Mediaco Holding Inc.

08/14/2026 | Press release | Distributed by Public on 08/14/2026 15:05

Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Special Note on Forward-Looking Information: You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q. Certain statements included in this Quarterly Report or in the financial statements contained herein that are not statements of historical fact, including but not limited to those identified with the words "expect," "believes," "should," "will" or "look" are intended to be, and are, by this Note, identified as "forward-looking statements," as defined in the Securities Exchange Act of 1934, as amended. Such statements are based upon current expectations that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statement. Such factors include, among others:
•Our ability to continue as a going concern
•Our ability to comply with financial covenants in our First Lien Credit Agreement and Second Lien Credit Agreement;
•Potential conflicts of interest with SG Broadcasting LLC ("SG Broadcasting") and our status as a "controlled company";
•Our ability to operate as a standalone public company and to execute on our business strategy;
•Our ability to compete with, and integrate into our operations, new media channels, such as digital video, live video streaming, YouTube, and other real-time media delivery;
•Our ability to continue to sell advertising time or exchange advertising time for goods or services;
•Our ability to use market research, advertising and promotions to attract and retain audiences;
•U.S. regulatory requirements for owning and operating media broadcasting channels and our ability to maintain regulatory licenses granted by the FCC;
•Pending U.S. regulatory requirements for paying royalties to performing artists;
•Inflation and interest rate risk;
• A potential recession, economic downturn, and stagflation;
• The impact of a potential temporary federal government shutdown and other political developments, including
immigration, political protests or unrest, boycotts, or other social and political developments;
• Increased technology costs and supply chain issues;
•Industry and economic trends within the U.S. radio and television industry, generally, and in the markets in which we operate, in particular;
•Changes in U.S. and global economies and financial markets, including economic activity, employment levels, global trade relations, new or increased tariffs imposed by the U.S. and foreign governments and other factors driving trade uncertainty;
• The effect of such economic conditions on advertising activity;
•Our ability to successfully attract and retain on-air talent;
•Our ability to successfully produce and distribute on-air programming;
•Our ability to maintain and expand distribution platforms and station affiliations;
•Our ability to finance our operations or to obtain financing on terms that are favorable to MediaCo;
•Our ability to successfully complete and integrate acquisitions, including the recent transactions with Estrella Broadcasting, Inc. and any future acquisitions;
•The accuracy of management's estimates and assumptions on which the Company's financial projections are based; and
•Other factors mentioned in documents filed by the Company with the Securities and Exchange Commission.
For a more detailed discussion of these and other risk factors, see the Risk Factors section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on March 31, 2026. MediaCo does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
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GENERAL
The following discussion pertains to MediaCo Holding Inc. and its subsidiaries (collectively, "MediaCo" or the "Company").
MediaCo is a multimedia company focused on radio, television, digital advertising, premium programming, and events. Our portfolio includes a national network, as well as digital and commercial operations. Our broadcasting assets consist of thirteen radio stations, including two located in New York City, WQHT(FM) and WBLS(FM) (the "Stations"), which serve the New York City demographic market area and primarily target Black, Hispanic, and multicultural consumers. The remaining eleven radio stations serve Los Angeles, CA, Houston, TX, and Dallas, TX. Our assets also include nine television stations serving Los Angeles, CA, Houston, TX, Denver, CO, New York, NY, Chicago, IL, and Miami, FL.
Our portfolio includes the Estrella brands, including the EstrellaTV network, its linear and digital video content business, and its digital channels, including eight free ad-supported television ("FAST") channels: EstrellaTV, Estrella News, Cine EstrellaTV, Estrella Games, EstrellaTV Mexico, Curiosity Explora, Curiosity Motores, and Curiosity Animales.
