OUT

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET SVP, Investor Relations - Stephan Bisson Chief Executive Officer - Nicolas Brien Chief Financial Officer - Matthew Siegel Operator: Hello, everyone. Thank you for joining us, and welcome to Outfront Media's second quarter 26 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. Please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Stephan Bisson, SVP, Investor Relations. Stephan, please go ahead. Stephan Edward Bisson: Good afternoon. And thank you for joining our 26 second quarter earnings call. With me on the call today are CEO, Nick Brien and CFO, Matthew Siegel. After a discussion of our financial results, we will open the lines for a question-and-answer session. Comments today will refer to the earnings release slide presentation that you can find on the Investor Relations section of our website outfront.com. After today's call has concluded, an audio archive replay will be available there as well. This conference call may include forward looking statements. Relevant factors that could cause actual results, to differ materially from these forward looking statements listed in our earnings materials and in our SEC filings. Including our 2025 Form 10 k, as well as our Q2 26 form 10 q which we expect to file tomorrow. Will refer to certain non GAAP financial measures on this call. Any references to OIBDA made today will be on an adjusted basis. Reconciliations of OIBDA and other non GAAP financial measures are in the appendix of the slide presentation the earnings release, and on our website. Which also includes presentations with prior period reconciliations. With that, let me hand it over to Nick. Nicolas Brien: Thanks, Stephan. And thank you, everyone, for joining us today. We are excited to be here reporting our second quarter results which came in better than we had anticipated when we last spoke in May. Given continued strong demand, focused execution, and a successful World Cup. Which generated over $35 million of revenue during the quarter, and over $50 million overall. As you can see on Slide 3, it summarizes our headline numbers. Consolidated revenues were up 14% driven by 32% growth in transit and an 8% growth in billboard. While consolidated OIBDA was up 29% to $160 million and AFFO grew 45% to $121 million. As I just mentioned, these results include about $35 million of FIFA revenues, of which we believe approximately half were incremental to our typical business. Slide 4 shows our more detailed revenue results. Billboard revenues were up 8% Included in our compounded billboard results for the final time is our previously announced exit of a large marginally profitable billboard contract in LA. As the revenues and expenses of this contract are still included in our reported 2025 financial statements. Excluding the billboard revenue generated by this contract, billboard revenue growth would have been 9.4%. The strongest billboard categories in Q2 were tech, including the rapidly growing AI, legal and medical. Transit grew a robust 32%, was again led by New York MTA, and was up an impressive 48% during the quarter Our strongest transit categories were tech, entertainment, and financial. Slide 5 shows our detailed billboard revenue. On a reported basis, digital billboard revenues were up 17.6%. And static and other billboard revenues were up 3.8% during the quarter. However, excluding the revenue generated by the exited contract, digital billboard revenues would have been up over 21%. And static and other billboard revenues would have been up 4.3%. We estimate that FIFA contributed approximately $19 million of revenue to our billboard results this quarter. Slide 6 shows our detailed transit revenue. Which grew over 32% during the quarter led by the MTA strength. Our digital transit revenues were up nearly 36% to about $68 million and static revenue transit revenues were up over 29%. We estimate that FIFA contributed approximately $17 million to our transit revenues in the second quarter. 3 of the FIFA related campaigns I would highlight from across our business are New York, New Jersey host committee subway wraps of the tournament's local participants' flags within the New York subway system. Nike's complete takeover of the Bryant Square subway station, and the massive soccer player wallscape in Coke's hometown of Atlanta, which you can see on the cover of our slide presentation. Slide 7 shows our combined digital revenue performance. Which grew over 23% in the quarter and represented about 37% of total revenues compared to 34% in the comparable period. Last year. Even more impressive, excluding the aforementioned LA contract, digital revenues would have grown by 26% Programmatic and digital direct automated sales increased nearly 50% during the quarter, representing 20% of total digital revenue up from about 17% a year ago. Moving on to the breakdown of commercial and enterprise revenues can be seen on Slide 8. Commercial revenues were up 15% during the quarter, driven by strength in technology, entertainment and legal. Enterprise was up about 12% during the second quarter, with much of a strength being driven by tech, CPG, and health and medical. Slide 9 shows our billboard yield growth. Which was up 12% year-over-year to $3.34 thousand per month principally driven by focused efforts to establish higher rates across our assets, and boosted by feedback. Summing up, we are very pleased with our Q2 performance and confident that we will maintain this positive momentum into the second half. Which I will discuss in greater detail later. With that, let me now hand it over to Matthew to review the rest of our financials. Matthew Siegel: Thanks, Nick and good afternoon, everyone. Please turn to Slide 10 for a more detailed look at our billboard expenses. In total, billboard expenses were up nearly $15 million or approximately 7% year over year. Zooming in on lease costs, these expenses were up $6 million, about 5% year over year. This increase was driven by higher variable lease costs contractual escalators on fixed leases, partially offset by $4 million of savings related to the exited billboard contract in Los Angeles. Excluding the impact of the LA portfolio exit, billboard property lease expense would have been up about 9%. Posting maintenance and other or PMO expenses up about $3 million or almost 8% due to the higher production expenses and higher compensation related expenses. Partially offset by lower site related costs. SG&A expenses grew over $5 million or about 8% due to higher professional fees, including software and technology expenses, and an increase in the allowance for bad debt from higher sales activity. Partially offset by lower credit card usage by customers lower compensation related expenses. The $15 million increase in total billboard expenses were more than covered by the strong growth in billboard revenues Nick described earlier, leading to billboard adjusted OIBDA increasing by over $13 million or 10%. Now turning to transit on slide 11. In total, transit expenses were up $8 million to just over 8% year over year. Transit franchise expense was up 6% to $66 million due primarily to higher variable transit franchise expenses driven by higher transit revenues outside New York the annual inflation adjustment in the minimum annual guarantee for the MTA contract. Let me take a minute before discussing the rest of transit segment to clarify the accounting treatment regarding the New York MTA. We will continue to book annual transit franchise expenses at the minimum annual guarantee which in 2026 is $161 million, including the final year of the 2020 amendment. We will record this expense on a straight line basis evenly each quarter. This approach will continue until we expect to recoup the entire cost of the digital investment we have made since the commencement of deployment in 2018, and reflects the financial statement impact of our 2023 transit impairment. Please refer to our earnings press release and 10 Q for additional details on the MTA. Returning to our discussion of transit operating expenses, PMO costs were up just over $2 million or about 12% due to higher display production costs driven by higher profile creative initiatives during the FIFA World Cup. And higher posting and rotation costs. SG&A expenses were up $2.5 million or about 14% due to higher professional fees, including software and technology expenses, higher compensation related expenses, including commissions, and higher allowance for bad debt. Partially offset by lower credit card usage by customers. The $8 million increase in total transit expenses was far eclipsed by our exceptional 32% transit revenue growth described earlier. Leading to transit adjusted OIBDA improving by about $26 million during the quarter to $33 million Slide 12 shows the company's adjusted OIBDA in the second quarter. Corporate was up about $3 million due to higher compensation related expenses including severance and the impact of market fluctuations on an unfunded equity linked retirement plan offered by the company to certain employees. Combined with the billboard and transit OIBDA, total consolidated adjusted OIBDA totaled about $160 million, up 29% compared to last year. Before moving on, given our robust revenue performance and strong outlook for this year, I would like to mention some important growth investments we have accelerated into 2026. To support our ambitious revenue targets for this year and beyond. First, we are investing even more in digital growth. We are reinforcing our programmatic sales team and the experienced sales leaders to ensure that we capture as much of this growing revenue stream as possible. Have also expanded our data analytics function hiring a chief data officer late in the second quarter to partner with our research and insights team to advance our audience intelligence and measurement solutions in order to meet industry expectations. Second, we are investing in our people. We have expanded the platform tools and training available to our workforce to improve both efficiency and effectiveness. Tools such as Salesforce, our proprietary IRL Nav, and integrated marketing cloud will minimize time spent on repetitive administrative tasks and maximize time spent engaging with clients. We will continue investing in our HR function to ensure we attract, retain, and develop best possible talent to be a world-class media organization. As a result of these strategic investments, we expect our SG&A expense growth rate to outpace our revenue growth rate for the remainder of 2026 to help drive exceptional revenue performance in 2027 and beyond. Turning now to capital expenditures on Slide 13. Q2 CapEx spend was about $17 million including about $6 million of maintenance spend. We added 51 new digital boards in the quarter and expect to add a total of about 125 in the full year. 2026, we still expect to spend approximately $90 million of CapEx in line with our historical level of about 5% of revenue. About $30 million to $35 million of this total is expected to be for