comScore NASDAQ: SCOR reported third-quarter revenue of $76.2 million, down 14.3% from the prior-year period, as the media measurement company continued executing a restructuring and transformation program intended to lower costs, simplify operations and direct investment toward scalable growth opportunities.
On a pro forma basis excluding the recently divested Movies business, third-quarter revenue declined 4.1% from $79.4 million a year earlier. The company maintained its full-year 2026 outlook for revenue of $315 million to $325 million and an adjusted EBITDA margin in the low- to mid-single digits.
Chief Executive Officer Matt McLaughlin said the company has moved rapidly since introducing its “ROI Strategy” in August, which is centered on three connected priorities: realigning the organization, optimizing operations and investing selectively in growth initiatives.
“Initial progress is encouraging, but we remain in the early innings with substantial work ahead,” McLaughlin said.
Cost reductions and operating changes
Comscore said core operating expenses declined 8% year over year to $79.6 million in the third quarter, driven primarily by lower employee compensation, data and facilities expenses. The company attributed part of the reduction to its Movies divestiture, while also pointing to actions taken under its realignment plan.
The company said it has completed the majority of currently planned headcount reductions, which it estimates will generate more than $20 million in annual run-rate cost savings. Comscore is also restructuring its geographic footprint and shifting additional repeatable operational work offshore.
McLaughlin said the company has established a product-line structure designed to create clearer cross-functional accountability. He emphasized that the plan is not solely a cost-cutting initiative, but a broader change in how Comscore evaluates opportunities and allocates resources.
As an example of its new commercial discipline, Comscore chose not to proceed with an international measurement opportunity it had been pursuing before the realignment. McLaughlin said the company determined that the economics were uncertain and the opportunity did not fit its narrower geographic priorities.
“Revenue alone is not enough,” McLaughlin said, adding that the company is targeting opportunities that create value for customers, Comscore and investors over time.
Optimization efforts target data costs and legacy complexity
Comscore is also working to lower data-related expenses, particularly in linear television measurement. During the third quarter, the company renegotiated one of its larger multichannel video programming distributor data contracts, securing cost savings in the mid-seven figures for 2027, according to McLaughlin. Discussions with other data providers remain underway.
The company is sunsetting slower-growing activities, including its On Demand offering. It will not renew those contracts but will fulfill existing obligations as they expire.
Comscore is also implementing sales guidelines intended to prioritize higher-value and more strategic opportunities. Management said pricing, customization and service levels should better reflect both the value provided to customers and the resources required to deliver products.
Segment results and profitability
Content & Ad Measurement revenue totaled $64.6 million, down 14.4% year over year and down 2.1% on a pro forma basis. The decline was primarily tied to lower revenue from Syndicated Audience offerings.
- Syndicated Audience revenue: $52.4 million, down 17% from a year earlier, reflecting the Movies business divestiture and lower renewals in syndicated digital offerings.
- Cross-Platform revenue: $12.2 million, flat year over year. Lower usage of Proximic products was offset by new business and growth in Comscore Content Measurement.
- Research & Insight Solutions revenue: $11.5 million, down 13.9%, primarily due to lower renewals and the timing of certain custom deliveries.
Adjusted EBITDA was $5.8 million, compared with $11 million in the third quarter of 2025. Adjusted EBITDA margin declined to 7.6% from 12.4% a year earlier. Chief Financial Officer Mary Margaret said the divested Movies business had operated at a healthy margin and had contributed to adjusted EBITDA and cash flow, which the company expected to result in year-over-year EBITDA declines through the second quarter of 2027.
Comscore recorded $5.5 million in restructuring expenses during the quarter related to its August realignment plan. It also recorded a $57.3 million non-cash goodwill impairment charge following interim impairment testing, which management said was largely driven by the realignment plan and declines in the company’s stock price and market capitalization.
Cash position and 2027 objective
Cash and cash equivalents totaled $19.5 million as of Sept. 30, down $7.3 million from year-end. Mary Margaret said approximately $3 million of third-quarter cash use related to restructuring, while nearly $2 million was spent on transaction costs, primarily associated with the Movies divestiture.
The company expects most remaining restructuring obligations to be paid by year-end and anticipates receiving approximately $3 million to $4 million in fourth-quarter cash inflows from transaction escrow-related receivables, remaining divestiture proceeds and receivables under a transition services agreement.
Comscore said it is evaluating options to provide working-capital flexibility in the short term. Its objective for 2027 is to complete the transformation and exit the year with ongoing operations that are cash-flow positive.
Management reiterated that current actions put the company on track to achieve the previously announced $20 million to $25 million of annual run-rate cost savings, although it plans to use part of those savings to support its transformation and longer-term growth investments.
Growth initiatives and fourth-quarter seasonality
Among its growth initiatives, Comscore is rolling out 25 AI-informed intent segments to initial platforms during November. McLaughlin said an initial pilot client reported performance 38% better than its best-performing third-party data, though he characterized that result as an early proof point rather than a sustained outcome.
The company is also testing measurement offerings for creator-led advertising and pursuing commitments from buyers and sellers in local television planning and transactions.
During the question-and-answer session, McLaughlin said a return to growth will depend on continuing to execute the ROI plan, stabilizing segments affected by changing consumer behavior and investing in areas where market expansion presents opportunity.
He said Cross-Platform results have been affected by platform shutdowns, broader changes in open-web advertising and the need for a more focused platform strategy. Comscore expects to provide more detail on planned changes over the next several quarters.
Mary Margaret said Comscore expects its usual fourth-quarter seasonal uplift to continue, driven by holiday advertising activity in volume-based products such as activation and by the company’s largest period for contract renewals.
About comScore (NASDAQ:SCOR)
comScore, Inc NASDAQ: SCOR is a media measurement and analytics company that provides data and insights on audiences, content and advertising. Its services help media owners, advertisers, agencies and technology companies understand how consumers engage with television, digital media, streaming services and other platforms.
The company's offerings include audience measurement, campaign measurement, content performance analytics and advertising intelligence. comScore combines data from consumer panels, connected devices, digital properties and other sources to evaluate reach, viewing behavior, audience composition and advertising effectiveness across multiple screens and media channels.
comScore serves clients in the United States and international markets.
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