Entravision Communications Corporation Class A Stock

Good afternoon, everyone, and welcome to Entravision's Second Quarter 2026 Earnings Call. I am Roy Nir, Vice President of Financial Reporting and Investor Relations. Joining me today to discuss our results are Michael Christenson, our Chief Executive Officer and Chair of the Board; and Mark Boelke, our Chief Financial Officer and Chief Operating Officer.

Before we begin, I would like to inform you that this call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to Entravision's SEC filings for a list of risks and uncertainties that could impact actual results. The press release is available on the company's Investor Relations page and was filed with the SEC on Form 8-K. Additional information may also be found on our quarterly report on Form 10-Q, which was also filed today.

[Operator Instructions] We will try to answer any questions that relate to the topics contained in today's call.

I will now turn the call over to Michael Christenson.

Thank you, Roy, and thank you for joining this call today. We appreciate your interest in Entravision and your support. As you saw in our press release, on a consolidated basis, Entravision revenue increased 126% to $228 million in 2Q '26 compared to 2Q '25. We produced operating income of $37 million in 2Q '26 compared to operating income of $6 million in 2Q '25.

We report our results for 2 segments: Media and Advertising Technology & Services. For those of you new to Entravision, this is our third year with this segment reporting. We started with the third quarter of 2024.

Now for our Media segment. Our revenue increased 1% to $45 million -- I'm sorry, decreased 1% to $45 million in 2Q '26 compared to 2Q '25. Our Media segment incurred an operating loss of $3 million in 2Q '26 compared to a breakeven result in 2Q '25. Our 2Q '26 results included a 1% increase in local advertising revenue and a 19% decrease in national advertising revenue. These numbers exclude political revenue.

Local advertising revenue is from our sellers working with local advertisers selling broadcast and digital marketing solutions. National advertising revenue is produced by our partners, primarily TelevisaUnivision, selling our broadcast to national advertisers and agencies. Our local advertising operations had 3% higher monthly active advertisers in 2Q '26 compared to 2Q '25 but a 1% decrease in revenue per monthly active advertiser. Our operational priorities for our Media segment are to grow monthly active advertisers and revenue per monthly active advertiser.

Let me provide some additional context for these Media results. We've been executing several important revenue-focused operational initiatives during 2025 and that have continued through the first half of 2026 and will continue through the second half of 2026. First, we increased the size of our local sales team. Our analysis convinced us that we could increase revenue with a larger team on the field. Second, we developed the capability of our local sales team to sell digital marketing solutions to local advertisers, search, social, streaming video, streaming audio and our own digital properties. And this required extensive training and the addition of digital product specialists. Third, we expanded the amount of local news programming that we produce. This is the most important way we can serve our local audience. And then finally, fourth, we developed a direct sales capability for political campaign advertising.

In addition, as we discussed on prior calls, we had 2 additional new business projects underway in 2Q '26: our Altavision multicast television network and our partnership with Hemisphere Media for our WAPA Orlando station. All of these initiatives require investments. Our team has worked hard to fund these investments by reducing expenses in areas other than direct selling and content production, including corporate expenses.

So although we produced an operating loss in our Media segment in 2Q '26, our Media operating expenses in 2Q '26 were less than $2 million higher than our Media operating expenses in 2Q '25, and they were lower than our Media operating expenses in 4Q '24. Nevertheless, as we have discussed on prior calls, we are committed to growing our Media business and earning a profit, so we acknowledge that we have more work to do to improve our operating performance and profitability in our Media business.

Now let me answer 2 questions that come up in all of our discussions with shareholders and analysts, first, our political revenue outlook. There are 85 days until election day, and we are working hard to directly engage with campaigns to convince them that they must win the Latino vote to win their race and that Entravision is the best way to communicate with the Latino voter. We have many important races underway across all of our markets, but there are 9 critical races where the Latino vote will clearly determine the outcome and where we, Entravision, are very well positioned. These are the Texas U.S. Senate race; the governor's races in California, Nevada and Texas; and the House races in Texas 15, Texas 23, Texas 28, Texas 34 and Florida 9. The total spend on these 9 races and the allocation of that spend to Spanish language media will determine how well we do compared to prior election years.

The second question is on the status of our TelevisaUnivision affiliation renewal. There's nothing new to report at this time. This agreement runs through December 31, 2026, so we still have time. We've been partners for 3 decades, and our goal is to renew this agreement.

Now turning to our Advertising Technology & Services segment. ATS revenue was $183 million in 2Q '26 compared to $55 million in 2Q '25. We had more monthly active customers and more revenue per monthly active customer. We continued to invest in our ATS segment in 2Q '26 to grow revenue and operating profits. Our #1 priority for our ATS segment, a strategic and operational priority, which has been the #1 priority really for 2024, 2025 and now 2026, has been to invest to build more powerful AI capabilities into our platform. We continue to invest in our product team and our engineering team to continue to improve the technology.

In addition, we continue to invest in our infrastructure capabilities. Our infrastructure costs will grow as our revenue grows, but we're very focused on generating operating leverage so that infrastructure costs will grow at a lower pace than revenue. We've also invested to increase the capacity of our sales and customer service organizations. The combination of these investments in ATS increased operating expenses by $14 million in 2Q '26 compared to 2Q '25. That is $56 million on an annualized basis. Operating profit for ATS was $40 million in 2Q '26 compared to $5 million in 2Q '25.

So to summarize, in Media, we're investing in revenue-focused initiatives. We increased our local sales capacity, and we expanded our digital sales and digital sales operations capabilities, more sellers, more digital. In ATS, we are investing to add more engineers to advance our technology and to increase our sales and customer service capacity, more technology, better technology and more selling. We believe these investments will help us build a stronger company.

So now I'd like to ask Mark to share more details with you about our financial results in 2Q '26.

Thank you, Mike. I'll start by reviewing the performance of each of our 2 reporting segments: Media and Advertising Technology & Services. In our Media segment, second quarter revenue was $45.1 million, which was down 1% compared to the second quarter of 2025. This decrease was primarily due to decreases in broadcast advertising revenue and spectrum usage rights revenue, partially offset by increases in digital advertising revenue and retransmission consent revenue. We have undertaken initiatives focused on increasing our media advertising revenue, and we are seeing progress in these initiatives, particularly in local digital ad sales and national television ad sales and an increase in the number of monthly active advertisers.

Let's look at total operating expenses for the Media business, which is the sum of direct operating expenses plus selling, general and administrative expenses as those 2 line items are reported in our segment results. Media segment total operating expense in the second quarter increased $1.6 million compared to second quarter '25, an increase of 4% primarily due to increased compensation expense versus the prior year period. The Media segment had an operating loss of $3.3 million in Q2 '26. This was compared to an operating profit of $0.4 million in Q2 '25 and an operating loss of $5.2 million in the previous quarter Q1 '26.

