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Instructure Reports Fourth Quarter and Full Year 2023 Results

Published

2 years ago

on

Reports Record Full Year Revenues, Adjusted EBITDA, and Adjusted Unlevered Free Cash Flow
Expands Scale and Reach of the Instructure Platform by Acquiring Parchment, the World’s Leading Credentialing Platform

SALT LAKE CITY, Feb. 20, 2024 /PRNewswire/ — Instructure Holdings, Inc. (Instructure) (NYSE: INST) today announced financial results for the fourth quarter and full year ended December 31, 2023.

Full Year 2023 Highlights:
(All results compared to prior-year period unless otherwise noted)

Record Revenues of $530.2 million, an increase of 11.6%Net loss of $34.1 million, a slight improvement over prior yearRecord Adjusted EBITDA* of $214.2 million, an increase of 19.3%, and Adjusted EBITDA Margin* of 40.4%Cash flow from operations of $164.0 million, an increase of 16.9% and Adjusted Unlevered Free Cash Flow* of $225.5 million, an increase of 29.9%

Fourth Quarter 2023 Highlights:
(All results compared to prior-year period unless otherwise noted)

Revenues of $135.4 million, an increase of 8.5%Net loss of $5.8 million, comparable to prior yearAdjusted EBITDA* of $56.5 million, an increase of 16.1%, and Adjusted EBITDA Margin* of 41.7%Cash flow from operations of $36.7 million, an increase of over 100%, and Adjusted Unlevered Free Cash Flow* of $51.3 million, an increase of 74.8%

2024 Full Year Guidance:

Full year 2024 guidance ranges for Revenue of $655.0 million to $665.0 million, Non-GAAP Operating Income* of $260.5 million to $265.5 million, Adjusted EBITDA* of $266.5 million to $271.5 million, Non-GAAP Net Income* of $105.5 million to $110.5 million and Adjusted Unlevered Free Cash Flow* of $259.5 million to $264.5 million

*Non-GAAP Operating Income, Adjusted EBITDA, Non-GAAP Net Income and Adjusted Unlevered Free Cash Flow are non-GAAP measures. See “Non-GAAP Financial Measures” in the press release for information regarding the Company’s use of non-GAAP financial measures as well as reconciliations to the most closely comparable GAAP measures for historical periods. Instructure is unable to provide guidance or a reconciliation for forward-looking non-GAAP measures because Instructure cannot provide a meaningful or accurate calculation or estimation of certain items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including stock-based compensation and amortization of acquisition-related intangibles. Thus, Instructure is unable to present a quantitative reconciliation of non-GAAP guidance to GAAP guidance because such information is not available.

Key Financials:
(Dollars in millions)

Three months ended
December 31,

Year ended
December 31,

2023

2022

YoY
Percentage

2023

2022

YoY
Percentage

Revenue

$

135.4

$

124.7

8.5

%

$

530.2

$

475.2

11.6

%

Income (loss) from Operations

$

0.2

$

(3.8)

105.9

%

$

(3.2)

$

(16.5)

80.5

%

Non-GAAP Operating Income*

$

55.4

$

46.5

19.1

%

$

209.8

$

173.9

20.6

%

GAAP Net Loss

$

(5.8)

$

(5.7)

(0.8)

%

$

(34.1)

$

(34.2)

0.5

%

GAAP Net Loss Margin

(4.3)

%

(4.6)

%

30 bps

(6.4)

%

(7.2)

%

80 bps

Adjusted EBITDA*

$

56.5

$

48.6

16.1

%

$

214.2

$

179.6

19.3

%

Adjusted EBITDA Margin*

41.7

%

39.0

%

270 bps

40.4

%

37.7

%

270 bps

Cash Flow from Operations

$

36.7

$

17.0

115.9

%

$

164.0

$

140.3

16.9

%

Adjusted Unlevered Free Cash Flow*

$

51.3

$

29.3

74.8

%

$

225.5

$

173.5

29.9

%

Remaining Performance Obligations (“RPO”)

$

833.5

$

760.1

9.7

%

$

833.5

$

760.1

9.7

%

*See “Non-GAAP Financial Measures” for information regarding the Company’s use of non-GAAP financial measures as well as reconciliations to the most closely comparable GAAP measures in this press release.

Steve Daly, Instructure CEO, said, “During the fourth quarter, we exceeded the high end of our guidance range for Revenue, Adjusted EBITDA and Adjusted Unlevered Free Cash Flow, reflecting our unrelenting focus and the strength of our model. These exceptional results were driven by our increasing competitive advantage, strong execution, and the formidable cash flow we generate and reinvest behind high-growth initiatives. We head into 2024 with meaningfully enhanced scale, a broader portfolio, and access to new buyers due to the Parchment acquisition. We have never been more excited about our ability to elevate teaching and learning and drive results for our shareholders.”

Balance Sheet and Cash Flow

As of December 31, 2023, cash, cash equivalents and restricted cash were $344.2 million and total debt was $491.3 million compared to cash, cash equivalents and restricted cash of $190.3 million and total debt of $496.3 million as of December 31, 2022. The increase in cash, cash equivalents and restricted cash since December 31, 2022 was driven by strong business performance and the fact that 2022 included the purchase of LearnPlatform. Instructure ended 2023 with a net leverage ratio of 0.7x Net Debt to Adjusted EBITDA. As of December 31, 2023, available borrowings under Instructure’s revolving credit facility, net of letters of credit outstanding, were $121.8 million. The Company generated cash flow from operations of $164.0 million for the twelve months ended December 31, 2023 compared to $140.3 million in the prior year period, an increase of 16.9% year-over-year. Adjusted Unlevered Free Cash Flow was $225.5 million for the twelve months ended December 31, 2023 compared to $173.5 million in the prior year period, an increase of 29.9% year-over-year.

First Quarter and Full Year 2024 Guidance

The following tables summarize first quarter and full year 2024 guidance. 

First Quarter 2024 Guidance

(dollars in millions)

Amount

Quarter-over-quarter
change

Revenue

$153.8 – $154.8

19.4% – 20.1%

Non-GAAP operating income*

$55.9 – $56.9

17.8% – 19.9%

Adjusted EBITDA*

$57.3 – $58.3

18.1% – 20.2%

Non-GAAP net income*

$20.0 – $21.0

(28.3)% – (24.7)%

Full Year 2024 Guidance

(dollars in millions)

Amount

Year-over-year
 change

Revenue

$655.0 – $665.0

23.5% – 25.4%

Non-GAAP operating income*

$260.5 – $265.5

24.2% – 26.6%

Adjusted EBITDA*

$266.5 – $271.5

24.4% – 26.7%

Non-GAAP net income*

$105.5 – $110.5

(15.5)% – (11.5)%

Adjusted Unlevered Free Cash Flow*

$259.5 – $264.5

15.1% – 17.3%

The Company’s guidance ranges reflect expectations that existing macroeconomic conditions and the current foreign currency environment continue through 2024. These forward-looking statements reflect the Company’s expectations as of today’s date. Actual results may differ materially.

*Instructure is unable to provide guidance or a reconciliation for forward-looking non-GAAP measures because Instructure cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including stock-based compensation and amortization of acquisition-related intangibles. Thus, Instructure is unable to present a quantitative reconciliation of non-GAAP guidance to GAAP guidance because such information is not available.

Conference Call Information

The Company will hold a conference call to discuss the fourth quarter and full year 2023 financial results today, February 20, 2024 at 3:00 PM Mountain Time (5:00 PM Eastern Time).

Participants may access the conference call by dialing 1-888-330-2384 (U.S. and Canada) or 1-240-789-2701 (International) and using conference code 1348899 approximately ten minutes before the start of the call. A live audio webcast of the conference call will also be available on Instructure’s investor relations website at https://ir.instructure.com under “Events & Presentations”.

A replay will be available after the conclusion of the call on Instructure’s investor relations website under “Events & Presentations” or by dialing 1-800-770-2030 (U.S. and Canada) or 1-647-362-9199 (International) and using conference code 1348899. The telephone replay will be available through Tuesday, February 27, 2024.

About Instructure

Instructure (NYSE: INST) is an education technology company dedicated to elevating student success, amplifying the power of teaching, and inspiring everyone to learn together. Today the Instructure Learning Platform supports tens of millions of educators and learners around the world. Learn more at www.instructure.com.

