Technology

Cars.com Reports Fourth Quarter and Full Year 2023 Results

Published

2 years ago

February 22, 2024

Exceeded Fourth Quarter Guidance, Delivered 7% Year-Over-Year Revenue Growth

Achieved 7% Year-Over-Year ARPD Growth coupled with Strong Fourth Quarter OEM Performance

Generated $137MM of Annual Cash Flows From Operating Activities

CHICAGO, Feb. 22, 2024 /PRNewswire/ — Cars.com Inc . (NYSE: CARS) (d/b/a “Cars Commerce Inc.” or the “Company”), an audience-driven technology company empowering the automotive industry, today released its financial results for the fourth quarter and year ended December 31, 2023.

Q4 2023 Financial and Key Metric Highlights

Revenue of $179.6 million, up $11.4 million, or 7% year-over-yearNet income of $8.3 million, or $0.12 per diluted share, compared to Net Income of $10.3 million, or $0.15 per diluted share, in the prior yearAdjusted EBITDA of $55.4 million, or 31% of revenue, up $5.9 million year-over-yearAverage Monthly Unique Visitors (“UVs”) of 24.3 million, compared to 24.6 million a year agoTraffic (“Visits”) of 142.7 million, up 2% year-over-yearMonthly Average Revenue Per Dealer (“ARPD”) of $2,523, up 7% year-over-yearDealer Customers totaled 19,504[1] as of December 31, 2023, up 789 compared to 18,715 as of September 30, 2023

2023 Full-Year Financial and Key Metric Highlights

Revenue of $689.2 million, up $35.3 million, or 5% year-over-yearNet income of $118.4 million, or $1.74 per diluted share, compared to Net income of $17.2 million, or $0.25 per diluted share, in the prior year. Current year Net income was primarily related to the release of a significant portion of the Company’s valuation allowanceAdjusted EBITDA of $194.9 million, or 28.3% of revenue, compared to $186.7 million, or 28.6% of revenue in the prior yearCash flows from operating activities of $136.7 million, compared to $128.5 million in the prior year, with Free cash flow of $115.8 million, compared to $108.8 million in the prior yearUVs of 26.4 million, even compared to the prior yearTraffic of 614.8 million, up 5% year-over-year, setting an all-time Company record for traffic

Operational Highlights

AccuTrade was selected by FordDirect as its preferred Vehicle Acquisition and Trade & Appraisal solution for The Shop, a newly launched preferred vendor selection program for its more than 3,000 U.S. Ford and Lincoln retailersClosed on the acquisition of D2C Media, a leading provider of website and digital advertising solutions; integration of teams and technology underway supporting the Company’s expanding presence in CanadaDebuted VIN Performance Media, a new advertising solution that combines three of the Company’s existing media products into a single solution that saves dealers time and money, while maximizing ad performance and operational efficiency

“2023 marked a year of significant progress. We advanced our platform strategy through the introduction of Cars Commerce, the rollout of our Marketplace Repackaging initiative and our expansion into Canada with the acquisition of D2C Media. Our focus on simplifying everything about buying and selling cars enabled us to continue to deliver value for consumers, dealers, and OEMs, supporting our twelve consecutive quarters of year-over-year profitable revenue growth,” said Alex Vetter, Chief Executive Officer of Cars Commerce. “We begin 2024 well-positioned to continue building on this momentum, unlocking new growth opportunities and driving commerce for the auto industry.”

Q4 2023 Results

Revenue for the fourth quarter, which includes two months of activity related to D2C Media, totaled $179.6 million, an increase of $11.4 million, or up 7%, compared to the prior year period. Excluding D2C Media, the Company’s revenue would have increased 5%, year-over-year.

Dealer revenue grew 8% year-over-year, driven by continued growth in solutions and media products and the 2023 Marketplace Repackaging initiative. OEM and National revenue also grew 8%, year-over-year driven by a 24% increase in OEM customer revenue. Sequentially, OEM and National revenue increased 6%, driven by 11% growth in OEM customer revenue.

Fourth quarter ARPD grew 7%, or $162, year-over-year to $2,523, primarily driven by the 2023 Marketplace Repackaging initiative. As of December 31, 2023, Dealer Customers totaled 19,504, including 950 dealers associated with the Company’s D2C Media acquisition, an increase of 789 compared to 18,715 at the end of the third quarter of 2023.

Total operating expenses for the fourth quarter were $164.7 million, compared to $148.4 million for the prior year period. Adjusted Operating Expenses for the quarter were $150.8 million, a $10.1 million increase compared to the prior year period. The change in Adjusted operating expenses is primarily due to continued investments in people, an increase in depreciation and amortization, and investments in marketing to support the launch of the Company’s Cars Commerce brand.