maintenance. Looking at AFFO on slide 14, can see the bridge to our Q2 AFFO of $121 million The improvement is principally driven by higher adjusted OIBDA. Based on our results thus far, our expected revenue growth for the remainder of the year and the ongoing investments in our business we now expect that our reported 2026 AFFO will grow in the low-20% range relative to our reported 2025 AFFO of $338 million Included in this guidance is the previously noted maintenance CapEx, interest expense of approximately $145 million and a small amount of cash taxes. Also, our outlook reflects both the strength of the underlying business and the MTA accounting treatment discussed earlier. Please turn to slide 15 for an up update on our balance sheet, committed liquidity is nearly $600 million, including about $30 million of cash, around $500 million available via revolver, and $50 million available via accounts receivable securitization facility. As of June 30, our net total leverage was around 4x at the bottom end of our 4x to 5x target range. During June, we refinanced our $650 million of 5% notes due in 2027, with a new issuance of $500 million of senior unsecured notes in 2034. Priced at 6.0% flat. With the balance funded through a draw on our accounts receivable facility and cash on hand. Turning to our dividends, We are pleased to announce today that our Board of Directors raised our quarterly cash dividend by 10% to $0.33 per share payable on September 30 to shareholders of record to close the business on September 4. We spent just over $11 million in acquisitions during the quarter, and looking at our current acquisition pipeline, we continue to expect our 26 full year deal activity to be similar to levels reached in recent years. With our leverage trending to the low end of our range and increasing cash flows, we expect to be more opportunistic on our deal activity going forward. With that, let me turn the call back to Nick Brien. Nicolas Brien: Thank you, Matthew. I am pleased to report that we are seeing strong top line growth in the third quarter. And from where we sit today, we expect quarterly revenue growth to be up in the high single digits year on year driven by about 20% growth in transit and mid single digit growth in billboard. These figures include a $16 million benefit related to the World Cup, with approximately $9 million booked in billboard and $7 million in transit. 2026 is a transformative year for OUTFRONT. From operating as a legacy out of our media vendor into the premier platform company of IRL media. We are immensely proud of the results we have delivered so far, although our work is far from complete. We continue to be laser focused on executing our strategic imperatives while investing smartly to strengthen our business and further accelerate our future revenues and profits. We are creating a formidable growth engine, with our revamped marketing team feeding our reorganized sales force with the highest quality leads. We have supercharged our sales engine by investing in industry leading sales tools such as AI enabled integrated CRM and the marketing cloud, as well as advanced sales training. Our strategic investment in AdQuick is changing how we plan and sell. Reducing the number of handoffs from audience discovery to proposal creation. To further accelerate our growing revenue, we are also expanding our research and measurement team. To consistently prove the immense value of our IRL solutions. To that end, we hired an industry leading chief data officer Hugh Griffiths, who has been tasked to leverage his decades of media agency experience to raise all standards of our medium's measurement and attribution capabilities. I want to close with why we believe IRL media becomes more valuable not less, in an AI generated world. We commissioned Kantar to study consumer trust across media sites, and the finding was unambiguous. Trust in digital content is eroding fast. When any image, post, or video can be machine generated in seconds Audiences default to suspicion. And because online inventory is infinitely expandable, another feed another ad unit, another AI generated impression, that abundance is the very thing driving the trust erosion. Infinite supply collapses credibility and advertising is caught in the crossfire. Physical media works the opposite way. it is scarce by law and by geography. You cannot simply build more of it. We believe that fixed supply paired with the rising demand for real world engagement means the media value of physical inventory can only go up. This dynamic is playing out in real time. Drive through San Francisco today and nearly every other billboard belongs to an AI company. The same companies eroding trust online are turning to the 1 channel that cannot be faked. Because a billboard is public and real. And putting your name on 1 signals that your company is credible and trustworthy. To be clear, this is not an argument against online media. it is an argument for smarter media planning. Out of home is a load bearing wall. The credibility layer that makes every downstream digital impression more believable, while AI increasingly powers the targeting planning, and measurement on top of it. that is the thesis behind our recent minority investment in AdQuick. Bringing AI native workflows into physical campaign planning. Our Kantar research backs this up directly. Consumers rated the identical ad as dramatically more trustworthy on a billboard than on social media. This matters commercially as trust is not a soft brand metric. 80-7 percent of consumers say they will be paying more for brands that they trust. Trust has become a scarce commercial asset. And increasingly, the real world is where it is built. that is our conviction heading into the second half of the year. As AI floods digital channels with infinite low cost content, the brands that also claim a stake in the physical world will be the ones that stand out. And we are ideally positioned to help them do exactly that. And with that, operator, let's now open up the line for questions. Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Cameron McVeigh, Morgan Stanley. Your line is open, Cameron. Please go ahead. Cameron McVeigh: Hi. Thank you. Was hoping you could comment on the strength and programmatic that we are seeing Curious how conversations with advertisers are trending, what is been working, and how much runway you might expect we have on programmatic growing going forward. And then secondly, on the higher SG&A cost, the hiring of a chief data officer, like, I would love to hear if there is any more on what drove this, why now, and where you expect to see the largest benefit going forward Thanks. Nicolas Brien: All right. Thank you. Thank you, Cameron, and I appreciate the questions. Let me start with the first 1. Programmatic, we see tremendous runway we look at, digital media, nearly 80% now in The US, I think 75% globally is traded programmatically. We are at 20%. I think the out of home industry overall is less than 20%. There are significant pools of advertiser dollars that sit with trading desks, either within the advertiser or within big agency groups as well as independent agencies and they choose to trade plan and buy their digital media, their online media, programmatically. it is the reason we invest we have been investing, as Matthew talked about, We hired a chief data digital and strategy officer in terms of sales and strategy. From the trade desk, and he is been looking at both strategy for pipes inventory technology, making sure ad tech stack is as seamless as possible as well as the sales relationships with the DSPs and the leading SSPs. We have strong relationships with the industry SSPs, We see an opportunity to further extend those relationships And Jeff Hackett is leading that effort along with a further strength. So, we see significantly more upside on the way we can engage digital revenues through programmatic. The reason why we hired Chief Data Officer now why we hired Hugh Griffith, is we are at a watershed moment in the industry where the industry has decided to offer a pilot test. To choose Ipsos to go to a next standard of what our industry measurement is. But it is not just audience measurement and reach curves. it is understanding how data, especially when it comes to digital, is gonna apply different first party data capabilities as well as well as omnichannel strategy planning. So our media could be more constructively and credibly integrated into overall campaign planning. Hugh is a master of that. he is come from the agency world. he is got over 30 years of working with the biggest agencies and the biggest brands doing just that. So he as a consequence of what has gone on at IP and Omnicom, Hugh is someone I worked with 25 years ago at Universal McCann. I have watched his career develop, and I have watched his expertise, and I have realized that we would benefit significantly by having someone lead that way as we are seeking to engage with the enterprise marketeers. The most sophisticated marketers who are focused on audiences reach curves that focus on business outcomes. So we need to engage at that level to have the credibility to ensure our media is integrated not as an optional consideration within omnichannel campaign planning, but a fundamental platform, as I described earlier, I consider it the load bearing wall. So those are the 2 reasons, and we see great upside on both. Cameron McVeigh: Makes sense. Thank you. Nicolas Brien: Thanks, Cameron. Operator: Your next question comes from the line of Alexey Philippov with JPMorgan. Your line is open, Alexey. Please go ahead. Alexey Philippov: Yes. Hello. Thank you very much. You have talked about FIFA as a good opportunity to bring new advertisers into the segment. Now that the tournament is over, how is the progress there? Do you see clients remaining with you? that is my first question. And another on macro? Your commercial revenue was up nice, and that is likely a reflection of World Cup. But local was a bit softer than in first quarter. Any signs of macro weakness on the local front? Or not really? Thank you. Nicolas Brien: Thanks, Alexey. On the first question you asked about the new advertisers. And it is something that we all know, you know, across this industry that the out of home medium has failed to demonstrate its level of efficacy with the most sophisticated marketeers. With those if we think about those advertisers who are spending over $250 million a year in their advertising, We have the lowest share relative to the 2.5% that the medium takes. Is less than 1%. We see what we are calling the enterprise side of the business, the enterprise and the strategic accounts as being very important opportunities to engage and grow our share, whether it be on automotive, whether it be on pharma, whether it be on CPG, we have a number of those logos. We have a number of those relationships but they are not as consistent across all their brands as we would like. that is why we developed our heads of industry practice within the enterprise