One of our goals in the Media segment is to optimize our organizational structure and expenses to be aligned with revenue and to generate profit, as Mike noted. We continue to work on achieving this goal, and we remain focused on providing compelling content, growing revenue and increasing operational efficiency to reduce operating expenses during 2026 and beyond.

Now I'll turn to our Ad Tech & Services segment, or ATS. Second quarter revenue for the ATS business was $182.8 million. This was an increase of 230% compared to second quarter '25 and a sequential increase of 18% from the prior quarter, first quarter '26. We had a higher number of monthly active accounts and higher revenue per monthly active account. We have had success executing our strategies in the ATS business including strengthening the AI capabilities that are a core part of our technology platform and expanding the ATS sales team and geographic sales coverage.

ATS total operating expenses increased 85% in the second quarter '26 compared to second quarter '25, as Mike indicated, an increase of $13.9 million. The ATS expense increase was primarily related to the increase in revenue. For example, the expense of cloud computing expenses has been increased -- has increased as a result of processing more transactions on additional revenue as well as our investment in stronger AI capabilities in our ad tech platform. There was an increase in sales commission and performance compensation as a result of the revenue increase and achievement of other performance metrics. And the ATS business has also hired additional sales, engineering and ad operations staff in recent quarters in order to drive future growth and expand into new geographic territories.

One of our goals for the ATS business is to continue to grow revenue and generate positive operating leverage, and the ATS revenue increase exceeded the expense increase in terms of percentage and absolute dollars. Operating profit for the ATS segment was $40.0 million in Q2 '26. This was an increase of 673% versus Q2 '25 and a sequential increase of 17% from the previous quarter, Q1 '26.

Let's talk about second quarter ATS results in the context of full year 2026. As we stated, ATS revenue in Q2 increased 230% versus Q2 '25 and 18% versus Q1 '26. Q2 performance was exceptional. We do not expect to repeat the same level of performance over the next 2 quarters of 2026, and we currently expect a decrease in revenue sequentially from Q2 to Q3. We do expect Q3 and Q4 to have significant year-over-year growth, more than 100% growth. However, one of our priorities is to win larger clients. That will lead to some variability in ATS quarterly results.

Ad spend on our platforms by our largest clients can be variable for various reasons, and these clients can have a meaningful impact on ATS results in any given quarter. We believe our core ATS business is strong, and we continue to see overall growth in the number of active monthly accounts and revenue per account as we execute on our strategic and operational priorities in the ATS business.

Combining our 2 operating segments. On a consolidated basis, revenue for second quarter 2026 was $227.9 million, up 126% compared to second quarter 2025. The 2 segments together generated a consolidated segment operating profit of $36.7 million in Q2 '26 compared to $5.5 million in Q2 '25. The increase was a result of operating profit in the ATS segment partially offset by an operating loss in the Media segment.

We had consolidated operating income of $30.0 million in Q2 '26 compared to an operating loss of $0.8 million in Q2 '25. Corporate expenses in second quarter '26 were $6.6 million, a 3% increase compared to second quarter '25 or about $0.2 million, primarily due to an increase in noncash stock-based compensation. We have taken significant steps to reduce corporate expenses over the past few years; and for additional context, looking back 1 additional year to 2024, corporate expense in Q2 '26 was 39% lower than corporate expense in Q2 '24.

Entravision's balance sheet remains strong with over $83 million in cash and marketable securities at the end of Q2 '26. Our strategy regarding allocation of cash is, first, reduce debt and maintain low leverage; and second, return capital to our shareholders, primarily through dividends. In second quarter '26, we made a debt payment of $5 million, reducing our credit facility indebtedness to about $158 million at the end of the quarter. We remain committed to reducing our debt and maintaining a strong balance sheet.

In addition, we paid $4.6 million in dividends to stockholders in the second quarter or $0.05 per share. For the third quarter of 2026, our Board of Directors has approved a $0.05 dividend per share payable on September 30, 2026, to stockholders of record as of September 9 -- I'm sorry, September 16 for a total payment of approximately $4.6 million.

We'd like to thank you all for joining our call today. And at this time, Mike and I would like to open the call for questions from the investment community.

Roy, I'll turn it back over to you.

Thank you, Mark. We will now begin the question-and-answer session. [Operator Instructions] Please hold as we review potential questions. Mike, the first question is from David Bastian from Kingdom Capital. The question is can you talk about new large customers showing up in AR and customer concentration. Any trends in Q3 or any other major ramps going?

Sure. Thank you for the question. We want to stick to what I would describe as required disclosure with respect to customers. As you may know, we have certain reporting obligations on size of customers relative to the business, size of customer receivables, so we obviously disclose what's necessary for SEC reporting purposes. But we do not want to get into the practice of discussing individual customers beyond that. For competitive reasons and business reasons, we want to keep that confidential.

But as Mark said, one of our priorities for growing the business is to compete and win for larger customers. And given the size of our business, those large customers in and out can have an impact on the variability of our revenue. So what I can say is it is a priority to continue to compete for those customers, and we're prepared to accept that variability, but we're not going to get into the practice of discussing individual customers.

Did I get all of it, Roy, or was more to the question?

Thank you, Mike. Yes. We'll now review any other potential questions. Please hold. At this time, we will conclude the Q&A session. We'd like to thank you for joining our call today. If we're unable to address or if you have any questions, please reach out to us at [email protected]. We are committed to answering your questions, and we'll follow up with you. We also welcome our investors to connect with us through the Investor Relations page, investor.entravision.com, where you will have access to a transcript of this call, the press release containing our second quarter financial results and a copy of our quarterly report filed with the SEC on Form 10-Q. We look forward to speaking with you again when we report our third quarter results. Thank you very much. You may now disconnect.

Hello, and welcome to the Annual Meeting of Shareholders of Entravision Communications Corporation. Please note that today's meeting is being recorded.

It is now my pleasure to turn today's meeting over to Michael Christenson, CEO of Entravision. Michael, the floor is yours.

Thank you. Good day, ladies and gentlemen. The 2026 Annual Meeting of the Shareholders of Entravision Communications Corporation is now called to order. My name is Michael Christenson, and I'm the Chief Executive Officer.

I'd like to begin by introducing the other directors present at this meeting. Paul Zevnik, Gilbert Vasquez, Martha Elena Diaz, Fehmi Zeko, Tom Strickler and Brad Bender. I would also like to introduce the other executive officers of the company who are present at this meeting: Mark Boelke, the Chief Financial Officer, Chief Operating Officer and Treasurer; and Jeff DeMartino, the Chief Legal Officer and Secretary.

