Entravision shares rise 25.2% since earnings as company returns to profitability
Key Facts
Entravision shares have risen 25.2% since the company reported third-quarter results, while the S&P 500 fell 1.7% over the same period through November 11, 2026, according to Zacks. The gains followed results showing the company had returned to profitability, with net income attributable to common shareholders of $19.027 million, compared with a loss of $9.659 million in the corresponding quarter of 2025. Diluted earnings per share were $0.18, after a loss of $0.11 a year earlier. The company reported results on November 5, according to the filing date of its quarterly report with the U.S. Securities and Exchange Commission. Consolidated revenue rose 88% to $226.3 million from $120.6 million in the third quarter of 2025.
Advertising technology and services, known as ATS, was the largest driver of revenue growth. Segment revenue increased 133% to $177.2 million from $76.1 million a year earlier. Entravision attributed the increase to growth in monthly active advertisers and higher revenue per monthly active advertiser. The company said both factors benefited from its investments in its platform's artificial intelligence capabilities and from expanding its sales team's capacity. Segment revenue growth exceeded consolidated revenue growth, making ATS the main source of expansion in the quarter's results.
ATS also improved its profitability, with operating income rising 261% to $35.2 million, compared with $9.8 million in the third quarter of 2025. But growth was uneven across the year's quarters, and management said it still expects segment revenue to increase by more than 100% year over year in the fourth quarter of 2026. On the earnings call, it said: "We continue to expect significant year-over-year revenue growth in the fourth quarter of over 100%." This means management's outlook remains tied to the continuation of strong momentum in the digital business during the final months of the year. Results for the first nine months also showed consolidated revenue rising 108% to $651.2 million from $313.2 million in the corresponding period of 2025.
The media segment posted a more modest improvement, with revenue rising 10% to $49.1 million from $44.5 million a year earlier. The segment moved to operating income of $0.1 million, after an operating loss of $3.5 million in the corresponding quarter of 2025. The company said radio advertising revenue, particularly political advertising, and retransmission fees supported results. Lower revenue from spectrum usage rights limited that support. Political advertising revenue was $6 million in the quarter, while management forecast about $25 million for 2026, at the low end of its internal range.
Despite the improvement in media results, management said it expects to reset the segment's organizational structure and expenses to align them with revenue, while targeting a profit in 2027. On the earnings call, it said: "We expect to reset our organizational structure and media segment expenses to align expenses with revenue and achieve a profit in 2027." The target frames the segment's future profitability around reducing costs in line with the scale of its business, after it returned to a limited operating profit in the third quarter. At the company level, cash and cash equivalents and marketable securities totaled $89.7 million on September 30, 2026. Long-term debt and current maturities totaled $152.3 million on the same date.
Operating cash flow improved to $61.7 million in the first nine months, compared with $0.9 million in the same period of 2025. The company said it expects to record positive operating cash flow for full-year 2026. The filing also showed that the two largest advertisers together accounted for 38% of third-quarter revenue, with the largest advertiser representing 30% of the total and the second-largest 8%. These shares highlight the reliance of part of revenue on a limited group of customers, alongside the expansion of the digital advertising business. The company declared a quarterly cash dividend of $0.05 per share on its Class A and Class F common stock, payable on December 31 to shareholders of record at the close of December 17, 2026.