We derive our revenues primarily from radio, television, and digital advertising sales. We also generate revenues from events, including sponsorships and ticket sales, as well as from licensing and syndication. Advertising sales represent the primary component of our consolidated revenues, and our results are largely influenced by the advertising rates we are able to charge. These rates depend significantly on our ability to attract audiences within demographic groups targeted by advertisers. Audience measurement services, such as those provided by Nielsen, supply radio and television ratings that are critical to our performance. Accordingly, our strategy emphasizes market research, programming, promotion, and branding initiatives designed to attract and retain audiences in our target demographics.
Our revenues fluctuate throughout the year, with revenue and operating income typically lowest in the first calendar quarter, in part due to reduced advertising spending following the holiday season.
In addition to cash advertising sales, we enter into barter transactions in which advertising time is exchanged for goods or services. These transactions are recorded at the estimated fair value of the goods or services received. We generally limit barter activity to items or services that we would otherwise purchase for cash and maintain a policy of not preempting paid advertising spots with barter advertising.
The following table summarizes the sources of our revenues for the three and six months ended June 30, 2026 and 2025. The category "Other" includes, among other items, revenues related to network revenues and barter.
(dollars in thousands) Three Months Ended June 30, Six Months Ended June 30,
2026 % of Total 2025 % of Total 2026 % of Total 2025 % of Total
Net revenues:
Spot Radio & TV Advertising $ 16,398 48 $ 19,078 61 $ 30,595 47 $ 35,109 59
Digital 15,884 47 9,449 30 31,423 48 18,986 32
Syndication 210 1 661 2 542 1 1,314 2
Events and Sponsorships 190 1 448 2 345 1 687 1
Other 1,287 3 1,609 5 2,450 3 3,179 6
Total net revenues $ 33,969 $ 31,245 $ 65,355 $ 59,275
Roughly 20% of our expenses vary in connection with changes in revenue. These variable expenses primarily relate to costs in our sales department, such as salaries, commissions, and bad debt, as well as certain technical and engineering costs that fluctuate with operational activity. Our costs that do not vary significantly with revenue are primarily in our programming and general and administrative departments, including talent costs, ratings fees, rent, utilities, engineering-related maintenance, and salaries. Lastly, our costs that are highly discretionary are incurred in our marketing and promotions department, which we primarily use to maintain and/or increase our audience and market share.
KNOWN TRENDS AND UNCERTAINTIES
The U.S. traditional radio and television broadcasting industries are mature industries and their growth rates have stalled. Management believes this is principally the result of two factors: (i) new media, such as various media distributed via the Internet, telecommunication companies and cable interconnects, as well as social networks, have gained advertising share against radio, television and other traditional media and created a proliferation of advertising inventory and (ii) the fragmentation of the radio and television audiences and time spent listening and viewing caused by satellite radio, audio and video streaming services, and podcasts has led some investors and advertisers to conclude that the effectiveness of broadcast advertising has diminished.
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Our network and stations have aggressively worked to harness the power of broadband and mobile media distribution in the development of emerging business opportunities by capitalizing on the rapidly growing FAST marketplace through several operated channels, creating highly interactive direct-to-consumer ("D2C") apps and websites with content that engages our audience and harnessing the power of digital video on our D2C platforms, YouTube, and connected TV publishers, vMVPDs and OEMs.
As part of our business strategy, we continually evaluate potential acquisitions of businesses that we believe hold promise for long-term appreciation in value and leverage our strengths. We also regularly review our portfolio of assets and may opportunistically dispose of or otherwise monetize assets when we believe it is appropriate to do so. As part of the Estrella Acquisition integration, we developed a plan to close and relocate certain studio and marketing operations. In fulfilling this plan, we incurred no involuntary termination costs in the three and six months ended June 30, 2026 and $0.2 million and $0.5 million for the three and six ended June 30, 2025, respectively. These costs are included in operating expenses on our condensed consolidated statements of operations included elsewhere in this report.
CRITICAL ACCOUNTING ESTIMATES
During the six months ended June 30, 2026, there were no material changes to our critical accounting policies and estimates from those described under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Estimates" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 31, 2026.