Also attending is Nicole Hunt, representing Computershare Investor Services, our transfer agent and registrar for the last fiscal year. Ms. Hunt has been appointed inspector of elections to examine and tabulate proxies and ballots at this meeting. I will now ask the secretary to confirm that we have a quorum and may proceed with the business of this meeting.

Notice of this meeting was given to all shareholders of record at the close of business on April 13, 2026. Notices were mailed on or about April 24, 2026. I have provided a mailing affidavit to that effect. According to the preliminary report of the inspector of elections, more than 86% of the voting interest of shares outstanding and entitled to vote are present in person or by proxy, constituting a quorum. A quorum being present, this meeting is open to proceed with its business.

We will now proceed with the business of the meeting. The matters to be acted upon will be discussed, moved and seconded. Voting will follow any discussion. If you have a question related to these matters, please enter it in the space provided on the virtual meeting screen. We encourage you to refer to the proxy statement which outlines the proposals in detail. We will not answer questions unrelated to the business of the meeting or those already answered in the proxy statement.

Proposal 1 concerns the election of 7 directors to serve for the term specified in the proxy statement and until their successors are duly elected and qualified. The Board of Directors recommends the election of the following nominees: Paul Zevnik, Gilbert Vasquez, Martha Elena Diaz, Fehmi Zeko, Michael Christenson, Tom Strickler and Brad Bender. These candidates are hereby nominated. No other nominations have been received in a timely manner.

May I have a motion to close the nominations?

I move that the nominations be closed.

I second the motion.

The nominations are closed.

Proposal 2 relates to the ratification of Deloitte & Touche to serve as independent public accountants for the fiscal year ending December 31, 2026. May I have a motion on the proposal?

I move that Proposal 2 be approved.

I second the motion.

Proposal 3 relates to an advisory vote to approve the compensation of our named executive officers as described in the proxy statement. May I have a motion?

I move that Proposal 3 be approved.

I second the motion.

Proposal 4 relates to an amendment and restatement of the company's 2004 Equity Incentive Plan, as described in the proxy statement. May I have a motion?

I move the proposal 4 be approved.

I second the motion.

We will now vote on the proposals. The polls are open on our online meeting platform. If you have already submitted your proxy, you do not need to vote, again, unless you wish to change your vote.

[Voting]

All ballots have been submitted. I declare the polls closed.

According to the preliminary report of the inspector of elections, each nominee in Proposal 1 has been elected as a director and each of the other proposals have been approved.

We have not received any questions directly related to the business of the meeting. The meeting is concluded. Thank you for attending.

This concludes the meeting. You may now disconnect.

Joining me today to discuss our results are Michael Christenson, our Chief Executive Officer; and Mark Boelke, our Chief Financial Officer and Chief Operating Officer.

Before we begin, I would like to inform you that this call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to Entravision's SEC filings for a list of risks and uncertainties that could impact actual results.

The press release is available on the company's Investor Relations page and was filed with the SEC on Form 8-K. Additional information may also be found on our quarterly report on Form 10-Q, which was also filed today.

[Operator Instructions] We will try to answer any questions that relate to the topics contained in today's call during the Q&A session.

I will now turn the call over to Michael Christenson.

Thanks, Roy, and thank you to those of you joining this call today. We appreciate your interest in Entravision and your support. As you saw in our press release, on a consolidated basis, Entravision revenue increased 114% to $197 million in 1Q '26 compared to 1Q '25. We had operating income of $21 million in 1Q '26 compared to an operating loss in 1Q '25.

We report our results for 2 segments: Media and Advertising Technology & Services, what we call ATS. This is the first quarter of our third year with this segment reporting. As you may know, we started with our third quarter of 2024.

For our Media segment, revenue increased 4% in 1Q '26 compared to 1Q '25. This increase was primarily due to higher digital advertising revenue and retransmission fees. This was partially offset by lower broadcast advertising revenue and lower revenue from spectrum usage rights. Our 1Q '26 results included a 6% increase in local advertising revenue and an 18% decrease in national advertising revenue. These numbers exclude political revenue.

Local advertising revenue is from our sellers working with local advertisers. They sell broadcast and digital marketing solutions. National advertising revenue is from our partners, primarily TelevisaUnivision, selling our broadcast to national advertisers and agencies. Our local advertising operations had 4% higher monthly active advertisers in 1Q '26 compared to 1Q '25, and a 2% increase in revenue per monthly active advertiser. Our operational priorities are to grow monthly active advertisers and revenue per monthly active advertiser.

In terms of operating expenses and profitability, as we've discussed in the past, we've made a number of important investments in our media business in 2025 that we continued into 1Q '26. We added capacity to our local sales teams, more sellers, and we added digital sales specialists and digital sales operations capabilities, more digital. When we analyzed our local markets and our local advertiser base, we saw an opportunity to increase revenue by adding sales capacity. All of our local advertising customers are advertising in digital channels, search, social, streaming video and streaming audio. And we believe we can serve their needs in those digital channels as well as our traditional broadcast video and audio channels.

As we discussed in our fourth quarter report, we have 2 other important initiatives underway to generate incremental revenue. We are broadcasting a new network on our multicast capacity called Altavision across all of our markets. We produce the local news for Altavision, and we provide the sales and the broadcasting infrastructure. The balance of the programming is currently provided by Grupo Multimedios from Monterrey, Mexico, and we share the revenue. It's still early in the development of Altavision, so we have operating expenses, but no significant incremental revenue.

In addition, at the beginning of this year, we launched new programming on our full power Orlando television station, WOTF-TV in partnership with Hemisphere Media. Hemisphere owns WAPA TV, the #1 television station in Puerto Rico. We launched WAPA Orlando Channel 26 to serve the large and growing Puerto Rican, Caribbean, Central and South American Spanish-speaking communities in Central Florida. More than 500,000 Puerto Ricans live in the Orlando market, and we're very excited about this new revenue opportunity. Again, since it's early in the development of WAPA Orlando, we have operating expenses, but no significant incremental revenue.

Pulling this all together in our Media segment, operating expenses increased $2 million in 1Q '26 compared to 1Q '25. So we had an operating loss of $5 million in 1Q '26 compared to an operating loss of $3 million in 1Q '25. As we discussed on prior calls, we're committed to growing our business and earning a profit. So we acknowledge that we have more work to do to improve our operating performance and profitability in our media business.

The new leadership team that we announced in March is evidence of this commitment. Maria Martinez-Guzman, President of Entravision Media; Eduardo Maytorena, President of Entravision Audio; and Winter Horton, our new Chief Revenue Officer. These new leaders are aligned on our core objectives: serve our audience as a trusted source of news, information and entertainment and serve our advertisers by connecting them with our audience. This team is committed to growing revenue and earning a profit.