Net income for the quarter was $8.3 million, or $0.12 per diluted share, compared to Net income of $10.3 million, or $0.15 per diluted share, in the fourth quarter of 2022. The change in Net income is primarily attributable to the changes in the fair value contingent consideration associated with the Company’s prior acquisitions.

Adjusted EBITDA margin expanded sequentially throughout the year, reaching 31% of revenue for the quarter, or $55.4 million, compared to 29% of revenue, or $49.5 million, for the prior year period.

2023 Full-Year Results

Revenue for the year totaled $689.2 million, an increase of $35.3 million, or up 5%, compared to the prior year period. Dealer revenue grew 7% year-over-year, driven by the continued growth in solutions and media and the 2023 Marketplace Repackaging initiative. OEM and National revenue was down 5%, year-over-year; while OEM revenue increased 8% relative to the prior year, revenue from insurance customers was down compared to a year ago. Other Revenue was $4.5 million lower compared to the prior year primarily due to the planned expiration of a non-cash transition services agreement related to AccuTrade in the first quarter of 2023.

For the year, total operating expenses were $635.1 million, compared to $587.8 million in 2022. Adjusted Operating Expenses for the year were $594.1 million, a $38.2 million increase compared to the prior year that was largely driven by increased compensation and employee related expenses, particularly in Marketing and sales and Product and technology. Additionally, as the Company has accelerated product development and technology investments, Depreciation and amortization expense was also up, year-over-year.

Marketing and sales costs increased primarily due to higher compensation and higher investments in Brand Media to support both the Company’s Possibilities advertising campaign and launch of its enterprise brand, Cars Commerce.

2023 Net income totaled $118.4 million, or $1.74 per diluted share, compared to Net income of $17.2 million, or $0.25 per diluted share in the prior year. The increase in Net income is primarily related to the release of a significant portion of the Company’s valuation allowance, given the expectation of projected future income and utilization of the Company’s tax assets.

Adjusted EBITDA for the year totaled $194.9 million, or 28.3% of revenue, compared to $186.7 million, or 28.6% of revenue, in the prior year period.

The Company remained focused on driving high-quality traffic at scale. Organic traffic remained strong at 61% for the year and Average Monthly Unique Visitors for the year were in line with the prior year. In 2023, total Traffic increased 5%, reaching 614.8 million, a new all-time Company record.

Cash Flow and Balance Sheet

Net cash provided by operating activities in 2023 was $136.7 million, compared to $128.5 million in the prior year. Free cash flow in 2023 totaled $115.8 million compared to $108.8 million in 2022. The increase is primarily due to an $8.2 million year-over-year increase in Adjusted EBITDA and favorable working capital, partially offset by a year-over-year increase in cash taxes of $17.1 million.

In 2023, the Company made $36.3 million in debt payments. Total debt outstanding was $490.0 million as of December 31, 2023 and the Company’s net leverage (as defined in the Company’s credit facility) remained within its target net leverage range of 2.0x to 2.5x, improving to 2.3x, compared to 2.4x as of December 31, 2022. Total liquidity as of December 31, 2023 was $234.2 million, which is defined as Cash and cash equivalents of $39.2 million and revolver capacity of $195.0 million.

For the year, the Company repurchased 1.7 million of its common shares, or 2.6% of the 66.3 million shares outstanding at December 31, 2022, for $31.3 million.

“2023 was a year with robust revenue growth and strong Adjusted EBITDA margins, driven by our focus on execution. Our asset light business model consistently generates strong free cash flow conversion that enables us to invest in growth areas that continue to deliver sustained value for consumers, customers, and shareholders,” said Sonia Jain, Chief Financial Officer of Cars Commerce.

2024 Outlook

The Company expects to deliver another year of strong growth. The Company believes market conditions are improving, with increased OEM production, new model launches, and rising dealer inventory, which coupled with a still cautious consumer makes the Company’s in-market solutions more valuable.

First quarter revenue is expected to be between $179 million and $181 million, representing year-over-year growth of 7% to 8%. First quarter revenue outlook reflects continued strong growth in Dealer revenue driven by continued adoption of the Cars Commerce suite of products, the D2C acquisition, and the full period impact of the 2023 Marketplace Repackaging Initiative. OEM and National Advertising spend is also expected to be up year-over-year, but historically has experienced some seasonality from the fourth quarter to the first quarter. For the year, the Company anticipates continued growth across its platform with both dealer and OEM customers which is reflected in its revenue growth guidance of 6% to 8%.