We have considered information available to us as of the date of issuance of these financial statements and are not aware of any specific events or circumstances that would require an update to our estimates or judgments, or a revision to the carrying value of our assets or liabilities. Our estimates may change as new events occur and additional information becomes available, and our actual results may differ materially from our previously disclosed estimates.
RESULTS OF OPERATIONS
Executive Summary
The following discussion and analysis of the financial condition and results of operations of MediaCo Holding Inc. and its consolidated subsidiaries should be read in conjunction with our condensed consolidated financial statements and notes thereto included elsewhere herein.
The key developments in our business for the three months ended June 30, 2026 are summarized below:
•Net revenues of $34.0 million increased $2.7 million, or 9%, during the three months ended June 30, 2026 compared to net revenues of $31.2 million during the three months ended June 30, 2025.
•Operating loss of $4.9 million decreased $1.9 million, or 28%, during the three months ended June 30, 2026 compared to operating loss of $6.8 million during the three months ended June 30, 2025.
•Net loss of $8.6 million increased $1.2 million, or 17%, during the three months ended June 30, 2026 compared to net loss of $7.4 million during the three months ended June 30, 2025.
•Adjusted EBITDA for the three months ended June 30, 2026 was $0.9 million decreasing 38% compared to Adjusted EBITDA of $1.5 million for the three months ended June 30, 2025.
The key developments in our business for the six months ended June 30, 2026 are summarized below:
•Net revenues of $65.4 million increased $6.1 million, or 10%, during the six months ended June 30, 2026 compared to net revenues of $59.3 million during the six months ended June 30, 2025.
•Operating loss of $12.4 million increased $1.0 million, or 8%, during the six months ended June 30, 2026 compared to operating loss of $11.5 million during the six months ended June 30, 2025.
•Net loss of $18.0 million increased $2.0 million, or 12%, during the six months ended June 30, 2026 compared to net loss of $16.0 million during the six months ended June 30, 2025.
•Cash flows used in operating activities of $2.8 million, represent a decrease of $1.9 million, or 210%, during the six months ended June 30, 2026 compared to cash flows used in operating activities of $0.9 million during the six months ended June 30, 2025.
•Adjusted EBITDA for the six months ended June 30, 2026 was $1.1 million decreasing 61% compared to Adjusted EBITDA of $2.9 million for the six months ended June 30, 2025.
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Consolidated Operating Data
The following table sets forth a summary of each of the Company's components of operating expense as a percentage of net revenue for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(Dollars in thousands) Amount % Amount % Amount % Amount %
NET REVENUES $ 33,969 100 $ 31,245 100 $ 65,355 100 $ 59,275 100
OPERATING EXPENSES:
Operating expenses 35,227 104 34,774 111 70,049 107 63,986 108
Corporate expenses 2,055 6 1,554 5 3,721 6 3,147 5
Depreciation and amortization 1,343 4 1,697 5 3,019 5 3,466 6
Loss on disposal of assets 233 1 5 - 985 2 144 -
Total operating expenses 38,858 38,030 77,774 70,743
OPERATING LOSS $ (4,889) $ (6,785) $ (12,419) $ (11,468)
Three-Month and Six-Month Periods Ended June 30, 2026 compared to June 30, 2025
Three Months Ended June 30, Change Six Months Ended June 30, Change
(Dollars in thousands) 2026 2025 $ % 2026 2025 $ %
NET REVENUES $ 33,969 $ 31,245 2,724 9 $ 65,355 $ 59,275 6,080 10
OPERATING EXPENSES:
Operating expenses 35,227 34,774 453 1 70,049 63,986 6,063 9
Corporate expenses 2,055 1,554 501 32 3,721 3,147 574 18
Depreciation and amortization 1,343 1,697 (354) (21) 3,019 3,466 (447) (13)
Loss on disposal of assets 233 5 228 4568 985 144 841 584
Total operating expenses 38,858 38,030 828 2 77,774 70,743 7,031 10
OPERATING LOSS (4,889) (6,785) 1,896 (28) (12,419) (11,468) (951) 8
