8-K: MediaCo Reports Strong Revenue Growth, Higher Net Loss in Q4 2025

MediaCo Holding Inc. announced a 17.9% increase in fourth-quarter revenue to $38.7 million, alongside a significant rise in net loss to $32.3 million.

Summary

• Fourth quarter 2025 net revenues increased 17.9% to $38.7 million compared to $32.8 million in Q4 2024.
• Full year 2025 net revenues increased 39.5% to $133.3 million compared to $95.6 million in 2024.
• Fourth quarter 2025 net loss was $(32.3) million, a significant increase from $(4.2) million in Q4 2024.
• Full year 2025 net loss was $(66.2) million, compared to $(1.3) million in 2024.
• Full year 2025 Adjusted EBITDA improved to $7.3 million, up from a loss of $(1.6) million in 2024.
• Fourth quarter 2025 Adjusted EBITDA was a loss of $(3.7) million, compared to a positive $1.7 million in Q4 2024.
• Digital revenue represented 53.5% of advertising sales in Q4 2025 and 42.8% for the full year 2025.
• The increase in net loss reflects non-cash items, including changes in the fair value of warrant share liabilities and impairment charges related to Audio Goodwill and FCC licenses totaling $23.1 million.
• Growth was primarily driven by new Video and Audio segment assets from the April 2024 Estrella Media, Inc. acquisition and a surge in digital revenue.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a mixed report. While strong revenue growth and operational expansion are positive, the substantial increase in net loss due to significant non-cash charges and negative Q4 Adjusted EBITDA raise concerns about profitability and asset valuation.

Positives

• Fourth Quarter Revenue increased 17.9% to $38.7 million.
• Full Year 2025 Revenue increased 39.5% to $133.3 million.
• Full Year 2025 Adjusted EBITDA improved significantly to $7.3 million from a loss of $1.6 million in 2024.
• Digital revenue represented 53.5% of advertising sales in Q4 2025 and 42.8% for the full year 2025, ranking among the best in the industry.
• EstrellaTV delivered historic audience growth in 2025, with a +14% year-over-year increase in P1849 MonSun prime, its strongest performance in more than a decade.
• Strong year-end audience growth was achieved across the radio portfolio, with robust year-over-year performance across Adults 25-54.
• Sigma Audio Networks LLC, a groundbreaking multicultural audio network, launched in February 2026.
• HOT 97, the top-ranked multicultural radio station in New York, launched its new morning show, HOT 97 Mornings with Mero, in January 2026.
• HOT 97 News, a daily live national and local TV show, launched in January 2026.
• The Don Cheto Network expanded its national distribution footprint in late 2025 by adding affiliate KZOM-FM 96.5 in Phoenix, Arizona.
• Katz Television Group began serving as national media sales representative for MediaCo's owned-and-operated EstrellaTV stations.
• EstrellaTV expanded its presence in New York with WMBC and Orlando with WDYB-CD through LMA over-the-air television station agreements.

Negatives

• Fourth Quarter Net Loss increased significantly to $(32.3) million from $(4.2) million in Q4 2024.
• Full Year 2025 Net Loss increased substantially to $(66.2) million from $(1.3) million in 2024.
• Q4 2025 Adjusted EBITDA was a loss of $(3.7) million, compared to a positive $1.7 million in Q4 2024.
• The significant increase in net loss was driven by non-cash items, including a $(23.1) million impairment charge related to Audio Goodwill and FCC licenses, and changes in the fair value of warrant share liabilities.
• Interest expense, net, increased to $(15.5) million for the full year 2025 from $(11.1) million in 2024.

Risks

• Actual results or events could differ materially from forward-looking statements due to various factors, as the company cannot guarantee achieving its plans, intentions, or expectations.
• The significant non-cash impairment charges of $23.1 million related to Audio Goodwill and FCC licenses indicate potential challenges in asset valuation or performance within these segments.
• Volatility in the fair value of warrant share liabilities can introduce significant fluctuations in reported net income or loss.
• The company operates in a competitive and rapidly evolving media landscape, requiring continuous adaptation and investment to maintain audience share and advertising revenue.

