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PI

PodcastOne, Inc. (PODC)·Q2 2026 Earnings Summary

Executive Summary

  • Record Q2 FY26 revenue of $15.2M (+22% YoY) and Adjusted EBITDA of $1.1M (vs. $(0.4)M LY), with GAAP net loss improving to $(1.0)M ($(0.04)/sh) . Revenue beat S&P Global consensus ($14.3M*) and EPS was slightly better than the $(0.045*) Street loss; Street EBITDA estimate was $0.61M*, while the company reported $1.09M Adjusted EBITDA (company emphasizes non-GAAP) .
  • Management raised FY26 guidance: Revenue to $56–60M (from $55–60M) and Adjusted EBITDA to $4.5–6.0M (from $3–5M), citing strength in AI-enabled adtech, direct sales, and scaled partnerships .
  • Strategic catalysts: expanded Amazon ART19 partnership to a $20M+ annual run-rate and a Fortune 250 streaming partner to $26M+ run-rate; PodRoll marketplace up 71% YoY and now a seven-figure channel .
  • Liquidity and operations: zero debt, quarter-end cash ~$2.8M; management flagged stronger direct sales (higher CPMs) and improved efficiency; G&A elevated by stock-based comp (adjusted out) .

What Went Well and What Went Wrong

What Went Well

  • Revenue and profitability momentum: “we achieved record revenue of $15.2 million” and Adjusted EBITDA of $1.1M, reflecting diversified growth and AI-enabled tools (PodRoll, Programmatic, Amazon ART19) .
  • Adtech and marketplace scaling: PodRoll “generated a 71% increase… nearly tripled since last year… now a 7-figure revenue generating tool,” and programmatic/ART19 revenues rose 14% QoQ from Q1 .
  • Direct sales strength: pacing at an all-time high for the quarter, supporting higher CPMs; waterfall prioritizes direct sales over programmatic/ART19, enhancing yield .

What Went Wrong

  • Profitability still below breakeven on GAAP: Q2 GAAP net loss $(0.98)M; GAAP operating loss $(0.98)M; gross margin remains ~10–11% .
  • Elevated G&A from stock-based comp: CFO noted higher stock comp driving G&A; professional fees higher in Q2 (expected to ease) .
  • Limited Street coverage: only ~2 estimates in S&P Global, increasing volatility in consensus comparisons and highlighting model differences between EBITDA and company’s Adjusted EBITDA focus (Street EBITDA consensus vs. company-reported Adjusted EBITDA*) [GetEstimates]*.

Financial Results

Summary vs prior quarters (oldest → newest)

MetricQ4 2025Q1 2026Q2 2026
Revenue ($USD Millions)$14.10 $14.99 $15.16
Operating Loss ($USD Millions)$(1.54) $(1.05) $(0.98)
Net Loss ($USD Millions)$(1.55) $(1.05) $(0.98)
Diluted EPS ($)$(0.06) $(0.04) $(0.04)
Adjusted EBITDA ($USD Millions)$0.89 $0.58 $1.09
Gross Profit ($USD Millions)$1.49 $1.41 $1.61
Gross Margin (%)10.6% (1.49/14.10) 9.4% (1.41/14.99) 10.6% (1.61/15.16)

Q2 FY26 vs S&P Global Consensus

MetricQ2 2026 ConsensusQ2 2026 Actual
Revenue ($USD Millions)$14.26*$15.16
Primary EPS ($)$(0.045)*$(0.04)
EBITDA ($USD Millions)$0.61*(Company Adj. EBITDA) $1.09

Values with asterisks retrieved from S&P Global.

Balance Sheet & Liquidity (Q2 FY26)

  • Cash and cash equivalents: $2.75M (vs. $1.87M at Q1 and $1.08M at FY25 YE) .
  • Debt: “zero debt on our balance sheet” (management) .
  • Total assets: $22.57M; equity $14.71M .

KPIs and Operating Metrics

KPIQ1 2026Q2 2026Notes
Podtrac Top-10 Publisher Rank#9 (8 consecutive months) #9 (12 consecutive months) Sustained Top-10 status
Shows on network206 210 (17 added YTD) Continued slate expansion
Amazon ART19 run-rate3-yr $16.5M base $20M+ annual run-rate Stepped to higher tier
Fortune 250 partner run-rate—$26M+ annual run-rate New scale milestone
Programmatic + ART19 QoQ—+14% vs Q1 Mix shift toward higher-yield direct
PodRoll marketplace—+71% YoY; 7-figure revenue Ad marketplace scaling
Cash ($M)$1.87 $2.75 Improved liquidity

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2026$55–60M $56–60M Raised floor
Adjusted EBITDAFY 2026$3–5M $4.5–6.0M Raised

