PodcastOne (PODC) Q4 FY26 earnings call: guidance and Q&A

How should we interpret the move to number seven in PodTrak rankings, distinguishing between real growth and industry consolidation?

Kit Gray explained that while PodTrak is a good reference for industry standing and talent acquisition, it's a cyclical measure influenced by factors like sports seasons. The company's true focus is on internal metrics like show growth, CPMs, and fill rates, which are the real drivers of revenue.

“But at the end of the day, that's not where we're paid, and that's not where we make our money. Our money is on, are the shows growing? Are we getting our CPMs higher? Are we getting our fill rates higher?”

asked by Sean McGowan · answered by Kit Gray

Beyond PodTrak, what internal metrics does PodcastOne use to measure its performance relative to the overall industry?

Kit Gray stated that internal metrics focus on show-specific performance, including sellout rates, CPMs, marketing effectiveness, and cross-promotion. The team reviews show performance every two weeks, adapting to new social media and video techniques to maximize growth and monetization.

“What are the sellout rates? Can we get the CPMs up? growing? Are we marketing it the right way? Are the shows marketing it the right way? Are we getting them on other podcasts to grow? That's really important.”

asked by Sean McGowan · answered by Kit Gray

What should be expected for non-employee stock-based compensation going forward, and is it all Podcast One shares?

Kit Gray expects an increase in stock-based compensation over the next 12-24 months, as early adopters have seen great value, creating case studies for others. Robert Ellin added that this strategy aligns talent with the company, offering a liquid currency and a significant competitive advantage in talent acquisition. Currently, all shares are Podcast One shares, though both Podcast One and LVO shares have been used historically.

“It's a great help to everybody here. It's a great help to building the network and building the audience and continue to grow. So we're really proud of this and it gives us a huge leg up for negotiating with talent to be able to offer them a company and a pretty liquid currency now that they can now jump into.”

asked by Sean McGowan · answered by Robert Ellin

Can you break down the fiscal 2027 guidance in terms of organic growth versus acquisitions of new talent or companies?

Kit Gray indicated that the breakdown is fluid but will be a blend of organic growth, M&A opportunities, and new tech initiatives. Robert Ellin clarified that their guidance includes talent acquisitions (1-2 new pieces per month) but not company acquisitions. The pipeline for both talent and M&A is robust, with the industry seeing increased ad spend and programmatic expansion.

“It's really going to be a blend of all those three things to get us to where we need to be. there's always different things that come along the way too. We talked a little bit about some of the AI content licensing opportunities that are really exciting as well.”

asked by Leo Carpio · answered by Kit Gray

Are there robust M&A opportunities for platforms at rational costs, or are conditions similar to prior years?

Robert Ellin stated that the current environment is robust for acquiring smaller podcast networks (under $10 million revenue) that are too small for larger players. He highlighted recent aggressive acquisitions by companies like OpenAI (13.5x revenues) and Fox (huge multiples) for bigger networks, creating a sweet spot for PodcastOne to acquire smaller networks that need their 360-degree services.

“So it's a great opportunity for us to pick up, you know, one, two or three of these and really take this to over a hundred million dollars quickly.”

asked by Leo Carpio · answered by Robert Ellin

The advertising environment sounds rich and robust despite economic backdrops. Will this persist?

Kit Gray confirmed that the advertising environment for podcasting is strong, with brands seeing great results and utilizing digital attribution to measure ROI. He emphasized PodcastOne's ability to offer unique community-based campaigns that talent executes effectively, leading to higher CPMs and brand splits. This approach fosters strong relationships with talent and agencies, ensuring continued ad spend.

“Everything is pointing towards good things in the podcasting front. Just because brands are seeing great results, they have the ability to do their digital attributions to see uptick and what shows are working and where their budgets are working, what demographics are working for their brands.”

asked by Leo Carpio · answered by Kit Gray

Can you provide an update on the Amazon relationship with R-19, specifically regarding volume activity and contract thresholds?

Kit Gray described the Amazon relationship as 'great,' providing tremendous technological efficiencies. While the sales platform had a 'bumpy start,' it's now hitting its stride, with sell-out percentages and CPMs moving positively. He noted that acquiring more shows and networks would help them reach the next tier of minimum guarantee with Amazon.

“but we're really hitting our stride and you know we look at um and sell out percentages and CPMs almost daily and they're all going in the right direction.”

asked by Leo Carpio · answered by Kit Gray

What is the current number of shows, what are the top three, and how is the Dr. Phil show performing?

Kit Gray stated the company has between 185-200 shows. Top performers include Adam Carolla, Jordan Harbinger, and A&E properties, with Stasi also doing well. Dr. Phil's podcasts, including his main show and 'Mystery and Murder,' are performing well and fit into the network's lifestyle and crime categories, respectively, with high hopes for continued growth.

“The podcasts that still remain atop the world and podcasting for us, Adam Carolla, Jordan Harbinger, the A&E properties, those remain our top dogs.”

asked by Barry Sine · answered by Kit Gray

Given PodTrak's limitations, particularly its exclusion of YouTube, what percentage of viewing do you think it picks up, and how might we adjust the numbers upward?

Kit Gray acknowledged PodTrak's limitations, noting they are working to include video and social media reach. He confirmed that YouTube is a significant source, potentially representing around 22% of viewing, but emphasized that not all shows are on YouTube or utilize video content. He cautioned against direct upward adjustments due to varying content types and monetization strategies, reiterating that internal metrics are more critical.

“I think so, you know, but it really like it's hard because, um, not every show has YouTube, right? Where if they do, they put it out on YouTube as still imagery, right?”

asked by Barry Sine · answered by Kit Gray

How does PodcastOne compete for talent against larger publishers above it and smaller publishers below it?

Kit Gray stated that PodcastOne 'steals' talent from larger companies like iHeart by offering more personalized attention and data-driven business management, which larger, less focused networks struggle to provide. Against smaller publishers, PodcastOne offers both individualized attention and significant scale (e.g., 25-30 million downloads/month), along with comprehensive marketing, booking, and sales support, making it attractive to shows seeking growth.

“We're stealing from a bunch of those companies. IHeart has their own financial issues that they're working through. You know, every time you listen to them on what they're talking about on their earnings calls, it's really strong in terms of podcast growth, right?”

asked by Barry Sine · answered by Kit Gray