Entravision Communications Corporation Class A ((EVC)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Entravision Communications Corporation’s latest earnings call presented a mixed outlook. While the company celebrated significant growth in its Advertising Technology & Services (ATS) segment and maintained a robust balance sheet, it faced challenges with a decline in the Media segment and an overall operating loss due to increased expenses and restructuring costs.
Revenue Growth
Entravision reported a remarkable 24% increase in consolidated revenue, reaching $120 million in Q3 2025 compared to the same quarter in 2024. This growth highlights the company’s ability to expand its market presence and capitalize on emerging opportunities.
Ad Tech & Services Segment Performance
The Advertising Technology & Services (ATS) segment was a standout performer, with revenue more than doubling by 104% to $76.1 million in Q3 2025 compared to Q3 2024. The segment also achieved an impressive 378% increase in operating profit, showcasing its pivotal role in the company’s growth strategy.
Strong Balance Sheet
Entravision continues to maintain a strong balance sheet, ending Q3 2025 with over $66 million in cash and marketable securities. This financial stability provides the company with the flexibility to invest in growth initiatives and navigate economic uncertainties.
Debt Reduction and Dividends
The company has made significant strides in reducing its debt, with total debt payments of $15 million year-to-date 2025, lowering credit facility indebtedness to $173 million. Additionally, Entravision paid a dividend of $0.05 per share in Q3 and approved another $0.05 dividend for Q4, reflecting its commitment to returning value to shareholders.
Operating Loss
Despite revenue growth, Entravision faced an operating loss of $9 million in Q3 2025, compared to an operating profit of $8 million in Q3 2024. This loss was primarily due to restructuring costs and impairment charges, underscoring the challenges the company faces in managing its expenses.
Media Segment Decline
The Media segment experienced a 26% decline in revenue in Q3 2025 compared to Q3 2024, primarily due to lower political revenue and weaker performance from national television and radio advertisers. This decline highlights the segment’s vulnerability to external factors and market dynamics.
Increased Operating Expenses
Operating expenses in the Media segment increased by $8 million on an annualized basis, driven by investments in local sales teams and digital sales capabilities. While these investments are aimed at driving future growth, they have contributed to the current operating loss.
Restructuring Costs
Entravision incurred $3.2 million in restructuring costs in Q3 2025, impacting its operating income. These costs are part of the company’s efforts to optimize its organizational structure and improve long-term profitability.
Forward-Looking Guidance
Looking ahead, Entravision aims to continue focusing on revenue growth and expense management throughout the remainder of 2025 and beyond. The company is investing in technology and sales capacity to support future growth in the ATS segment. Additionally, efforts to improve profitability include a 5% workforce reduction in the Media segment and facility consolidations, targeting a $5 million annual expense reduction.
In summary, Entravision Communications Corporation’s earnings call highlighted a mixed performance, with strong growth in the ATS segment and a solid balance sheet offset by challenges in the Media segment and increased expenses. The company’s forward-looking guidance emphasizes continued revenue growth and strategic expense management as key priorities moving forward.