sales division. So to focus on not just winning those accounts, but growing them is also very important. We also are really focused laser on retaining clients. Really tracking the data to understand which clients and which category are either spending less or leaving the medium altogether with us. So those are drives that we are very confident will strengthen you know, our revenue going forward, both in terms of new logo and increases. At the macro level, you asked about, you know, if there were weaknesses at the commercial side of the business. Obviously, was there has been a real benefit there from World Cup. there is also been a continued benefit there from AI, And in AI companies who are now extending after their VC raises and whatever they are doing in San Francisco coming into other markets, whether it be into Boston, whether it be in Chicago, and certainly New York City. So I would say that any slight lessening versus quarter the first quarter on the commercial side, has no impact on the drive momentum that we are experiencing, and I am very confident you will see it balance for the second half of the year. Alexey Philippov: Thank you very much. And just if I may, to confirm on MTA accounting, you still expect revenue shift in the fourth quarter so that the MTA cost will shift the revenue share in the fourth quarter. Matthew Siegel: No. it is Matthew. We do not account for the transit franchise expense on a straight line basis for the whole year and really for the foreseeable future in the years to come. it is cleaner. Basically, we are looking at our internal models on the MTA. We do not expect to recoup the life of the contract, the money we have spent, And as you know, in 2023, we took an impairment And so most of the, the recoupment was already expensed back then. So, we are going to straight line the MEG this year, which as mentioned in the script is $161 million, so about $40 million a quarter. And you will see a big margin gain in the fourth quarter. Alexey Philippov: Thank you. Operator: Your next question comes from the line of Jonnathan Navarrete with TD Cowen. Your line is open, Jonathan. Please go ahead. Jonnathan Navarrete: Thank you. Can you discuss the economics of the Jets partnership and whether the opportunity is primarily direct revenue from the team or access to a broader pool of sponsors and advertising budgets. Thank you. Nicolas Brien: Thanks, Jonnathan. Thank you for the questions. We are very excited about the JETS announcement with the official launch with today that we are the official media partner, and we are the only out-of-home media partner within their practice is the way they sell their sponsorships. And the way the jets are looking to engage their sponsorships is not just in stadium or online. You know, this is we are very excited because this is a 5-year deal. And they have the wisdom to see the opportunity to ensure that the very best of our inventory within the footprint that they have identified completes their omnichannel media package. So they are selling as well as, you know, to any of the significant brands that are looking to engage They are the first NFL team and as far as we understand, the first US pro sports team to include out of home in their packages. So we are this is important. I talked about this, I think, not on the last-- it was the call before. That we see this kind of brand expansion, the opportunity in sports, in experiential, with retail media. These different areas where our in real life inventory can really complement whatever they are selling. Whether it is in store, whether it is online, how do they bundle it together so we all-- we will have more announcements to come, but certainly, you know, to represent this very significant NFL team. In New Jersey is something we are very excited about, but that is the reason we are doing it. Operator: Your next question comes from the line of Patrick Sholl with Barrington. Your line is open, Patrick. Please go ahead. Patrick Sholl: Hi. Thank you. I was curious if you could follow-up on your commentary on your M&A pipeline and how and where you would look to target, you know, within making investments, whether that would be additional technology investments, or expanding within your own markets or outside your markets or into different types of out-of-home inventory. Matthew Siegel: Hey, Patrick. it is Matthew. Thanks for the question. First, I will give another shout out to our balance sheet. We really feel we are in a good place with a lot of flexibility which hopefully everyone recognizes without money burning a hole in our pocket. So we feel good For the last few years, we have been really focusing on tiny tuck ins. As we have improved our balance sheet and got our leverage down. We have consistently looked at high quality premium inventory, billboard inventory mostly in our existing markets so we can tuck in and find hopefully, both revenue synergies and some cost synergies. So we are going to continue to do that. We will probably widen our aperture and look at more things, although we do not think we have missed anything over the last few years. We just think we will go shopping a little more aggressively. And in addition, if there are attractive DMAs that we do not have that are available you know, as a market. We would certainly look at those and consider a few that are, you know, maybe not in our portfolio, but we would like them to be. As far as tech or other types of enablement, we made the investment, in AdQuick a few months ago, and we would continue to do things like that help our sales force or help our the package of our portfolio things that we sell, but our focus is really gonna be on the billboards and expanding our existing great inventory. Patrick Sholl: Okay. Thank you. And apologies if I missed this earlier, but on the incremental benefit you talked about on the World Cup, how much of that was existing advertisers expanding their share to, like, of spending on out of home beyond where you would expect them to going forward? Versus newer advertisers that you do not think would return in that level in the future. Matthew Siegel: Patrick, so for our World Cup money, as Nick mentioned, we got I identified a little over $50 million about half of that we believe, is incremental by incremental. Either higher prices than we would have expected without the World Cup or some of our interim know, experiential inventory or some higher occupancy. A lot of the investments were from existing customers or ours or foundation. We have not kind of pieced together how much is new. We have not disclosed that, but it is a it is a if there are a few new customers, And as Nick pointed out earlier, we hope to keep them as ongoing customers. We have not disclosed how many dollars are from new customers just yet. Nicolas Brien: Yeah. Okay. So I will jump on and add to that. I think this is also a significant opportunity. But whether we existing brands who have been with us that wanted to double down because they were FIFA sponsored, either at the at the enterprise level or a team sponsor. Or they were new brands and we know who they are. Tracking them. it is our opportunity to say welcome to the medium. And if the meeting was important for you to develop those live physical experiences, it could be shared, that this is something that should be continuing to build your brand equity with trust and credibility. So we are not gonna miss the opportunity and imagine, oh, that is gone for 4 years, and now we just move on to Super Bowl, and then we have the Olympics. No. Every 1 of these episodic significant growth opportunities, are an opportunity for us to maintain and build on that momentum. Thank you. Operator: We have reached the end of the Q&A session. I will now turn the call back to Nick Brien, CEO, for closing remarks. Nicolas Brien: Thanks for joining us today. We hope to see and meet many of you at the various conferences and events that Matthew, Stefan, and I, as the 3 Musketeers will be attending over the next coming months. But for those of you whom we do not meet along the road, we certainly really look forward to presenting our Q3 results to you in November. So, genuinely, thank you for your engagement. And we will talk to you soon. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Outfront Media, 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 Outfront Media wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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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 recommends Outfront Media. The Motley Fool has a disclosure policy. Outfront Media (OUT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in OUTFRONT Media Inc.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 14% year over year, while adjusted OIBDA increased 29% to $160 million and AFFO jumped 45% to $121 million. Transit revenue led growth with a 32% increase, including a 48% gain from New York’s MTA, while billboard revenue rose 8%. Digital and World Cup advertising boosted results: OUTFRONT generated more than $50 million in FIFA World Cup-related revenue, roughly half of which was incremental. Digital revenue grew more than 23% and reached about 37% of total revenue, with programmatic and automated digital sales climbing nearly 50%. Raised outlook and dividend: The company now expects reported 2026 AFFO to grow in the low-20% range and projects high-single-digit revenue growth in the third quarter. OUTFRONT also raised its quarterly dividend 10% to $0.33 per share while maintaining its approximately $90 million full-year capital expenditure forecast. OUTFRONT Media (NYSE:OUT) reported stronger-than-expected second-quarter results, citing continued advertising demand, growth in transit and billboard revenue, and a contribution from FIFA World Cup-related campaigns. Chief Executive Officer Nick Brien said consolidated revenue increased 14% year over year in the second quarter, driven by 32% transit revenue growth and 8% billboard revenue growth. Adjusted OIBDA rose 29% to $160 million, while adjusted funds from operations, or AFFO, increased 45% to $121 million. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The company generated more than $35 million in World Cup-related revenue during the quarter and more than $50 million overall, Brien said. OUTFRONT estimated that about half of the World Cup revenue was incremental to its typical business. Transit revenue increased 32%, led by a 48% gain at the New York Metropolitan Transportation Authority. The strongest transit advertising categories were technology, entertainment and financial services, according to Brien. