks we like better. MNTN beat Q1 fiscal 2026 expectations, with revenue of $73.7 million up 25% year over year, gross margin improving to 81%, and adjusted EBITDA rising to $16.3 million. The company also posted record positive net income of $8.8 million, or $0.12 per share. Full-year guidance was raised to revenue of $347 million to $357 million and adjusted EBITDA of $96 million to $101 million. Management said it will keep prioritizing growth and market share expansion over near-term margin maximization. QuickFrame AI 3.0 has officially exited beta, giving customers more tools to create and launch video ads faster, while MNTN continues leaning into SMB-focused connected TV advertising. Executives said the platform is gaining traction and is designed to help companies with little or no TV advertising experience. IPO Market Stays Hot With These 2 Debuting Stocks MNTN (NYSE:MNTN) reported first-quarter fiscal 2026 results that exceeded its prior revenue and adjusted EBITDA guidance, with management pointing to continued adoption of its Performance TV platform and growing demand from advertisers that had not previously used television. Chief Executive Officer Mark Douglas said the company delivered 25% year-over-year revenue growth in the quarter, along with 74% adjusted EBITDA growth and “record positive net income.” Douglas used the earnings call to reiterate the company’s positioning in connected TV, saying MNTN was founded to “democratize television advertising” by giving brands of varying sizes access to measurable streaming TV campaigns. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum “That’s performance marketing applied to television,” Douglas said. “Choose your budget, your audience, your goals, and upload your creative. Everything is automated from targeting [to] the optimization, bringing digital marketing precision and accountability to streaming TV.” Chief Financial Officer Patrick Pohlen said first-quarter revenue rose to $73.7 million, up 25% from a year earlier after adjusting for the divestiture of Maximum Effort on April 1, 2025. He noted that this would be the final quarter in which the company reports revenue excluding Maximum Effort. → MercadoLibre Boldly Invests in Growth: Discount Deepens Gross margin improved to 81%, up 1,220 basis points from the prior-year period. Pohlen said the company’s core Performance TV business improved by more than 980 basis points, with the remainder of the increase coming from the Maximum Effort divestiture and a full quarter of reduced hosting costs. Revenue was $73.7 million, up 25% year-over-year after adjusting for Maximum Effort. Gross margin was 81%, up 1,220 basis points from the prior-year period. GAAP net income was $8.8 million, or $0.12 per share. Adjusted EBITDA was $16.3 million, up from $9.4 million in the first quarter of 2025. Adjusted EBITDA margin was 22.2%, compared with 14.5% a year earlier. MNTN ended the quarter with 3,874 active Performance TV customers, measured over the trailing 12 months, representing 46% year-over-year growth. Pohlen said the number of active customers can fluctuate from quarter to quarter because the company controls the pace at which it moves down market and evaluates whether new clients are a good fit for the platform. → 3 Ways to Target the Resources Powering AI and Data Centers The company’s expansion rate, which measures spending by current customers compared with those same customers a year earlier, remained “well north of 115%,” according to Pohlen. He said that metric continues to show customers increase budgets when they achieve their desired return on advertising spend. For the second quarter of fiscal 2026, MNTN expects revenue of $81 million to $83 million, representing 20% year-over-year growth at the midpoint. The company expects adjusted EBITDA of $19 million to $22 million for the quarter. For the full year, MNTN raised its revenue outlook to a range of $347 million to $357 million, representing more than 24% year-over-year growth at the midpoint when normalizing for the Maximum Effort divestiture. The company expects full-year adjusted EBITDA of $96 million to $101 million. Pohlen said MNTN remains focused on growth rather than maximizing near-term margins. He said the company will continue to invest in sales and marketing to increase penetration in what management views as a large, early-stage market opportunity. “This may cause our EBITDA margins to bounce around from quarter to quarter, as the timing of our investments may not always match the slope of our revenue growth,” Pohlen said. MNTN ended the quarter with $215 million in cash and cash equivalents and no borrowings outstanding. The company had 73.9 million shares outstanding at quarter-end. Douglas highlighted the release of QuickFrame AI 3.0, the company’s AI-powered creative video platform, which exited beta the morning of the earnings call. He said QuickFrame AI has become one of the fastest-growing elements of the MNTN suite and is designed to help customers produce television commercials more quickly. The latest version includes savable characters, a storyboard editor, collaborative editing and other capabilities. Douglas said the platform combines AI video generation with professional-grade creative controls, allowing marketing teams to produce polished videos, iterate creative and launch campaigns faster. In response to analyst questions, Douglas said MNTN observed customers during the beta period and tracked metrics such as project starts, time to launch and go-live rates. He said