Entravision Communications (NYSE:EVC) reported sharply higher consolidated revenue in the first quarter of 2026, driven primarily by rapid growth in its Advertising Technology and Services (ATS) segment, while its Media segment posted a wider operating loss amid continued investment and higher costs tied to digital revenue.
Consolidated results lifted by ATS growth
Chief Executive Officer Michael Christenson said consolidated revenue increased 114% to $197 million in 1Q 2026 compared to 1Q 2025. The company reported operating income of $21 million in the quarter, versus an operating loss in the prior-year period. Chief Financial Officer and Chief Operating Officer Mark Boelke later said consolidated operating income was $20.7 million in 1Q 2026, compared with an operating loss of $52.8 million in 1Q 2025.
Media segment: modest revenue growth, wider operating loss
In the Media segment, Boelke reported revenue of $42.4 million, up 4% year over year. Christenson said the increase was “primarily due to higher digital advertising revenue and retransmission fees,” partially offset by lower broadcast advertising revenue and lower revenue from spectrum usage rights.
Christenson broke out advertising trends within Media, noting a 6% increase in local advertising revenue and an 18% decrease in national advertising revenue, excluding political revenue. He explained that local advertising is generated by Entravision’s local sellers across broadcast and digital marketing solutions, while national advertising is sold primarily through partners including TelevisaUnivision.
Christenson said local advertising operations showed “4% higher monthly active advertisers” and a “2% increase in revenue per monthly active advertiser,” adding that the company’s operational priorities are to grow both monthly active advertisers and revenue per monthly active advertiser.
On profitability, Media operating expenses increased by about $2 million year over year, and the segment posted an operating loss of $5 million in 1Q 2026 versus an operating loss of $3 million in 1Q 2025, according to Christenson. Boelke provided additional detail, saying Media segment total operating expense rose $2.1 million, or 6%, and the operating loss widened to $5.2 million from $2.6 million. He attributed the change mainly to higher cost of revenue “associated with the increase in digital advertising revenue” in the Media segment.
Boelke also said the company is executing an organizational design plan begun in the third quarter of 2025 “intended to support revenue growth and reduce expenses” in Media. He listed actions including workforce reductions, reductions in professional expenses, and abandonment of several leased facilities. Entravision recorded a $1 million charge in the quarter related to these steps, reported as restructuring costs.
Initiatives: Altavision and WAPA Orlando in early stages
Christenson highlighted two media initiatives aimed at generating incremental revenue, though he emphasized both remain early-stage and are not yet contributing significant incremental revenue.
- Altavision: Entravision is broadcasting a new network called Altavision on multicast capacity across its markets. Entravision produces the local news, provides sales and broadcasting infrastructure, and shares revenue with programming partner Grupo Multimedios of Monterrey, Mexico. Christenson said the initiative currently carries operating expenses but “no significant incremental revenue.”
- WAPA Orlando Channel 26: The company launched new programming on its full-power Orlando television station, WOTF-TV, in partnership with Hemisphere Media. Christenson said the launch is designed to serve Puerto Rican, Caribbean, Central and South American Spanish-speaking communities in Central Florida, noting that more than 500,000 Puerto Ricans live in the Orlando market. As with Altavision, he said the effort currently has operating expenses but “no significant incremental revenue.”
Christenson also pointed to media investments made in 2025 and continued into 1Q 2026, including adding capacity to local sales teams, adding digital sales specialists, and expanding digital sales operations capabilities. He said the company believes it can serve local advertisers’ digital needs across “search, social, streaming video, and streaming audio,” alongside its traditional broadcast channels.
Christenson said the company is “committed to growing our business and earning a profit” in Media, while acknowledging “we have more work to do to improve our operating performance and profitability.” He cited a new leadership team announced in March: Maria Martinez-Guzman, President of Entravision Media; Eduardo Maytorena, President of Entravision Audio; and Winter Horton, Chief Revenue Officer.
ATS segment: revenue more than triples, operating leverage improves
ATS was the primary driver of the company’s consolidated growth. Christenson said ATS revenue was $155 million in 1Q 2026, up from $51 million in 1Q 2025, supported by more monthly active customers and higher revenue per monthly active customer.
Boelke reported ATS revenue of $154.6 million, up 204% year over year and up 74% sequentially from 4Q 2025. He said the segment benefited from both a higher number of monthly active accounts and higher revenue per monthly active account, and noted continued execution on strategies including strengthening AI capabilities in the technology platform and expanding the sales team and geographic coverage.
ATS operating expenses increased 72% year over year, up $9.8 million, which Boelke said was primarily related to the rise in revenue. He cited higher cloud computing costs associated with processing more transactions and using “stronger AI capabilities,” as well as higher commissions and performance compensation tied to revenue growth and performance metrics. He also said the business has hired additional sales, engineering, and ad operations staff in recent quarters.
Despite the expense growth, profitability rose sharply. Christenson said ATS operating profit was $34 million in 1Q 2026 compared to $7 million in 1Q 2025. Boelke reported ATS operating profit of $34.3 million, up 427% year over year and up 178% sequentially, and said the segment’s revenue growth exceeded expense growth in both percentage and absolute dollars, supporting operating leverage.
Cash, debt, dividends, and key Q&A topics
Boelke said corporate expenses were $7.2 million in 1Q 2026, down 8% year over year, primarily due to reductions in professional services and rent. He added that, compared with 1Q 2024, corporate expense in 1Q 2026 was 41% lower.
On liquidity, Boelke said the company ended the quarter with more than $71 million in cash and marketable securities. He said the company’s cash allocation priorities are to reduce debt and maintain low leverage, and then return capital to shareholders “primarily through dividends.”
Entravision made a $5 million debt payment in the quarter, reducing credit facility indebtedness to about $163 million at quarter-end, Boelke said. The company also paid $4.6 million in dividends, or $0.05 per share, in 1Q 2026. Boelke said the board approved a $0.05 per share dividend for the second quarter, payable June 30, 2026 to stockholders of record as of June 16, for an expected total payment of approximately $4.6 million.
During the Q&A, Christenson discussed political advertising, saying the company is positioning itself for a “strong political and spending environment in 2026.” He pointed to major races in Entravision’s markets, including governor races in California, Nevada, and Texas, as well as the Texas U.S. Senate race and “at least seven critical contested House races.”
Asked about negotiations with TelevisaUnivision on the affiliation agreement, Christenson said there was “no new news” and noted the agreement runs through Dec. 31, 2026. “We’ve been partners for three decades, and our plan is to renew this agreement,” he said, adding there was no update at this time.
About Entravision Communications (NYSE:EVC)
Entravision Communications Corporation (NYSE: EVC) is a diversified Spanish-language media and advertising company headquartered in Santa Monica, California. The company develops and distributes multimedia content tailored to Hispanic audiences across the United States, leveraging a combination of traditional broadcasting and digital platforms to reach consumers and marketers seeking to engage this fast-growing demographic.
In its broadcasting segment, Entravision owns and operates more than 50 television stations affiliated primarily with leading Spanish-language networks, as well as over 40 radio stations in key U.S.
