Breaking Down MediaCo Holding Inc. (MDIA) Financial Health: Key Insights for Investors

You're looking at MediaCo Holding Inc. (MDIA) and seeing a classic media paradox: massive growth colliding with persistent quarterly losses, and you need to know which number to trust for your investment thesis. Honestly, the headline figures for the 2025 fiscal year tell a complex story, but the short answer is that the underlying business is accelerating, even if the balance sheet is still burning cash in the near-term. The company's trailing twelve-month revenue, as of June 30, 2025, hit a solid $121.94 million, representing a staggering 165.75% year-over-year growth, which is defintely outpacing the broader US Broadcasting industry's growth rate. But here's the quick math on the risk: that growth is expensive, as the second quarter of 2025 alone saw a net loss of approximately $9.1 million, showing the high cost of content and digital expansion in a market where US Pay TV subscribers are projected to decline by 10% this year. We need to look past the top-line revenue surge and focus on the capital allocation strategy, especially as the industry is seeing social advertising grow by another 20% in 2025; the question is whether MDIA is capturing enough of that high-margin digital shift to make the current cash burn worthwhile.

Revenue Analysis

You're looking at MediaCo Holding Inc. (MDIA) because the headline revenue numbers are stunning, and honestly, they should grab your attention. The key takeaway is that the company's recent strategic acquisition has completely reshaped its financial profile, driving explosive growth but also introducing a new revenue mix you need to understand.

For the trailing twelve months (TTM) ending June 30, 2025, MediaCo Holding Inc. reported net revenue of approximately $121.94 million. That represents a massive year-over-year revenue growth rate of about 165.75%. This isn't organic, slow-and-steady growth; this is a step-change driven by the April 2024 Estrella Acquisition, which brought in substantial new assets in the Audio and Video segments.

Here's the quick math on the near-term results: for the first half of fiscal year 2025 (H1 2025), net revenue reached $59.3 million, an 80% surge from the prior year. That's a powerful lift, but let's break down where that money actually comes from.

Primary Revenue Streams and Segment Contribution

MediaCo Holding Inc.'s revenue is primarily generated through its core media business, which is now structured around two main segments: Audio and Video. The money flows in from several sources, with traditional advertising still being the largest component, but digital is quickly becoming a major force.

• Spot Advertising: The sale of short-form commercials on radio and television.
• Digital: Revenue from streaming, online platforms, and digital ads.
• Syndication: Licensing content to other broadcasters.
• Events and Sponsorships: Income from live events, like HOT 97's Summer Jam, and related brand sponsorships.

Looking at the first quarter of 2025 (Q1 2025) results, which totaled $28.0 million in net revenues, we can see the initial segment split post-acquisition. The Video segment contributed $14.3 million, just slightly outpacing the Audio segment at $13.7 million. This gives you a clear picture: the Video segment, largely bolstered by the Estrella assets, is now the slightly larger revenue driver, accounting for roughly 51.1% of the total Q1 revenue.

The Digital Shift: A Significant Change

The most important shift in the revenue mix is the acceleration of the Digital segment. This is where the future growth lies, and it's defintely where management is focused. In the first half of 2025, digital revenue saw an incredible surge of 345% year-over-year.

This growth means digital revenue now accounts for a substantial 33% of the company's total advertising income. This signals a successful pivot to a digital-first strategy, particularly in reaching their core multicultural audiences across platforms like EstrellaTV, Estrella News, and the iconic Hot 97 and WBLS brands. This focus on digital is critical because it offers higher margins and better audience targeting than traditional spot advertising.

The strategic integration of the acquired assets is clearly paying off in top-line growth, but you need to watch the underlying profitability, as the net loss still widened to $8.61 million in Q1 2025 despite the revenue jump. To truly understand the strategic direction and long-term viability of this new revenue powerhouse, you should review the Mission Statement, Vision, & Core Values of MediaCo Holding Inc. (MDIA).

Profitability Metrics

You need to know if MediaCo Holding Inc. (MDIA) is making money from its core business, or if its profitability is propped up by one-time events. The direct takeaway is this: MDIA's operating business is losing money, but a massive non-operating gain has driven its net profit margin to an impressive, but unsustainable, level for the Trailing Twelve Months (TTM) ended June 30, 2025.

The company reported TTM Revenue of $121.94 Million, representing a significant increase of 165.75% year-over-year. However, digging into the margins, the picture gets complicated. Your investment thesis must account for the difference between core operational performance and one-off financial gains.

