MNTN (NYSE:MNTN) Posts Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• MNTN reported $0.11 in quarterly EPS, missing the $0.19 consensus estimate by $0.08. Despite the miss, revenue rose 21% year over year to $82.5 million and adjusted EBITDA increased 48% to $21.5 million.
• Performance TV customers grew approximately 40% year over year to 4,225, while customer expansion remained above 115%. Management also cited strong early adoption of MNTN Express and QuickFrame AI.
• Management reaffirmed 2026 revenue guidance of $347 million to $357 million and adjusted EBITDA guidance of $96 million to $101 million. The board also authorized a $100 million stock repurchase program through August 2027.

MNTN (NYSE:MNTN - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.08), Zacks reports. MNTN had a net margin of 7.84% and a return on equity of 16.44%.

Here are the key takeaways from MNTN's conference call:

• Strong Q2 results: Revenue rose 21% year over year to $82.5 million, while adjusted EBITDA increased 48% to $21.5 million, both at the high end of guidance. Gross margin expanded to 80% and adjusted EBITDA margin reached 26.1%.
• MNTN ended the quarter with 4,225 active Performance TV customers, up approximately 40% year over year, while customer expansion remained above 115%, indicating continued budget growth among existing customers.
• Early adoption of new growth products is encouraging, with more than 7,000 MNTN Express signups and over 73,000 year-to-date QuickFrame AI signups. Management expects Express and Premium to become more meaningful revenue contributors in 2027, while QuickFrame may also create a funnel for the core Performance TV business.
• Management reiterated full-year 2026 revenue guidance of $347 million to $357 million and adjusted EBITDA guidance of $96 million to $101 million, while forecasting third-quarter revenue growth of 25% at the midpoint.
• The board authorized a stock repurchase program of up to $100 million through August 2027, supported by a balance sheet with $237 million in cash and no borrowings outstanding.

MNTN Stock Performance

NYSE:MNTN traded up $0.56 during trading on Tuesday, reaching $10.09. The company's stock had a trading volume of 1,869,124 shares, compared to its average volume of 952,123. MNTN has a 12 month low of $7.67 and a 12 month high of $32.00. The firm has a market cap of $615.71 million, a price-to-earnings ratio of -336.40 and a beta of 0.71. The firm has a 50 day moving average of $9.41 and a 200-day moving average of $9.43.

Analyst Ratings Changes

MNTN has been the topic of several research reports. Wall Street Zen upgraded shares of MNTN from a "buy" rating to a "strong-buy" rating in a report on Monday, July 20th. Citizens Jmp cut their target price on MNTN from $23.00 to $19.00 and set a "market outperform" rating on the stock in a research report on Wednesday, May 6th. Morgan Stanley lowered their price target on MNTN from $20.50 to $18.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 6th. Tigress Financial reaffirmed a "strong-buy" rating and set a $26.00 price objective on shares of MNTN in a report on Wednesday, June 3rd. Finally, Weiss Ratings upgraded shares of MNTN from a "sell (e+)" rating to a "sell (d)" rating in a report on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $19.85.

Hedge Funds Weigh In On MNTN

Several institutional investors have recently added to or reduced their stakes in MNTN. Aster Capital Management DIFC Ltd purchased a new stake in MNTN during the fourth quarter worth about $43,000. Los Angeles Capital Management LLC purchased a new position in MNTN in the fourth quarter valued at about $53,000. Royal Bank of Canada increased its stake in shares of MNTN by 2,093.6% during the 4th quarter. Royal Bank of Canada now owns 5,857 shares of the company's stock worth $70,000 after purchasing an additional 5,590 shares during the last quarter. JPMorgan Chase & Co. bought a new stake in shares of MNTN in the 3rd quarter worth approximately $86,000. Finally, Barclays PLC lifted its stake in MNTN by 2,341.4% in the fourth quarter. Barclays PLC now owns 9,326 shares of the company's stock valued at $111,000 after purchasing an additional 8,944 shares during the last quarter. Institutional investors own 72.90% of the company's stock.

About MNTN

MNTN is a software platform specializing in connected television (CTV) advertising, offering marketers the tools to plan, launch and measure streaming TV campaigns. Its platform enables brands to reach audiences across major OTT and CTV channels, helping advertisers target viewers based on demographic, behavioral and contextual data.

The company's core product suite includes campaign management, real-time bidding and performance analytics. MNTN integrates with leading streaming services and ad exchanges, allowing clients to execute programmatic buys, track view-through conversions and optimize media spend through automated reporting dashboards.

Founded by experienced digital advertising professionals, MNTN is headquartered in Austin, Texas, and primarily serves brands and agencies across the United States and Canada.

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