Non-GAAP Financial Measures

Instructure has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In addition to Instructure’s results determined in accordance with GAAP, Instructure believes the following non-GAAP measures are useful in evaluating its operating performance and liquidity. Instructure believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

A reconciliation of Instructure’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

ACR. We define ACR as the combined receipts of our Company and companies that we have acquired allocated to the period of service delivery. We calculate ACR as the sum of (i) revenue and (ii) the impact of fair value adjustments to acquired unearned revenue related to Thoma Bravo’s acquisition of Instructure (the “Take-Private Transaction”) and the Certica Holdings, LLC (“Certica”), Eesysoft Software International B.V. (which was rebranded to “Impact by Instructure” or “Impact” subsequent to acquisition), and Kimono LLC (which was rebranded to “Elevate Data Sync” subsequent to acquisition) acquisitions where we do not believe such adjustments are reflective of our ongoing operations. Management uses this measure to evaluate the organic growth of the business period over period, as if the Company had operated as a single entity and excluding the impact of acquisitions or adjustments due to purchase accounting. Effective January 1, 2022, Instructure adopted Accounting Standard Update (“ASU”) No. 2021-08, Business Combinations (Topic 805), which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (Topic 606). As a result, GAAP revenue and ACR have converged.

Non-GAAP Operating Income. We define non-GAAP operating income as income/(loss) from operations excluding the impact of stock-based compensation, transaction costs, sponsor costs, other non-recurring costs, amortization of acquisition-related intangibles, and the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact, and Elevate Data Sync acquisitions that we do not believe are reflective of our ongoing operations. We believe non-GAAP operating income is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Non-GAAP Net Income. We define non-GAAP net income as net loss excluding the impact of stock-based compensation, amortization of acquisition-related intangibles, the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact, and Elevate Data Sync acquisitions, transaction costs, sponsor costs, other non-recurring costs, and effects of foreign currency transaction (gains) and losses that we do not believe are reflective of our ongoing operations. The tax effects of the adjustments are calculated using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction. We believe Non-GAAP net income is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Basic non-GAAP net income per common share attributable to common stockholders is computed by dividing non-GAAP net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted non-GAAP net income per common share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period.

Adjusted EBITDA; Adjusted EBITDA Margin. EBITDA is defined as earnings before debt-related costs, including interest and loss on debt extinguishment, benefit for taxes, depreciation, and amortization. We further adjust EBITDA to exclude certain items of a significant or unusual nature, including stock-based compensation, transaction costs, sponsor costs, other non-recurring costs, effects of foreign currency transaction (gains) and losses, amortization of acquisition-related intangibles, and the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact, and Elevate Data Sync acquisitions. Although we exclude the amortization of acquisition-related intangibles from this non-GAAP measure, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by ACR.

Free Cash Flow, Unlevered Free Cash Flow and Adjusted Unlevered Free Cash Flow. We define free cash flow as net cash provided by operating activities less purchases of property and equipment and intangible assets, net of proceeds from disposals of property and equipment. We define unlevered free cash flow as free cash flow adjusted for cash paid for interest on outstanding debt and cash settled stock-based compensation. We define adjusted unlevered free cash flow as unlevered free cash flow adjusted for transaction costs, sponsor costs, impaired leases, and other non-recurring costs paid in cash. We believe free cash flow, unlevered free cash flow and adjusted unlevered free cash flow facilitate period-to-period comparisons of liquidity. We consider free cash flow, unlevered free cash flow and adjusted unlevered free cash flow to be important measures because they measure the amount of cash we generate and reflect changes in working capital.

Non-GAAP Cost of Revenue and Non-GAAP Operating Expenses. We define non-GAAP cost of revenue and non-GAAP operating expenses as GAAP cost of revenue and GAAP operating expenses, respectively, excluding the impact of stock-based compensation, transaction costs, sponsor costs, other non-recurring costs, and amortization of acquisition-related intangibles that we do not believe are reflective of our ongoing operations. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measures, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Non-GAAP Gross Profit; Non-GAAP Gross Profit Margin. We define non-GAAP gross profit as gross profit excluding the impact of stock-based compensation, transaction costs, other non-recurring costs, amortization of acquisition-related intangibles, and fair value adjustments to deferred revenue in connection with purchase accounting that we do not believe are reflective of our ongoing operations. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Non-GAAP Gross Profit Margin is defined as Non-GAAP gross profit divided by ACR.

Net Debt. We define net debt as total outstanding term debt, less cash, cash equivalents and restricted cash. Management uses this supplemental non-GAAP measure to evaluate the Company’s leverage.

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s financial guidance for the first quarter of 2024 and for the full year ending December 31, 2024, the Company’s growth, customer demand and application adoption, the Company’s research and development efforts and future application releases, the Company’s business strategy and the Company’s expectations regarding future revenue, expenses, cash flows and net income or loss.

These statements are not guarantees of future performance, but are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks associated with the continued economic uncertainty, including persistent inflation, labor shortages, high interest rates, foreign currency exchange volatility, concerns of economic slowdown or recession, reduced spending by customers and geopolitical instability; failure to continue our recent growth rates; the effects of increased usage of, or interruptions or performance problems associated with, our learning platform; the impact on our business and prospects from health pandemics and epidemics; our history of losses and expectation that we will not be profitable for the foreseeable future; or ability to acquire new customers and successfully retain existing customers; failure of the markets for our applications to develop at anticipated rates; failure to manage our growth effectively; and changes in the spending policies or budget priorities for government funding of Higher Education and K-12 institutions.

These and other important risk factors are described more fully in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof and Instructure undertakes no duty to update this information except as required by law.

 

INSTRUCTURE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

December 31,
2023

December 31,
2022

Assets

(unaudited)

Current assets:

Cash and cash equivalents

$

341,047

$

185,954

Accounts receivable—net

67,193

71,428

Prepaid expenses

12,082

11,120

Deferred commissions

13,705

13,390

Other current assets

4,797

3,144

Total current assets

438,824

285,036

Property and equipment, net

13,479

12,380

Right-of-use assets

9,002

13,575

Goodwill

1,265,316

1,266,402

Intangible assets, net

399,712

542,679

Noncurrent prepaid expenses

4,182

871

Deferred commissions, net of current portion

13,816

18,781

Deferred tax assets

6,739

8,143

Other assets

6,908

5,622

Total assets

$

2,157,978

$

2,153,489

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

23,589

$

18,792

Accrued liabilities

23,760

28,483

Lease liabilities

7,513

7,205

Long-term debt, current

4,013

4,013

Deferred revenue

291,784

275,564

Total current liabilities

350,659

334,057

Long-term debt, net of current portion

482,387

486,471

Deferred revenue, net of current portion

10,876

13,816

Lease liabilities, net of current portion

9,246

16,610

Deferred tax liabilities

14,420

24,702

Other long-term liabilities

4,898

1,706

Total liabilities

872,486

877,362

Stockholders’ equity:

Common stock

1,452

1,429

Additional paid-in capital

1,619,020

1,575,600

Accumulated deficit

(334,980)

(300,902)

Total stockholders’ equity

1,285,492

1,276,127

Total liabilities and stockholders’ equity                                                                           

$

2,157,978

$

2,153,489

 

INSTRUCTURE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share data)

 

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

(unaudited)

(unaudited)

(unaudited)

Revenue:

Subscription and support

$

125,357

$

114,537

$

485,516

$

430,661

Professional services and other

10,019

10,189

44,694

44,533

Total revenue

135,376

124,726

530,210

475,194

Cost of revenue:

Subscription and support

41,167

38,127

158,699

146,546

Professional services and other

6,600

6,685

27,616

25,748

Total cost of revenue

47,767

44,812

186,315

172,294

Gross profit

87,609

79,914

343,895

302,900

Operating expenses:

Sales and marketing

47,947

46,801

197,690

181,744

Research and development

22,290

20,723

88,162

77,189

General and administrative

17,148

16,170

61,261

60,447

Total operating expenses

87,385

83,694

347,113

319,380

Income (loss) from operations

224

(3,780)

(3,218)

(16,480)

Other income (expense):

Interest income

2,717

1,313

5,738

1,679

Interest expense

(11,382)

(8,258)

(42,024)

(24,595)

Other income (expense)

3,133

3,989

1,168

(2,978)

Total other income (expense), net

(5,532)

(2,956)

(35,118)

(25,894)

Loss before income tax benefit (expense)

(5,308)

(6,736)

(38,336)

(42,374)

Income tax benefit (expense)

(459)

1,013

4,258

8,132

Net loss and comprehensive loss

$

(5,767)

$

(5,723)

$

(34,078)

$

(34,242)

Net loss per common share, basic and diluted

$

(0.04)

$

(0.04)

$

(0.24)

$

(0.24)

Weighted-average common shares used in computing basic and diluted net
loss per common share

144,868

142,643

143,968

141,815

 

INSTRUCTURE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

(unaudited)

(unaudited)

(unaudited)

Operating Activities:

Net loss

$

(5,767)

$

(5,723)

$

(34,078)