the company saw particular benefits for small businesses because there are typically fewer approval layers than in mid-market organizations. “We’ve kind of brought the effort down, the go-live rates up in terms of QuickFrame AI,” Douglas said. “We were seeing that people with less creative skills were increasingly more successful.” Pohlen said MNTN has not built QuickFrame AI primarily as a separate revenue stream, but rather as an enabler of the core Performance TV business. He said the company now expects to track its impact more closely following the broader release. MNTN also discussed recent executive hires, including Garland Hill as chief revenue officer and Peter Blacker as head of content. Douglas said Hill previously led growth at TikTok, where he helped build a team from scratch to more than 1,000 people and billions in revenue, and had earlier led the CPG sales team at Meta. Blacker previously served as head of streaming at NBCUniversal, where Douglas said he built NBC’s streaming division. Douglas said the hires support two areas of MNTN’s growth strategy: scaling revenue and expanding customer access to premium TV content. He said MNTN provided customers with access during the quarter to advertising across nearly all streaming networks, including March Madness, the NHL playoffs, Major League Baseball and reality programming such as “Housewives” and “The Traitors.” On streaming partnerships, Douglas said the company views broad content access as critical to performance marketing because advertisers need to reach target consumers wherever they are watching. He said streaming networks view MNTN as a growth channel because, according to Douglas, 95% of MNTN’s customers have never advertised on television before. Management emphasized continued expansion among small and midsize businesses. Douglas said MNTN’s mid-market business has been consistently growing, while the company is carefully managing the pace of small-business onboarding to ensure customers are successful and acquired at the right cost. Asked about macroeconomic pressure on advertisers, Douglas said MNTN is seeing “nearly zero impact” from macro concerns among SMB customers. He said those advertisers remain focused on return on ad spend rather than broader economic headlines. Douglas also addressed competition from larger advertising and connected TV platforms. He said MNTN is purpose-built for SMBs, citing AI-driven targeting, creative tools for companies that do not already have TV ads, a programmatic bidding engine designed around performance signals and a go-to-market model focused on smaller advertisers. “You can’t just take an enterprise go-to-market motion and enterprise technology and just kind of say, ‘Now let’s offer it to small businesses,’” Douglas said. “You have to kind of build a whole new organization and technology platform for the small businesses.” Douglas said the company’s priorities remain attracting new customers, launching new products, expanding use of AI and accelerating go-to-market efforts through sales and partnerships. He said more than 50% of MNTN’s headcount is in engineering. MNTN is a software platform specializing in connected television (CTV) advertising, offering marketers the tools to plan, launch and measure streaming TV campaigns. Its platform enables brands to reach audiences across major OTT and CTV channels, helping advertisers target viewers based on demographic, behavioral and contextual data. The company's core product suite includes campaign management, real-time bidding and performance analytics. MNTN integrates with leading streaming services and ad exchanges, allowing clients to execute programmatic buys, track view-through conversions and optimize media spend through automated reporting dashboards. Founded by experienced digital advertising professionals, MNTN is headquartered in Austin, Texas, and primarily serves brands and agencies across the United States and Canada. 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 "MNTN Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

MNTN, Inc. (NYSE:MNTN) shareholders are probably feeling a little disappointed, since its shares fell 10.0% to US$8.77 in the week after its latest quarterly results. MNTN reported in line with analyst predictions, delivering revenues of US$74m and statutory earnings per share of US$0.11, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the consensus forecast from MNTN's nine analysts is for revenues of US$351.4m in 2026. This reflects a solid 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 207% to US$0.92. In the lead-up to this report, the analysts had been modelling revenues of US$350.3m and earnings per share (EPS) of US$0.94 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts. Check out our latest analysis for MNTN It might be a surprise to learn that the consensus price target was broadly unchanged at US$19.78, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values MNTN at US$27.00 per share, while the most bearish prices it at US$14.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 22% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.5% per year. So although MNTN is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MNTN. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$19.78, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for MNTN going out to 2028, and you can see them free on our platform here. It is also worth noting that we have found 2 warning signs for MNTN that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.