Earnings Call Themes & Trends

TopicQ4 2025 (Prior-2)Q1 2026 (Prior-1)Q2 2026 (Current)Trend
AI/Adtech stack (FlightPath/Booster/programmatic)Discussed platform migration to Amazon ART19; cost savings; tiered MG benefits Booster OMS upgrade; ops efficiency AI toolkit central to growth; PodRoll +71% YoY; programmatic/ART19 +14% QoQ Accelerating adoption and monetization
Direct sales vs programmatic mixExpect programmatic to decline by design as direct/ART19 pick up —Direct pacing at ATH; higher CPMs; prioritization of direct > ART19 > programmatic Positive mix shift to higher yield
Video expansion (YouTube, shorts)Strategy highlighted +218% YoY video views; multi-platform push Continued video-led engagement across major titles Sustained growth
Talent acquisition & SBC modelSBC a strategic tool; rising SBC levels Shift to SBC in rev-share to improve cash margins SBC inflation in G&A (adjusted out) ; competitive talent wins Ongoing, cash-preserving but dilutive
Amazon ART19 partnershipHitting MG; approaching higher threshold (90M→110M impressions) —Expanded to $20M+ annual run-rate; near-daily collaboration Scaling impact
M&A and new verticalsCrypto podcast initiative introduced Active pipeline; possible deals in 90 days Continued interest in content/tech acquisitions Watch list

Management Commentary

  • President Kit Gray: “we achieved record revenue of $15.2 million, reflecting the strength of our diversified business model and the success of our AI-powered tools that enhance discovery, monetization, and production across our network. Platforms like PodRoll, PodcastOne Pro, and our programmatic channels continue to drive meaningful growth” .
  • On marketplace momentum: “PodRoll… generated a 71% increase… now a 7-figure revenue generating tool… Programmatic and Amazon’s ART19 revenues saw a 14% increase from Q1” .
  • On direct sales strength: “our direct sales… are really driving some significant growth… maybe less impressions available for the programmatic marketplaces and even ART19 Amazon, but much higher CPMs” .
  • CFO Ryan Carhart: “Revenue… was $15,200,000… Operating loss… $975,000… Net loss… $975,000 or $0.04 per share… Adjusted EBITDA… $1,100,000… zero debt… and $2,800,000 in cash” .

Q&A Highlights

  • Podtrac ranking vs real growth: Rankings are cyclical and subscription-dependent; management prioritizes revenue growth, sellout rates, and CPMs as truer indicators .
  • AI adoption cadence: Tools and capabilities materially enhanced over last 6–12 months; test-and-activate approach drives operational and production efficiency .
  • Expense cadence: S&M level indicative of go-forward; G&A higher on SBC and pro fees (expected to moderate), with SBC adjusted out of Adjusted EBITDA .
  • Amazon ART19 expansion mechanics: Tiered MG increases tied to impression thresholds; sustained growth in inventory and demand supports $20M+ run-rate .
  • Guide to high end: Maintain momentum in consumption, new programs, strong direct sales, and continued ART19 performance; closing a few large content/ad deals would help .

Estimates Context

  • Q2 FY26: Revenue beat ($15.16M actual vs $14.26M* consensus), EPS slightly better (actual $(0.04) vs $(0.045)). S&P Global EBITDA consensus $0.61M differs from company-reported Adjusted EBITDA $1.09M (company emphasizes non-GAAP) .
  • Forward quarters: S&P Global revenue consensus implies ~$14.98M* (Q3) and ~$15.75M* (Q4), with EPS losses narrowing (Q3: $(0.03), Q4: $(0.02)) [GetEstimates]*.
  • Implications: Street models likely need upward revenue revisions post-beat; clarify EBITDA basis (GAAP vs Adjusted) in models given company guidance is on Adjusted EBITDA.

Values marked with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue/Adj. EBITDA momentum with raised FY26 guidance (floor lifted on revenue; midpoint raised on profitability) positions PODC for estimate revisions and potential multiple support .
  • Mix improving toward higher-yield direct sales with AI-enabled adtech (PodRoll, Booster, FlightPath) and scaled distribution (ART19), supporting CPMs and margin trajectory .
  • Strategic partnerships scaling (ART19 $20M+ run-rate; Fortune 250 partner $26M+ run-rate) provide visibility and capacity to tier up guarantees .
  • Liquidity improved; zero debt and rising cash offer flexibility for talent acquisition and selective M&A in content/tech .
  • Watch gross margin progression (still ~10–11%); management targets incremental improvement via talent renegotiation, mix shift, and operating efficiencies .
  • SBC remains a tool for growth and cash preservation; monitor dilution vs. cash margin gains and G&A normalization as pro fees subside .
  • Near-term trading lens: Raised guide + revenue beat + direct sales commentary are positive; low coverage/estimate count and EBITDA definition differences can create volatility around prints.