Entravision Q2 2026 Earnings: ATS Growth Drives a Profit Turnaround

Entravision (NYSE: EVC) reported Q2 2026 net revenue of $227.9 million, up 126% from $100.7 million a year earlier, while diluted EPS attributable to common stockholders improved to $0.19 from a loss of $0.04. Advertising Technology & Services drove the expansion and profit turnaround, while Media revenue declined slightly and the segment moved into an operating loss.

Core financial results

Revenue more than doubled as the ATS segment expanded, helping Entravision turn a prior-year operating loss into $30.0 million of operating income. Operating cash flow also increased to $23.8 million, although consolidated gross margin declined as cost of revenue grew faster than total revenue.

Gross profit and gross margin are calculated from reported net revenue and cost of revenue. The earnings release did not provide adjusted EPS or adjusted EBITDA.

ATS growth drove results while Media moved to a loss

ATS generated approximately 80% of consolidated revenue in Q2 2026, up from about 55% a year earlier. Its revenue increased 230%, and its segment operating profit rose 673%, more than offsetting weaker Media results.

Management attributed ATS growth to increases in both monthly active advertisers and revenue per monthly active advertiser. It said investments in the platform’s AI capabilities and expanded sales capacity supported those gains. ATS direct operating expenses increased 100% and selling, general and administrative expenses rose 53%, both substantially slower than revenue, helping the segment produce operating leverage.

Media revenue declined because of lower broadcast advertising and spectrum usage rights revenue, partially offset by increases in digital advertising and retransmission consent revenue. Excluding political advertising, local advertising revenue increased 1%, while national advertising revenue fell 19%. Media cost of revenue rose 30% and direct operating expenses increased 7%, contributing to the segment’s operating loss.

Lower gross margin was offset by operating leverage

Consolidated cost of revenue increased 210%, faster than the 126% increase in revenue. The data indicate that the shift toward ATS and higher costs in both segments reduced consolidated gross margin to approximately 48.2% from 62.3%. ATS cost of revenue rose 235%, slightly faster than its revenue, while Media cost of revenue increased despite lower segment revenue.

Further down the income statement, however, major operating expenses grew much more slowly than revenue. Consolidated direct operating expenses increased 34%, selling, general and administrative expenses rose 16%, and corporate expenses increased 3%. As a result, Entravision’s operating margin improved to approximately 13.1% from negative 0.8%.

Corporate expense growth primarily reflected higher non-cash stock-based compensation. Interest expense declined 22% to $3.1 million, also reducing the burden between operating income and pretax income.

Cash flow, debt and capital allocation

Q2 operating cash flow increased to $23.8 million, exceeding net income by about $4.1 million. Depreciation and amortization of $3.6 million and non-cash stock compensation of $4.3 million supported the conversion, while a $4.7 million increase in accounts receivable was a use of cash during the quarter.

Entravision made a scheduled $5.0 million debt payment and paid $4.6 million in dividends during Q2. At June 30, 2026, it held $83.4 million in cash, cash equivalents and marketable securities, compared with $157.3 million of long-term debt and current maturities. The board also approved a quarterly dividend of $0.05 per share, payable September 30, 2026, to shareholders of record on September 16.

Recent insider transactions

The supplied insider data includes two recent sale records with a specified transaction direction and value. Stock awards with a zero exercise price and entries lacking transaction details are excluded from the table, and the sales alone do not establish insiders’ views about Entravision’s outlook.

Risks investors should monitor

• Dependence on ATS growth: ATS now represents most of consolidated revenue and all of the company’s segment operating profit. Slower growth in monthly active advertisers or revenue per advertiser would have a larger effect on consolidated results.
• Gross-margin pressure: Consolidated cost of revenue grew faster than revenue, and estimated gross margin declined by about 14 percentage points. Continued ATS growth will need to translate into sufficient operating leverage to offset this lower gross margin.
• Media advertising weakness: Lower broadcast advertising, a 19% decline in national advertising excluding political revenue, and higher segment costs moved Media from a modest profit to a $3.3 million loss.
• Debt and competing cash uses: Debt of $157.3 million remained above the company’s $83.4 million of cash, equivalents and marketable securities. Debt reduction, dividends and operating investment all require cash allocation.

Summary

Entravision’s Q2 2026 results were defined by rapid ATS expansion, which more than offset weakness in Media and produced a clear turnaround in operating income, net income and cash flow. The main follow-up issues are whether advertiser growth and revenue per advertiser can remain elevated, whether ATS can improve consolidated gross margin as it scales, and whether Media can stabilize while the company continues reducing debt.