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Digital transit revenue rose nearly 36% to approximately $68 million, while static transit revenue increased more than 29%. OUTFRONT estimated FIFA contributed about $17 million in transit revenue during the second quarter. Billboard revenue grew 8%, or 9.4% excluding the effect of a previously announced exit from a large, marginally profitable billboard contract in Los Angeles. Technology, including artificial intelligence-related advertisers, along with legal and medical categories, were the strongest billboard categories. → No Hangover: Revisiting Microsoft One Week After Earnings Digital billboard revenue increased 17.6% on a reported basis, while static and other billboard revenue rose 3.8%. Excluding the exited Los Angeles contract, digital billboard revenue would have risen more than 21% and static and other billboard revenue would have increased 4.3%, the company said. FIFA contributed an estimated $19 million to billboard revenue in the quarter. Combined digital revenue increased more than 23% and represented about 37% of total revenue, compared with 34% in the prior-year period. Excluding the Los Angeles contract, digital revenue would have increased 26%. Programmatic and digital direct automated sales climbed nearly 50% and accounted for 20% of digital revenue, up from about 17% a year earlier. Brien said the company sees “tremendous runway” for programmatic sales, noting that OUTFRONT remains below broader digital-media programmatic adoption levels. The company has added sales and strategy resources focused on its advertising technology relationships and programmatic business, he said. Billboard expenses increased nearly $15 million, or about 7%, year over year. Lease costs rose $6 million, reflecting higher variable lease expenses and contractual escalators, partly offset by $4 million in savings related to the Los Angeles contract exit. Billboard adjusted OIBDA rose more than $13 million, or 10%, as revenue growth exceeded expense growth. Billboard yield increased 12% to $3,344 per month, driven principally by efforts to establish higher rates and by FIFA-related activity. Transit expenses increased $8 million, or just over 8%, while transit adjusted OIBDA improved by about $26 million to $33 million. Chief Financial Officer Matthew Siegel said the company will continue recording New York MTA transit franchise expense at the minimum annual guarantee of $161 million for 2026, recognized evenly each quarter. Siegel said the accounting approach reflects the company’s assessment that it does not expect to recover the full cost of digital investments made under the MTA contract during the life of the agreement. The company had previously recognized a transit impairment in 2023. OUTFRONT said it is accelerating investments in digital growth, programmatic sales, data analytics, training and sales technology. The company hired Chief Data Officer Huw Griffiths late in the second quarter to advance audience intelligence and measurement capabilities. Siegel said the company expects SG&A expense growth to outpace revenue growth for the remainder of 2026 as it invests to support revenue performance in 2027 and beyond. Second-quarter capital expenditures totaled about $17 million, including roughly $6 million of maintenance spending. The company added 51 digital boards in the quarter and expects to add approximately 125 for the full year. It maintained its full-year capital expenditure forecast of about $90 million, including $30 million to $35 million of maintenance capital expenditures. Based on year-to-date results and its outlook, OUTFRONT now expects reported 2026 AFFO to grow in the low-20% range from reported 2025 AFFO of $338 million. The outlook includes expected maintenance capital expenditures, approximately $145 million of interest expense and a small amount of cash taxes. As of June 20, OUTFRONT had nearly $600 million of committed liquidity, including about $30 million of cash, roughly $500 million available under its revolving credit facility and $50 million available through an accounts receivable securitization facility. Net total leverage was around 4 times, at the lower end of the company’s stated 4-times to 5-times target range. During June, the company refinanced $650 million of 5% notes due in 2027 with $500 million of senior unsecured notes due in 2034 carrying a 6% coupon. The remaining balance was funded with a draw on its accounts receivable facility and cash on hand. The board increased the quarterly cash dividend 10% to $0.33 per share, payable Sept. 30 to shareholders of record as of Sept. 4. OUTFRONT also spent just over $11 million on acquisitions during the quarter. For the third quarter, Brien said the company expects revenue growth in the high-single-digit percentage range, including approximately 20% transit growth and mid-single-digit billboard growth. The outlook includes a $16 million World Cup benefit, with about $9 million expected in billboard revenue and $7 million in transit revenue. OUTFRONT Media Inc is a leading out-of-home (OOH) advertising company offering a broad range of billboard, transit and digital display solutions across major urban markets in the United States and Canada. Its portfolio encompasses traditional static billboards, high-resolution digital signage, transit media on buses, trains and taxis, as well as street furniture placements such as bus shelters, kiosks and urban panels. The company partners with brand marketers to deliver high-impact campaigns that engage consumers outside the home environment. Through an extensive network of assets in key metropolitan areas, OUTFRONT provides advertisers with premium visibility along highways, city streets and transit corridors. 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 "OUTFRONT Media Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

For the quarter ended June 2026, Outfront Media (OUT) reported revenue of $522.5 million, up 13.5% over the same period last year. EPS came in at $0.68, compared to $0.10 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $508.84 million, representing a surprise of +2.69%. The company delivered an EPS surprise of +15.25%, with the consensus EPS estimate being $0.59. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Outfront Media performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Billboard: $379.4 million compared to the $368.98 million average estimate based on two analysts. Revenues- Other: $2.5 million versus the two-analyst average estimate of $2.51 million. Revenues- Transit: $140.6 million compared to the $137.34 million average estimate based on two analysts. The reported number represents a change of +32.3% year over year. Net Earnings Per Share (Diluted): $0.44 versus the four-analyst average estimate of $0.34. Adjusted OIBDA- Other: $0.5 million versus the four-analyst average estimate of $0.08 million. Adjusted OIBDA- Corporate: $-21.3 million versus $-15.17 million estimated by three analysts on average. Adjusted OIBDA- Billboard: $147.9 million compared to the $137.6 million average estimate based on three analysts. Adjusted OIBDA- Transit: $33.2 million versus the three-analyst average estimate of $22.51 million. View all Key Company Metrics for Outfront Media here>>> Shares of Outfront Media have returned -3.7% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. 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 OUTFRONT Media Inc. (OUT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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 was significantly bolstered by the FIFA World Cup, which generated over $50 million in total revenue, with approximately half of that considered incremental to typical business levels. Management is repositioning the company from a legacy media vendor to a 'premier platform company of IRL (In Real Life) media,' emphasizing the scarcity and credibility of physical assets in an AI-saturated digital landscape. Billboard yield grew 12% year-over-year, driven by strategic efforts to establish higher rates across the asset portfolio and supported by high-demand events. The company is seeing a surge in demand from AI technology firms, particularly in San Francisco, as these companies seek the 'trust and credibility' of physical billboards to anchor their brands. Transit revenue saw exceptional growth of 32%, led by a 48% increase in New York MTA performance, which management attributes to high-profile creative takeovers and successful event-based campaigns. Strategic investments in AdQuick and the hiring of a Chief Data Officer are intended to modernize measurement and attribution, making out-of-home media a 'load-bearing wall' in omnichannel planning. Third-quarter revenue is expected to grow in the high single digits, supported by a $16 million remaining benefit from the World Cup and 20% growth in the transit segment. Management expects SG&A expense growth to outpace revenue growth for the remainder of 2026 due to accelerated investments in programmatic sales teams, data analytics, and AI-enabled CRM tools. The company raised its 2026 AFFO growth guidance to the low-20% range, reflecting underlying business strength and specific accounting treatments for the MTA contract. Capital allocation will shift toward more opportunistic M&A activity, specifically targeting high-quality billboard inventory in existing markets and potentially new DMAs as leverage remains at the low end of the target range. The company plans to add approximately 125 new digital boards in the full year 2026, maintaining a CapEx spend of approximately $90 million. The company completed its exit from a large, marginally profitable billboard contract in Los Angeles; excluding this, billboard revenue growth would have been 9.4% instead of the reported 8%. A new accounting approach for the New York MTA contract involves straight-lining the $161 million minimum annual guarantee, which is expected to result in a significant margin gain in the fourth quarter. Net total leverage reached approximately 4x, the bottom of the company's 4x to 5x target range, following the refinancing of $650 million in notes due in 2027. Management highlighted 'trust erosion' in digital media as a strategic tailwind for physical media, citing Kantar research that shows consumers find identical ads more trustworthy on billboards than on social media. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management sees significant upside in programmatic sales, noting that while 80% of US digital media is traded programmatically, out-of-home is currently below 20%. The hiring of a Chief Data Officer is a strategic move to integrate out-of-home into omnichannel planning by providing the sophisticated measurement and reach curves required by enterprise marketers. Approximately half of the $50 million World Cup revenue was incremental, and management is focused on converting these event-based advertisers into long-term clients. The company is using 'heads of industry' practices within its enterprise sales division to target high-spend categories like pharma, CPG, and automotive that historically under-index in out-of-home. The 5-year deal makes Outfront the exclusive out-of-home partner for the Jets, marking the first time a US pro sports team has included out-of-home in its official sponsorship packages. The partnership allows the team to sell 'omnichannel media packages' that combine stadium and online presence with Outfront's physical inventory.

