Sign in

You're signed outSign in or to get full access.

MI

MNTN, Inc. (MNTN)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter with rev $70.02M (+23% GAAP YoY) and gross margin 78.9%; first GAAP profit in four years with net income $6.44M and diluted EPS $0.08 .
  • Results vs Street: revenue essentially in line (consensus $70.11M*), EPS beat (consensus $0.043* vs reported diluted EPS $0.08), while SPGI’s “Primary EPS actual” shows $0.147 indicating methodology differences; EBITDA consensus $14.05M* vs GAAP EBITDA $8.87M but company focuses on Adjusted EBITDA $16.0M, which exceeded prior guidance .
  • Q4 guide: revenue $85.5–$86.5M and Adjusted EBITDA $25–$26M; on the call, management framed FY25 implied revenue $288.5–$289.5M and Adj. EBITDA $64.9–$65.9M (22.6% margin midpoint), underscoring operating leverage into seasonally strongest quarter .
  • Catalysts: sustained SMB customer growth (TTM active PTV customers +67% YoY to 3,316), structural gross margin uplift post-Maximum Effort divestiture, and launch of QuickFrame AI to accelerate onboarding and creative testing .

What Went Well and What Went Wrong

  • What Went Well

    • Structural mix and execution drove gross margin expansion to 78.9% (+720 bps YoY), with 400+ bps from core PTV and the balance from divesting Maximum Effort; management sees additional levers ahead (hosting/media) .
    • Customer momentum: TTM active PTV customers rose 67% YoY to 3,316; agency-led accounts quadrupled in 2025; inbound leads now >75%, improving go-to-market efficiency .
    • Strategic innovation: public beta launch of QuickFrame AI to cut creative cost/time-to-live and increase A/B testing velocity. CEO: “It’s an accelerant…lower[s] the cost of the creative…[customers] will create a lot more creative” .

  • What Went Wrong

    • ARPU headwind from SMB mix: calculated Q3 ARPU was $20,904, reflecting an increased mix of smaller customers; mix shift dilutes ARPU but expands TAM and cohort growth runway .
    • Sales & marketing at 30.5% of revenue, modestly above long‑term 25–30% target; company plans to add selective headcount and invest in self-sign-up and marketing, balancing growth and leverage .
    • On SPGI-defined GAAP EBITDA, actual $8.87M trailed the consensus $14.05M*, despite company’s Adjusted EBITDA of $16.0M and a guidance beat on that non‑GAAP metric .

Financial Results

MetricQ3 2024Q2 2025Q3 2025Consensus (Q3 2025)
Revenue ($M)$57.13 $68.46 $70.02 $70.11*
YoY Revenue Growth (GAAP)—+25% +23% —
Gross Margin % (GAAP)71.7% 77.0% 78.9% —
Net Income ($M)$(3.88) $(26.23) $6.44 —
Diluted EPS ($)$(0.28) $(0.65) $0.08 $0.043*
EBITDA ($M, GAAP)$(0.74) $(22.29) $8.87 $14.05*
Adjusted EBITDA ($M)$10.45 $14.51 $15.99 —
Adjusted EBITDA Margin %18.3% (Q3’24) 21% 22.8% —
Cash & Equivalents ($M)—$175.16 $179.17 —

Notes: Asterisks indicate S&P Global estimates and/or values. Values retrieved from S&P Global.

Segment/Business Mix (structural context)

MetricQ3 2024Q3 2025
Revenue – MNTN excl. Maximum Effort ($M)$53.4 $70.0
Revenue – Maximum Effort ($M)$3.7 $—
Gross Margin % – MNTN excl. Maximum Effort74.8% 78.9%
Gross Margin % – Maximum Effort27.2% n/m

KPIs

KPIQ3 2024Q2 2025Q3 2025
Active PTV Customers (TTM)1,990 3,020 3,316
ARPU (Calculated)——$20,904
Expansion Rate (YoY spend of existing customers)——>115%
Inbound Lead Mix——>75% of leads

