Entravision's Ad-Tech Unit Drives Revenue Up 126%
Entravision Communications reported net revenue growth accelerated to 126% year over year in the second quarter, as its ATS advertising-technology segment expanded 230% and offset a shrinking legacy media business.
Entravision Communications (EVC) reported second-quarter net revenue growth of 126% year over year, up from 114% in the first quarter and 26% in the fourth quarter of 2024, as its Adtech and Services (ATS) segment continued to scale.
The acceleration marks a shift in what drives Entravision's results. ATS segment revenue grew 230% year over year in the quarter, up from 204% in the first quarter and 123% in the fourth quarter of 2024, and the company's overall revenue base is now roughly four times its size at the end of 2024. The Media segment, once the core of the business, told a different story: after severe declines through 2024 — down 32% in the fourth quarter and 26% in the third quarter — it briefly returned to growth in the first quarter of 2025 before slipping to a 1% decline in the second quarter, as prior-year political advertising comparisons rolled off.
Profitability followed the same divergence. ATS segment operating profit reached $40.0 million in the second quarter, up 673% from $5.2 million a year earlier and continuing an acceleration from $34.3 million in the first quarter, with segment operating margin expanding to roughly 22% of ATS revenue from about 9% a year ago. The Media segment, by contrast, posted an operating loss of $3.3 million in the quarter, its fourth consecutive quarter near breakeven or negative after posting a $0.4 million profit in the second quarter of 2024. Total segment operating profit across the company rose to $36.7 million, up 564% year over year, reversing declines of 43% in the fourth quarter and 55% in the third quarter of 2024.
The growth came with cost pressure. Cost of revenue rose 210% year over year to $117.9 million, outpacing the 126% increase in consolidated revenue, with ATS cost of revenue up 235% to $111.9 million — a sign of gross margin compression within the segment even as its operating profit expanded. Within the legacy Media business, national advertising revenue excluding political spending fell 19% in the quarter, deepening from an 18% decline in the first quarter, while local advertising revenue growth slowed to 1% from 6%. Corporate expenses also turned higher, rising 3% year over year after four straight quarters of declines, due to higher non-cash stock-based compensation.
Entravision's balance sheet improved alongside the ATS growth. Cash and marketable securities rose to $83.4 million as of June 30, 2025, up from $71.1 million at the end of the first quarter and $63.2 million at the end of 2024, reversing a decline that had run from $100.6 million at the end of 2023 to $66.4 million in the third quarter of 2024. Long-term debt, including current maturities, fell to $157.3 million from $162.2 million a quarter earlier, continuing a pace of $5.0 million in scheduled quarterly term loan repayments that has held steady since the third quarter of 2024.
The company kept its quarterly dividend at $0.05 a share on Class A and Class U common stock, unchanged across the past five quarters, with total dividend payments rising slightly to $4.6 million from $4.5 million. A restructuring charge tied to a Media segment workforce reduction, facility abandonment and the shutdown of legacy international ATS operations, first disclosed in the third quarter of 2024 at $3.2 million, was reflected at $0.983 million in the company's six-month 2025 figures and was not carried forward as an ongoing item in the latest release.