Adjusted EBITDA margin for the first quarter of 2024 is expected to be between 27% and 29%. It’s important to note, the Company has seasonally higher investments in Marketing and sales in the first quarter, due to the timing of in-person industry events. The Company expects margins to improve over the course of the year and deliver a full year Adjusted EBITDA margin between 28% to 30%.

Q4 2023 Earnings Call

As previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars Commerce Investor relations website, investor.cars.com. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.

About Cars Commerce

Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site Cars.com, award-winning technology and digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.

Non-GAAP Financial Measures

This earnings release discusses Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These financial measures are presented as supplemental measures of operating performance because the Company believes they provide meaningful information regarding the Company’s performance and provide a basis to compare operating results between periods. In addition, the Company uses Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under the Company’s credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by the Company’s lenders, securities analysts, investors and other interested parties to evaluate companies in the Company’s industry. For a reconciliation of the non-GAAP measures presented in this earnings release to their most directly comparable financial measure prepared in accordance with GAAP, see “Non-GAAP Reconciliations” below.

Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.

The Company defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, and (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.

Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the Accu-Trade acquisition.

The Company defines Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology.

The Company defines Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.

Key Metric Definitions

Average Monthly Unique Visitors (“UVs”) and Traffic (“Visits”). The Company defines UVs in a given month as the number of distinct visitors that engage with its platform during that month. Visitors are identified when a user first visits an individual Cars.com property on an individual device/browser combination or installs one of its mobile apps on an individual device. If a visitor accesses more than one of its web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). The Company measures UVs and Traffic via Adobe Analytics. These metrics do not include traffic to Dealer Inspire or D2C Media websites.

Monthly Average Revenue Per Dealer (“ARPD”). The Company believes that its ability to grow ARPD is an indicator of the value proposition of its platform. The Company defines ARPD as Dealer revenue, excluding digital advertising services, during the period divided by the monthly average number of Dealer Customers during the same period. Beginning with the three months ended June 30, 2022, AccuTrade is included in our ARPD metric. No prior period has been recast as it would be impracticable to do so and the inclusion of AccuTrade would have had an immaterial impact on ARPD for prior periods. Additionally, beginning December 31, 2023, this key operating metric includes D2C Media.

Dealer Customers. Dealer Customers represent dealerships using our products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer. Beginning June 30, 2022, this key operating metric includes AccuTrade; however, no prior period has been recast as it would be impracticable to do so. Additionally, beginning December 31, 2023, this key operating metric includes D2C Media.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. These statements often use words such as “believe,” “expect,” “project,” “anticipate,” “outlook,” “intend,” “strategy,” “plan,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts,” “mission,” “strive,” “more,” “goal” or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.

Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see “Part I, Item 1A., Risk Factors” and “Part II, Item 7., Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (“SEC”) on February 22, 2024 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov.

You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.

Cars Commerce Investor Relations Contact:
Robbin Moore-Randolph
rmr@carscommerce.com
312.601.5929

Cars Commerce Media Contact:
Marita Thomas
mthomas@carscommerce.com
312.601.5692

[1]As of December 31, 2023, this key metric includes the addition of 950 D2C Media only customers.

Cars.com Inc.

Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Revenue:

Dealer

$ 161,393

$ 149,424

$ 621,661

$ 579,222

OEM and National

15,410

14,330

55,904

58,557

Other

2,803

4,447

11,618

16,097

Total revenue

179,606

168,201

689,183

653,876

Operating expenses:

Cost of revenue and operations

30,918

28,875

122,205

114,959

Product and technology

25,230

23,166

99,584

89,015

Marketing and sales

58,835

56,515

235,471

221,879

General and administrative

23,069

16,128

76,807

67,593

Depreciation and amortization

26,619

23,706

101,000

94,394

Total operating expenses

164,671

148,390

635,067

587,840

Operating income

14,935

19,811

54,116

66,036

Nonoperating expense:

Interest expense, net

(8,254)

(8,442)

(32,425)

(35,320)

Other (expense) income, net

(4,790)

5,093

(3,586)

(8,140)

Total nonoperating expense, net

(13,044)

(3,349)

(36,011)

(43,460)

Income before income taxes

1,891

16,462

18,105

22,576

Income tax (benefit) expense

(6,455)

6,200

(100,337)

5,370

Net income

$ 8,346

$ 10,262

$ 118,442

$ 17,206

Weighted-average common shares outstanding:

Basic

66,510

66,546

66,742

68,215

Diluted

68,326

68,513

68,227

69,649

Earnings per share:

Basic

$ 0.13

$ 0.15

$ 1.77

$ 0.25

Diluted

0.12

0.15

1.74

0.25

Cars.com Inc.