$

(34,242)

Adjustments to reconcile net loss to net cash provided by (used in) operating
activities:

Depreciation of property and equipment

1,305

1,346

4,786

4,491

Amortization of intangible assets

35,730

34,522

142,967

136,717

Amortization of deferred financing costs

298

297

1,187

1,178

Stock-based compensation

10,551

8,915

43,537

33,585

Deferred income taxes

1

(158)

(7,792)

(10,222)

Other

(2,448)

(3,042)

658

3,669

Changes in assets and liabilities:

Accounts receivable, net

25,250

1,903

2,653

(18,454)

Prepaid expenses and other assets

6,698

16,881

(8,552)

5,940

Deferred commissions

1,754

685

4,650

(648)

Right-of-use assets

1,225

1,250

4,573

4,888

Accounts payable and accrued liabilities

7,576

168

11

(2,227)

Deferred revenue

(44,444)

(38,383)

13,280

24,238

Lease liabilities

(1,686)

(1,474)

(7,056)

(6,817)

Other liabilities

672

(184)

3,192

(1,825)

Net cash provided by operating activities

36,715

17,003

164,016

140,271

Investing Activities:

Purchases of property and equipment

(1,232)

(1,342)

(5,940)

(6,321)

Proceeds from sale of property and equipment

8

2

50

43

Business acquisitions, net of cash acquired

—

(89,529)

—

(109,013)

Net cash used in investing activities

(1,224)

(90,869)

(5,890)

(115,291)

Financing Activities:

Proceeds from issuance of common stock from employee equity plans

—

—

6,017

7,327

Shares repurchased for tax withholdings on vesting of restricted stock units

(1,682)

(1,939)

(6,630)

(5,272)

Repayments of long-term debt

(1,250)

(1,250)

(5,000)

(3,750)

Payments of financing costs

—

(19)

(84)

(19)

Net cash used in financing activities

(2,932)

(3,208)

(5,697)

(1,714)

Foreign currency impacts on cash, cash equivalents and restricted cash

3,012

3,897

1,513

(2,153)

Net increase (decrease) in cash, cash equivalents and restricted cash

35,571

(73,177)

153,942

21,113

Cash, cash equivalents and restricted cash, beginning of period

308,637

263,443

190,266

169,153

Cash, cash equivalents and restricted cash, end of period

$

344,208

$

190,266

$

344,208

$

190,266

Supplemental cash flow disclosure:

Cash paid for taxes

$

98

$

68

$

2,755

$

3,102

Interest paid

$

10,975

$

8,123

$

42,430

$

18,073

Non-cash investing and financing activities:

Capital expenditures incurred but not yet paid

$

2

$

67

$

2

$

67

 

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP ALLOCATED COMBINED RECEIPTS

(in thousands)

(unaudited)

 

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Revenue

$

135,376

$

124,726

$

530,210

$

475,194

Fair value adjustments to deferred revenue in connection with purchase
accounting

—

13

—

868

Allocated combined receipts

$

135,376

$

124,739

$

530,210

$

476,062

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP OPERATING INCOME

(in thousands)

(unaudited)

 

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Income (loss) from operations

$

224

$

(3,780)

$

(3,218)

$

(16,480)

Stock-based compensation

10,575

10,856

44,196

39,779

Transaction costs(1)

5,857

4,206

15,512

9,123

Sponsor costs(2)

34

66

147

517

Other non-recurring costs(3)

2,956

630

10,162

3,365

Amortization of acquisition-related intangibles

35,731

34,520

142,965

136,710

Fair value adjustments to deferred revenue in connection with
purchase accounting

—

13

—

868

Non-GAAP operating income

$

55,377

$

46,511

$

209,764

$

173,882

GAAP operating margin

0.2

%

(3.0)

%

(0.6)

%

(3.5)

%

Non-GAAP operating margin

40.9

%

37.3

%

39.6

%

36.5

%

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP ADJUSTED EBITDA

(in thousands)

(unaudited)

 

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Net loss

$

(5,767)

$

(5,723)

$

(34,078)

$

(34,242)

Interest on outstanding debt

11,382

8,257

42,022

24,591

Income tax (benefit) expense

459

(1,013)

(4,258)

(8,132)

Depreciation

1,305

1,346

4,786

4,491

Amortization

—

2

2

7

Stock-based compensation

10,575

10,856

44,196

39,779

Transaction costs(1)

5,857

4,206

15,512

9,123

Sponsor costs(2)

34

66

147

517

Other non-recurring costs(4)

2,956

630

10,269

3,365

Effects of foreign currency transaction (gains) and losses

(3,343)

(4,536)

(1,671)

2,514

Amortization of acquisition-related intangibles

35,731

34,520

142,965

136,710

Interest income

(2,716)

—

(5,679)

—

Fair value adjustments to deferred revenue in connection with purchase
accounting

—

13

—

868

Adjusted EBITDA

$

56,473

$

48,624

$

214,213

$

179,591

Net loss margin

(4.3)

%

(4.6)

%

(6.4)

%

(7.2)

%

Adjusted EBITDA margin

41.7

%

39.0

%

40.4

%

37.7

%

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF FREE CASH FLOW, UNLEVERED FREE CASH FLOW & ADJUSTED UNLEVERED FREE CASH FLOW

(in thousands)

(unaudited)

 

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Net cash provided by operating activities

$

36,715

$

17,003

$

164,016

$

140,271

Purchases of property and equipment

(1,232)

(1,342)

(5,940)

(6,321)

Proceeds from disposals of property and equipment

8

2

50

43

Free cash flow

$

35,491

$

15,663

$

158,126

$

133,993

Cash paid for interest on outstanding debt

10,975

8,123

42,430

18,073

Cash settled stock-based compensation

24

1,941

662

6,194

Unlevered free cash flow

$

46,490

$

25,727

$

201,218

$

158,260

Transaction costs(1)

2,300

2,215

12,174

9,474

Sponsor costs(2)

34

33

169

378

Impaired leases

390

609

1,486

2,074

Other non-recurring costs(5)

2,079

761

10,442

3,359

Adjusted unlevered free cash flow

$

51,293

$

29,345

$

225,489

$

173,545

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP NET INCOME

(in thousands, except per share data)

(unaudited)

 

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Net loss

$

(5,767)

$

(5,723)

$

(34,078)

$

(34,242)

Stock-based compensation

10,575

10,856

44,196

39,779

Amortization of acquisition-related intangibles

35,731

34,520

142,965

136,710

Fair value adjustments to deferred revenue in connection with purchase
accounting

—

13

—

868

Transaction costs(1)

5,857

4,206

15,512

9,123

Sponsor costs(2)

34

66

147

517

Other non-recurring costs(4)

2,956

630

10,269

3,365

Effects of foreign currency transaction (gains) and losses

(3,343)

(4,536)

(1,671)

2,514

Tax effects of adjustments(6)

(12,811)

(11,652)

(52,504)

(47,989)

Non-GAAP net income

$

33,232

$

28,380

$

124,836

$

110,645

Non-GAAP net income per common share, basic

$

0.23

$

0.20

$

0.87

$

0.78

Non-GAAP net income per common share, diluted

$

0.23

$

0.20

$

0.86

$

0.77

Weighted average common shares used in computing basic Non-GAAP
net income per common share

144,868

142,643

143,968

141,815

Weighted average common shares used in computing diluted Non-
GAAP net income per common share

146,176

144,261

145,616

143,440

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP GROSS PROFIT

(in thousands)

(unaudited)

 

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Gross profit

$

87,609

$

79,914

$

343,895

$

302,900

Stock-based compensation

1,042

833

3,993

3,090

Transaction costs(1)

132

—

1,143

226

Other non-recurring costs(7)

635

5

1,909

69

Amortization of acquisition-related intangibles

16,265

15,952

64,868

63,386

Fair value adjustments to deferred revenue in connection with
purchase accounting

—

13

—

868

Non-GAAP gross profit

$

105,683

$

96,717

$

415,808

$

370,539

GAAP gross margin

64.7

%

64.1

%

64.9

%

63.7

%

Non-GAAP gross margin

78.1

%

77.5

%

78.4

%

77.8

%

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NET DEBT

(in thousands)

(unaudited)

 

December 31,
2023

December 31,
2022

Long-term principal, current

$

5,000

$

5,000

Long-term principal, net of current portion

486,250

491,250

Cash, cash equivalents and restricted cash

(344,208)

(190,266)

Net debt

$

147,042

$

305,984

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP COST OF REVENUE

Three Months Ended December 31, 2023

(in thousands)

(unaudited)

 

GAAP

Stock-based
compensation
expense

Transaction
Costs

Other non-
recurring costs

Amortization
of acquired
intangibles

Non-GAAP

Cost of Revenue:

