Entravision's Q2 2025 Earnings Call: Unpacking Contradictions in Ad Tech Growth, Media Declines, and Strategic Investments

Ad Tech & Services segment growth, Media segment revenue decline, News production expansion, Digital segment growth and performance, and investments in U.S. media and advertising technology are the key contradictions discussed in Entravision Communications Corporation's latest 2025Q2 earnings call.



Revenue Growth in Advertising Technology and Services:
- Entravision's ATS revenue was 66% higher in Q2 '25 compared to Q2 '24.
- Growth was driven by increased customer base and higher spend per customer, alongside investments in engineering to improve technology and AI capabilities.

Operating Challenges in Media Segment:
- The Media segment revenue declined by 8% in Q2 '25 compared to Q2 '24.
- The decrease was attributed to fewer active local advertisers due to economic uncertainty and the impact of federal immigration enforcement actions.

Investments and Expense Management:
- Entravision reduced corporate expenses by $4 million in Q2 '25 compared to Q2 '24, nearly $18 million on an annualized basis.
- This was part of a broader strategy to fund investments in both Media and ATS segments while maintaining a strong balance sheet.

Operating Profit Improvement in ATS:
- ATS operating profit was $5 million in Q2 '25, almost 3x higher than in Q2 '24.
- The improvement resulted from increased revenue, which exceeded the rise in total operating expenses, despite higher infrastructure costs and sales commissions.

Consolidated Financial Performance:
- Entravision's consolidated revenue increased by 22% to $101 million in Q2 '25 compared to Q2 '24, with an operating loss of just under $1 million.
- The company is focused on growing its business and earning a profit by investing in both Media and ATS segments while reducing corporate expenses.