Consolidated Balance Sheets

(In thousands, except per share data)

December 31, 2023

December 31, 2022

Assets:

Current assets:

Cash and cash equivalents

$ 39,198

$ 31,715

Accounts receivable, net

125,373

107,930

Prepaid expenses

12,553

8,377

Other current assets

1,314

605

Total current assets

178,438

148,627

Property and equipment, net

43,853

45,218

Goodwill

147,058

102,856

Intangible assets, net

669,167

707,088

Deferred tax assets, net

112,953

Investments and other assets, net

20,980

21,033

Total assets

$ 1,172,449

$ 1,024,870

Liabilities and stockholders’ equity:

Current liabilities:

Accounts payable

$ 22,259

$ 18,230

Accrued compensation

31,669

19,316

Current portion of long-term debt, net

23,129

14,134

Other accrued liabilities

68,691

54,332

Total current liabilities

145,748

106,012

Noncurrent liabilities:

Long-term debt, net

460,119

458,249

Deferred tax liabilities, net

8,757

1,401

Other noncurrent liabilities

65,717

74,778

Total noncurrent liabilities

534,593

534,428

Total liabilities

680,341

640,440

Commitments and contingencies

Stockholders’ equity:

Preferred Stock at par, $0.01 par value; 5,000 shares authorized; no
shares issued and outstanding as of December 31, 2023 and 2022,
respectively

—

Common Stock at par, $0.01 par value; 300,000 shares authorized;
65,929 and 66,287 shares issued and outstanding as of
December 31, 2023 and 2022, respectively

659

662

Additional paid-in capital

1,500,232

1,511,944

Accumulated deficit

(1,009,734)

(1,128,176)

Accumulated other comprehensive income

951

—

Total stockholders’ equity

492,108

384,430

Total liabilities and stockholders’ equity

$ 1,172,449

$ 1,024,870

Cars.com Inc.

Consolidated Statements of Cash Flows

(In thousands)

Year Ended December 31,

2023

2022

Cash flows from operating activities:

Net income

$ 118,442

$ 17,206

Adjustments to reconcile Net income to Net cash provided by operating activities:

Depreciation

22,331

16,380

Amortization of intangible assets

78,669

78,014

Amortization of Accumulated other comprehensive loss on interest rate swap

—

2,362

Changes in fair value of contingent consideration

5,537

8,130

Stock-based compensation

28,491

22,342

Deferred income taxes

(114,498)

1,283

Provision for doubtful accounts

2,986

1,888

Amortization of debt issuance costs

3,042

3,235

Unrealized gain on foreign currency denominated transactions

(2,072)

—

Amortization of deferred revenue related to AccuTrade Acquisition

(883)

(4,417)

Other, net

1,026

1,202

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(15,567)

(9,337)

Prepaid expenses and other assets

(5,101)

(423)

Accounts payable

3,722

2,611

Accrued compensation

11,638

(4,296)

Other liabilities

(1,043)

(7,669)

Net cash provided by operating activities

136,720

128,511

Cash flows from investing activities:

Payments for acquisitions, net of cash acquired

(76,168)

(64,663)

Capitalization of internally developed technology

(19,602)

(17,886)

Purchase of property and equipment

(1,280)

(1,828)

Net cash used in investing activities

(97,050)

(84,377)

Cash flows from financing activities:

Proceeds from Revolving Loan borrowings

45,000

Payments of Revolving Loan borrowings and long-term debt

(36,250)

(41,250)

Payments for stock-based compensation plans, net

(9,205)

(6,256)

Repurchases of common stock

(31,293)

(48,982)

Payments of debt issuance costs and other fees

—

Net cash used in financing activities

(31,748)

(51,488)

Impact of foreign currency on Cash and cash equivalents

(439)

—

Net increase (decrease) in Cash and cash equivalents

7,483

(7,354)

Cash and cash equivalents at beginning of period

31,715

39,069

Cash and cash equivalents at end of period

$ 39,198

$ 31,715

Supplemental cash flow information:

Cash paid for income taxes

$ 17,636

$ 545

Cash paid for interest and swap

30,416

33,370

Cars.com Inc.