Future Outlook

Management remains in growth mode, aiming to capitalize on platform expansion and ratings gains to attract a greater share of advertising dollars. The company is focused on continuing to streamline operations and drive efficiencies, building on the $8.9 million improvement in adjusted EBITDA over the past two years. MediaCo believes it is well-positioned to pursue its vision and deliver further gains in the year ahead, targeting a multicultural population of 150 million nationwide.

Management Comments

• "In our first full calendar year of operation, we achieved substantial gains across every facet of our plan, reflecting disciplined execution and a relentless focus on growth, as we build on our leadership position in serving multicultural audiences at the national and local level." Albert Rodriguez, MediaCo CEO and President.
• "Our progress is reflected in the addition of $38 million of incremental revenue since we brought Estrella Media's operations under the MediaCo umbrella in 2024."
• "Our momentum is further evidenced by the 18% year-over-year gain in our fourth quarter revenues, with digital revenue representing over 50% of our top-line results, ranking among the best in the industry."
• "We are building a modern, cross-platform, multicultural media ecosystem designed for scale, spanning television, radio, digital and FAST platforms, with precision targeting and measurable results for our partners."
• "Going forward, we remain in growth mode as we capitalize on our platform expansion and ratings gains to attract a greater share of advertising dollars. At the same time, we are focused on continuing to streamline our operations and drive efficiencies, as we build on the $8.9 million improvement in adjusted EBITDA we achieved during the past two years."
• "Targeting a multicultural population of 150 million nationwide, we believe we are well positioned on all fronts to pursue our vision and deliver further gains in the year ahead."

Industry Context

StockSavvy.ai notes that MediaCo's strategic focus on multicultural audiences and its expansion into digital and FAST platforms aligns with broader industry trends of media fragmentation and the growing importance of diverse consumer segments. The significant digital revenue contribution, representing over 50% of advertising sales in Q4 2025, indicates successful adaptation to evolving media consumption habits, a critical factor for traditional broadcasters. The acquisition of Estrella Media assets and subsequent audience growth positions MediaCo to capture a larger share of advertising spend targeting these demographics, a segment often underserved by mainstream media.

Comparison to Industry Standards

• Digital revenue representing over 50% of top-line results in Q4 2025 is stated to be "ranking among the best in the industry."
• EstrellaTV's +14% year-over-year increase in P1849 MonSun prime is described as "historic audience growth" and "strongest performance in more than a decade," more than doubling the network's previous record annual gain.
• MediaCo posted robust year-over-year performance across Adults 25-54 in its radio portfolio, reinforcing its position as "one of the fastest-growing audio companies in the country."
• HOT 97 is described as the "top-ranked multicultural radio station in New York regardless of language."

Stakeholder Impact

• Shareholders: Significant net losses and non-cash charges could negatively impact shareholder equity and perception, despite revenue growth. The volatility from warrant share liabilities also affects reported earnings.
• Advertisers/Partners: Expanded reach, audience growth, and new network launches (Sigma Audio, HOT 97 News) offer increased opportunities for advertisers to reach multicultural audiences.
• Employees: Focus on streamlining operations and driving efficiencies could imply potential for workforce adjustments, though not explicitly stated.
• Customers (Audiences): New content, expanded distribution, and strong ratings indicate improved offerings and engagement for multicultural audiences.

Next Steps

• Continue to streamline operations and drive efficiencies.
• Capitalize on platform expansion and ratings gains to attract a greater share of advertising dollars.
• Pursue vision and deliver further gains in the year ahead, targeting a multicultural population of 150 million nationwide.

Key Dates

Recommendation

The company demonstrates strong top-line growth and strategic expansion into key multicultural markets and digital platforms, which are positive long-term indicators. However, the substantial increase in net loss, driven by significant non-cash impairment charges and warrant liabilities, and a negative Adjusted EBITDA in Q4, present a mixed financial picture. Investors should hold to observe if the operational efficiencies and revenue growth can translate into sustainable profitability and positive cash flow in future periods, especially given the non-cash nature of some losses.

Keywords

MediaCo, MDIA, earnings, financial results, Q4 2025, 2025 full year, Estrella Media, digital revenue, multicultural media, radio, television, advertising, Adjusted EBITDA, net loss, audience growth, content, distribution