OTHER INCOME (EXPENSE):
Interest expense, net (4,029) (3,855) (174) 5 (7,969) (7,609) (360) 5
Change in fair value of warrant shares liability - 1,410 (1,410) N/A - 1,410 (1,410) N/A
Other income, net 543 2,119 (1,576) (74) 4,222 2,230 1,992 89
Total other expense (3,486) (326) (3,160) 969 (3,747) (3,969) 222 (6)
LOSS BEFORE INCOME TAXES AND EQUITY METHOD INVESTMENTS (8,375) (7,111) (1,264) 18 (16,166) (15,437) (729) 5
PROVISION FOR INCOME TAXES (150) 279 (429) (154) 1,172 559 613 110
LOSS BEFORE EQUITY METHOD INVESTMENTS (8,225) (7,390) (835) 11 (17,338) (15,996) (1,342) 8
EQUITY LOSS IN INVESTMENTS (388) - (388) N/A (643) - (643) N/A
NET LOSS $ (8,613) $ (7,390) (1,223) 17 $ (17,981) $ (15,996) (1,985) 12
Net revenues:
Net revenues increased during the three and six months ended June 30, 2026 primarily due to increased digital revenue, partially offset by a decrease in spot revenue as the Company increased its focus on digital offerings.
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Operating expenses:
Operating expenses increased during the three and six months ended June 30, 2026 primarily due to higher digital platform costs, which rose in line with growth in digital revenue. These increases were partially offset by reductions in repairs and maintenance, utilities and rent.
Corporate expenses:
Corporate expenses increased for the three and six months ended June 30, 2026 primarily due to an increase in employee related costs, and corporate insurance charges.
Depreciation and amortization:
Depreciation and amortization expense decreased during the three and six months ended June 30, 2026 as certain assets became fully depreciated in the prior year, partially offset by new assets placed into service.
Loss on disposal of assets:
Loss on disposal of assets increased for the three and six months ended June 30, 2026 primarily due to the disposal of certain fixed assets due to the amendment for an existing lease agreement, while there were no such disposals in 2025.
Operating loss:
See "Net revenues," "Operating expenses," "Corporate expenses," "Depreciation and amortization," and "Loss on disposal of assets" above.
Interest expense, net:
Interest expense increased during the three and six months ended June 30, 2026 primarily due to higher outstanding debt balances, due to PIK and accretion on loans, partially offset by lower interest rates.
Change in fair value of warrant shares liability:
Warrant shares liability decreased during the three and six months ended June 30, 2026, as the warrants were no longer outstanding and, therefore, no mark-to-market accounting was required.
Other income, net:
Other income decreased during the three months ended June 30, 2026 compared with the three months ended June 30, 2025, primarily due to the absence of a one-time employee retention tax credit received in the prior-year period. These unfavorable variances were partially offset by increased revenue recognized under the Company's managed services agreement. As a result, other income declined from the prior-year period, reflecting the nonrecurring nature of the employee retention tax credit.
Other income increased during the six months ended June 30, 2026 compared to the prior year primarily driven by a gain on a lease modification, interest and penalty income related to an equity clawback, income from managed services agreements under which the Company began providing accounting and other services on April 17, 2025, and sublease income from one of the Company's facilities that commenced in the first quarter of 2025 and was partially offset by the non-cash mark-to-market gain and the one-time employee retention tax credit received in the prior year.
Provision for income taxes:
Provision for income taxes decreased during the three months ended June 30, 2026 compared to the prior year due to changes in the deferred tax liability and an adjustment for interest and penalties accrued.
Provision for income taxes increased during the six months ended June 30, 2026 compared to the prior year due to changes in the deferred tax liability and an increase in interest and penalties accrued.