Non-GAAP Reconciliations

(In thousands)

(Unaudited)

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Reconciliation of Net income to Adjusted EBITDA

Net income

$ 8,346

$ 10,262

$ 118,442

$ 17,206

Interest expense, net

8,254

8,442

32,425

35,320

Income tax (benefit) expense

(6,455)

6,200

(100,337)

5,370

Depreciation and amortization

26,619

23,706

101,000

94,394

Stock-based compensation, including related payroll tax expense

7,844

5,390

30,127

22,966

Non-operating foreign exchange income

(2,072)

—

(2,072)

—

Write-off of long-lived assets and other

389

929

1,027

999

Severance, transformation and other exit costs

1,226

960

3,574

4,329

Transaction-related items

11,253

(6,370)

10,698

6,144

Adjusted EBITDA

$ 55,404

$ 49,519

$ 194,884

$ 186,728

Reconciliation of Net cash provided by operating activities to Free cash flow

Net cash provided by operating activities

$ 45,140

$ 37,220

$ 136,720

$ 128,511

Capitalization of internally developed technology

(4,764)

(4,739)

(19,602)

(17,886)

Purchase of property and equipment

(543)

(576)

(1,280)

(1,828)

Free cash flow

$ 39,833

$ 31,905

$ 115,838

$ 108,797

Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended December 31, 2023:

As Reported

Adjustments (1)

Stock-Based Compensation

As Adjusted

Cost of revenue and operations

$ 30,918

$ —

$ (396)

$ 30,522

Product and technology

25,230

—

(2,518)

22,712

Marketing and sales

58,835

(48)

(1,566)

57,221

General and administrative

23,069

(6,003)

(3,364)

13,702

Depreciation and amortization

26,619

—

26,619

Total operating expenses

$ 164,671

$ (6,051)

$ (7,844)

$ 150,776

Total nonoperating expense, net

$ (13,044)

$ 4,745

$ —

$ (8,299)

(1) Includes transaction related items, unrealized gain on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other.

Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended December 31, 2022:

As Reported

Adjustments (1)

Stock-Based Compensation

As Adjusted

Cost of revenue and operations

$ 28,875

$ —

$ (224)

$ 28,651

Product and technology

23,166

—

(1,765)

21,401

Marketing and sales

56,515

—

(1,164)

55,351

General and administrative

16,128

(2,373)

(2,237)

11,518

Depreciation and amortization

23,706

—

23,706

Total operating expenses

$ 148,390

$ (2,373)

$ (5,390)

$ 140,627

Total nonoperating expense, net

$ (3,349)

$ (5,229)

$ —

$ (8,578)

(1) Includes transaction related items, severance, transformation and other exit costs, and write-off of long-lived assets and other.

Reconciliation of Operating expenses to Adjusted operating expenses for the Year Ended December 31, 2023:

As Reported

Adjustments (1)

Stock-Based Compensation

As Adjusted

Cost of revenue and operations

$ 122,205

$ —

$ (1,571)

$ 120,634

Product and technology

99,584

—

(9,360)

90,224

Marketing and sales

235,471

(48)

(6,078)

229,345

General and administrative

76,807

(10,797)

(13,118)

52,892

Depreciation and amortization

101,000

—

101,000

Total operating expenses

$ 635,067

$ (10,845)

$ (30,127)

$ 594,095

Total nonoperating expense, net

$ (36,011)

$ 3,465

$ —

$ (32,546)

(1) Includes transaction related items, severance, transformation and other exit costs, unrealized gain on foreign currency denominated transactions, and write-off of long-lived assets and other.

Reconciliation of Operating expenses to Adjusted operating expenses for the Year Ended December 31, 2022:

As Reported

Adjustments (1)

Stock-Based Compensation

As Adjusted

Cost of revenue and operations

$ 114,959

$ —

$ (983)

$ 113,976

Product and technology

89,015

—

(6,851)

82,164

Marketing and sales

221,879

—

(5,068)

216,811

General and administrative

67,593

(8,943)

(10,064)

48,586

Depreciation and amortization

94,394

—

94,394

Total operating expenses

$ 587,840

$ (8,943)

$ (22,966)

$ 555,931

Total nonoperating expense, net

$ (43,460)

$ 7,946

$ —

$ (35,514)

(1) Includes transaction related items, severance, transformation and other exit costs, and write-off of long-lived assets and other.

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SOURCE Cars Commerce

Technology

10x Genomics Reports First Quarter 2026 Financial Results

Published

9 hours ago

May 7, 2026

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

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

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.

Technology

OUTFRONT Media Announces Quarterly Dividend

Published

9 hours ago

May 7, 2026

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

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SOURCE OUTFRONT Media Inc.

Technology

OUTFRONT Media Reports First Quarter 2026 Results

Published

9 hours ago

May 7, 2026

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.

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)

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

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

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

Total stockholders’ equity

661.9

710.4

Noncontrolling interests

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

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

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

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

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)

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

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

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.

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SOURCE OUTFRONT Media Inc.