Here's the quick math on MediaCo Holding Inc.'s core profitability ratios for the TTM period ending June 30, 2025:

• Gross Profit Margin: -6.07% (Gross Profit of -$7.4 Million)
• Operating Profit Margin: -18.64% (Operating Income of -$22.73 Million)
• Net Profit Margin: 27.30% (Net Income of $33.28 Million)

A negative Gross Profit Margin of -6.07% is a serious red flag for operational efficiency. It means the Cost of Revenue ($129.34 Million) is higher than the Revenue ($121.94 Million), indicating that the company is losing money before even accounting for overhead like Selling, General & Administrative (SG&A) expenses. This is defintely a challenge in cost management.

Operational Efficiency and Industry Comparison

When you compare MDIA's operational metrics to the Broadcasting industry averages, the gap is stark. The industry average Gross Profit Margin is typically around 33.4%, and the projected Operating Margin for TV broadcasters is around 15% by 2026-2027. MediaCo Holding Inc. is nowhere near these benchmarks on an operational level.

The company's deep Operating Loss of -$22.73 Million translates to an Operating Profit Margin of -18.64%, which is significantly below the industry's typical performance. This suggests substantial issues in managing operating expenses (OpEx) relative to the revenue generated. The operational side of the business is simply not sustainable right now.

Here is how MediaCo Holding Inc. stacks up against the sector:

The Non-Operating Profit Swing

The dramatic swing from a negative Operating Profit Margin to a strong Net Profit Margin of 27.30% is the most important factor to understand. This positive net income is almost entirely due to a single line item: $71.6 Million in 'Other Non Operating Income (Expenses)'. This is likely a one-time gain, such as a large asset sale, a legal settlement, or a significant revaluation of an investment, which is common for a holding company.

What this estimate hides is the underlying weakness. The Net Profit Margin of 27.30% is far above the industry average of -0.9%, but it is not repeatable through core business operations. The trend over time shows MDIA moving from a large operating loss to a non-operating-driven net profit, meaning the business model itself is still under pressure while the balance sheet benefits from strategic, non-core transactions. You can read more about the shareholders in Exploring MediaCo Holding Inc. (MDIA) Investor Profile: Who's Buying and Why?

Your next step is to isolate that non-operating gain in your model and forecast future profitability based only on the core business's negative margins, then assess if the company's cash from operations can cover its debt obligations until operational efficiency improves.

Debt vs. Equity Structure

When you look at MediaCo Holding Inc. (MDIA)'s balance sheet, the first thing that jumps out is that the company leans more on equity financing than debt, which is generally a positive sign for stability. The company's debt-to-equity (D/E) ratio currently sits at about 0.737, based on the most recent quarter ending June 2025, meaning for every dollar of shareholder equity, they hold about 74 cents in debt. This is a crucial metric, as it shows how much of the company's assets are funded by creditors versus shareholders.

This capital structure is actually quite conservative compared to some peers in the broader media and communication services sector. For instance, the average D/E ratio for the US Broadcasting industry in 2025 is around 0.926, and for the wider Communication Services sector, it's about 0.7963. MediaCo Holding Inc. is operating below these benchmarks, suggesting a lower reliance on borrowed capital, which is a good thing in a high-interest-rate environment.

Here's the quick math on their financing components as of June 2025:

• Total Debt: Approximately $71.7 million.
• Total Shareholder Equity: Approximately $97.25 million.
• Total Debt to Equity Ratio: 73.7%.

The company's debt profile is a little complex when you look at the maturity structure. While the total debt is manageable relative to equity, the company's total liabilities are substantial. As of June 2025, total liabilities stood at $217.90 million, with short-term liabilities (due within one year) at $70.1 million and long-term liabilities at $147.8 million. This breakdown shows a significant portion of obligations are due in the near-term, which is a key risk to monitor. You need to watch their cash flow to ensure they can cover that short-term block. Exploring MediaCo Holding Inc. (MDIA) Investor Profile: Who's Buying and Why?

MediaCo Holding Inc. has been actively managing its capital structure, using both debt and equity to fund its operations and growth. On the debt side, they secured an additional $7.5 million credit facility in September 2024, which followed an initial $35.0 million term loan and a $10.0 million delayed draw facility from April 2024. This shows an ongoing need for external financing. On the equity side, the company issued 28,205,938 shares of Class A Common Stock in September 2025 through a warrant exercise. This is an equity funding move that helps shore up the balance sheet but also results in shareholder dilution. They are defintely balancing the two, but the recent equity issuance suggests a preference for less-risky capital, possibly due to the high cost of debt or lender caution.