Now for our Advertising Technology & Services segment. ATS revenue was $155 million in 1Q '26 compared to $51 million in 1Q '25. We had more monthly active customers and more revenue per monthly active customer. We continue to invest in our ATS segment in 1Q '26 to grow revenue and operating profits. We invested in our engineering team to continue to improve our technology and build more powerful AI capabilities into our platform. And we invested to increase the capacity of our sales and customer service organizations.

In addition, our infrastructure costs continue to grow as our revenue grows, but we're beginning to see operating leverage with infrastructure costs growing at a slower pace than revenue. The combination of these investments in ATS increased operating expenses by $10 million in 1Q '26 compared to 1Q '25 or $40 million on an annualized basis. Operating profit for ATS was $34 million in 1Q '26 compared to $7 million in 1Q '25.

So to summarize, in Media, we are investing to increase our local sales capacity and to expand our digital sales and digital sales operations capabilities, more sellers and more digital. In ATS, we are investing to add more engineers to advance our technology and to increase our sales and customer service capacity, more technology, better technology, more selling. We believe these investments will help us build a stronger company.

So now I'll ask Mark to share with you more details of our financial results for 1Q '26. Mark?

Thank you, Mike. I'll start by reviewing the performance of each of our 2 reporting segments, again, Media and Advertising Technology & Services. In our Media segment, first quarter revenue was $42.4 million, which was up 4% compared to first quarter 2025. This increase was primarily due to increases in digital advertising revenue and retransmission consent revenue, partially offset by decreases in broadcast advertising revenue and spectrum usage rights revenue. We have undertaken initiatives focused on increasing our media advertising revenue, and we are seeing momentum and progress in the execution of these initiatives, particularly in local ad sales and digital ad sales.

Let's look at total operating expense for the Media business. That is the sum of direct operating expenses plus selling, general and administrative expenses as those 2 line items are reported in our segment results. Media segment total operating expense in the first quarter increased $2.1 million compared to first quarter '25, an increase of 6%. One of our goals in the Media segment is to optimize our organizational structure and expenses to be aligned with revenue and to generate profit, as Mike noted. We continue to work on achieving this goal, and we've taken steps under an ongoing organizational design plan begun in Q3 2025, intended to support revenue growth and reduce expenses in our Media segment.

Key components of this plan have included a reduction in our media business workforce, reduction in professional expenses and the abandonment of several leased facilities. We recorded a charge during first quarter totaling $1 million for the expenses associated with moves under this plan, and these charges were reported as restructuring costs on our income statement.

The Media segment had an operating loss of $5.2 million in Q1 '26 compared to an operating loss of $2.6 million in Q1 2025. The decrease was mainly due to higher cost of revenue associated with the increase in digital advertising revenue in our Media segment. We remain focused on providing compelling content, growing revenue, streamlining our organization and reducing operating expenses during 2026 and beyond.

At this time, I'll turn to our Ad Tech & Services segment, or ATS. First quarter revenue for the ATS business was $154.6 million. This was an increase of 204% compared to first quarter '25, and a sequential increase of 74% from fourth quarter '25. We had a higher number of monthly active accounts and higher revenue per monthly active account. As discussed on previous calls, and as Mike noted earlier, we have had success executing our strategies in the ATS business, including strengthening the AI capabilities that are part of our technology platform and expanding the ATS sales team and geographic sales coverage.

ATS total operating expenses increased 72% in the first quarter '26 compared to first quarter '25, an increase of $9.8 million. The ATS expense increase was primarily related to the increase in revenue. For example, the expense of cloud computing services has increased as a result of processing more transactions and using stronger AI capabilities in the ad tech platform. There was an increase in sales commissions and performance compensation as a result of the revenue increase and achievement of other performance metrics. And the ATS business has also hired additional sales, engineering and ad operations staff in the recent quarters in order to drive ATS growth and expand into new geographic territories.

One of our goals for the ATS business is to continue to grow revenue and generate positive operating leverage and the ATS revenue increase exceeded the expense increase in terms of percentage and absolute dollars.

Operating profit for the ATS segment was $34.3 million in Q1 '26. This was an increase of 427% versus Q1 '25, and a sequential increase of 178% from the prior quarter, Q4 '25. Combining our 2 operating segments on a consolidated basis, revenue for first quarter 2026 was $197.0 million, up 114% compared to first quarter 2025. The 2 segments together generated a consolidated segment operating profit of $29.1 million in Q1 '26 compared to $3.9 million in Q1 '25. The increase was a result of operating profit in the ATS segment, partially offset by a decreased operating profit in the Media segment. We had a consolidated operating income of $20.7 million in Q1 '26 compared to an operating loss of $52.8 million in Q1 '25. Corporate expenses in first quarter '26 were $7.2 million, an 8% decrease compared to first quarter '25 or about $0.6 million.

The decrease was primarily due to expense reductions in professional services and rent. We have taken significant steps to reduce corporate expenses over the past few years. And for additional context, looking back one additional year to 2024, corporate expense in the first quarter of 2026 was 41% lower than corporate expense in the first quarter of 2024.

Entravision's balance sheet remains strong with over $71 million in cash and marketable securities at the end of first quarter 2026. We're proud of our strong balance sheet, which we believe sets us apart from others in the industry. Our strategy regarding allocation of cash is: first, reduce debt and maintain low leverage; and second, return capital to our shareholders, primarily through dividends. In first quarter '26, we made a debt payment of $5 million, reducing our credit facility indebtedness to about $163 million at the end of first quarter 2026. We remain committed to reducing our debt and maintaining a strong balance sheet.

In addition, we paid $4.6 million in dividends to stockholders in the first quarter or $0.05 per share. For the second quarter of 2026, our Board of Directors has approved a $0.05 dividend per share payable on June 30, 2026, to stockholders of record as of June 16, for a total payment of approximately $4.6 million.

We'd like to thank you all for joining our call today. And at this time, Mike and I would like to open the call for questions from the investment community. Roy, I'll turn it back over to you.

[Operator Instructions] Mike, the first question is regarding the outlook for political revenue in 2026. Any update since the last call that you can provide?

Yes. Thanks, Roy. I guess next quarter, we'll put political comments in the prepared remarks. So we're 182 days away from Election Day 2026. As everyone knows, primaries are underway across the country. And we're positioning ourselves for a strong political spending environment in 2026. For Entravision, we have big races in our markets, Governor races in California, Nevada and Texas. Those are the 3 biggest governor races for us, but we have some others. Then we have the Texas U.S. Senate race, and we have at least 7 critical contested House races. So it will be -- we'll be busy this year focusing on political revenue. As everyone knows, this will be one of the most consequential congressional elections in our lifetime. And we believe that the Latino vote will be critical to the outcome of all these elections. We've shared with our clients that studies have shown that Latinos are the most persuadable segment of the electorate, and we have a powerful channel for reaching that audience. So political will be an increasing focus for us as we go through the rest of this year.

