MNTN (NYSE:MNTN) reported second-quarter 2026 revenue of $82.5 million, up 21% from a year earlier, while adjusted EBITDA rose 48% to $21.5 million. Chief Executive Officer Mark Douglas said both figures came in at the high end of the company’s guidance range.
The performance television advertising company posted GAAP net income of $6.7 million, or $0.09 per share. Gross margin improved to 80%, an increase of 350 basis points from the prior-year quarter, while adjusted EBITDA margin expanded 490 basis points to 26.1%.
Customer Growth and Platform Expansion
MNTN ended the quarter with 4,225 active Performance TV customers measured over the trailing 12 months, representing approximately 40% year-over-year growth. Pohlen said the pace of customer additions is largely driven by the company’s decisions around sales and marketing investment and may fluctuate from quarter to quarter.
The company’s expansion rate, which compares spending by existing customers with their spending a year earlier, remained “well north of 115%,” according to Pohlen. He said that customers tend to raise their budgets on the platform when they achieve their desired advertising returns.
Douglas said MNTN is pursuing three priorities for its next stage of growth:
- Expanding its products and investments in artificial intelligence;
- Broadening access to premium television inventory; and
- Strengthening its sales, marketing and business-development organization.
The company has introduced separate versions of its Performance TV platform for small businesses, mid-market advertisers and upper-mid-market customers. The tiers are called Express, Pro and Premium.
MNTN Express, which launched April 1 and is designed for small businesses, recorded more than 7,000 signups in its first 120 days. Douglas said hundreds of those users became paying customers. While the product’s contribution to total revenue remains small, he said it is growing quickly and could become a meaningful growth contributor entering 2027.
For mid-market customers, MNTN has added agentic AI capabilities intended to automate daily decision-making and improve advertising performance. Douglas said roughly half of the company’s headcount works in engineering and that MNTN is using AI both in product development and throughout its operations.
QuickFrame AI Gains Users
QuickFrame AI, MNTN’s creative tool, generated more than 37,000 signups during the second quarter and surpassed 73,000 year-to-date signups. Douglas said businesses across retail, financial services, healthcare, technology and education have used the technology to produce television-ready ads.
During the question-and-answer session, Douglas said QuickFrame AI was built to function as more than a feature of the Performance TV platform. The product can also support creative for YouTube and social-media advertising, he said.
However, MNTN is currently offering QuickFrame AI at no charge while it evaluates usage and engagement. Douglas said the company sees monetization potential but did not provide details on timing or a pricing model.
He also described the product’s overall gross-margin impact as “essentially gross margin neutral,” citing efficiencies in the company’s hosting environment that help offset AI-model costs. MNTN is making product releases weekly, and sometimes multiple times per week, he said.
Premium Sports Inventory and Go-to-Market Spending
Douglas said MNTN has expanded access to premium streaming inventory, including advertising placements around major sports leagues and events. Customers have advertised during FIFA World Cup games, March Madness and programming tied to Major League Baseball, the National Basketball Association and the National Hockey League, with National Football League inventory expected to follow.
He said the company’s agreements with major media partners allow smaller businesses to gain access to programming historically dominated by large advertisers. Sports inventory can perform well because multiple viewers may be watching a game at the same time, Douglas said.
MNTN has also added leadership in sales, marketing and business development and built vertical teams to address the specific needs of industries. Douglas said the company is using its own platform and social media to market to prospective Express and mid-market customers.
Regarding political advertising in the second half of the year, Douglas said MNTN historically has had limited direct exposure because political spending is generally dominated by larger agencies and enterprise customers. He said the company expects limited effects from political-driven volatility in connected-TV ad pricing because more than 99% of its inventory is purchased through private marketplace agreements with media companies rather than the open market.
Outlook and Share Repurchase Authorization
For the third quarter, MNTN expects revenue of $86 million to $89 million, representing 25% year-over-year growth at the midpoint of $87.5 million. The company forecast adjusted EBITDA of $22 million to $25 million.
For the full year, MNTN reiterated its revenue outlook of $347 million to $357 million, excluding the impact of the Maximum Effort divestiture. The midpoint of $352 million would represent more than 24% annual growth, according to the company. MNTN also reaffirmed adjusted EBITDA guidance of $96 million to $101 million.
The company ended the quarter with $237 million in cash and cash equivalents, no borrowings outstanding and 74.2 million shares outstanding. On Aug. 3, MNTN’s board authorized a repurchase program of up to $100 million of Class A common stock through Aug. 5, 2027. Pohlen said management believes the shares represent a compelling value and that the authorization reflects confidence in the company’s long-term outlook.
About MNTN (NYSE:MNTN)
MNTN is a software platform specializing in connected television (CTV) advertising, offering marketers the tools to plan, launch and measure streaming TV campaigns. Its platform enables brands to reach audiences across major OTT and CTV channels, helping advertisers target viewers based on demographic, behavioral and contextual data.
The company’s core product suite includes campaign management, real-time bidding and performance analytics. MNTN integrates with leading streaming services and ad exchanges, allowing clients to execute programmatic buys, track view-through conversions and optimize media spend through automated reporting dashboards.
Founded by experienced digital advertising professionals, MNTN is headquartered in Austin, Texas, and primarily serves brands and agencies across the United States and Canada.