This article first appeared on GuruFocus. Consolidated Revenue: Up 14%, driven by 32% growth in transit and 8% growth in billboard. Consolidated Adjusted OIBDA: Up 29% to $160 million. AFFO: Grew 45% to $121 million. Billboard Revenue: Up 8% (9.4% excluding the exited LA contract). Transit Revenue: Up 32%, led by New York MTA, which was up 48%. Digital Billboard Revenue: Up 17.6% (over 21% excluding the exited LA contract). Static and Other Billboard Revenue: Up 3.8% (4.3% excluding the exited LA contract). Digital Transit Revenue: Up nearly 36% to about $68 million. Static Transit Revenue: Up over 29%. Combined Digital Revenue: Grew over 23%, representing about 37% of total revenues. Programmatic and Digital Direct Automated Sales: Increased nearly 50%, representing 20% of total digital revenue. Commercial Revenue: Up 15%. Enterprise Revenue: Up about 12%. Billboard Yield: Up 12% year over year to $3,344 per month. Billboard Expenses: Up nearly $15 million (approximately 7% year over year). Transit Expenses: Up $8 million (just over 8% year over year). Transit Adjusted OIBDA: Improved by about $26 million to $33 million. CapEx: Q2 CapEx spend was about $17 million, including about $6 million of maintenance spend. New Digital Boards: Added 51 in the quarter; expect to add a total of about 125 in the full year. 2026 AFFO Guidance: Expected to grow in the low 20s percent range relative to reported 2025 AFFO of $338 million. Dividend: Raised quarterly cash dividend by 10% to $0.33 per share. FIFA Revenue: Generated over $35 million of revenue during the quarter and over $50 million overall. Warning! GuruFocus has detected 10 Warning Signs with OUT. Is OUT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated revenues grew 14% in Q2 2026, driven by strong 32% growth in transit and 8% growth in billboard, with adjusted OIBDA up 29% to $160 million. The FIFA World Cup generated over $35 million in Q2 revenue (over $50 million overall), with approximately half considered incremental to typical business. Digital billboard revenues grew 17.6% (over 21% excluding the exited LA contract), and combined digital revenues grew 23%, representing 37% of total revenues. Programmatic and digital direct automated sales increased nearly 50% in Q2, now representing 20% of total digital revenue, up from 17% a year ago. The company raised its quarterly dividend by 10% to $0.33 per share, reflecting strong cash flow and confidence in future performance. Net leverage improved to approximately 4 times, at the bottom end of the target range, providing financial flexibility for opportunistic M&A and investments. Billboard yield grew 12% year-over-year to $3,344 per month, driven by higher rates and FIFA-related demand. Transit revenues grew 32%, led by a 48% increase in New York MTA, with strong performance in tech, entertainment, and financial categories. The company is investing in growth areas like programmatic sales, data analytics, and AI-enabled tools, including a new Chief Data Officer hire, to drive future revenue. AFFO grew 45% to $121 million in Q2, and the company expects 2026 AFFO to grow in the low 20s percent range. Billboard expenses increased 7% year-over-year, driven by higher variable lease costs and contractual escalators, partially offset by savings from the LA contract exit. SG&A expenses grew 8% in billboard and 14% in transit due to higher professional fees, software costs, and bad debt allowances, with expectations for SG&A growth to outpace revenue growth for the rest of 2026. The company expects Q3 2026 revenue growth to slow to high single digits, down from 14% in Q2, with billboard growth moderating to mid-single digits. The MTA accounting treatment will continue to book transit franchise expenses at the minimum annual guarantee, potentially limiting margin gains until the fourth quarter. The company noted a slight softening in local/commercial revenue compared to Q1, though it attributes this to World Cup timing rather than macro weakness. The exit of a large marginally profitable billboard contract in LA continues to impact reported billboard revenue comparisons, though it was excluded from growth calculations. Higher compensation-related expenses, including severance and market fluctuations on an unfunded equity-linked retirement plan, negatively impacted adjusted OIBDA by about $3 million. The company expects to spend approximately $90 million in CapEx for 2026, in line with historical levels, which may limit near-term cash flow growth. The World Cup benefit is expected to decline in Q3 to $16 million, down from $35 million in Q2, indicating a potential revenue headwind in the second half. The company's investment in AdQuick and other technology initiatives may not yield immediate returns, as SG&A growth is expected to outpace revenue growth for the remainder of 2026. Q: Can you comment on the strength in programmatic advertising, how conversations with advertisers are trending, and how much runway you expect going forward? Also, what drove the higher SG&A costs and the hiring of a chief data officer?A: CEO Nicolas Brien highlighted the significant runway for programmatic growth, noting that while nearly 80% of US digital media is traded programmatically, OUTFRONT's programmatic sales are only at 20% of digital revenue. The company is investing in its ad tech stack and sales relationships with DSPs and SSPs. Regarding the Chief Data Officer hire, Brien explained it's a "watershed moment" for the industry's measurement standards. The new hire, Hugh Griffiths, brings over 30 years of agency experience to help integrate OUTFRONT's media into omnichannel campaign planning and prove its value to the most sophisticated enterprise marketers, positioning it as a "load bearing wall" in media strategies. Q: With the FIFA World Cup over, how is the progress with new advertisers brought in by the tournament? Are they remaining with you? Also, can you comment on the macro environment, as local revenue was a bit softer than in the first quarter?A: CEO Nicolas Brien stated the company is laser-focused on retaining new clients and growing its share with enterprise advertisers (those spending over $250 million annually), where out-of-home currently has less than 1% share. They are using "heads of industry" practices to grow these accounts. On the macro front, Brien dismissed concerns about local softness, attributing the commercial strength to the World Cup and continued investment from AI companies expanding beyond San Francisco into markets like Boston, Chicago, and New York. He expressed confidence in the momentum for the second half of the year. Q: Can you discuss the economics of the new New York Jets partnership and whether the opportunity is primarily direct revenue from the team or access to a broader pool of sponsors and advertising budgets?A: CEO Nicolas Brien expressed excitement about the five-year deal, which makes OUTFRONT the official and only out-of-home media partner for the Jets. He framed this as a strategic move to bundle OUTFRONT's premium inventory with the team's sponsorship packages, creating a complete omnichannel media offering for brands. Brien noted this is the first NFL team (and first US pro sports team) to include out-of-home in their packages, representing a new avenue for brand expansion in sports and experiential media. Q: Could you follow up on your commentary on the M&A pipeline and where you would look to target investments, whether in technology or expanding into new markets or inventory types?A: CFO Matthew Siegel stated the company is in a strong balance sheet position with significant flexibility. While they have focused on small tuck-in acquisitions of premium billboard inventory in existing markets, they plan to "widen their aperture" and shop more aggressively. This could include attractive DMAs they don't currently operate in. While they will continue to make tech investments like the recent AdQuick minority stake, the primary focus for M&A will remain on billboards and expanding their existing inventory. Q: Of the incremental benefit from the World Cup, how much was from existing advertisers expanding their spend versus newer advertisers that might not return at that level in the future?A: CFO Matthew Siegel clarified that of the over $50 million in World Cup revenue, roughly half is considered incremental, coming from higher prices, experiential inventory, or higher occupancy. While a lot of the investment came from existing customers, there were also new customers, though the company hasn't disclosed the exact split. CEO Nicolas Brien added that they are tracking these new brands and view the World Cup as an opportunity to welcome them to the medium and build on that momentum for future events like the Super Bowl and Olympics. Q: Can you confirm the accounting treatment for the New York MTA contract and the expected revenue shift in the fourth quarter?A: CFO Matthew Siegel confirmed that the company will account for the transit franchise expense on a straight-line basis for the whole year and the foreseeable future. The 2026 minimum annual guarantee is $161 million, or about $40 million per quarter. Because the company doesn't expect to recoup its digital investment within the life of the contract (and took an impairment in 2023), they will continue this treatment, which will likely result in a significant margin gain in the fourth quarter. Q: What is driving the strong growth in billboard and transit revenues, and what are the expectations for the third quarter?A: CEO Nicolas Brien reported that Q2 consolidated revenues were up 14%, driven by 32% growth in transit and 8% growth in billboard, boosted by over $35 million in FIFA World Cup revenue. Excluding an exited LA contract, billboard growth would have been 9.4%. For Q3, the company expects revenue growth in the high single digits year-over-year, with transit up about 20% and billboard up mid-single digits, including a $16 million World Cup benefit. Q: Can you elaborate on the company's strategic thesis regarding the value of out-of-home media in an AI-generated world?A: CEO Nicolas Brien presented a compelling argument that physical media becomes more valuable as AI floods digital channels with infinite, low-cost content. He cited Kantar research showing consumer trust in digital content is eroding, while physical media is "scarce by law and by geography." He noted that many AI companies are turning to billboards to signal credibility and trustworthiness, as a billboard "cannot be faked." Brien concluded that out-of-home serves as a "credibility layer" that makes downstream digital impressions more believable, positioning OUTFRONT to benefit from this dynamic. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Revenues of $522.5 million Operating income of $116.1 million Net income attributable to OUTFRONT Media Inc. of $77.5 million Adjusted OIBDA of $160.3 million AFFO attributable to OUTFRONT Media Inc. of $120.8 million Quarterly dividend increased 10% to $0.33 per share, payable September 30, 2026 NEW YORK, Aug. 5, 2026 /PRNewswire/ -- OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter ended June 30, 2026. "We just completed a great second quarter which far exceeded our expectations across the board, with revenue, OIBDA, and AFFO all growing nicely," said Nick Brien, Chief Executive Officer of OUTFRONT Media. "Our successful second quarter was a result of strong organic gains across all aspects of our business, which were also enhanced by the FIFA World Cup." Second Quarter 2026 Results Consolidated ResultsReported revenues of $522.5 million increased $62.3 million, or 13.5%, for the second quarter of 2026 as compared to the same prior-year period. Total operating expenses of $246.1 million increased $14.6 million, or 6.3%, compared to the same prior-year period, due primarily to higher variable billboard property lease expenses, higher variable transit franchise expenses driven by higher Transit revenues and higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority (the "MTA") due to inflation, higher production expenses, and higher maintenance and utilities costs, partially offset by the impact of lost billboards in the period and lower site-related costs. Selling, General and Administrative expenses ("SG&A") of $123.0 million increased $12.4 million, or 11.2%, compared to the same prior-year period, due primarily to higher professional fees, including software and technology expenses, higher compensation-related expenses, a higher allowance for bad debt and the impact of market fluctuations on an unfunded equity-linked retirement plan offered by the Company to certain employees, partially offset by lower credit card usage by customers. Adjusted OIBDA of $160.3 million increased $36.2 million, or 29.2%, compared to the same prior-year period. Segment Results BillboardReported billboard segment revenues of $379.4 million increased $28.1 million, or 8.0%, compared to the same prior-year period, reflecting an increase in average revenue per display (yield), including the impact of programmatic and direct sale advertising platforms on digital billboard revenues, and revenues related to the 2026 Federation Internationale de Football Association ("FIFA") World Cup, partially offset by the impact of lost billboards in the period. Operating expenses increased $8.9 million, or 6.0%, due primarily to higher variable billboard property lease expenses, higher maintenance and utilities costs, higher production expenses, and higher compensation-related expenses, partially offset by the impact of lost billboards in the period and lower site-related costs. SG&A expenses increased $5.7 million, or 8.3%, primarily driven by higher professional fees, including software and technology expenses, and a higher allowance for bad debt, partially offset by lower credit card usage by customers and lower compensation-related expenses. Adjusted OIBDA of $147.9 million increased $13.5 million, or 10.0%, compared to the same prior-year period. TransitReported transit segment revenues of $140.6 million increased $34.3 million, or 32.3%, compared to the same prior-year period, due primarily to an increase in average revenue per display (yield) and revenues related to the 2026 FIFA World Cup, partially offset by the impact of new and lost transit franchise contracts. Operating expenses increased $5.8 million, or 7.2%, due primarily to higher variable transit franchise expenses driven by higher Transit revenues, higher guaranteed minimum annual payments to the MTA due to inflation, higher display production costs and higher posting and rotation costs, partially offset by lower site-related costs. SG&A expenses increased $2.5 million, or 13.8%, due primarily to higher professional fees, including software and technology expenses, higher compensation-related expenses, and commissions and a higher allowance for bad debt, partially offset by lower credit card usage by customers. Adjusted OIBDA of $33.2 million increased $26.0 million compared to the same prior-year period. OtherReported revenues decreased $0.1 million, or 3.8%, operating expenses decreased $0.1 million, or 5.0%, and Adjusted OIBDA was flat, compared to the same prior-year period, due primarily to a decrease in third-party digital equipment sales. CorporateCorporate expenses, excluding restructuring charges and stock-based compensation, increased $3.3 million, or 18.3%, compared to the same prior-year period to $21.3 million, due primarily to higher compensation-related expenses, including severance, and the impact of market fluctuations on an unfunded equity-linked retirement plan offered by the Company to certain employees. Interest ExpenseNet interest expense in the second quarter of 2026 was $36.2 million, including amortization of deferred financing costs of $1.3 million, as compared to $36.5 million, including amortization of deferred financing costs of $1.5 million, in the same prior-year period. The weighted average cost of debt was 5.5% as of June 30, 2026 and 5.4% as of June 30, 2025. Income TaxesThe provision for income taxes increased $0.7 million in the second quarter of 2026 compared to the same prior-year period. Cash paid for income taxes in the six months ended June 30, 2026 was $2.2 million. Net Income Attributable to OUTFRONT Media Inc.Net income attributable to OUTFRONT Media Inc. increased $58.0 million in the second quarter of 2026 compared to the same prior-year period. Diluted weighted average shares outstanding were 177.5 million for the second quarter of 2026 compared to 168.0 million for the same prior-year period. Net income per common share for diluted earnings per weighted average share was $0.44 in the second quarter of 2026 compared to $0.10 in the same prior-year period. FFOFFO attributable to OUTFRONT Media Inc. was $123.5 million in the second quarter of 2026, an increase of $53.1 million, or 75.4%, from the same prior-year period, driven primarily by higher Adjusted OIBDA and restructuring charges in 2025. AFFOStarting at the end of 2025, we modified our calculation of AFFO to include amortization of direct lease acquisition costs instead of cash paid for direct lease acquisition costs, as management believes that this calculation of AFFO is a more appropriate measure of performance period-over-period and consistent with how we calculate FFO. Accordingly, relevant prior periods have been recast to conform to this presentation. AFFO attributable to OUTFRONT Media Inc. was $120.8 million in the second quarter of 2026, an increase of $37.7 million, or 45.4%, from the same prior-year period, due primarily to higher Adjusted OIBDA. Cash Flow & Capital ExpendituresNet cash flow provided by operating activities of $183.7 million for the six months ended June 30, 2026, increased $83.0 million, or 82.4%, compared to $100.7 million in the same prior-year period, due primarily to higher net income, as adjusted for non-cash items, and the timing of accounts receivables and a decrease in accounts payable and accrued expenses, partially offset by a decrease in deferred revenues. Total capital expenditures decreased $1.6 million, or 3.7%, to $41.3 million for the six months ended June 30, 2026, compared to the same prior-year period, due primarily to decreased spending on digital displays, office remodels and billboard display upgrades, partially offset by the timing of payments. DividendsIn the six months ended June 30, 2026, we paid cash dividends of $106.3 million on our common stock and vested restricted share units granted to employees. We announced on August 5, 2026, that our board of directors has approved a quarterly cash dividend on our common stock of $0.33 per share payable on September 30, 2026, to stockholders of record at the close of business on September 4, 2026. Balance Sheet and LiquidityAs of June 30, 2026, our liquidity position included unrestricted cash of $31.2 million and $494.9 million of availability under our $500.0 million revolving credit facility, net of $5.1 million of issued letters of credit against the letter of credit facility sublimit under the revolving credit facility, and $50.0 million of additional availability under our accounts receivable securitization facility. During the three months ended June 30, 2026, no shares of our common stock were sold under our at-the-market equity offering program, of which $232.5 million remains available. Total indebtedness as of June 30, 2026 was $2.5 billion, excluding $19.9 million of deferred financing costs, and includes a $500.0 million term loan, $450.0 million of senior secured notes and $1.5 billion of senior unsecured notes, and $100 million borrowings under our accounts receivable securitization facility. MTA AgreementBased on the recent performance of our MTA assets, the Company currently expects to recoup some, but not all, MTA equipment deployment costs incurred prior to December 31, 2025, and does not currently expect to recoup current period or future MTA equipment deployment costs, even in periods when revenues under the MTA Agreement exceed the minimum annual guarantee threshold. Under the Company's current accounting treatment, revenues above the minimum annual guarantee threshold are deemed to first recoup the earliest unrecovered equipment deployment costs under a first-dollar convention. Because the Company does not currently expect to recoup all deployment costs incurred over the life of the MTA Agreement, expected recoupment is attributed to the earliest unrecovered investments first. As a result, current period and future MTA equipment deployment costs will continue to be recorded as intangible assets rather than prepaid MTA equipment deployment costs, consistent with the Company's treatment of such costs since 2023. For additional information, please refer to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which the Company