Thank you, Mike. And the next question we received was related to the status of the negotiations with TU and the affiliation agreement. Can you provide any update on that?

No new news on the affiliation agreement for this call. This affiliation agreement runs through December 31, 2026. So we have time. We've been partners for 3 decades, and our plan is to renew this agreement, but there's no news on that at this time.

Thank you, Mike. Again, please hold as we review any potential questions. At this time, we don't have any additional questions. We'd like to thank you all for joining our call today. We welcome our investors to connect with us through the Investor Relations page on our corporate website, entravision.com, where you will have access to a transcript of this call, the press release containing our first quarter financial results and a copy of our quarterly report filed with the SEC on Form 10-Q. We look forward to speaking with you again when we report our second quarter results. Thank you very much. You may now disconnect.

Good afternoon, everyone, and welcome to Entravision's Fourth Quarter and Full Year 2025 Earnings Call. I'm Roy Nir, Vice President of Financial Reporting and Investor Relations. Joining me today to discuss our results are Michael Christenson, our Chief Executive Officer; and Mark Balti, our Chief Financial Officer and Chief Operating Officer. Before we begin, I would like to inform you that this call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to Entravision's SEC filings or a list of risks and uncertainties that could impact actual results.

The press release is available on the company's Investor Relations page and was filed with the SEC on Form 8-K. Additional information may also be found on our annual report on Form 10-K, which was also filed today. Our call today is using Zoom. If you would like to ask a question, please use the Q&A function on your screen during the call, indicate your name and company and submit your question in writing. We will try to answer any questions that relate to the topics contained in today's call during the Q&A session.

I will now turn the call over to Michael Christenson.

Thanks, Roy, and thank you to those of you joining this call today. We appreciate your interest and your support. As you saw in our press release, on a consolidated basis, Entravision increased revenue 26% to $134 million in 4Q '25 compared to 4Q '24. We had an operating loss of $21 million in 4Q '25 compared to an operating loss of $49 million in 4Q '24. The 4Q '25 operating loss included a $26 million noncash impairment charge. So we would have had an operating profit if we exclude that adjustment. But as we've said on prior calls, we're committed to growing our business and earning a profit. So we acknowledge that we have work to do to improve our operating performance and profitability, especially in our media business.

We report our results for 2 segments: Media, and advertising technology and services, what we call ATS. For our Media segment, our revenue declined 32% in 4Q '25 compared to 4Q '24. This decline was primarily due to lower political revenue. Excluding political revenue, our 4Q '25 results included a 4% increase in local advertising revenue, and a 5% decrease in national advertising revenue. Our local operations had 3% lower monthly active advertisers but this was offset by an 8% increase in revenue per monthly active advertiser.

In terms of operating expenses and profitability, as we have discussed in the past, we made a number of important investments in our media business in 2025. We added capacity to our local sales teams, more sellers, and we added digital sales specialists and digital sales operations capabilities, more digital. When we analyzed our local markets and our local advertiser base, we saw an opportunity to increase revenue by adding sales capacity. In addition, virtually all our local advertising customers are advertising in digital channels. search, social, streaming video and streaming audio, and we believe we can serve their needs in digital channels as well as our traditional broadcast video and audio channels.

The increase in operating expenses in our Media segment for these investments is about $8 million on an annualized basis. However, we funded these investments in part by improving efficiency and reducing costs in nonrevenue-generating operations. So as you'll see, total operating expenses in our Media segment were actually 6% lower in 4Q '25 compared to 4Q '24. Since revenue was lower because we did not have political revenue, we did have an operating loss of $428,000 in 4Q '25 compared to an operating profit of $18.5 million in 4Q '24.

For our Media segment, we have 2 additional initiatives underway to generate incremental revenue. First, in October of last year, we began broadcasting a new network that we call Ulta Vision. All division is broadcast on our multicast capacity across all of our markets. We provide the broadcasting infrastructure in sales and we also provide local news programming. The balance of the programming is provided by Grupo Multi Medios of Monterrey, Mexico. And together, we share the revenue. The stations have been on the air since October, and we've been test marketing with local advertisers since the beginning of this year.

In addition, on January 1, 2026, we launched new programming on our full power Orlando television station, WOTF TV, in a partnership with Hemisphere Media. Hemisphere Media owns WAPA TV, the #1 television station in Puerto Rico. And together, we launched WAPA Orlando, Channel 26 to serve the growing Puerto Rican Caribbean, Central and South American Spanish-speaking communities in Central Florida. There are more than 500,000 Puerto Ricans in the Orlando market, and we are very excited about this new -- the new revenue potential for this business.

Now for our Advertising Technology & Services segment. ATS revenue more than doubled in 4Q '25 compared to 4Q '24, and we had more customers and higher spend per customer. We've continued to invest in our ATS segment in 4Q '25 to grow revenue and operating profits. We invested in our engineering team to continue to improve our technology and to build more powerful AI capabilities into our platform. And we invested to increase the capacity of our sales organization and customer operations. In addition, our infrastructure costs, primarily cloud computing costs increased in 4Q '25 compared to 4Q '24.

As our infrastructure costs will grow as our revenue grows, they're currently growing at about the same pace as revenue. But as the business gets larger, we expect to see some incremental operating leverage so that these costs will grow at a slower pace than revenue. But the combination of our investments, investments in increased operating expenses that's the direct operating expenses plus selling, general and administrative expenses were $6.5 million higher in 4Q '25 compared to 4Q '24. That's $26 million higher on an annualized basis.

The operating profit for ATS was $12 million in 4Q '25 compared to an operating profit of $2 million in 4Q '24. In our ATS segment, this week, we announced an acquisition. We acquired the technology, platform and product IP of Playback Rewards. Playback Rewards is a reward and loyalty platform. For the past year, we have been developing our own reward platform. but this acquisition presented an opportunity to accelerate our entry into this market with a more robust platform.

So to summarize, in Media, we're investing to increase our local sales capacity and to expand our digital sales and digital sales operations capabilities. Again, more sellers and more digital. And in ATS, we're investing to add more engineers to advance our technology and to increase our sales capacity, more technology, better technology and more sellers. We believe these investments will help us build a stronger company.

So now I'll ask Mark to share with you more details of our financial results for 4Q '25 and the full year 2025. Mark?

Thank you, Mike. I'll start by reviewing the performance of each of our 2 reporting segments, again, Media and Advertising Technology & Services. In our Media segment, Fourth quarter revenue was $45.8 million, which was down 32% compared to fourth quarter 2024. Full year 2025 revenue was $176.7 million, down 20% compared to full year 2024. As we've noted on previous calls, our Media business began slowly in 2025, in part due to advertiser uncertainty in the environment of a new administration and federal immigration enforcement actions.