Equity loss in investments:
Equity loss in investments increased during the three and six months ended June 30, 2026 due to the investment in unconsolidated affiliates as of January 1, 2026.
Consolidated net loss:
The increase in consolidated net loss was primarily due to the increase in digital platform costs partially offset by the increase in digital revenue. See "Net revenues," "Operating expenses,", "Corporate expenses," "Depreciation and amortization," "Loss on disposal of assets," "Interest expense, net," "Other income, net," "Provision for income taxes," and "Equity loss in investments" above for additional details.
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Performance by Business Segment
Audio Segment
The Company's Audio Segment includes the Estrella MediaCo radio, digital and events operations as well as two New York radio stations that predate the Estrella Acquisition. Revenue, Operating expenses and Segment Operating Loss for our Audio Segment were as follows:
Audio Segment
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in thousands) 2026 2025 2026 2025
Net Revenues $ 11,591 $ 15,236 $ 21,354 $ 28,928
Operating Expenses(1)
14,432 16,785 28,979 29,782
Segment Operating Loss $ (2,841) $ (1,549) $ (7,625) $ (854)
(1) Operating expenses comprise several line items, including operating costs, depreciation and amortization, and other segment-specific items, as detailed in the Segment Information disclosures in Note 13.
Revenue from our Audio Segment decreased $3.6 million and operating expenses decreased $2.4 million, respectively, during the three months ended June 30, 2026 compared to the same period in 2025, driven primarily as a result of the decrease in spot and other revenue and decreases in operating expenses such as professional fees, bad debt fees and advertising and promotion costs.
Revenue from our Audio Segment decreased $7.6 million and operating expenses decreased $0.8 million, respectively, during the six months ended June 30, 2026 compared to the same period in 2025, driven primarily as a result of the decrease in spot and other revenue and decreases in operating expenses such as professional services fees.
Video Segment
The Company's Video Segment includes the results of the EstrellaTV network and all of the Estrella MediaCo television operations, including digital. Revenue, Operating expenses and Segment Operating Income (Loss) for our Video Segment were as follows:
Video Segment
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in thousands) 2026 2025 2026 2025
Net Revenues $ 22,378 $ 16,009 $ 44,001 $ 30,347
Operating Expenses(1)
22,371 19,691 45,074 37,814
Segment Operating Income (Loss) $ 7 $ (3,682) $ (1,073) $ (7,467)
(1) Operating expenses comprise several line items, including operating costs, depreciation and amortization, and other segment-specific items, as detailed in the Segment Information disclosures in Note 13.
Revenue and operating expenses from our Video Segment increased $6.4 million and $2.7 million, respectively, during the three months ended June 30, 2026 compared to the same period in 2025. These increases were primarily in digital revenue and increases in impression, distribution and production costs.
Revenue and operating expenses from our Video Segment increased $13.7 million and $7.3 million, respectively, during the six months ended June 30, 2026 compared to the same period in 2025. These increases were primarily in digital revenue and increases in impression, distribution and production costs.
Corporate and other
Operating expenses related to Corporate and other increased to $2.1 million for the three months ended June 30, 2026 compared to $1.6 million for the three months ended June 30, 2025, primarily due to an increase in employee related costs, and corporate insurance charges.
Operating expenses related to Corporate and other increased to $3.7 million for the six months ended June 30, 2026 compared to $3.1 million for the six months ended June 30, 2025, primarily due to an increase in employee related costs, and corporate insurance charges.
