OUTFRONT Media Q3 Earnings Call Highlights

Key Points

• Third-quarter revenue grew 9%, driven by transit advertising, digital billboards and about $15 million in World Cup revenue. Adjusted OIBDA rose 6% to $145 million and AFFO increased 5% to $103 million.
• OUTFRONT raised its 2026 AFFO outlook to approximately 25% growth over 2025 and expects double-digit fourth-quarter revenue growth, including transit growth above 20%.
• Expenses increased about 10% in both billboard and transit businesses, alongside investments in sales, data and technology. Net leverage was 3.9 times, below the company’s target range, and liquidity exceeded $600 million.

OUTFRONT Media NYSE: OUT reported 9% revenue growth in the third quarter of 2026, helped by transit advertising and spending tied to the FIFA World Cup. The outdoor advertising company also raised its full-year outlook for adjusted funds from operations as it projected double-digit revenue growth in the fourth quarter.

CEO Nick Brien said revenue exceeded the company’s expectations from August, citing demand for its advertising assets, sales execution and approximately $15 million in World Cup revenue during the quarter. The event generated about $50 million in total revenue for OUTFRONT, approximately half of which the company considers incremental to its usual business.

Consolidated adjusted operating income before depreciation and amortization, or OIBDA, rose 6% to $145 million, while adjusted funds from operations, or AFFO, increased 5% to $103 million.

Transit and digital advertising drive growth

Transit revenue rose 20% in the third quarter, led by 22% growth in the New York Metropolitan Transportation Authority business. Technology, entertainment and retail were the strongest transit advertising categories, Brien said. Digital transit revenue rose nearly 17% to about $65 million, while static transit revenue grew more than 24%, supported by demand for station dominations.

Billboard revenue increased 5.9%, including 12.8% growth in digital billboards and 2.8% growth in static and other billboard revenue. Brien said the East region delivered high-single-digit billboard growth, with technology, legal and health and medical advertisers among the strongest categories.

OUTFRONT estimated that World Cup advertising contributed approximately $8 million to billboard revenue and $6 million to transit revenue during the quarter. Overall digital revenue grew more than 14% and represented about 37% of total revenue, up from 35% a year earlier.

Billboard yield increased 9% year over year to $3,318 per month. Brien attributed the gain principally to efforts to increase the value realized from premium assets, as well as World Cup spending.

Higher spending accompanies growth

CFO Matthew Siegel said billboard expenses rose nearly $21 million, or about 10%, from a year earlier, while transit expenses increased nearly $10 million, also about 10%. Transit adjusted OIBDA nevertheless rose by more than $13 million to $29 million as revenue growth outpaced the expense increase.

Siegel said approximately half of the increase in selling, general and administrative and corporate expenses during the quarter was attributable to success-based compensation and payments, including commissions, incentive bonuses and professional fees. OUTFRONT has also invested in sales capabilities, data analytics, technology and artificial intelligence tools.

For the fourth quarter, Siegel expects combined SG&A and corporate expenses to grow in the high teens compared with the prior year, with more than half of the increase tied to success-based expenses. He said the company expects its investment spending to reach a steady state around the middle of 2027 and anticipates that the investments will support revenue growth and improve its EBITDA margin next year.

Outlook and balance sheet

Brien said fourth-quarter revenue growth is expected to reach double digits, with transit growth above 20% and billboard growth in the mid-single digits. He also said the company expects double-digit revenue growth for the full year.

OUTFRONT raised its 2026 AFFO outlook to growth of around 25% from reported 2025 AFFO of $338 million. Its forecast includes $30 million to $35 million of maintenance capital spending, interest expense just over $140 million and a small amount of cash taxes.

The company now expects approximately $85 million in total capital expenditures for 2026. It added 29 digital billboards in the third quarter and expects to add about 125 for the full year.

As of Sept. 30, net leverage was 3.9 times, below OUTFRONT’s target range of four to five times. The company reported more than $600 million in committed liquidity and maintained its quarterly cash dividend at $0.33 per share, payable Dec. 31 to shareholders of record on Dec. 4.

Brien said the company remains optimistic about demand from AI advertisers and is discussing 2027 campaigns with brands that advertised during the World Cup. Siegel said it was premature to provide 2027 guidance, although first-quarter booking activity was “looking pretty good.”

About OUTFRONT Media (NYSE:OUT)

OUTFRONT Media Inc NYSE: OUT is an out-of-home media company that provides advertising services through a portfolio of billboard, transit and other outdoor advertising assets. The company helps advertisers reach consumers in high-traffic locations, including roads, urban centers, public transportation systems and other public spaces.

Its offerings include traditional printed billboards, digital billboards, transit displays and place-based media. OUTFRONT also provides related services such as media planning, creative support, audience analytics and technology-enabled advertising solutions, including digital and programmatic buying capabilities.

OUTFRONT primarily serves advertisers across the United States and Canada.

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