Entravision Communications

EVC · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

Entravision has become an ad-tech company in all but name. ATS grew triple digits again in Q2 FY2026 and produced essentially all of the profit, so the company's future now hangs on ad spending by a handful of large clients. How concentrated is EVC's ad-tech revenue among its largest clients?

  • Ad tech is now the whole business.

    ATS revenue grew 230% in Q2 FY2026 and the segment earned around $40 million of operating profit while Media lost money. The ad-tech arm now pays for everything else, so the company's profit rises or falls with one segment. How much of EVC's ad-tech growth came from new versus existing customers?

  • Management says the ad-tech surge will not repeat.

    They called Q2 "exceptional," guided to a sequential revenue drop in Q3, and warned a few large clients can swing any quarter. Growth that depends on a handful of buyers is worth less than its headline rate suggests.

  • Media is still unprofitable and its biggest contract is unresolved.

    National ad revenue fell again, and the Univision affiliation behind much of it expires at the end of 2026 with no update in three calls. Management plans to renew, but much of TV revenue rests on a deal they don't control. What share of EVC's Media revenue depends on that affiliation?

Bullish
  • Ad tech segment growth
    The bull case rests on the advertising technology segment, which now dwarfs the stations and is growing fast enough to set the company's overall results.
  • Ad tech operating leverage
    Management expects cloud and infrastructure costs to rise more slowly than ad tech revenue, so profit should grow faster than sales as the segment gets larger.
  • Political advertising cycle
    The midterm elections give the Spanish-language stations a large, recurring source of spending that management has staffed with a dedicated political sales team.
Bearish
  • Customer concentration
    The bear case is that ad tech revenue leans on a few mobile gaming advertisers, one of them in Hong Kong, so one account decision could remove much of the profit.
  • Broadcast audience decline
    The stations keep losing viewers and national advertisers to streaming and social media, and the segment still loses money despite repeated rounds of cost cuts.
  • Univision programming contract
    The stations' main Spanish-language programming comes from a partner whose agreement expires soon, and that partner also holds consent rights over major transactions.
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Product segmentsGeography
FY2025 · USD

How Entravision Communications turned $447.6M of revenue into $263.5M of gross profit.

Revenue
Digital Advertising$303.3M▲ 74.60% YoY
Broadcast Advertising$103.7M▼ 27.75% YoY
Retransmission Consent$29.5M▼ 13.04% YoY
Spectrum Usage Rights$6.2M▼ 10.37% YoY
Other Product Or Services$5.0M▼ 28.67% YoY
Total revenue$447.6M
Gross profit$263.5M58.9%
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