In addition, there was significant political advertising in 2024 that was not present in 2025. However, we've seen sequential quarterly improvements in revenue as we move through 2025 and particularly in local ad sales, and we're seeing momentum and progress in the execution of our revenue strategies. One of our goals is to optimize our organizational structure and the expense of support services in order to align them with revenue and to be profitable in each segment as well as on a consolidated basis.

Let's look at total operating expense for the Media business. again, meaning the sum of direct operating expense and selling, general and administrative expense, or SG&A, as those 2 line items are reported in our segment results. Media segment total operating expense in the fourth quarter decreased $2.5 million compared to fourth quarter '24, a decrease of 6%. Operating expense was flat for full year 2025 compared to full year 2024. Starting in Q3 '25, we have taken steps under an ongoing organizational design plan intended to support revenue growth and reduce expenses in our Media segment.

Key components of this plan included a reduction in Q3 and Q4 of approximately 5% of the Media segment's total workforce primarily in back-office roles, and we abandoned several lease facilities with impacted employees transitioning to remote work. We expect these changes to reduce Media operating expense by approximately $5 million on an annual basis, and we recorded charges during third and fourth quarter totaling $2.8 million for the expenses associated with these moves, and these charges were reported as restructuring costs on our income statement.

The Media segment had an operating loss of $0.4 million in Q4 '25 and compared to operating profit of $18.5 million in Q4 '24. The decrease was mainly due to political advertising revenue in Q4 '24 that was not present in Q4 '25. We continue to evaluate the organizational structure of our Media business in order to provide compelling content, drive sales, streamline our organization and optimize expense. In the Media segment, operating loss improved significantly from the third quarter to fourth quarter '25.

Now let's turn to our Ad Tech & Services segment, or ATS. Fourth quarter revenue for the ATS business was $88.6 million. This was an increase of 123% compared to fourth quarter '24 and a sequential increase of 16% from third quarter to fourth quarter '25. Full year 2025 revenue was $270.9 million, an increase of 90% year-over-year compared to full year 2024. As the year progressed through the fourth quarter, we had a higher number of monthly active accounts and higher revenue per monthly active account. As discussed on previous calls, we have had success in executing our strategies in the ATS business during 2025, including expanding the sales team and geographic sales coverage and strengthening our AI capabilities and platform technology.

ATS total operating expenses increased by 48% in the fourth quarter 25% compared to Q4 '24, an increase of $6.5 million. Operating expenses increased by 54% in full year '25 compared to full year '24. The ATS expense increase was primarily related to the increase in revenue, for example, as Mike mentioned, the expense of cloud computing services has increased as a result of processing more transactions and using stronger AI capabilities built into our ad tech platform. There was an increase in sales commissions and performance compensation as a result of the revenue increase and achievement of other performance metrics.

And the ATS business has also hired additional sales, engineering and add operations staff in recent quarters in order to drive ATS growth and expand into new geographic areas. ATS operating profit was $12.3 million in Q4 '25. This was an increase of 464% versus Q4 '24 and a sequential increase of 26% from the prior quarter, Q3 '25. Operating profit for full year 2025 was $33.8 million, an increase of 317% versus full year 2024. Our goal for the ATS business is to continue to grow revenue and generate positive operating leverage and the ATS revenue increase exceeded the expense increase in terms of percentage and absolute dollars.

Combining our 2 operating segments. On a consolidated basis, revenue for fourth quarter '25 was $134.4 million, up 26% compared to fourth quarter '24. Full year 2025 revenue was $447.6 million, up 23% compared to full year '24 million. The 2 segments together generated a consolidated segment operating profit of $11.9 million in Q4 '25 and $27.6 million for full year '25, a decrease of 43% and 41% compared to the respective prior periods. The decrease was a result of decreasing -- I'm sorry, as a result of decreased operating profit in the Media segment primarily due to political revenue in 2024, that was not present in 2025, partially offset by increased operating profit in the ATS segment.

We had a consolidated operating loss of $20.7 million in Q4 '25 compared to a loss of $48.6 million in Q4 '24. Our consolidated operating loss included a noncash impairment charge of $26 million related to certain FCC licenses. Without this noncash impairment charge, we would have had an operating profit of over $5 million in Q4 '25. Full year 2025 operating loss was $83.4 million versus $52 million for full year 2024, with the increase primarily due to a loss on lease abandonment related to our corporate headquarters and restructuring charges related primarily to our Media segment.

Again, our goal is to be profitable for each segment and generate a consolidated operating profit. We have additional work to do, particularly in the Media business, and we remain focused on growing revenue and reducing operating expense throughout 2026 and beyond. Looking at corporate expenses, we have taken significant steps to reduce these expenses over the past few years. Corporate expenses in fourth quarter '25 were $6.5 million, a 13% decrease compared to fourth quarter '24 or about $1 million. The decrease was primarily due to expense reductions in rent and professional services.

For full year 2025, we reduced corporate expenses by $10.5 million compared to full year '24, a 28% decrease year-over-year. Going back 1 year for additional context, corporate expense in 2025 was almost half of the amount of corporate expense in 2023. Entravision's balance sheet remains strong with over $63 million in cash and marketable securities at year-end. We're proud of our strong balance sheet, which we believe sets us apart from others in the industry. In 2025, we made total debt payments of $20 million, reducing our credit facility indebtedness to about $168 million as of year-end.

We entered into an amendment to our credit facility in Q3 as previously reported. The amendment was a proactive and strategic move to accelerate debt reduction and provide more financial stability and flexibility under our credit agreement. In addition, we paid $4.6 million in dividends to stockholders in the fourth quarter or $0.05 per share and a total of $18 million for full year 2025 or $0.20 per share. For the first quarter of 2026, our Board of Directors has approved a $0.05 dividend per share payable on March 31 to stockholders of record as of March 17, for a total payment of approximately $4.6 million.

Our strategy regarding allocation of cash is, first, reduce debt and maintain low leverage; and second, return capital to our shareholders, primarily through dividends. We look at capital allocation on a 2-year basis to take into account cyclical and political advertising that occurs every other year. During the past 2 years, 2024 and 2025, we had about $85 million of net cash provided by operating activities. During this 2-year period, we used about $76 million of that $85 million to pay down debt and pay a shareholder to end.

That's $40 million used to reduce debt and $36 million used to pay dividends to shareholders. 2025 was not a political year, so we did not have meaningful political revenue last year, but we have now entered into the political advertising election year here in 2026.

We'd like to thank you for joining our call today. We welcome our investors to connect with us through the Investor Relations page on our corporate website entravision.com, where you will have access to a transcript of this call, the press release containing our fourth quarter and full year financial results and a copy of our annual report filed with the SEC on Form 10-K.

At this time, Mike and I would like to open the call for questions from the investment community. Roy, I'll turn it back over to you.

