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    OUT
    Earnings call· Dec 2025(Q4 FY25)

    OUTFRONT Media Q4 FY25 earnings call OUT

    Feb 25, 2026 Source

    Executive summary

    OUTFRONT Media Q4 FY25 — Strong Digital and Transit Growth, Positive 2026 Outlook

    OUTFRONT Media concluded Q4 FY25 with strong revenue acceleration driven by robust digital and Transit segment performance, particularly in the New York MTA. The company is actively modernizing its sales strategy and technology through partnerships like AdQuick and AWS, aiming to unlock new revenue streams and enhance efficiency. Management expressed confidence in double-digit AFFO growth for 2026, supported by continued momentum and strategic initiatives, despite some non-recurring items impacting Q1 FY26.

    Highlights

    5

    • Consolidated revenues up 4.1% in Q4 FY25, accelerating from Q3 FY25.

    • Transit revenue grew an impressive 16% in Q4 FY25, led by New York MTA up over 20%.

    • Consolidated Adjusted OIBDA up 12% to $174 million in Q4 FY25.

    • AFFO up 8% to $130 million in Q4 FY25.

    • Digital revenues (excluding exited contracts) would have grown over 16% in Q4 FY25, representing 39% of total revenues.

    Concerns

    3

    • Billboard revenues impacted by the exit of two large, marginally profitable contracts in NY and LA, resulting in reported digital billboard revenues being down 0.6% in Q4 FY25.

    • SG&A expenses increased by 3.5% in Billboard segment due to higher doubtful accounts, professional fees, and T&E.

    • SG&A expenses increased by 15% in Transit segment primarily due to higher professional fees.

    Guidance & targets

    9
    CategoryTargetConfidence
    Q1 FY26 Consolidated Revenue Growth (reported)
    high single digits
    high materiality
    High
    Q1 FY26 Consolidated Revenue Growth (adjusted for non-recurring items)
    mid- to high single-digit range
    high materiality
    High
    Full-year 2026 AFFO Growth
    comfortably in the double-digit range
    high materiality
    High
    Full-year 2026 Capital Expenditures
    approximately $90 million
    medium materiality
    High
    Full-year 2026 Maintenance Capital Expenditures
    $30 million to $35 million
    medium materiality
    High
    Full-year 2026 Cash Interest
    $145 million
    medium materiality
    High
    Full-year 2026 Cash Taxes
    $5 million
    medium materiality
    High
    Full-year 2026 Billboard Acquisition Activity
    similar level to those seen in the last couple of years
    low materiality
    Medium
    2026 New York MTA Minimum Annual Payment (MAG)
    approximately $161 million
    medium materiality
    High

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Consolidated
    Acceleration from Q3 of 3.5%.
    Adjusted OIBDA: $174 million (up 12%)AFFO: $130 million (up 8%)
    		up 4.1%4.1%——
    Billboard
    Reported revenue impacted by exit of 2 large, marginally profitable contracts. Excluding these, Billboard revenues would have grown 3.7%.
    Adjusted OIBDA margin: 41.5% (up 120 bps YoY)Static and other billboard revenues: up 1.1%Digital billboard revenues: down 0.6% (reported)Digital billboard revenues (excl. exited contracts): up 6.7%
    		up 1%1%—Adjusted OIBDA up 3.4%
    Transit
    Strength driven equally by commercial and enterprise teams. Led by New York MTA performance.
    Digital Transit revenues: up 37% to $73 millionStatic Transit revenues: down a little over 2%New York MTA revenue: up over 20%
    		up 16%16%—Adjusted OIBDA up 56%
    Digital Revenue (Combined)
    Impressive growth, especially when excluding impact of exited contracts.
    Represented 39% of total revenuesExcluding NY and LA contracts: up over 16%
    		up 11%11%——
    Commercial (Revenue)
    Strong performance across both Transit and Billboard within the commercial segment.
    Transit growth: mid-teensBillboard growth: mid-single digits
    		up almost 7%7%——
    Enterprise (Revenue)
    Transit growth offset by Billboard decline due to LA contract exit.
    Transit growth: mid-teensBillboard decline: mid-single digits (due to LA contract exit)
    		up 1%1%——

    Operational metrics

    20
    Billboard property lease expense
    down $3 milliondown 1.4% YoY
    Q4 FY25

    Total Billboard expenses.