expects to file tomorrow. Conference CallWe will host a conference call to discuss the results on August 5, 2026, at 4:30 p.m. Eastern Time. The conference call numbers are 833-461-5787 (U.S. callers) and 585-542-9983 (International callers) and the passcode for both is 274204534. Live and replay versions of the conference call will be webcast in the Investor Relations section of our website, www.outfront.com. Supplemental MaterialsIn addition to this press release, we have provided a supplemental investor presentation which can be viewed on our website, www.outfront.com. About OUTFRONT Media Inc. OUTFRONT is one of the largest and most trusted out-of-home media companies in the U.S., helping brands connect with audiences in the moments and environments that matter most. As OUTFRONT evolves, it's defining a new era of in-real-life (IRL) marketing, turning public spaces into platforms for creativity, connection, and cultural relevance. With a nationwide footprint across billboards, digital displays, transit systems, and other out-of-home formats, OUTFRONT turns creative into powerful real-world experiences. Its in-house agency, OUTFRONT STUDIOS, and award-winning innovation team, XLabs, deliver standout storytelling, supported by advanced technology and data tools that can drive measurable impact. Non-GAAP Financial MeasuresIn addition to the results prepared in accordance with generally accepted accounting principles in the United States ("GAAP") provided throughout this document, this document and the accompanying tables include non-GAAP financial measures as described below. We calculate and define "Adjusted OIBDA" as operating income (loss) before depreciation, amortization, net (gain) loss on dispositions, restructuring charges and stock-based compensation. We calculate Adjusted OIBDA margin by dividing Adjusted OIBDA by total revenues. Adjusted OIBDA and Adjusted OIBDA margin are among the primary measures we use for managing our business, evaluating our operating performance and planning and forecasting future periods, as each is an important indicator of our operational strength and business performance. Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of Adjusted OIBDA and Adjusted OIBDA margin, as supplemental measures, are useful in evaluating our business because eliminating certain non-comparable items highlights operational trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management's opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier for users of our financial data to compare our results with other companies that have different financing and capital structures or tax rates. When used herein, references to "FFO" and "AFFO" mean "FFO attributable to OUTFRONT Media Inc." and "AFFO attributable to OUTFRONT Media Inc.," respectively. We calculate FFO in accordance with the definition established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO reflects net income (loss) attributable to OUTFRONT Media Inc. adjusted to exclude gains and losses from the sale of real estate assets, depreciation and amortization of real estate assets, amortization of direct lease acquisition costs and the same adjustments for our equity-based investments and redeemable and non-redeemable noncontrolling interests, as well as the related income tax effect of adjustments, as applicable. We calculate AFFO as FFO adjusted to include amortization of direct lease acquisition costs as such costs are generally amortized over a period ranging from four weeks to one year and therefore are incurred on a regular basis. AFFO also includes cash paid for maintenance capital expenditures since these are routine uses of cash that are necessary for our operations. In addition, AFFO excludes restructuring charges and losses on extinguishment of debt, as well as certain non-cash items, including non-real estate depreciation and amortization, stock-based compensation expense, accretion expense, the non-cash effect of straight-line rent, amortization of deferred financing costs and the same adjustments for our redeemable and non-redeemable noncontrolling interests, along with the non-cash portion of income taxes, and the related income tax effect of adjustments, as applicable. We use FFO and AFFO measures for managing our business and for planning and forecasting future periods, and each is an important indicator of our operational strength and business performance, especially compared to other real estate investment trusts ("REITs"). Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of FFO and AFFO, as supplemental measures, are useful in evaluating our business because adjusting results to reflect items that have more bearing on the operating performance of REITs highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management's opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier to compare our results to other companies in our industry, as well as to REITs. Since Adjusted OIBDA, Adjusted OIBDA margin, FFO and AFFO are not measures calculated in accordance with GAAP, they should not be considered in isolation or as a substitute for operating income (loss) and net income (loss) attributable to OUTFRONT Media Inc., the most directly comparable GAAP financial measures, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies. In addition, these measures do not necessarily represent funds available for discretionary use and are not necessarily a measure of our ability to fund our cash needs. Please see Exhibits 4-5 of this release for a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures. Cautionary Statement Regarding Forward-Looking StatementsWe have made statements in this document that are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "could," "would," "may," "might," "will," "should," "seeks," "likely," "intends," "plans," "projects," "predicts," "estimates," "forecast" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions related to our capital resources, portfolio performance and results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: declines in advertising and general economic conditions; competition; government regulation; our ability to operate our digital display platform; losses and costs resulting from recalls and product liability, warranty and intellectual property claims; our ability to obtain and renew key municipal contracts on favorable terms; taxes, fees and registration requirements; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; seasonal variations; acquisitions and other strategic transactions that we may pursue could have a negative effect on our results of operations; dependence on our management team and other key employees; experiencing a cybersecurity incident; changes in regulations and consumer concerns regarding privacy, information security and data, or any failure or perceived failure to comply with these regulations or our internal policies; asset impairment charges for our long-lived assets and goodwill; environmental, health and safety laws and regulations; expectations relating to environmental, social and governance considerations; our substantial indebtedness; restrictions in the agreements governing our indebtedness; incurrence of additional debt; interest rate risk exposure from our variable-rate indebtedness; our ability to generate cash to service our indebtedness; cash available for distributions; hedging transactions; the ability of our board of directors to cause us to issue additional shares of stock without common stockholder approval; certain provisions of Maryland law may limit the ability of a third party to acquire control of us; our rights and the rights of our stockholders to take action against our directors and officers are limited; our failure to remain qualified to be taxed as a REIT; REIT distribution requirements; availability of external sources of capital; we may face other tax liabilities even if we remain qualified to be taxed as a REIT; complying with REIT requirements may cause us to liquidate investments or forgo otherwise attractive investments or business opportunities; our ability to contribute certain contracts to a taxable REIT subsidiary ("TRS"); our planned use of TRSs may cause us to fail to remain qualified to be taxed as a REIT; REIT ownership limits; complying with REIT requirements may limit our ability to hedge effectively; the ability of our board of directors to revoke our REIT election at any time without stockholder approval; the Internal Revenue Service may deem the gains from sales of our outdoor advertising assets to be subject to a 100% prohibited transaction tax; establishing operating partnerships as part of our REIT structure; and other factors described in our filings with the Securities and Exchange Commission (the "SEC"), including but not limited to the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026. All forward-looking statements in this document apply as of the date of this document or as of the date they were made and, except as required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. EXHIBITS NOTES TO EXHIBITS PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS. View original content to download multimedia:https://www.prnewswire.com/news-releases/outfront-media-reports-second-quarter-2026-results-302844000.html

