Entravision’s ad-tech revenue jumps 133% to $177.2 million
Key Facts
Entravision reported on November 5 results for the third quarter ended September 30, 2026, with consolidated revenue rising 88% to $226.3 million from $120.6 million in the year-earlier period. Most revenue came from its advertising technology and services (ATS) segment, where revenue increased 133% to $177.2 million from $76.1 million a year earlier. The segment’s operating profit also rose 261% to $35.2 million from $9.8 million. The company said ATS growth was tied to an increase in monthly active advertisers and average revenue per advertiser. It attributed that growth to investments in the platform’s artificial intelligence capabilities and expanded sales capacity.
ATS includes Smadex, a programmatic advertising buying platform that uses the company’s proprietary artificial intelligence to automate media buying, and Adwake, a performance-based digital marketing agency. But the segment’s trajectory was not upward quarter over quarter: revenue fell 3% from the second quarter, and operating profit declined 12%. Management said the drop in profit and margin was affected by hiring additional staff in sales, engineering and ad operations. It added that some quarterly costs were temporary and related to moving Smadex platform components to a multicloud infrastructure. For the nine months ended September 30, ATS net revenue rose 182% to $514.6 million from $182.3 million in the same period of 2025.
In the media segment, revenue rose 10% to $49.1 million from $44.5 million in the third quarter of 2025. The segment posted operating profit of $0.1 million, after an operating loss of $3.5 million in the year-earlier period. The company attributed the increase in radio advertising revenue mainly to political advertising, along with higher retransmission fees, partly offset by a decline in spectrum usage rights revenue. However, the segment recorded an operating loss of $8.4 million in the first nine months of 2026, compared with a loss of $5.8 million in the same period a year earlier. The figures reflect a difference between improvement in the quarter alone and a continued loss on a year-to-date basis.
On the future of television, management said it had decided to explore strategic alternatives for its television business not affiliated with Univision. The move followed an extension of its affiliation agreement with TelevisaUnivision through March 31, 2027. Entravision signed an agreement on November 3 to sell WFTT-TV, which serves the Tampa–St. Petersburg, Florida, market, to Sunset Boulevard Broadcasting for $30 million in cash. The transaction is subject to regulatory approvals and customary closing conditions, and the company expects to complete it in the fourth quarter of 2026 or the first quarter of 2027. It is structured as a sale of the equity interests in the subsidiary that owns the station, which is currently operated by an affiliate of the buyer under an agreement that ends when the sale closes.
The review of television assets comes as part of a plan to reorganize the media segment that management began implementing in the third quarter of 2025, with the aim of supporting revenue growth and reducing expenses; it included a workforce reduction of about 5% in the segment. The chief financial officer said the company expects to realign its organizational structure and expenses with revenue and achieve a profit in the media segment during 2027. At the company level, consolidated revenue for the first nine months of 2026 was about $651.2 million, up 108% from $313.2 million in the same period of 2025. Cash and cash equivalents and marketable securities totaled $89.7 million on September 30, while long-term debt and its current maturities totaled $152.3 million. The company also approved a quarterly cash dividend of $0.05 per share, payable on December 31 to shareholders of record at the close of business on December 17.