Subscription and support

$

41,167

$

(463)

$

(132)

$

(497)

$

(16,265)

$

23,810

Professional services and other

6,600

(579)

—

(138)

—

5,883

Total cost of revenue

$

47,767

$

(1,042)

$

(132)

$

(635)

$

(16,265)

$

29,693

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP COST OF REVENUE

Three Months Ended December 31, 2022

(in thousands)

(unaudited)

 

GAAP

Stock-based
compensation
expense

Transaction
Costs

Other non-
recurring costs

Amortization
of acquired
intangibles

Non-GAAP

Cost of Revenue:

Subscription and support

$

38,127

$

(383)

$

—

$

(5)

$

(15,952)

$

21,787

Professional services and other

6,685

(450)

—

—

—

6,235

Total cost of revenue

$

44,812

$

(833)

$

—

$

(5)

$

(15,952)

$

28,022

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP COST OF REVENUE

Year Ended December 31, 2023

(in thousands)

(unaudited)

 

GAAP

Stock-based
compensation
expense

Transaction
Costs

Other non-
recurring costs

Amortization
of acquired
intangibles

Non-GAAP

Cost of Revenue:

Subscription and support

$

158,699

$

(1,775)

$

(1,116)

$

(1,563)

$

(64,868)

$

89,377

Professional services and other

27,616

(2,218)

(27)

(346)

—

25,025

Total cost of revenue

$

186,315

$

(3,993)

$

(1,143)

$

(1,909)

$

(64,868)

$

114,402

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP COST OF REVENUE

Year Ended December 31, 2022

(in thousands)

(unaudited)

 

GAAP

Stock-based
compensation
expense

Transaction
Costs

Other non-
recurring costs

Amortization
of acquired
intangibles

Non-GAAP

Cost of Revenue:

Subscription and support

$

146,546

$

(1,348)

$

(135)

$

(33)

$

(63,386)

$

81,644

Professional services and other

25,748

(1,742)

(91)

(36)

—

23,879

Total cost of revenue

$

172,294

$

(3,090)

$

(226)

$

(69)

$

(63,386)

$

105,523

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

Three Months Ended December 31, 2023

(in thousands)

(unaudited)

 

GAAP

Stock-based
compensation
expense

Transaction
costs

Sponsor
costs

Other
non-
recurring
costs

Amortization
of acquired
intangibles

Non-
GAAP

GAAP %
of
revenue

Non-
GAAP %
of
Revenue

Operating expenses:

Sales and marketing

$

47,947

$

(2,829)

$

(170)

$

—

$

(835)

$

(19,462)

$

24,651

35.4

%

18.2

%

Research and development

22,290

(3,887)

(1,502)

—

(268)

(4)

16,629

16.5

%

12.3

%

General and administrative

17,148

(2,817)

(4,053)

(34)

(1,218)

—

9,026

12.7

%

6.7

%

Total operating expenses

$

87,385

$

(9,533)

$

(5,725)

$

(34)

$

(2,321)

$

(19,466)

$

50,306

64.6

%

37.2

%

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

Three Months Ended December 31, 2022

(in thousands)

(unaudited)

 

GAAP

Stock-based
compensation
expense

Transaction
costs

Sponsor
costs

Other
non-
recurring
costs

Amortization
of acquired
intangibles

Non-
GAAP

GAAP %
of
revenue

Non-
GAAP %
of
Revenue

Operating expenses:

Sales and marketing

$

46,801

$

(2,888)

$

(1,129)

$

—

$

(76)

$

(18,568)

$

24,140

37.5

%

19.4

%

Research and development

20,723

(3,206)

(1,170)

—

(9)

—

16,338

16.6

%

13.1

%

General and administrative

16,170

(3,929)

(1,911)

(66)

(536)

—

9,728

13.0

%

7.8

%

Total operating expenses

$

83,694

$

(10,023)

$

(4,210)

$

(66)

$

(621)

$

(18,568)

$

50,206

67.1

%

40.3

%

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

Year Ended December, 2023

(in thousands)

(unaudited)

 

GAAP

Stock-based
compensation
expense

Transaction
costs

Sponsor
costs

Other
non-
recurring
costs

Amortization
of acquired
intangibles

Non-
GAAP

GAAP %
of
revenue

Non-
GAAP %
of
Revenue

Operating expenses:

Sales and marketing

$

197,690

$

(11,971)

$

(2,119)

$

—

$

(2,646)

$

(78,080)

$

102,874

37.3

%

19.4

%

Research and development

88,162

(14,333)

(5,511)

—

(2,986)

(17)

65,315

16.6

%

12.3

%

General and administrative

61,261

(13,899)

(6,739)

(147)

(2,621)

—

37,855

11.6

%

7.1

%

Total operating expenses

$

347,113

$

(40,203)

$

(14,369)

$

(147)

$

(8,253)

$

(78,097)

$

206,044

65.5

%

38.8

%

 

INSTRUCTURE HOLDINGS, INC.

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

Year Ended December, 2022

(in thousands)

(unaudited)

 

GAAP

Stock-based
compensation
expense

Transaction
costs

Sponsor
costs

Other
non-
recurring
costs

Amortization
of acquired
intangibles

Non-
GAAP

GAAP %
of
revenue

Non-
GAAP %
of
Revenue

Operating expenses:

Sales and marketing

$

181,744

$

(11,050)

$

(1,302)

$

—

$

(705)

$

(73,324)

$

95,363

38.2

%

20.0

%

Research and development

77,189

(11,467)

(3,025)

—

(929)

—

61,768

16.2

%

13.0

%

General and administrative

60,447

(14,172)

(4,568)

(518)

(1,663)

—

39,526

12.7

%

8.3

%

Total operating expenses

$

319,380

$

(36,689)

$

(8,895)

$

(518)

$

(3,297)

$

(73,324)

$

196,657

67.1

%

41.3

%

  

FOOTNOTES

(1) Represents expenses incurred with third parties as part of the Company’s merger and acquisition activity, including due diligence, closing and post-closing integration activities.

(2) Represents expenses incurred for services provided by Thoma Bravo and their affiliates.

(3) Includes other non-recurring costs as follows (in thousands):

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Contract modification fees

479

—

1,507

230

Employee severance

881

195

3,469

744

Workforce realignment costs

1,351

267

3,521

1,388

Other insignificant non-recurring costs

245

168

1,665

1,003

Total other non-recurring costs

$

2,956

$

630

$

10,162

$

3,365

(4) Includes other non-recurring costs as follows (in thousands):

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Loss on exit of leased properties

—

—

107

—

Contract modification fees

479

—

1,507

230

Employee severance

881

195

3,469

744

Workforce realignment costs

1,351

267

3,521

1,388

Other insignificant non-recurring costs

245

168

1,665

1,003

Total other non-recurring costs

$

2,956

$

630

$

10,269

$

3,365

(5) Includes other non-recurring costs paid in cash as follows (in thousands):

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Employee severance

$

626

$

234

$

3,044

$

744

Workforce realignment costs

1,152

344

3,245

980

Contract modification fees

—

—

2,613

186

Other insignificant non-recurring costs

301

183

1,540

1,449

Total other non-recurring costs paid in cash

$

2,079

$

761

$

10,442

$

3,359

(6) During the fourth quarter of 2022, we revised the methodology for calculating Non-GAAP Net Income. The table above includes the tax effects of the adjustments calculated by using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction.

(7) Includes other non-recurring costs as follows (in thousands):

Three months ended
December 31,

Year ended
December 31,

2023

2022

2023

2022

Contract modification fees

480

—

1,508

—

Employee severance

27

5

261

65

Workforce realignment costs

19

—

31

—

Other insignificant non-recurring costs

109

—

109

4

Total other non-recurring costs

$

635

$

5

$

1,909

$

69

 

For More Information:

Media Relations:
Brian Watkins
Corporate Communications
Instructure
(801) 610-9722
brian.watkins@instructure.com 

Investor Relations:
April Scee
Managing Director
ICR, Inc.
(917) 497-8992
april.scee@icrinc.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/instructure-reports-fourth-quarter-and-full-year-2023-results-302066547.html

SOURCE Instructure Holdings, Inc.

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Technology

10x Genomics Reports First Quarter 2026 Financial Results

Published

13 hours ago

on

May 7, 2026

By

PLEASANTON, Calif., May 7, 2026 /PRNewswire/ — 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the first quarter ended March 31, 2026.