[Operator Instructions] Thank you, Mark. The first question is regarding the outlook for political revenue in 2026. Mike, do you want to address that?

Yes. So as of today, we are 243 days away from election day 2026. And as you can see in the news, primaries are underway across the country, I think we're very well positioned for a strong political spending environment, 2026. As we've said on prior calls, we believe the Latino vote will be critical to the outcome of the congressional elections in all -- in our 6 Southwestern states. The Cook political report list the 35 closest races of the 435 congressional races, and we are fortunate to have 11 of those 35 in our markets.

We also have the important Texas U.S. Senate race, which is, again, getting a lot of press. And then finally, we have governors races in California, Colorado, Nevada, New Mexico and Texas. So we're very well positioned. And what I would say is, which we've also said on past calls, we believe the Latino vote will be critical to the outcome of these elections. Studies have shown that Latinos are the most persuadable segment of the electorate and we have a powerful channel for reaching that audience.

And what we will say to make it very clear, what we say to everyone, we can get to listen to our pitch. You must win the Latino vote to win your election. And if you want to win the Latino vote, you should double or triple your allocation to Spanish language media. So again, we're very optimistic about how we're positioned for 2026.

Thank you, Mike. We received another question related to the status of renewing the affiliation agreement with TEU. Can you provide an update on that?

Sure. Not much to update since our last call, what we said last time, and it's still the case today. the affiliation agreement with Televisa Univision runs through December 31, '26. We've been partners for 3 decades, and our plan is to renew this agreement. So we expect to renew this agreement. But that's all I can say at this point. .

Thank you, Mike. [Operator Instructions]

Thank you, everyone, for joining us today. Mike, I'll turn it back to you for closing remarks.

At this point, we'll say thanks, Roy, and thank you again to all of you who are joining our call today. We look forward to speaking with you again when we report our 2026 1st quarter results. Thank you very much.

Good afternoon, everyone, and welcome to Entravision's Third Quarter 2025 Earnings Call. I'm Roy Nir, Vice President of Financial Reporting and Investor Relations.

Joining me today to discuss our results are Michael Christenson, our Chief Executive Officer; and Mark Boelke, our Chief Financial Officer.

Before we begin, I would like to inform you that this call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to Entravision's SEC filings for a list of risks and uncertainties that could impact actual results. The press release is available on the company's Investor Relations page and was filed with the SEC on Form 8-K. Additional information may also be found on quarterly report on Form 10-Q, which was also filed today. As you can see, our call today is via Zoom. If you'd like to ask a question, please use the Q&A function on the Zoom screen, indicate you name and company, and submit your question in writing. We will try to answer any questions that relate to the topics contained in today's call.

I will now turn the call over to Michael Christiansen.

Thanks, Roy, and thank you to those of you joining this call today. We appreciate your interest and your support.

As you saw in our press release, on a consolidated basis, Entravision increased revenue 24% to $120 million in 3Q '25 compared to 3Q '24. We did have an operating loss of $9 million in 3Q '25 compared to an operating profit of $8 million in 3Q '24. The 3Q '25 operating loss included $9 million of restructuring costs and impairment charges, so we were breakeven, excluding those charges, still not good.

As we've discussed on prior calls, we're committed to growing our business and earning a profit. So we acknowledge that we have work to do to improve our operating performance and profitability in our Media business. We report our results in two segments: Media and Advertising Technology & Services, what we call ATS.

For our Media segment, our revenue declined 26% in 3Q '25 compared to 3Q '24. This was primarily due to lower political revenue, but also weaker revenue from national television and radio advertisers. Average monthly advertisers and revenue per average monthly advertiser for our local media operations in 3Q '25 were flat year-over-year.

In terms of operating expenses and profitability, as we've discussed in the past, we have made a number of investments in our Media business in 2025. We've added capacity to our local sales teams, more sellers, and we've added digital sales specialists and digital sales operations capabilities so we could do more digital. When we analyzed our local markets and our local advertiser base, we saw an opportunity to increase revenue by adding sales capacity. In addition, virtually all our local advertising customers are advertising in digital channels, search, social, streaming video and streaming audio. We believe we can serve their needs in digital channels as well as our traditional broadcast video and audio channels.

The increase in operating expenses in our Media segment for these investments is about $8 million on an annualized basis. We funded this investment in part by improving the efficiency and reducing costs in nonrevenue-generating operations. Nevertheless, the combination of lower revenue and increased operating expenses produced an operating loss in our Media segment of $3.5 million in 3Q '25 compared to an operating profit of $11.7 million in 3Q '24.

Now for our Advertising Technology & Services segment. ATS revenue more than doubled in 3Q '25 compared to 3Q '24. We had more monthly active customers and higher revenue per monthly active customer. We continue to invest in our ATS segment in 3Q '25 to grow revenue and operating profits. We're investing in our engineering team to improve our technology and to build more powerful AI capabilities into our platform. And we're investing to increase the capacity of our sales organization and customer operations. In addition, our infrastructure costs, primarily cloud computing costs continue to grow as our revenue grows. They're currently growing at about the same pace as revenue. But as the business gets larger, we do expect to see some operating leverage. So we expect these costs will grow at a slower pace than revenue in the future.

The combination of these investments, that's investments in increased operating expenses, direct operating expenses plus selling, general and administrative expenses were $7 million higher in 3Q '25 compared to 3Q '24, $30 million higher on an annualized basis. Even with that increase, operating profit for ATS was nearly $10 million in 3Q '25, significantly higher than our operating profit in 3Q '24.

So, to summarize, in Media, we're investing to increase our local sales capacity and to expand our digital sales and digital sales operations capabilities, more sellers and more digital. In ATS, we're investing to add more engineers to advance our technology and to increase our sales capacity, so more technology, better technology and more sellers. We believe these investments will help us build a stronger company.

Now I'll ask Mark to share with you some of the more details of our financial results for 3Q '25.

Thank you, Mike. Let's start by reviewing revenue performance. On a consolidated basis, revenue for third quarter 2025 was $120.6 million, up 24% compared to third quarter 2024. In our Media segment, third quarter revenue was $44.5 million, which was down 26% compared to third quarter 2024. Our Media business began the year slowly, in part due to advertiser uncertainty in an environment of the new administration and federal immigration enforcement actions. In addition, there was significant political advertising in 2024 that was not present in 2025. However, we've seen sequential quarterly improvements as we move through 2025, particularly in local ad sales, and we're seeing momentum and progress on executing our revenue strategies.