    Billboard property lease expense (excluding exited contracts)
    up about 4%up 4% YoY
    Q4 FY25

    Excluding the impact of the portfolio exits.

    Billboard posting, maintenance and other expenses
    down about $1 milliondown 2.6% YoY
    Q4 FY25

    Due primarily to lower production expenses.

    Billboard SG&A expenses
    increased by about $2.3 millionup 3.5% YoY
    Q4 FY25

    Due to higher provision for doubtful accounts, professional fees, and T&E.

    Transit expenses
    up about $6 millionup 6% YoY
    Q4 FY25

    Total Transit expenses.

    Transit franchise expenses
    up 4.7%up 4.7% YoY
    Q4 FY25

    Due primarily to annual inflation adjustment to MTA MAG.

    Transit posting, maintenance and other expenses
    up about $0.5 millionup 2.8% YoY
    Q4 FY25

    Due primarily to higher production expenses.

    Transit SG&A expenses
    up about $2.6 millionup 15% YoY
    Q4 FY25

    Primarily due to higher professional fees.

    Corporate expense
    declined by about $1 milliondown $1 million YoY
    Q4 FY25

    Due to lower compensation-related expenses, partially offset by market fluctuations on an unfunded equity-linked retirement plan.

    Q4 CapEx spend
    $25 million
    Q4 FY25
    Annual AFFO adjustment (prior periods)
    less than $3 million
    annual

    Resulted from modification of AFFO calculation to include amortization of direct lease acquisition costs instead of cash paid.

    Committed liquidity
    nearly $750 million
    as of Dec 31
    Net leverage
    4.7x
    as of Dec 31

    Within 4x to 5x target range. Next maturity not until late 2027.

    Cash dividend
    $0.30maintained
    Q1 FY26

    Payable on March 31 to shareholders of record on March 6.

    Acquisitions spend
    approximately $3 million
    Q4 FY25

    Bringing total for 2025 to just over $13 million.

    Programmatic and digital direct automated sales
    up 11.3%up 11.3% YoY
    Q4 FY25
    Billboard yield growth
    up about 4%up 4% YoY
    Q4 FY25

    Driven primarily by inventory management efforts.

    Digital board conversions
    26
    Q4 FY25
    New York MTA deferred minimum annual payment
    $11.7 million
    2026

    Final deferred payment related to 2020 MTA amendment and associated MAG shortfall.

    New York MTA ridership
    80% to 85%of 2019 levels
    current

    Ridership is up 30% from 2022, with over 1.3 billion trips in total.

    Deals & partnerships

    5
    AdQuickExclusive commercial arrangement for out-of-home planning platform

    Leading independent out-of-home planning platform. AI-powered technology platform that makes out-of-home advertising easier to plan, purchase and measure.

    Amazon Web Services (AWS)Commercial agreement for connecting inventory to media buying centers

    Aims to integrate OUTFRONT's inventory and data sets into consolidated AI-enabled digital planning and buying systems of HoldCos.

    New York MTAExit of large, marginally profitable billboard contract

    One of two large contracts exited, impacting reported 2024 financial statements.

    Los AngelesExit of large, marginally profitable billboard contract

    One of two large contracts exited, impacting reported 2024 financial statements.

    VariousTuck-in acquisitions within existing footprintapproximately $3 million

    Company remains interested in pursuing attractive tuck-in acquisitions.

    Risks & headwinds

    3
    Impact of exited Billboard contractsQ4 FY25, Q1 FY26

    Reported Billboard revenues were up 0.5% and digital billboard revenues were down 0.6% in Q4 FY25 due to these exits. One LA contract contributed $4.5 million in revenue in Q1 FY25, creating a headwind for Q1 FY26.

    Mitigation: Strategic decision to exit marginally profitable contracts to improve OIBDA margins; Billboard adjusted OIBDA margin increased by 120 bps YoY to 41.5%.

    Increased SG&A expensesQ4 FY25

    Billboard SG&A up 3.5% ($2.3M); Transit SG&A up 15% ($2.6M) in Q4 FY25.

    Mitigation: Billboard increase due to higher doubtful accounts, professional fees, T&E. Transit increase due to higher professional fees. No specific mitigation stated beyond general operational excellence.