Recent Updates

Revenue was $150.8 million for the first quarter of 2026, representing a 3% decrease over the corresponding period of 2025. Excluding $16.8 million related to one-time license and royalty revenue in the first quarter of 2025, revenue increased 9% over the corresponding period of 2025.Launched Atera, a new platform to redefine how biology is measured and understood. Atera was engineered to deliver spatial whole-transcriptome analysis with single-cell sensitivity at unprecedented scale. The Company expects to start shipping Atera in the second half of 2026.Announced a partnership with Bioptimus, a global AI biotech company, to launch STELA, a multinational spatial data generation initiative to create foundational datasets connecting underlying biology with disease outcomes. The initiative is starting this effort on our Xenium platform and plans to expand to Atera over time.Ended the first quarter of 2026 with cash and cash equivalents and marketable securities of $539.8 million, representing a $112.9 million increase from March 31, 2025.

“We had a solid start to the year, with double-digit growth in Single Cell consumables reaction volumes and double-digit growth in Spatial consumables revenue,” said Serge Saxonov, Co-founder and CEO of 10x Genomics. “The biggest highlight is our recent launch of Atera, which represents the most significant product introduction in our history. We are extremely encouraged by the extraordinary early customer response.”

First Quarter 2026 Financial Results

Revenue was $150.8 million for the first quarter of 2026, a 3% decrease from the corresponding period of 2025. Excluding $16.8 million related to a patent litigation settlement recognized in the first quarter of 2025, revenue increased 9% over the corresponding period of 2025.

Gross margin was 70% for the first quarter of 2026, as compared to 68% for the corresponding prior year period. The increase in gross margin was primarily due to lower warranty costs and lower inventory write-downs, partially offset by a decrease in license and royalty revenue reflecting a non-recurring royalty benefit recognized in the first quarter of 2025.

Operating expenses were $123.2 million for the first quarter of 2026, a 15% decrease from $144.8 million for the corresponding prior year period. The decrease was primarily driven by lower outside legal expenses and personnel expenses, partially offset by a non-recurring gain on settlement of $9.2 million recognized in the first quarter of 2025.

Operating loss was $17.0 million for the first quarter of 2026, as compared to operating loss of $39.3 million for the corresponding prior year period.

Net loss was $13.5 million for the first quarter of 2026, as compared to a net loss of $34.4 million for the corresponding prior year period.

Cash and cash equivalents and marketable securities were $539.8 million as of March 31, 2026.

2026 Financial Guidance 

10x Genomics is maintaining its full year 2026 revenue guidance of $600 million to $625 million. Excluding the non-recurring license and royalty revenue related to patent litigation settlements in 2025, this represents 0% to 4% growth over full year 2025.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the first quarter 2026 financial results, business developments and outlook after market close on Thursday, May 7, 2026 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at http://investors.10xgenomics.com. The webcast will be archived and available for replay at least 45 days after the event.

About 10x Genomics

10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated research solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world’s understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn, X, Facebook, Bluesky or YouTube.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might,” “will,” “should,” “expect,” “plan,” “outlook,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “see,” “estimate,” “predict,” “potential,” “would,” “likely,” “seek” or “continue” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.’s products, services, business strategy, collaborations and opportunities and 10x Genomics, Inc.’s financial performance and results of operations, including expectations regarding revenue and guidance. These statements are based on management’s current expectations, forecasts, beliefs, estimates, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such statements should not be relied upon as representing 10x Genomics, Inc.’s views as of any date subsequent to the date of this press release. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in 10x Genomics’ expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material risks and uncertainties that could affect 10x Genomics, Inc.’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recently-filed 10-K for the fiscal year ended December 31, 2025 filed on February 12, 2026 and the company’s quarterly report on Form 10-Q for the quarter ended March 31, 2026 to be filed with the U.S. Securities and Exchange Commission (“SEC”), and elsewhere in the documents 10x Genomics, Inc. files with the SEC from time to time.

Disclosure Information

10x Genomics uses filings with the Securities and Exchange Commission, its website (www.10xgenomics.com), press releases, public conference calls, public webcasts and its social media accounts as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Contacts

Investors: investors@10xgenomics.com

Media: media@10xgenomics.com

10x Genomics, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended
March 31,

2026

2025

Products and services revenue

$      149,896

$      137,823

License and royalty revenue

947

17,060

Revenue (1)

150,843

154,883

Cost of products and services revenue (2)

44,665

49,438

Gross profit

106,178

105,445

Operating expenses:

Research and development (2)

56,847

64,245

Selling, general and administrative (2)

66,377

89,728

Gain on settlement

—

(9,200)

Total operating expenses

123,224

144,773

Loss from operations

(17,046)

(39,328)

Other income (expense):

Interest income

5,014

3,686

Other income (expense), net

(815)

2,136

Total other income

4,199

5,822

Loss before provision for income taxes

(12,847)

(33,506)

Provision for income taxes

623

852

Net loss

$      (13,470)

$      (34,358)

Net loss per share, basic and diluted

$         (0.10)

$         (0.28)

Weighted-average shares used to compute net loss per share, basic and diluted

128,291,153

122,606,091

__________________________

(1)

The following table represents total revenue by source for the periods indicated (in thousands). Spatial includes the Company’s Visium and Xenium products:

Three Months Ended
March 31,

2026

2025

Instruments

Single Cell

$         5,223

$         5,913

Spatial

6,039

8,902

Total instruments revenue

11,262

14,815

Consumables

Single Cell

88,894

84,109

Spatial

40,907

31,247

Total consumables revenue

129,801

115,356

Services

8,833

7,652

Products and services revenue

149,896

137,823

License and royalty revenue

947

17,060

Total revenue

$      150,843

$      154,883

(1)

The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):

Three Months Ended
March 31,

2026

2025

Americas

United States*

$       76,693

$       86,818

Americas (excluding United States)

3,406

3,752

Total Americas

80,099

90,570

Europe, Middle East and Africa

36,852

31,895

Asia-Pacific

China

15,837

16,883

Asia-Pacific (excluding China)

18,055

15,535

Total Asia-Pacific

33,892

32,418

Total revenue

$      150,843

$      154,883

*

Includes license and royalty revenue.

(2)

Includes stock-based compensation expense as follows:

Three Months Ended
March 31,

(in thousands)

2026

2025

Cost of revenue

$         1,918

$         2,481

Research and development

10,695

14,106

Selling, general and administrative

10,029

14,489

Total stock-based compensation expense

$       22,642

$       31,076

 

10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

March 31,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$      490,285

$      473,966

Marketable securities

49,563

49,443

Accounts receivable, net

39,031

47,013

Other receivables

17,106

35,480

Inventory

53,487

56,341

Prepaid expenses and other current assets

20,261

22,208

Total current assets

669,733

684,451

Property and equipment, net

220,591

226,711

Operating lease right-of-use assets

58,390

60,450

Goodwill

4,511

4,511

Intangible assets, net

59,910

62,329

Other noncurrent assets

2,624

2,913

Total assets

$    1,015,759

$    1,041,365

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$       17,425

$       12,733

Accrued compensation and related benefits

21,506

42,500

Accrued expenses and other current liabilities

33,680

39,971

Deferred revenue

24,342

23,902

Operating lease liabilities

11,330

10,985

Contingent consideration, current

5,315

23,363

Total current liabilities

113,598

153,454

Contingent consideration, noncurrent

1,222

1,237

Operating lease liabilities, noncurrent

70,059

73,376

Deferred revenue, noncurrent

10,138

10,501

Other noncurrent liabilities

6,418

6,471

Total liabilities

201,435

245,039

Commitments and contingencies

Stockholders’ equity:

Preferred stock

—

—

Common stock

2

2

Additional paid-in capital

2,338,269

2,306,690

Accumulated deficit

(1,524,061)

(1,510,591)

Accumulated other comprehensive income

114

225

Total stockholders’ equity

814,324

796,326

Total liabilities and stockholders’ equity

$    1,015,759

$    1,041,365

 

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SOURCE 10x Genomics, Inc.

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Technology

OUTFRONT Media Announces Quarterly Dividend

Published

13 hours ago

on

May 7, 2026

By

NEW YORK, May 7, 2026 /PRNewswire/ — OUTFRONT Media Inc. (NYSE: OUT) announced today that its board of directors has declared a quarterly cash dividend on the Company’s common stock of $0.30 per share payable on June 30, 2026, to shareholders of record at the close of business on June 5, 2026.

About OUTFRONT Media Inc.
OUTFRONT is one of the largest and most trusted out-of-home media companies in the U.S., helping brands connect with audiences in the moments and environments that matter most. As OUTFRONT evolves, it’s defining a new era of in-real-life (IRL) marketing, turning public spaces into platforms for creativity, connection, and cultural relevance. With a nationwide footprint across billboards, digital displays, transit systems, and other out-of-home formats, OUTFRONT turns creative into powerful real-world experiences. Its in-house agency, OUTFRONT STUDIOS, and award-winning innovation team, XLabs, deliver standout storytelling, supported by advanced technology and data tools that can drive measurable impact.