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Non-GAAP Financial Measures
Reconciliations of Net Loss to Adjusted EBITDA(1)
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in thousands) 2026 2025 2026 2025
Net Loss $ (8,613) $ (7,390) $ (17,981) $ (15,996)
Provision for income taxes (150) 279 1,172 559
Equity loss in investments 388 - 643 -
Interest expense, net 4,029 3,855 7,969 7,609
Depreciation and amortization 1,343 1,697 3,019 3,466
Loss on disposal of assets 233 5 985 144
Change in fair value of warrant shares liability - (1,410) - (1,410)
Other income, net (543) (2,119) (4,222) (2,230)
Acquisition, integration and synergy services 2,104 4,731 4,381 7,590
Mergers and acquisitions transaction costs 538 1,148 1,114 1,981
Office exit facility consolidation 297 287 579 577
Expansion related costs 145 412 2,112 573
Other non-cash adjustments (1)
1,171 17 1,374 55
Adjusted EBITDA(2)
$ 942 $ 1,512 $ 1,145 $ 2,918
(1) Other non-cash adjustments include stock compensation adjustments, non-cash rent charges and other non-cash expenses.
(2)
We define Adjusted EBITDA as consolidated net loss adjusted to exclude restructuring expenses, business combination transaction costs, unusual and non-recurring expenditures, non-cash items and non-cash compensation included within operating expenses, as well as the following line items presented in our Statements of Operations: Equity loss in investments, Depreciation and amortization, Loss on disposal of assets, and Other income. Alternatively, Adjusted EBITDA is calculated as Net loss, adjusted to exclude Provision for income taxes, Equity loss in investments, Interest expense, net, Depreciation and amortization, Loss on disposal of assets, Other income, and Other adjustments. We use Adjusted EBITDA, among other measures, to evaluate the Company's operating performance. This measure is among the primary measures used by management for the planning and forecasting of future periods, as well as for measuring performance for compensation of executives and other members of management. We believe this measure is an important indicator of our operational strength and performance of our business because it provides a link between operational performance and operating income. It is also a primary measure used by management in evaluating companies as potential acquisition targets. We believe the presentation of this measure is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. We believe it helps improve investors' ability to understand our operating performance and makes it easier to compare our results with other companies that have different capital structures or tax rates. In addition, we believe this measure is also among the primary measures used externally by our investors, analysts and peers in our industry for purposes of valuation and comparing our operating performance to other companies in our industry. Since Adjusted EBITDA is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, operating loss or net loss as an indicator of operating performance and may not be comparable to similarly titled measures employed by other companies. Adjusted EBITDA is not necessarily a measure of our ability to fund our cash needs. Because it excludes certain financial information compared with operating loss and compared with consolidated net loss, the most directly comparable GAAP financial measures, users of this financial information should consider the types of events and transactions which are excluded.
LIQUIDITY AND CAPITAL RESOURCES
Our primary sources of liquidity are cash flows generated from operations. Our primary uses of capital have been, and are expected to continue to be, capital expenditures, working capital requirements, and strategic acquisitions. As of June 30, 2026, the Company's liquidity position is constrained by its working capital deficit and upcoming debt maturities. As a result of the Company's failure to satisfy the Audio Adjusted EBITDA covenant under its First Lien Credit Agreement and Second Lien Credit Agreement for the quarter ended June 30, 2026, $63.3 million of outstanding long-term debt was classified as current as of June 30, 2026, further increasing the Company's working capital deficit and near-term liquidity requirements. While management is actively implementing plans to improve liquidity, including enhancing operating performance, managing working capital, and pursuing refinancing and additional capital, there can be no assurance that these efforts will be successful.
At June 30, 2026, the Company had cash, cash equivalents and restricted cash of $3.8 million and negative working capital of $122.0 million. The Company's current debt classification includes $63.3 million of debt that was classified as current as a result of the Company's failure to satisfy the Audio Adjusted EBITDA covenant under its First Lien Credit Agreement and Second Lien Credit Agreement as of June 30, 2026. At December 31, 2025, the Company had cash, cash equivalents and restricted cash of $7.1 million and negative working capital of $49.0 million. The increase in negative working capital was driven by the increase in accounts payable and the classification of certain long-term debt as current.