    Market fluctuations on unfunded equity-linked retirement planQ4 FY25

    Partially offset lower compensation-related expenses, leading to a $1 million decline in Corporate expense.

    Mitigation: Not explicitly stated, but impact was offset by other factors.

    What to watch in Q1 FY26

    5

    MTA revenue exceeding MAG

    FY26
    CurrentMTA MAG approximately $161 million for 2026, breakeven around $285 million
    TargetMTA revenue above $285 million

    Why it matters

    Indicates strong organic growth and potential for higher profitability from the key Transit segment.

    Revenue growth, MTA, again, we haven't given that guidance, but we feel very confident you can see the acceleration from the first quarter of '25 through, as Nick described, into 2026. As Cam pointed out before, there is a chance, not in our guidance, but there is a chance that we clear the MEG breakeven, which is around $285 million.

    Q&A highlights

    5

    Is there a structural shift in how large advertisers engage, and how do AdQuick and AWS tie into measurement and engagement?

    Nick Brien explained that AdQuick and AWS are strategic agreements designed to unlock new revenue streams. AWS focuses on agency-connect for HoldCos with AI-enabled planning systems, integrating OUTFRONT's inventory. AdQuick targets SMB and mid-market, simplifying OOH planning and buying.

    “The orientation of our partnership with AWS is to what we're calling agency-connect to ensure that for all the HoldCos who are increasingly having consolidated AI-enabled digital planning and buying systems that we -- our inventory and our data sets are completely integrated into that. We see AdQuick as being much more for the SMB and mid-market...”

    asked by Daniel Osley · answered by Nicolas Brien

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Imperatives & Progress

    OUTFRONT Media made significant progress on its four strategic imperatives in 2025: optimizing sales strategy through reorganization and leadership changes, modernizing workflow with investments in Salesforce and AWS, generating new demand particularly in Transit, and fostering operational excellence. These efforts contributed to the strong Q4 FY25 results and positive momentum into 2026, positioning the company for continued growth and innovation.

    02

    Digital Transformation & Partnerships

    The company is accelerating its digital capabilities through key commercial agreements with Amazon Web Services (AWS) and AdQuick. The AWS partnership aims to integrate inventory and data into agency HoldCo's media buying centers, targeting enterprise clients. The AdQuick partnership, an AI-powered platform, simplifies planning, purchasing, and measurement for out-of-home advertising, particularly for SMB and mid-market clients, by enabling targeted campaigns in minutes.

    03

    New York MTA Performance & Outlook

    The New York MTA contract was a significant growth driver, with revenues up over 20% in Q4 FY25 and contributing to Transit's 16% growth. This strength is expected to continue into 2026, with the minimum annual payment to the MTA stepping up by 3% to approximately $161 million. Management noted a possibility, though not guidance, of MTA results exceeding the Minimum Annual Guarantee (MAG) of around $285 million in 2026.

    04

    Billboard Portfolio Management

    Billboard revenues were impacted by the strategic exit of two large, marginally profitable contracts in New York and Los Angeles. Excluding these exits, digital billboard revenues would have grown 6.7% in Q4 FY25, and total Billboard revenues would have grown 3.7%. These portfolio management decisions contributed to a 120 basis point increase in Billboard adjusted OIBDA margin to 41.5% in Q4 FY25.

    05

    AI and Tech Advertising Trends

    AI and SaaS companies are emerging as a significant and growing category for OUTFRONT, particularly within the Transit segment. Brands like Anthropic, CodeRabbit, IBM, and ClickUp are actively using out-of-home advertising to build recognition and visibility in the real world, indicating a strong and potentially sustainable demand from the tech sector. The company has a dedicated team focused on engaging with these brands.

    06

    FIFA World Cup 2026 Opportunity

    The upcoming FIFA World Cup in 2026 is identified as a significant tailwind for the company. OUTFRONT has direct agreements with 6 host cities (LA, San Francisco, Atlanta, Dallas, Kansas City, Miami) and is actively engaging with major FIFA sponsors like Coca-Cola, AB InBev, and McDonald's to create unique advertising opportunities during the event. Detailed financial impacts are expected to be shared in future earnings calls.

    AI-generated summary of the company’s earnings call. Not investment advice.