Contacts:

Investors

Media

Stephan Bisson

Courtney Richards

Investor Relations

Events & Communications

(212) 297-6573

(646) 876-9404

stephan.bisson@outfront.com 

courtney.richards@outfront.com 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/outfront-media-announces-quarterly-dividend-302766109.html

SOURCE OUTFRONT Media Inc.

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Technology

OUTFRONT Media Reports First Quarter 2026 Results

Published

13 hours ago

on

May 7, 2026

By

Revenues of $429.6 million

Operating income of $55.9 million

 Net income attributable to OUTFRONT Media Inc. of $19.1 million

Adjusted OIBDA of $100.4 million

AFFO attributable to OUTFRONT Media Inc. of $61.0 million

Quarterly dividend of $0.30 per share, payable June 30, 2026

NEW YORK, May 7, 2026 /PRNewswire/ — OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter ended March 31, 2026.

“Our first quarter results demonstrate our continued strong performance, with revenue, OIBDA, and AFFO all exceeding our guidance,” said Nick Brien, Chief Executive Officer of OUTFRONT Media. “Importantly, this exceptional performance was driven by strong results across our entire business, with billboard and transit both contributing to this success.”

Three Months Ended
March 31,

$ in Millions, except per share amounts

2026

2025

Revenues

$429.6

$390.7

Operating income

55.9

13.9

Adjusted OIBDA

100.4

64.2

Net income (loss) before allocation to redeemable and non-redeemable
 noncontrolling interests

19.3

(20.7)

Net income (loss)1

19.1

(20.6)

Net income (loss) per share1,2,3

$0.11

($0.14)

Funds From Operations (FFO)1

63.5

26.5

Adjusted FFO (AFFO)1

61.0

27.1

Shares outstanding3

177.1

166.4

Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) References to “Net income (loss)”, “FFO” and “AFFO” mean “Net income (loss) attributable to OUTFRONT Media Inc.”, “FFO attributable to OUTFRONT Media Inc.” and “AFFO attributable to OUTFRONT Media Inc.,” respectively; 2) References to “per share” mean per common share for diluted earnings per weighted average share; 3) Diluted weighted average shares outstanding. 

First Quarter 2026 Results

Consolidated Results
Reported revenues of $429.6 million increased $38.9 million, or 10.0%, for the first quarter of 2026 as compared to the same prior-year period.

Total operating expenses of $227.5 million increased $6.2 million, or 2.8%, compared to the same prior-year period, due primarily to higher variable billboard property lease expenses, higher transit franchise costs, including higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority (the “MTA”) due to inflation, higher production expenses, and higher maintenance and utilities costs, partially offset by the impact of lost billboards in the period.

Selling, General and Administrative expenses (“SG&A”) of $107.3 million decreased $7.4 million, or 6.5%, compared to the same prior-year period, due primarily to lower compensation-related expenses, including severance and salaries, and lower credit card usage by customers, partially offset by higher professional fees, including software and technology expenses, a higher allowance for bad debt and higher client entertainment expenses.

Adjusted OIBDA of $100.4 million increased $36.2 million, or 56.4%, compared to the same prior-year period.

Segment Results

Billboard
Reported billboard segment revenues of $332.9 million increased $22.2 million, or 7.1%, compared to the same prior-year period, due primarily to higher proceeds from condemnations and an increase in average revenue per display (yield), including the impact of programmatic platforms on digital billboard revenues, partially offset by lost billboards in the period.

Operating expenses increased $3.5 million, or 2.4%, due primarily to higher variable billboard property lease costs, higher maintenance and utilities, higher site-related costs, and higher compensation-related expenses, partially offset by the impact of lost billboards in the period.

SG&A expenses increased $1.3 million, or 1.9%, due primarily to higher professional fees, including software and technology expenses, and a higher allowance for bad debt, partially offset by lower credit card usage by customers and lower compensation-related expenses.

Adjusted OIBDA of $116.4 million increased $17.4 million, or 17.6%, compared to the same prior-year period.

Transit
Reported transit segment revenues of $95.0 million increased $17.3 million, or 22.3%, compared to the same prior-year period, due primarily to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts.

Operating expenses increased $3.0 million, or 4.0%, due primarily to higher guaranteed minimum annual payments to the MTA due to inflation, higher display production costs, and higher posting and rotation costs.

SG&A expenses increased $1.5 million, or 8.7%, due primarily to higher compensation-related expenses, including severance and commissions, higher professional fees, including higher software and technology expenses, partially offset by lower credit card usage by customers.

Adjusted OIBDA loss decreased $12.8 million, or 90.1%, compared to the same prior-year period.

Other
Reported revenues decreased $0.6 million, or 26.1%, operating expenses decreased $0.3 million, or 16.7%, and Adjusted OIBDA decreased $0.3 million, or 60.0%, compared to the same prior-year period, due primarily to a decrease in third-party digital equipment sales.

Corporate
Corporate expenses, excluding stock-based compensation, decreased $6.3 million, or 29.9%, compared to the same prior-year period to $14.8 million, due primarily to lower compensation-related expenses, including severance, and lower professional fees, including fees related to a management consulting project.

Interest Expense
Net interest expense in the first quarter of 2026 was $36.0 million, including amortization of deferred financing costs of $1.4 million, as compared to $36.0 million, including amortization of deferred financing costs of $1.5 million, in the same prior-year period. The weighted average cost of debt was 5.3% as of March 31, 2026 and 5.4% as of March 31, 2025.

Income Taxes
The provision for income taxes decreased $0.1 million, or 20.0%, in the first quarter of 2026 compared to the same prior-year period. Cash paid for income taxes in the three months ended March 31, 2026 was $0.4 million.

Net Income Attributable to OUTFRONT Media Inc.
Net income attributable to OUTFRONT Media Inc. was $19.1 million in the first quarter of 2026 compared to a Net loss attributable to OUTFRONT Media Inc. of $20.6 million in the same prior-year period. Diluted weighted average shares outstanding were 177.1 million for the first quarter of 2026 compared to 166.4 million for the same prior-year period. Net income per common share for diluted earnings per weighted average share was $0.11 in the first quarter of 2026 compared to a Net loss per common share for diluted earnings per weighted average share of $0.14 in the same prior-year period.

FFO
FFO attributable to OUTFRONT Media Inc. was $63.5 million in the first quarter of 2026, an increase of $37.0 million, or 139.6%, from the same prior-year period, driven primarily by higher Adjusted OIBDA.

AFFO
Starting at the end of 2025, we modified our calculation of AFFO to include amortization of direct lease acquisition costs instead of cash paid for direct lease acquisition costs, as management believes that this calculation of AFFO is a more appropriate measure of performance period-over-period and consistent with how we calculate FFO. Accordingly, relevant prior periods have been recast to conform to this presentation.

AFFO attributable to OUTFRONT Media Inc. was $61.0 million in the first quarter of 2026, an increase of $33.9 million, or 125.1%, from the same prior-year period, due primarily to higher Adjusted OIBDA and a higher non-cash effect of straight-line rent, partially offset by lower equity earnings.

Cash Flow & Capital Expenditures
Net cash flow provided by operating activities of $75.3 million for the three months ended March 31, 2026, increased $41.7 million, or 124.1%, compared to $33.6 million in the same prior-year period, due primarily to higher net income, as adjusted for non-cash items, the timing of accounts receivables and a decrease in accounts payable and accrued expenses, partially offset by a decrease in deferred revenues. Total capital expenditures increased $6.9 million, or 40.1%, to $24.1 million for the three months ended March 31, 2026, compared to the same prior-year period, due primarily to increased growth in digital displays, increased maintenance spending for billboard display upgrades and increased spending for safety-related projects.

Dividends
In the three months ended March 31, 2026, we paid cash dividends of $53.4 million on our common stock and vested restricted share units granted to employees. We announced on May 7, 2026, that our board of directors has approved a quarterly cash dividend on our common stock of $0.30 per share payable on June 30, 2026, to stockholders of record at the close of business on June 5, 2026.

Balance Sheet and Liquidity
As of March 31, 2026, our liquidity position included unrestricted cash of $67.2 million and $494.9 million of availability under our $500.0 million revolving credit facility, net of $5.1 million of issued letters of credit against the letter of credit facility sublimit under the revolving credit facility, and $150.0 million of additional availability under our accounts receivable securitization facility. During the three months ended March 31, 2026, no shares of our common stock were sold under our at-the-market equity offering program, of which $232.5 million remains available. Total indebtedness as of March 31, 2026 was $2.6 billion, excluding $14.8 million of deferred financing costs, and includes a $500.0 million term loan, $450.0 million of senior secured notes and $1.7 billion of senior unsecured notes.