Welltower Inc. WELL recently announced that it expects to raise its quarterly common stock dividend by 15% from the previous quarterly payout of 74 cents per share to 85 cents per share. This hike indicates its ability to generate strong cash flow through its operating portfolio. Per Shankh Mitra, CEO of Welltower, “This action not only reflects the company's low dividend payout ratio driven by strong cash flow per share growth in recent years, but also the Board's confidence regarding outsized levels of growth in the coming years supported by extraordinary balance sheet strength." Previously, on April 28, 2026, the Board of Directors declared a cash dividend for the first quarter of 2026 of 74 cents per share. This dividend was paid on May 21, 2026, to stockholders of record as of May 13, 2026. It was its 220th consecutive quarterly cash dividend. Management also noted that the company continues to retain significant free cash flow and maintain extraordinarily low leverage metrics, providing it with ample capacity and flexibility to support robust, visible, and actionable organic and inorganic growth opportunities across the United States, the U.K. and Canada. Solid dividend payouts remain the biggest attractions for real estate investment trust (REIT) investors, and WELL has remained committed to that. The company has increased its dividend two twice in the last five years, and its five-year annualized dividend growth rate is 4.18%. Check out Welltower’s dividend history here. In the past three months, shares of this Zacks Rank #3 (Hold) company have declined 5.7% compared with the industry's fall of 0.4%. Image Source: Zacks Investment Research Some better-ranked stocks from the broader REIT sector are Outfront Media OUT and Lamar Advertising LAMR, each carrying a Zacks Rank of #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for OUT’s 2026 FFO per share is pegged at $2.24, which indicates year-over-year growth of 12.56%. The Zacks Consensus Estimate for LAMR’s full-year FFO per share is pinned at $8.81, which suggests an increase of 6.66% from the year-ago period. Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs. 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 Lamar Advertising Company (LAMR) : Free Stock Analysis Report OUTFRONT Media Inc. (OUT) : Free Stock Analysis Report Welltower Inc. (WELL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in OUTFRONT Media Inc.? Here are five stocks we like better. Q1 results beat expectations as OUTFRONT Media reported 10% consolidated revenue growth, with adjusted OIBDA up 56% to about $100 million and AFFO more than doubling to $61 million. Management said results benefited from strong transit and billboard performance, plus $13.5 million of condemnation revenue. Transit drove the upside, with revenue up 22% and the New York MTA up more than 26%. OUTFRONT said the MTA is expected to exceed its baseline revenue level in 2026, making incremental revenue especially accretive on a cash basis. Guidance improved for 2026, with the company now expecting mid-teens AFFO growth and second-quarter revenue growth of more than 10%. Management also highlighted continued digital expansion, a stable dividend, and a strong liquidity position of more than $700 million. OUTFRONT Media (NYSE:OUT) reported first-quarter 2026 results that exceeded management’s prior expectations, with revenue gains in both its billboard and transit segments and a sharp increase in adjusted OIBDA and AFFO, executives said on the company’s earnings call. Chief Executive Officer Nick Brien said consolidated revenue rose 10% in the quarter, supported by 22% growth in transit revenue and 7% growth in billboard revenue. Consolidated adjusted OIBDA increased 56% to about $100 million, while AFFO more than doubled to $61 million. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Brien said the quarter included $13.5 million of billboard condemnation revenue and related OIBDA that the company had previously highlighted when providing guidance in February. Excluding that item and the impact of the company’s exit from a large, marginally profitable billboard contract in Los Angeles, billboard revenue would have grown more than 4%, he said. Transit was the strongest area of growth in the quarter. Brien said transit revenue increased 22%, led by the New York MTA, which rose more than 26% in the period. The company’s strongest transit categories were technology and financial services, while its strongest billboard categories were legal and technology. → MP Materials Is Quietly Building a Rare Earth Powerhouse Chief Financial Officer Matthew Siegel said the MTA remains central to the company’s transit performance, noting that it accounts for more than half of OUTFRONT’s transit revenue and is “about seven or eight times” the size of the company’s next-largest transit franchise. He also said San Francisco’s BART franchise performed well, supported by technology advertising and repopulation trends in the city. Transit adjusted OIBDA improved by about $13 million from the prior year, reaching a loss of slightly more than $1 million. Transit expenses increased just under 5%, including higher franchise expense, display production costs, posting and rotation costs, compensation-related expenses and professional fees. → Micron Investors Face a High-Stakes Moment After the Latest Rally Siegel said OUTFRONT now expects 2026 New York MTA revenue to exceed the defined baseline revenue level, commonly referred to as the minimum annual guarantee, or MAG. Because of that, the company expects to return to recouping digital investments made in the MTA contract since 2018. He said incremental expenses above the MAG will reduce OUTFRONT’s recoupable investment balance rather than be paid in cash, making incremental revenue “extremely accretive on a cash basis.” Digital revenue grew more than 11% in the quarter and represented about one-third of total revenue, Brien said. Excluding the exited Los Angeles contract, digital revenue would have grown nearly 15%. Programmatic and digital direct automated sales increased nearly 40% and represented 20% of total digital revenue, up from 16% a year earlier. Brien also highlighted the hiring of senior digital sales leader Jeff Hackett, saying the addition was intended to advance OUTFRONT’s evolution into a media company focused on digital expertise, audience intelligence and measurable outcomes. He said Hackett’s leadership would help the company maximize its ad technology stack, data management platform and trading partnerships. On measurement, Siegel said in response to an analyst question that the out-of-home industry has been “behind” on measurement capabilities but that OUTFRONT and other industry leaders are working with the OAAA and Geopath to move the issue forward. He pointed to OUTFRONT’s partnerships with AWS and AdQuick, saying AdQuick has measurement capabilities that could demonstrate a viable currency and potentially serve as a proof of concept for broader industry adoption. Billboard revenue rose 7.1% on a reported basis. Static and other billboard revenue increased 7.6%, while digital billboard revenue rose 6.1%. Excluding the condemnation revenue and the exited Los Angeles contract, static and other billboard revenue would have been up nearly 2%, and digital billboard revenue would have been up more than 10%, Brien said. Billboard yield increased 11% year over year to more than $2,900 per month, driven by higher rates and billboard condemnations. Excluding condemnation revenue from both periods, billboard yield would have increased about 6.5%. Siegel said billboard expenses rose about $5 million, or roughly 2%, from the prior year. Lease costs increased about 2%, driven by higher variable lease costs and fixed lease escalators, partly offset by $4 million of savings from the Los Angeles contract exit. Total billboard adjusted OIBDA increased about $17 million, or 18%. Excluding the impact of condemnation revenue, billboard OIBDA would have been up around 4%. Stephan Bisson, senior vice president of investor relations, said the company expects second-quarter revenue growth to accelerate to more than 10% year over year, driven by about 30% growth in transit and mid-single-digit growth in billboard. He said those expectations include a benefit related to the United States’ role as a World Cup host in June and July, as well as a headwind from the exited Los Angeles billboard contract, which generated about $4.4 million of revenue in the second quarter of 2025. During the question-and-answer session, Siegel said OUTFRONT was not prepared to quantify the World Cup impact, but said the company had about 70 customers tied to the event and still expected to book additional business in the second and third quarters. Brien added that OUTFRONT has more than 40% of FIFA sponsors as customers and views the tournament as an opportunity to demonstrate how major brands can use its media in real-world environments. Based on first-quarter results, expected revenue growth and business investments, Siegel said OUTFRONT now expects reported 2026 consolidated AFFO to grow in the mid-teens compared with reported 2025 AFFO of $338 million. The outlook includes maintenance capital expenditures, approximately $145 million of interest expense and a small amount of cash taxes. OUTFRONT ended the quarter with more than $700 million of committed liquidity, including $70 million of cash, around $500 million available through its revolver and $150 million available through its accounts receivable securitization facility. Net leverage was 4.3 times as of March 31, within the company’s 4 times to 5 times target range. The company’s board maintained a quarterly cash dividend of $0.30 per share, payable June 30 to shareholders of record as of June 5. Siegel said OUTFRONT spent just over $8 million on acquisitions during the quarter and continues to expect full-year acquisition activity to be similar to recent years. Capital expenditures totaled about $24 million in the first quarter, including about $7 million of maintenance spending. OUTFRONT converted 14 billboards to digital during the quarter and expects to add about 125 digital billboard conversions for the full year. The company continues to expect approximately $90 million of capital expenditures in 2026, including $30 million to $35 million for maintenance. Brien closed the call by pointing to OUTFRONT’s strategic repositioning around what the company calls “IRL Media,” emphasizing the value of physical media in a changing advertising environment. He said the organization has begun to see the benefits of initiatives launched in 2025 and said management expects to provide more detail when it reports second-quarter results in August. OUTFRONT Media Inc is a leading out-of-home (OOH) advertising company offering a broad range of billboard, transit and digital display solutions across major urban markets in the United States and Canada. Its portfolio encompasses traditional static billboards, high-resolution digital signage, transit media on buses, trains and taxis, as well as street furniture placements such as bus shelters, kiosks and urban panels. The company partners with brand marketers to deliver high-impact campaigns that engage consumers outside the home environment. Through an extensive network of assets in key metropolitan areas, OUTFRONT provides advertisers with premium visibility along highways, city streets and transit corridors. 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 "OUTFRONT Media Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.