The Long-Term Debt to Equity ratio, which strips out short-term operational liabilities, is a more favorable 68.58%. This indicates that the core, long-term financing of the business is not overly debt-laden. Still, the company has faced challenges, including delayed SEC filings in 2025, which can trigger covenant breaches or make future financing more expensive. This is a real-world risk that changes the cost of capital.

Liquidity and Solvency

When you look at MediaCo Holding Inc. (MDIA)'s balance sheet for the Trailing Twelve Months (TTM) ending June 2025, the immediate takeaway is a tight liquidity position. Liquidity is simply a company's ability to pay its short-term bills, and for MDIA, the numbers suggest a significant reliance on future cash generation or external financing to cover near-term obligations.

The core issue is a substantial deficit in working capital, which is your current assets minus your current liabilities. For MDIA, this figure stands at a negative $32.27 million. This is a clear warning sign. You want this number to be positive, meaning you have more assets that can be quickly converted to cash than you have bills due in the next year. This deficit means MDIA is defintely operating under pressure.

Current and Quick Ratios Signal Strain

The Current Ratio and Quick Ratio (Acid-Test Ratio) are the clearest indicators of short-term financial health. A ratio of 1.0 or higher is generally considered healthy, but MDIA falls well short of that benchmark. Here's the quick math:

• Current Ratio: 0.54
• Quick Ratio: 0.5

A Current Ratio of 0.54 means MediaCo Holding Inc. has only 54 cents of current assets (like cash and receivables) for every dollar of current liabilities (bills due soon). The Quick Ratio is almost identical at 0.5 because the company carries virtually no inventory ($0 million). This tells you that even if you exclude inventory, their immediate cash-like assets are insufficient to cover short-term debt, and that's a structural liquidity concern.

Cash Flow Statements Overview

The good news is that MediaCo Holding Inc. has managed to generate positive cash flow from operations, which is the lifeblood of any business. For the TTM period ending June 2025, Operating Cash Flow (OCF) was a positive $3.96 million. This is a welcome improvement, as it shows the core business is generating cash, not just paper profit.

This OCF, combined with minimal capital expenditures (CapEx) of only $1.3 million, results in a positive Free Cash Flow (FCF) of approximately $2.76 million. This FCF is the cash left over after running the business and maintaining assets, and it's what MDIA can use to service debt or fund growth. Still, a $2.76 million FCF is a thin cushion when you have a $32.27 million working capital deficit to address.

Liquidity Concerns and Actionable Insights

The primary liquidity concern is the substantial working capital deficit and the low Current Ratio. This situation forces the company to be highly dependent on rolling over its short-term debt or raising new capital. The positive OCF and FCF are strengths, but they are not large enough to quickly resolve the current liability overhang.

To understand the full picture, you need to see where the Financing Cash Flow is going. Given the high debt-to-equity ratio (73.7%), a significant portion of cash is likely allocated to interest and principal payments. Investors should monitor the company's ability to maintain this positive OCF trend and its success in renegotiating or refinancing its current liabilities. For a deeper dive into the company's full financial picture, you can read the complete analysis at Breaking Down MediaCo Holding Inc. (MDIA) Financial Health: Key Insights for Investors.

Valuation Analysis

Is MediaCo Holding Inc. (MDIA) overvalued or undervalued? Based on its price-to-book (P/B) ratio of 1.1 and a low enterprise value-to-EBITDA (EV/EBITDA) of 3.9, the stock appears undervalued relative to its assets and operational cash flow, but the negative trailing twelve-month (TTM) Price-to-Earnings (P/E) ratio of -3.90 signals ongoing profitability issues you can't ignore. The market is pricing in significant risk, which is why the stock trades below its book value per share of $1.77.

You need to look past the stock price-currently around $0.93 per share as of November 2025-and focus on the core profitability metrics. The negative TTM P/E means MediaCo Holding Inc. is currently losing money, which is why a traditional P/E valuation is not useful. Honestly, a negative P/E ratio is a red flag for any investor seeking value.

Here's the quick math on the key valuation multiples as of late October/early November 2025:

Stock Performance and Dividend Reality

The stock price trend over the last 12 months tells a clear story of market skepticism. From November 6, 2024, to November 5, 2025, the share price fell by about 23.31%, dropping from $1.26 to $0.97. The 52-week trading range of $0.793 to $1.900 shows extreme volatility, plus the stock is trading near the bottom of that range right now. This steep decline signals that the market views the company's turnaround efforts or growth prospects with deep caution.

