PodcastOne, Inc. (PODC) Q2 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals significant improvements in financial metrics, including reduced operating and net losses, positive adjusted EBITDA, and no debt. Revenue growth in key areas like Pod Roll and partnerships with Amazon indicate strong business performance. Despite some lack of clarity in G&A expenses, management's optimistic guidance and strategic partnerships suggest a positive outlook. The Q&A session also highlighted strong direct sales and potential for high revenue guidance, contributing to a positive sentiment.
Key Financial Performance
Revenue Revenue in the fiscal second quarter of 2026 was $15.2 million, marking a record high for the quarter. This represents significant growth driven by the adoption of AI-powered tools, increased programmatic revenue, and demand from brand partners.
Operating Loss Operating loss in the fiscal second quarter of 2026 was $975,000 compared to an operating loss of $1.7 million in the same year-ago quarter. The improvement was primarily due to higher programmatic revenue and lower costs and operating expenses.
Net Loss Net loss in the fiscal second quarter of 2026 was $975,000 or $0.04 per basic and diluted share, compared to a net loss of $1.7 million or $0.07 per basic and diluted share in the same year-ago quarter. The reduction in net loss was driven by increased revenue and cost efficiencies.
Adjusted EBITDA Adjusted EBITDA in the fiscal second quarter of 2026 was $1.1 million compared to an adjusted EBITDA loss of $403,000 in the same year-ago quarter. The improvement was primarily driven by higher revenue and talent revenue share paid in the form of shares.
Cash and Cash Equivalents The company ended the fiscal quarter with zero debt on its balance sheet and $2.8 million in cash and cash equivalents as of September 30, 2025.
Pod Roll Revenue Pod Roll, the dynamic ad marketplace, generated a 71% increase in revenue, nearly tripling since last year. This growth underscores its rapid adoption and scalability.
Adam Carolla Subscription and Video Channel Revenue Adam Carolla's subscription and video channel revenue spanning YouTube, Rumble, and Apple Plus rose 51% from the previous quarter, highlighting strong audience engagement and demand.
Programmatic and Amazon's ART19 Revenue Programmatic and Amazon's ART19 revenue saw a 14% increase from Q1, contributing to the overall revenue growth.
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Operating Highlights
AI-powered platform: The platform drives innovation, growth, and monetization across the network. Tools like Flightpath optimize profitability, Booster enhances ad management, Adobe Audition ensures superior audio quality, and OpusClip boosts audience engagement by creating short-form content from long-form videos.
New content and partnerships: PodcastOne expanded its content portfolio with a collaboration with BuzzFeed for a new podcast series, "Phone a Fangirl," and acquired "Beach Too Sandy, Water Too Wet" and exclusive sales rights to "Notsam Wrestling."
Audience expansion: Video consumption is growing, supported by expanded distribution across platforms like YouTube, Spotify, Apple Plus, TikTok, Rumble, and Substack. Popular titles experienced significant engagement.
High-profile talent and shows: PodcastOne attracted notable creators and celebrated milestones like Adam Carolla's 4000th episode featuring Jay Leno. Other notable guests included Bill O'Reilly, Amanda Knox, and Mel Robbins.
Operational efficiencies: AI-powered tools enable efficient production, editing, and distribution, allowing creators to focus on content quality. The Pod Roll ad marketplace generated a 71% increase in revenue, becoming a 7-figure revenue tool.
Financial performance: Revenue for Q2 2026 was $15.2 million, with an operating loss of $975,000, an improvement from $1.7 million loss in the prior year. Adjusted EBITDA was $1.1 million, compared to a loss of $403,000 in the prior year.
AI-driven innovation: The company leverages AI tools like Flightpath and Booster to optimize operations and outcomes for creators and advertisers, enhancing its competitive edge.
Future guidance: Expected fiscal 2026 revenue is $55 million to $60 million, with adjusted EBITDA of $4.5 million to $6 million.
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Risk or Challenges
Operating Loss: The company reported an operating loss of $975,000 in the fiscal second quarter of 2026, which, although an improvement from the previous year, still represents a financial challenge.
Net Loss: The net loss for the fiscal second quarter of 2026 was $975,000, indicating ongoing financial pressures despite revenue growth.
Revenue Dependency: The company's revenue growth is heavily reliant on programmatic revenue and ad tech stack performance, which could be vulnerable to market fluctuations or technological disruptions.
Strategic Execution Risks: The company is actively pursuing growth through acquisitions and partnerships, which carry inherent risks such as integration challenges, overestimation of synergies, or potential financial strain.
Economic Uncertainties: Broader economic conditions could impact advertising budgets and, consequently, the company's revenue streams.
Competitive Pressures: The podcasting industry is highly competitive, and maintaining a leading position requires continuous innovation and investment, which could strain resources.
Regulatory Risks: Potential regulatory changes in digital advertising or content distribution could adversely affect operations and revenue.
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Guidance & Outlook
Fiscal 2026 Revenue: Expected revenue of $55 million to $60 million in fiscal 2026.
Adjusted EBITDA: Expected adjusted EBITDA of $4.5 million to $6 million in fiscal 2026.
AI Capabilities Expansion: Plans to leverage AI tools like Flightpath for predictive ad analytics and Booster for streamlined ad management to optimize operations and outcomes for creators and advertisers.