Conference Call
We will host a conference call to discuss the results on May 7, 2026, at 4:30 p.m. Eastern Time. The conference call numbers are 833-461-5787 (U.S. callers) and 585-542-9983 (International callers) and the passcode for both is 404991578.  Live and replay versions of the conference call will be webcast in the Investor Relations section of our website, www.outfront.com.

Supplemental Materials
In addition to this press release, we have provided a supplemental investor presentation which can be viewed on our website, www.outfront.com.

About OUTFRONT Media Inc.
OUTFRONT is one of the largest and most trusted out-of-home media companies in the U.S., helping brands connect with audiences in the moments and environments that matter most. As OUTFRONT evolves, it’s defining a new era of in-real-life (IRL) marketing, turning public spaces into platforms for creativity, connection, and cultural relevance. With a nationwide footprint across billboards, digital displays, transit systems, and other out-of-home formats, OUTFRONT turns creative into powerful real-world experiences. Its in-house agency, OUTFRONT STUDIOS, and award-winning innovation team, XLabs, deliver standout storytelling, supported by advanced technology and data tools that can drive measurable impact.

Contacts:

Investors

Media

Stephan Bisson

Courtney Richards

Investor Relations

Events & Communications

(212) 297-6573

(646) 876-9404

stephan.bisson@outfront.com

courtney.richards@outfront.com

Non-GAAP Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) provided throughout this document, this document and the accompanying tables include non-GAAP financial measures as described below. We calculate and define “Adjusted OIBDA” as operating income (loss) before depreciation, amortization, net (gain) loss on dispositions and stock-based compensation. We calculate Adjusted OIBDA margin by dividing Adjusted OIBDA by total revenues. Adjusted OIBDA and Adjusted OIBDA margin are among the primary measures we use for managing our business, evaluating our operating performance and planning and forecasting future periods, as each is an important indicator of our operational strength and business performance. Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of Adjusted OIBDA and Adjusted OIBDA margin, as supplemental measures, are useful in evaluating our business because eliminating certain non-comparable items highlight operational trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.  It is management’s opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier for users of our financial data to compare our results with other companies that have different financing and capital structures or tax rates. When used herein, references to “FFO” and “AFFO” mean “FFO attributable to OUTFRONT Media Inc.” and “AFFO attributable to OUTFRONT Media Inc.,” respectively. We calculate FFO in accordance with the definition established by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO reflects net income (loss) attributable to OUTFRONT Media Inc. adjusted to exclude gains and losses from the sale of real estate assets, depreciation and amortization of real estate assets, amortization of direct lease acquisition costs and the same adjustments for our equity-based investments and redeemable and non-redeemable noncontrolling interests, as well as the related income tax effect of adjustments, as applicable. We calculate AFFO as FFO adjusted to include amortization of direct lease acquisition costs as such costs are generally amortized over a period ranging from four weeks to one year and therefore are incurred on a regular basis. AFFO also includes cash paid for maintenance capital expenditures since these are routine uses of cash that are necessary for our operations. In addition, AFFO excludes certain non-cash items, including non-real estate depreciation and amortization, stock-based compensation expense, accretion expense, the non-cash effect of straight-line rent, amortization of deferred financing costs and the same adjustments for our redeemable and non-redeemable noncontrolling interests, along with the non-cash portion of income taxes, and the related income tax effect of adjustments, as applicable. We use FFO and AFFO measures for managing our business and for planning and forecasting future periods, and each is an important indicator of our operational strength and business performance, especially compared to other real estate investment trusts (“REITs”). Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of FFO and AFFO, as supplemental measures, are useful in evaluating our business because adjusting results to reflect items that have more bearing on the operating performance of REITs highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management’s opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier to compare our results to other companies in our industry, as well as to REITs. Since Adjusted OIBDA, Adjusted OIBDA margin, FFO and AFFO are not measures calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, operating income (loss) and net income (loss) attributable to OUTFRONT Media Inc., the most directly comparable GAAP financial measures, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies. In addition, these measures do not necessarily represent funds available for discretionary use and are not necessarily a measure of our ability to fund our cash needs.

Please see Exhibits 4-5 of this release for a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures.

Cautionary Statement Regarding Forward-Looking Statements
We have made statements in this document that are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “would,” “may,” “might,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “projects,” “predicts,” “estimates,” “forecast” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions related to our capital resources, portfolio performance and results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: declines in advertising and general economic conditions; competition; government regulation; our ability to operate our digital display platform; losses and costs resulting from recalls and product liability, warranty and intellectual property claims; our ability to obtain and renew key municipal contracts on favorable terms; taxes, fees and registration requirements; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; seasonal variations; acquisitions and other strategic transactions that we may pursue could have a negative effect on our results of operations; dependence on our management team and other key employees; experiencing a cybersecurity incident; changes in regulations and consumer concerns regarding privacy, information security and data, or any failure or perceived failure to comply with these regulations or our internal policies; asset impairment charges for our long-lived assets and goodwill; environmental, health and safety laws and regulations; expectations relating to environmental, social and governance considerations; our substantial indebtedness; restrictions in the agreements governing our indebtedness; incurrence of additional debt; interest rate risk exposure from our variable-rate indebtedness; our ability to generate cash to service our indebtedness; cash available for distributions; hedging transactions; the ability of our board of directors to cause us to issue additional shares of stock without common stockholder approval; certain provisions of Maryland law may limit the ability of a third party to acquire control of us; our rights and the rights of our stockholders to take action against our directors and officers are limited; our failure to remain qualified to be taxed as a REIT; REIT distribution requirements; availability of external sources of capital; we may face other tax liabilities even if we remain qualified to be taxed as a REIT; complying with REIT requirements may cause us to liquidate investments or forgo otherwise attractive investments or business opportunities; our ability to contribute certain contracts to a taxable REIT subsidiary (“TRS”); our planned use of TRSs may cause us to fail to remain qualified to be taxed as a REIT; REIT ownership limits; complying with REIT requirements may limit our ability to hedge effectively; the ability of our board of directors to revoke our REIT election at any time without stockholder approval; the Internal Revenue Service may deem the gains from sales of our outdoor advertising assets to be subject to a 100% prohibited transaction tax; establishing operating partnerships as part of our REIT structure; and other factors described in our filings with the Securities and Exchange Commission (the “SEC”), including but not limited to the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026. All forward-looking statements in this document apply as of the date of this document or as of the date they were made and, except as required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

EXHIBITS

Exhibit 1:  CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions, except per share amounts)

2026

2025

Revenues

$         429.6

$         390.7

Expenses:

Operating

227.5

221.3

Selling, general and administrative

107.3

114.7

Net loss on dispositions

1.0

0.1

Depreciation

20.7

23.6

Amortization

17.2

17.1

Total expenses

373.7

376.8

Operating income

55.9

13.9

Interest expense, net

(36.0)

(36.0)

Income (loss) before provision for income taxes and equity in earnings of investee
 companies

19.9

(22.1)

Provision for income taxes

(0.4)

(0.5)

Equity in earnings of investee companies, net of tax

(0.2)

1.9

Net income (loss) before allocation to redeemable and non-redeemable noncontrolling
 interests

19.3

(20.7)

Net income (loss) attributable to redeemable and non-redeemable noncontrolling interests

0.2

(0.1)

Net income (loss) attributable to OUTFRONT Media Inc.

