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