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Additionally, in August 2026, the Company entered into a second amendment to the First Lien Credit Agreement that extended the maturity dates of the $10.0 million in Delayed Draw Term Loans from July 30, 2026 to October 31, 2026. On August 14, 2026, the Company also received a waiver from WhiteHawk Capital Partners, LP, and HPS, as administrative and collateral agents, and the lenders party thereto, with respect to the Company's failure to satisfy the Audio Adjusted EBITDA covenant under its First Lien Credit Agreement and Second Lien Credit Agreement for the quarter ended June 30, 2026. The Company has implemented and continues to assess a companywide cost and expense reduction initiative to improve its' EBITDA. The Company intends to refinance the Delayed Draw Term Loans on a long-term basis, repay the outstanding balance using cash flow from operations, or obtain additional investments.
Despite net losses, management continues to actively manage liquidity through close monitoring of working capital and disciplined cash management practices. These efforts include extending payment terms with vendor partners, enhancing collection efforts to accelerate cash inflows, and maintaining a focus on expense control.
As part of its business strategy, the Company continually evaluates potential acquisitions of businesses it believes hold promise for long-term appreciation and that can leverage our strengths. While any such acquisitions could impact our liquidity position, management is committed to maintaining appropriate liquidity levels and managing cash resources prudently as the business grows.
In addition to its short-term liquidity constraints, the Company expects to have ongoing cash requirements beyond the next twelve months. These longer-term liquidity needs relate primarily to capital expenditures required to maintain and upgrade broadcasting and digital infrastructure, contractual commitments for content and programming, and potential strategic investments or acquisitions that support long-term growth. The Company may seek to fund these longer-term requirements through a combination of cash flows from operations, existing cash and cash equivalents, and access to external financing sources, including potential borrowings under existing or future credit facilities or other capital-raising alternatives. However, given the Company's current liquidity position and the conditions described above, there can be no assurance that sufficient cash flows will be generated or that external financing will be available on acceptable terms, or at all.
The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. Based on current operating plans and assumptions, management is pursuing various initiatives to improve the Company's liquidity position, including enhancing operating performance, managing working capital, refinancing existing debt, and raising additional capital. However, these plans are subject to inherent risks and uncertainties, and there can be no assurance that they will be successfully implemented or will generate sufficient liquidity to meet the Company's obligations as they become due. Accordingly, substantial doubt about the Company's ability to continue as a going concern remains. Subsequent to June 30, 2026, the Company entered into amendments to its First Lien Credit Agreement and received a limited waiver related to its failure to satisfy the Audio Adjusted EBITDA covenant for the quarter ended June 30, 2026. As a result of the Company's failure to satisfy the Audio Adjusted EBITDA covenant, $63.3 million of outstanding long-term debt was classified as current as of June 30, 2026, increasing the Company's near-term debt obligations and liquidity requirements. Future liquidity and capital requirements will depend on a number of factors, including operating performance, macroeconomic conditions, changes in working capital, and the timing and extent of discretionary investments. The Company will continue to evaluate its liquidity position and capital structure and may adjust its financing strategy as conditions warrant.
Operating Activities
Cash flows used in operating activities were $2.8 million for the six months ended June 30, 2026, compared to cash flows used in operating activities of $0.9 million for the six months ended June 30, 2025. The decline in operating cash flow was primarily driven by a higher net loss and unfavorable changes in working capital, including decreases in other liabilities.
Investing Activities
Cash flows used in investing activities were $0.3 million for the six months ended June 30, 2026, primarily attributable to the investment in the equity method investment and purchases of property and equipment, partially offset by the proceeds from the sale of land. Cash flows used in investing activities were $0.3 million for the six months ended June 30, 2025, attributable to the purchases of property and equipment.
Financing Activities
Cash flows used in financing activities were $0.3 million for the six months ended June 30, 2026, attributable to finance lease principal payments. Cash flows used in financing activities were $0.3 million for the six months ended June 30, 2025, attributable to finance lease principal payments and settlement of tax withholding obligations.
Mediaco Holding Inc. published this content on August 14, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 14, 2026 at 21:06 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]