In our Ad Tech & Services segment, third quarter revenue was $76.1 million, which was up 104% compared to third quarter '24. We had a higher number of monthly active accounts and higher revenue per monthly active account. As discussed in previous quarters, we've had success executing our strategies in the ATS business during 2025, including expanding the sales team and geographic sales coverage and strengthening our platform technology and AI capabilities. We had exceptional performance in Q3 with sequential quarterly revenue growth from second quarter to third quarter of 38%. With that said, we do not expect to repeat this level of quarterly sequential growth in fourth quarter, and we currently anticipate fourth quarter revenue and earnings to be comparable to third quarter.

Regarding expenses, one of our goals is to optimize our organizational structure and the expense of support services in order to align them with revenue and be profitable in each segment and on a consolidated basis. With that in mind, let's look at total operating expense for each of our segments. This refers to the sum of direct operating expense and selling, general and administrative expense, or SG&A, as those two line items are reported in our segment results.

For our Media segment, total operating expense in third quarter '25 increased slightly compared to third quarter '24, about $140,000. At the end of third quarter '25, we took steps under an ongoing organizational design plan intended to support revenue growth and reduce expenses in our Media segment. Key components of this plan included a reduction of approximately 5% of the Media segment's total workforce, primarily in back-office roles, and we abandoned several leased facilities with impacted employees transitioning to remote work. In addition, we shut down certain legacy international operations within the ATS segment. We recorded charges during the third quarter totaling $3.2 million for the expenses associated with these moves, and these charges were reported as restructuring costs on our income statement. We expect these changes to reduce Media segment operating expense by approximately $5 million on an annual basis. We continue to evaluate the organizational structure of our media business in order to provide compelling content, drive sales, streamline our organization and optimize expense.

Total operating expenses in our ATS segment increased by 58% in the third quarter of 2025 compared to 2024, an increase of $7.4 million. The ATS expense increase was primarily related to the increase in revenue. For example, as Mike mentioned, the expense of cloud computing services has increased as a result of processing more transactions and using stronger AI capabilities that are built into our ad tech platform. There was an increase in sales commissions and performance compensation as a result of the revenue increase and achievement of other performance metrics. And the ATS business has also hired additional sales, engineering and ad operations staff in recent quarters in order to drive ATS growth and expand into new geographic areas.

Regarding segment results, the Media segment had an operating loss of $3.5 million compared to operating profit of $11.7 million in Q3 '24. This loss was due to a combination of lower revenue, mainly due to significant nonreturning political advertising revenue, which we had in Q3 of 2024. As I noted earlier, we have undertaken an ongoing organization design plan intended to support revenue growth and reduce expenses in this segment. Ad Tech & Services operating profit was $9.8 million, an increase of 378% versus Q3 '24. Our goal for this business is to generate positive operating leverage and the ATS revenue increase did exceed the expense increase in terms of percentage and absolute dollars. The operations of both segments together generated a consolidated segment operating profit of $6.2 million. This was a 55% decrease compared to third quarter 2024, attributable primarily to the Media segment, as I discussed earlier.

On a consolidated basis, we had an overall operating loss of $9.1 million compared to operating income of $7.6 million in Q3 '24. Our operating loss included a noncash impairment charge of $5.7 million, primarily related to the assets held for sale as well as a charge of $3.2 million for the expenses associated with the restructuring costs that I mentioned a few moments ago. Our goal is to be profitable for each segment and generate a consolidated operating profit. As Mike mentioned, we have additional work to do, and we remain focused on growing revenue and reducing expense throughout the remainder of 2025 and beyond.

Turning to corporate expenses. We've taken significant steps to reduce corporate expense over the past 1.5 years. We had $6.3 million of corporate expense in third quarter '25. This is a decrease of 9% compared to third quarter '24 or about $600,000. The decrease was primarily due to a reduction in audit fees and rent expense. On a year-to-date basis, we reduced our corporate expense by $9.5 million compared to the prior year.

Entravision's balance sheet remains strong with over $66 million in cash and marketable securities at the end of third quarter. We're proud of our strong balance sheet, which we believe sets us apart from others in the industry. Our strategy regarding allocation of cash is, first, reduce debt and maintain low leverage; and second, return capital to our shareholders, primarily through dividends.

We entered into an amendment to our credit facility in the third quarter, as we noted on our second quarter earnings report and 10-Q. The amendment was a proactive and strategic move to accelerate debt reduction and provide more financial stability and flexibility under our credit agreement. During 2025 year-to-date, we have made total debt payments of $15 million, reducing our credit facility indebtedness to about $173 million as of third quarter end. In addition, we paid $4.5 million in dividends to stockholders in the third quarter or $0.05 per share. For the fourth quarter, our Board of Directors has approved a $0.05 dividend per share payable on December 31 to stockholders of record as of December 16, for a total payment of approximately $4.5 million.

We'd like to thank you for joining our call today. We welcome our investors to connect with us through the Investor Relations page on our corporate website, entravision.com, where you will have access to a transcript of this call, the press release containing our third quarter financial results and a copy of our Form 10-Q quarterly report filed with the SEC.

At this time, Mike and I would like to open the call for questions from the investment community. And Roy, I'll turn it back over to you.

Thank you, Mark. We'll now begin the question-and-answer session. As a reminder if you have a question please use the Q&A function on the Zoom screen, indicate you name and company and submit your question in writing. Please hold as we review any questions.

The first question coming in, Mike and Mark, can you comment on the outlook for political revenue in 2026?

Sure, Roy. Thank you. I think that's probably an appropriate question since we're now precisely one year away from the election day in 2026. What I can say is we're obviously positioning ourselves for a very strong political spending environment in 2026. We believe that the Latino vote will be critical to the outcome of the congressional elections in our six Southwestern states. The Cook Political report lists 16 critical toss-up races of the 435 races, congressional races in 2026. We have TV and radio in 6 of those 16 markets. So we're very well positioned there. We also have key U.S. Senate races, including Texas. And then we have governors races in California, Colorado, Nevada, New Mexico and Texas, plus smaller opportunities in Connecticut and Massachusetts. So this will be one of the most consequential congressional elections, frankly, in our lifetime. Who wins in Nevada and Arizona will also have a significant influence on the 2028 presidential elections.

So we believe that the Latino vote will be critical to the outcome of all these elections, and we have a powerful -- a unique and powerful channel for reaching that audience. So we're very excited about the opportunities coming up and working hard to make sure we're well positioned.

Thank you, Mike. And we received another question related to our call. The question is, what's the status of renewing the affiliation agreement with TelevisaUnivision?

Thanks for that question. Our affiliation agreement with TelevisaUnivision runs through December 31, 2026. We've been partners with Univision for three decades, nearly three decades. Our plan is to renew that agreement. And we are in discussions with TelevisaUnivision. co we're working to that goal.

Thank you, Mike. At this time, we don't have any more questions. Mike, I will turn it back to you for any closing remarks.

Thanks, Roy. And again, thank you to all of you for joining our call today. We look forward to speaking with you again when we report our fourth quarter results. Thank you.