Other relevant press releases in Q3: MNTN named Anderson Collaborative an Approved Agency Partner, supporting agency-channel growth and enablement .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q4 2025—$85.5–$86.5 New
Adjusted EBITDA ($M)Q4 2025—$25.0–$26.0 New
Revenue ($M)FY 2025 (implied)—$288.5–$289.5 (call) New
Adjusted EBITDA ($M)FY 2025 (implied)—$64.9–$65.9 (22.6% margin midpoint) New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
AI/Creative toolsBuilding GenAI tools; >1,000 AI-generated ads in beta; emphasis on AI targeting (MNTNMatch) Launched public beta of QuickFrame AI; accelerates time-to-live, lowers creative cost, enables more A/B testing Accelerating productization of GenAI
SMB go-to-marketOpened top-of-funnel; self-sign-up efforts expanded; min spend lowered; strong SMB net retention SMB revenue mix rising (6% in Q4’24 → 15% now); >75% inbound; self-sign-up scaling to mid-market Rapidly scaling down-market with efficiency
Gross margin leversTargeting 75–80%; hosting reductions, media costs optimization ahead 78.9% GM; 400+ bps core uplift plus Max Effort divestiture; moved hosting to GCP to reduce COGS Structural improvement plus ongoing efficiency
Agency channelExpanding partnerships (e.g., ZoomInfo) Agency-led accounts 4x in 2025; dedicated team, incentives/creative credits; partnerships with PubMatic/Magnite Growing as additive channel to same customer profile
Supply/CTV inventoryN/ADirect connections to 200+ premium networks; SSP partnerships (PubMatic, Magnite) for “super premium” supply Deepening premium supply access
Macro/seasonalitySeasonally strongest Q4 referenced Q4 guide reflects seasonal strength and leverage Seasonality supportive

Management Commentary

  • CEO strategic message: “We’re leading one of the biggest shifts in advertising, transforming Connected TV into a true performance channel…97% of brands on MNTN [are] first time advertisers” .
  • On QuickFrame AI: “An accelerant…shorten[s] the time to go live…lower[s] the cost of the creative…[customers] will create a lot more creative [for A/B testing]” .
  • CFO on profitability/efficiency: “We achieved positive net income of $6.4 million…first quarter of GAAP profitability in the last four years…Adjusted EBITDA was $16 million…margin grew to 22.8%” .
  • On margins: “Core PTV improved over 400 bps [of the 720 bps GM expansion], with the balance coming from the impact of the Maximum Effort divestiture…moved hosting to GCP” .

Q&A Highlights

  • Growth drivers/runway: Faster inbound (>75%), shorter sales cycles, self-sign-up into SMB/mid-market; AI targeting (MNTNMatch) and QuickFrame AI improve conversion and speed .
  • Q4 guide underpinnings: Seasonal strength; revenue $85.5–$86.5M and Adj. EBITDA $25–$26M; company will selectively invest while maintaining leverage .
  • Agency channel: Independent performance agencies expanding; dedicated team and enablement (creative credits, co-marketing); access to the same mid-market SMB profile .
  • Gross margin trajectory: Structural uplift post-divestiture; hosting savings; scale benefits with largely fixed data costs; Q4 typically highest GM .
  • Mix/ARPU: Higher SMB mix reduces ARPU ($20,904) but expansion rate “well north of 115%” supports durable growth .

Estimates Context

  • Revenue: $70.02M vs S&P Global consensus $70.11M* (essentially in line) .
  • EPS: GAAP diluted $0.08 vs S&P Global Primary EPS consensus $0.043*; SPGI’s “Primary EPS actual” shows $0.147, indicating definitional differences with company-reported GAAP EPS .
  • EBITDA: SPGI EBITDA consensus $14.05M* vs GAAP EBITDA $8.87M; company’s Adjusted EBITDA $16.0M exceeded its prior Q3 guidance of $13.5–$14.5M .

Notes: Asterisks indicate S&P Global estimates and/or values. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Secular SMB CTV adoption + self-sign-up funnel are driving durable growth; TTM active customers +67% YoY to 3,316, with >75% inbound improving unit economics .
  • Structural gross margin tailwinds (78.9% in Q3) from business mix and cost actions position the model for operating leverage into seasonal Q4 and beyond .
  • Adjusted EBITDA execution is ahead of plan (Q3 $16.0M vs prior guide), supporting FY25 margin trajectory and cash build ($179M cash, no debt) .
  • QuickFrame AI could be a material accelerant: lower creative barriers → faster onboarding → more creative testing → better ROAS and expansion rates .
  • Agency channel quadrupling adds a scaled route to the same core customer profile, without diluting focus; partnerships (PubMatic/Magnite) deepen “super premium” supply .
  • Near-term watch items: ARPU pressure from SMB mix; disciplined S&M spend vs long-term targets; reconcile Street frameworks (GAAP EBITDA vs Adjusted EBITDA focus) .
  • Q4 guide embeds seasonal upside and leverage (revenue $85.5–$86.5M; Adj. EBITDA $25–$26M); delivery here is the next stock catalyst .

Citations:

  • Q3 2025 8-K/Press Release:
  • Q3 2025 Earnings Call:
  • Q2 2025 8-K/Call:
  • Other Q3 press release:

Notes on estimates: Asterisks indicate S&P Global consensus estimates and/or values. Values retrieved from S&P Global.