Audience Expansion: Focus on expanding audience reach through high-profile events, partnerships, and acquisitions, including collaboration with BuzzFeed and exploring new opportunities for creators.
Monetization Opportunities: Continued emphasis on strategic monetization and deeper audience engagement through AI tools and creator-first approaches.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:How much of the podcast ranking success is due to real growth versus consolidation among competitors?
A:Kit Gray explained that podcast rankings are tricky and influenced by various factors, including who subscribes to ranking services and the timing of events like NFL rollouts or new reality TV shows. He emphasized that rankings are not a true reflection of growth, and the company focuses on revenue growth, sellout rates, and CPMs as performance indicators.
Q:How much of the AI tools being used are new versus previously existing tools?
A:Kit Gray stated that AI has drastically changed over the last 12 months, with many tools being enhanced or newly applied. The company tests new technologies and integrates them if they work, focusing on operational, production, marketing, and sales efficiencies. They are doubling down on useful tools and plan to add more over time.
Q:Were there any unusual or one-time factors affecting expenses, such as sales and marketing or G&A?
A:Ryan Carhart noted that sales and marketing expenses this quarter are indicative of future levels, with modest increases expected in Q3. G&A was higher due to additional stock-based compensation and special professional fees, which are expected to decrease in future quarters. Stock-based compensation was a significant factor in G&A.
Q:How much of the G&A expense was due to stock-based compensation?
A:Ryan Carhart did not provide a specific breakout during the call and stated he would provide that information later.
Q:Is the company in a better position to recruit higher-tier talent due to higher rankings, and how does stock-based compensation play a role?
A:Kit Gray highlighted the company's strong reputation and competitive position, which attract high-profile talent. Stock-based compensation is a unique tool that aligns interests and incentivizes success, making the company more attractive to talent and agents.
Q:Can you share details on the expanded Amazon partnership and expectations?
A:Kit Gray explained that the Amazon partnership grows as the company hits new impression thresholds, leading to higher minimum guarantees. Growth is driven by new programming, increased listenership, and monetization of backlog episodes. Amazon sees value in podcast listeners, and the partnership is yielding higher sellout rates and CPMs.
Q:What is the current state of the advertising environment, especially for the holiday season?
A:Kit Gray reported strong direct sales performance, with all-time high pacing reports for the quarter. Direct sales have the highest CPMs, followed by the Amazon deal and programmatic marketplaces. The company focuses on integrating advertisers into shows to maximize value.
Q:What needs to happen to achieve the high end of the revenue guidance ($59-$60 million)?
A:Kit Gray stated that achieving the high end of guidance depends on continued growth in program consumption, successful sales efforts, and the performance of the Amazon deal. Closing a few big content or ad deals could also contribute.
Q:Review of Unclear Management Responses
A:Ryan Carhart did not provide a specific breakout of how much of the G&A expense was due to stock-based compensation during the call, stating he would provide that information later.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI industry
AI noise
AI platform
AI tool
AI toolkit
ART increase
Accounting Officer
Adobe Audition
Apologists Creators
Apologists News
Apple Plus
Apple Podcast
Audition quality
Beach Sandy
Bible Fool
Bitch Bible
BuzzFeed
CFO Principal
Officer Treasurer
Pop Apologists
Principal Accounting
Rumble
Treasurer Secretary
analytics
approach
audience engagement
conference
engagement demand
presentation
quality content
recommendation
strength
PODC Transcript
PodcastOne, Inc. (PODC) Q4 2026 Earnings Call Transcript
Neutral6-24
PodcastOne, Inc. (PODC) Q3 2026 Earnings Call Transcript
Positive2-12
The earnings call highlighted record revenue and improved financial metrics, such as reduced net loss and operating loss, and positive adjusted EBITDA. The Q&A session revealed strong advertiser interest and growth in B2B deals, with a robust outlook for podcast industry spending. Despite management's lack of specifics on some future plans, the overall sentiment was positive, with no significant risks mentioned. These factors, along with the record high revenue, suggest a positive stock price movement in the short term.
PodcastOne, Inc. (PODC) Q2 2026 Earnings Call Transcript
Positive11-11
The earnings call reveals significant improvements in financial metrics, including reduced operating and net losses, positive adjusted EBITDA, and no debt. Revenue growth in key areas like Pod Roll and partnerships with Amazon indicate strong business performance. Despite some lack of clarity in G&A expenses, management's optimistic guidance and strategic partnerships suggest a positive outlook. The Q&A session also highlighted strong direct sales and potential for high revenue guidance, contributing to a positive sentiment.
PodcastOne, Inc. (PODC) Q4 2025 Earnings Call Transcript
Unknown7-3
The earnings report shows a mixed picture: strong revenue growth and positive adjusted EBITDA, but increased operating losses and net losses due to stock compensation. The Q&A highlights positive outcomes from the ART19 deal and stable advertiser interest but lacks specific growth acceleration plans. The company's strategic moves into the crypto space and favorable talent acquisition terms are promising but not immediate catalysts. Overall, the mixed financial performance and lack of clear guidance suggest a neutral short-term stock price movement.
PODC Report
Frequently Asked Questions
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