$           19.1

$         (20.6)

Net income (loss) per common share:

Basic

$           0.11

$         (0.14)

Diluted

$           0.11

$         (0.14)

Weighted average shares outstanding:

Basic

175.5

166.4

Diluted

177.1

166.4

 

Exhibit 2:  CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited) See Notes on Page 14

As of

(in millions)

March 31,
2026

December 31,
2025

Assets:

Current assets:

Cash and cash equivalents

$           67.2

$           99.9

Receivables, less allowance ($25.0 in 2026 and $23.2 in 2025)

294.3

365.7

Prepaid lease and franchise costs

2.6

5.1

Prepaid MTA equipment deployment costs

0.2

—

Other prepaid expenses

25.6

21.9

Other current assets

11.6

11.1

Total current assets

401.5

503.7

Property and equipment, net

644.3

643.8

Goodwill

2,006.4

2,006.4

Intangible assets

603.6

612.0

Operating lease assets

1,553.8

1,521.5

Other assets

28.5

24.2

Total assets

$        5,238.1

$        5,311.6

Liabilities:

Current liabilities:

Accounts payable

$           33.3

$           50.2

Accrued compensation

42.4

72.3

Accrued interest

23.4

35.1

Accrued lease and franchise costs

62.7

72.2

Other accrued expenses

63.2

55.5

Deferred revenues

60.1

57.7

Short-term operating lease liabilities

179.5

172.9

Other current liabilities

27.6

29.4

Total current liabilities

492.2

545.3

Long-term debt, net

2,584.5

2,583.4

Asset retirement obligation

34.1

34.0

Operating lease liabilities

1,398.9

1,374.7

Other liabilities

39.2

40.3

Total liabilities

4,548.9

4,577.7

Commitments and contingencies

Redeemable noncontrolling interests

25.8

22.0

Stockholders’ equity:

Common stock (2026 – 450.0 shares authorized, and 176.1 shares issued and
 outstanding; 2025 – 450.0 shares authorized, and 175.2 issued and outstanding)

1.8

1.8

Additional paid-in capital

2,604.6

2,619.3

Distribution in excess of earnings

(1,944.6)

(1,910.8)

Accumulated other comprehensive loss

0.1

0.1

Total stockholders’ equity

661.9

710.4

Noncontrolling interests

1.5

1.5

Total liabilities and equity

$        5,238.1

$        5,311.6

 

Exhibit 3:  CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions)

2026

2025

Operating activities:

Net income (loss) attributable to OUTFRONT Media Inc.

$          19.1

$         (20.6)

Adjustments to reconcile net income (loss) to net cash flow provided by operating activities:

Net income (loss) attributable to redeemable and non-redeemable noncontrolling interests

0.2

(0.1)

Depreciation and amortization

37.9

40.7

Stock-based compensation

5.6

9.5

Provision for doubtful accounts

2.2

1.5

Accretion expense

0.7

0.7

Net loss on dispositions

1.0

0.1

Equity in earnings of investee companies, net of tax

0.2

(1.9)

Distributions from investee companies

0.3

0.3

Amortization of deferred financing costs and debt discount and premium

1.4

1.5

Change in assets and liabilities, net of investing and financing activities:

Decrease in receivables

69.2

45.3

Increase in prepaid MTA equipment deployment costs

(0.2)

—

(Increase) decrease in prepaid expenses and other current assets

(3.5)

0.8

Decrease in accounts payable and accrued expenses

(57.1)

(67.8)

Increase in operating lease assets and liabilities

0.5

2.1

Increase in deferred revenues

2.4

16.7

Increase (decrease) in income taxes

—

0.5

Other, net

(4.6)

4.3

Net cash flow provided by operating activities

75.3

33.6

Investing activities:

Capital expenditures

(24.1)

(17.2)

Acquisitions

(8.1)

(5.7)

MTA franchise rights

(1.8)

(4.0)

Net proceeds from dispositions

—

0.7

Investment in investee companies

(4.0)

—

Return of investments in investee companies

—

1.5

Net cash flow used for investing activities

(38.0)

(24.7)

Financing activities:

Proceeds from borrowings under short-term debt facilities

—

50.0

Repayments of borrowings under short-term debt facilities

—

(10.0)

Taxes withheld for stock-based compensation

(16.6)

(12.3)

Dividends

(53.4)

(53.0)

Net cash flow used for financing activities

(70.0)

(25.3)

 

Exhibit 3:  CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions)

2026

2025

Net decrease in cash and cash equivalents

(32.7)

(16.4)

Cash and cash equivalents at beginning of period

99.9

46.9

Cash and cash equivalents at end of period

$          67.2

$          30.5

Supplemental disclosure of cash flow information:

Cash paid for income taxes

$           0.4

$            —

Cash paid for interest

47.1

46.2

Non-cash investing and financing activities:

Accrued purchases of property and equipment

3.3

13.4

Accrued MTA franchise rights

1.9

1.6

Taxes withheld for stock-based compensation

2.8

2.6

 

Exhibit 4:  SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(Unaudited) See Notes on Page 14

Three Months Ended March 31, 2026

(in millions, except percentages)

Billboard

Transit

Other

Corporate

Consolidated

Revenues

$        332.9

$        95.0

$          1.7

$             —

$       429.6

Operating income (loss)

$         82.5

$         (6.4)

$          0.2

$          (20.4)

$         55.9

Net loss on dispositions

0.9

0.1

—

—

1.0

Depreciation

18.1

2.6

—

—

20.7

Amortization

14.9

2.3

—

—

17.2

Stock-based compensation

—

—

—

5.6

5.6

Adjusted OIBDA

$        116.4

$         (1.4)

$          0.2

$          (14.8)

$       100.4

Adjusted OIBDA margin

35.0 %

(1.5) %

11.8 %

*

23.4 %

Three Months Ended March 31, 2025

(in millions, except percentages)

Billboard

Transit

Other

Corporate

Consolidated

Revenues

$        310.7

$        77.7

$          2.3

$             —

$       390.7

Operating income (loss)

$         61.0

$       (17.0)

$          0.5

$          (30.6)

$         13.9

Net (gain) loss on dispositions

0.7

(0.6)

—

—

0.1

Depreciation

21.6

2.0

—

—

23.6

Amortization

15.7

1.4

—

—

17.1

Stock-based compensation

—

—

—

9.5

9.5

Adjusted OIBDA

$         99.0

$       (14.2)

$          0.5

$          (21.1)

$         64.2

Adjusted OIBDA margin

31.9 %

(18.3) %

21.7 %

*

16.4 %

 

Exhibit 5:  SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES  
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions)

2026

2025

Net income (loss) attributable to OUTFRONT Media Inc.

$           19.1

$         (20.6)

Depreciation of billboard advertising structures

16.2

18.8

Amortization of real estate-related intangible assets

14.3

15.1

Amortization of direct lease acquisition costs

13.0

13.2

Net loss on disposition of real estate assets

1.0

0.1

Adjustment related to redeemable and non-redeemable noncontrolling interests

(0.1)

(0.1)

FFO attributable to OUTFRONT Media Inc.

$           63.5

$           26.5

Non-cash portion of income taxes

—

0.5

Cash paid for direct lease acquisition costs

(13.0)

(13.2)

Maintenance capital expenditures

(7.0)

(6.3)

Other depreciation

4.5

4.8

Other amortization

2.9

2.0

Stock-based compensation

5.6

9.5

Non-cash effect of straight-line rent

2.4

1.1

Accretion expense

0.7

0.7

Amortization of deferred financing costs

1.4

1.5

AFFO attributable to OUTFRONT Media Inc.(a)

$           61.0

$           27.1

 

Exhibit 6:  SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES  
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions)

2026

2025

Adjusted OIBDA

$         100.4

$           64.2

Interest expense, net, less amortization of deferred financing costs

(34.6)

(34.5)

Cash paid for income taxes

(0.4)

—

Maintenance capital expenditures

(7.0)

(6.3)

Equity in earnings of investee companies, net of tax

(0.2)

1.9

Non-cash effect of straight-line rent

2.4

1.1

Accretion expense

0.7

0.7

Adjustment related to redeemable and non-redeemable noncontrolling interests

(0.3)

—

AFFO attributable to OUTFRONT Media Inc.(a)

$           61.0

$           27.1

 

Exhibit 7:  OPERATING EXPENSES

(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

%

(in millions, except percentages)

2026

2025

Change

Operating expenses:

Billboard property lease

$         111.3

$         109.2

1.9 %

Transit franchise

59.7

58.0

2.9

Posting, maintenance and other

56.5

54.1

4.4

Total operating expenses

$         227.5

$         221.3

2.8

 

Exhibit 8:  EXPENSES BY SEGMENT

(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

%

(in millions, except percentages)

2026

2025

Change

Billboard:

Billboard property lease

$         111.3

$         109.2

1.9 %

Billboard posting, maintenance and other

37.1

35.7

3.9

Billboard operating expenses

$         148.4

$         144.9

2.4

Billboard SG&A expenses

$           68.1

$           66.8

1.9

Transit:

Transit franchise

$           59.7

$           58.0

2.9

Transit posting, maintenance and other

17.9

16.6

7.8

Transit operating expenses

$           77.6

$           74.6

4.0

Transit SG&A expenses

$           18.8

$           17.3

8.7

NOTES TO EXHIBITS

PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS.

(a)

Starting at the end of 2025, we modified our calculation of AFFO to include amortization of direct lease acquisition costs instead of the cash paid for direct lease acquisition costs, as management believes that this calculation of AFFO is a more appropriate measure of performance period-over-period and consistent with how we calculate FFO. Accordingly, relevant prior periods have been recast to conform to this presentation.

*     Calculation not meaningful.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/outfront-media-reports-first-quarter-2026-results-302766116.html

SOURCE OUTFRONT Media Inc.

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