On the income side, MediaCo Holding Inc. is not a dividend play. The dividend yield is 0 %, which is common for companies prioritizing cash for operations or debt reduction, especially those with negative earnings. The focus here is entirely on capital appreciation from a successful restructuring or growth strategy, not quarterly income.

Analyst Outlook and Actionable Steps

There is no strong, unified analyst consensus (Buy, Hold, or Sell) from major firms, but the mixed signals suggest a high-risk, high-reward scenario. Technical indicators lean slightly 'Bullish in the mid-term,' but that's not a fundamental buy rating. The short-sale ratio, at 30.02% as of mid-November 2025, is high, indicating that a significant portion of the market is betting against the stock, which is defintely a risk factor.

If you are considering an investment, you are essentially betting on the company's ability to move its EBITDA-which is currently negative at -$14.57 M-into positive territory quickly. The low P/B and EV/EBITDA multiples make it look cheap, but only if profitability is near. You can read more about the institutional interest in Exploring MediaCo Holding Inc. (MDIA) Investor Profile: Who's Buying and Why?

Your action now is simple:

• Monitor EBITDA and Net Income trends closely.
• Wait for two consecutive quarters of positive operating cash flow.
• Set a clear entry point below the book value per share of $1.77.

Risk Factors

You're looking at MediaCo Holding Inc. (MDIA) and seeing strong revenue growth-up an impressive 166% last year-but the stock's price-to-sales (P/S) ratio of just 0.7x (compared to the industry median of 1.1x) tells you investors are pricing in significant risks. The core issue is a major disconnect between reported profit and actual cash flow, plus a balance sheet that is defintely strained.

The biggest immediate red flag is the quality of earnings and the company's liquidity position. For the year ended June 2025, MediaCo Holding reported a statutory profit of US$33.3 million, but its Free Cash Flow (FCF) was only US$2.7 million. Here's the quick math: that high accrual ratio of 0.24 signals that a large portion of profit is tied up in non-cash accounting, which historically means less profitability down the road.

Financial and Operational Risks

The debt structure and recent financial reporting raise serious concerns about MediaCo Holding's financial stability. The company's liabilities significantly outweigh its liquid assets, creating a major funding gap.

• Liquidity Strain: As of June 2025, MediaCo Holding carried US$71.7 million in debt against only US$2.94 million in cash. The total liabilities due short-term and long-term exceed the sum of cash and near-term receivables by a whopping US$182.8 million.
• Net Loss Spike: The expected Q3 2025 net loss is projected to increase by approximately 130%, despite a 19% increase in net revenues. This is due almost entirely to a non-cash mark-to-market fair value adjustment on outstanding warrants, which materially impacts net income without reflecting core operations.
• Operational Loss: Trailing twelve-month Earnings Before Interest and Tax (EBIT) was a loss of US$23 million, indicating the core business is not yet profitable before accounting for interest and taxes.
• Shareholder Dilution: The company expanded the number of shares on issue by 15% over the last year, diluting the ownership stake of existing shareholders.

Also, the recent delay in filing the Q3 2025 Form 10-Q, while administrative, adds a layer of uncertainty that the market never likes.

External and Mitigation Factors

The media landscape is fiercely competitive, and MediaCo Holding's reliance on radio and digital advertising means it constantly battles larger, better-capitalized competitors. Regulatory compliance, particularly with the Federal Communications Commission (FCC) for its two New York City radio stations (WQHT(FM) and WBLS(FM)), is a constant, non-negotiable risk.

The company has stated mitigation strategies focus on operational efficiency. They are actively reviewing business operations to reduce costs and realign resources, plus investing in technology solutions to streamline processes. They also plan to pursue acquisitions in media-related and other sectors to grow the business.

To get a full picture of the risks and opportunities, you should check out the main analysis in Breaking Down MediaCo Holding Inc. (MDIA) Financial Health: Key Insights for Investors.

Your concrete next step is to wait for the delayed Q3 2025 10-Q to be filed and analyze the specific warrant mark-to-market calculation to determine its non-recurring nature.

Growth Opportunities

You're looking at MediaCo Holding Inc. (MDIA) and seeing a stock with a lot of recent volatility, but the underlying business growth in 2025 has been defintely exceptional. The core takeaway here is that MediaCo has successfully pivoted into a focused multicultural powerhouse, and that strategy is translating directly into revenue gains that are far outpacing the broader industry.

For the trailing twelve months (TTM) ending June 30, 2025, MediaCo Holding Inc. reported revenue of $121.94 million. That represents a massive 165.75% year-over-year growth, which is noticeably more attractive than the US Media industry's average one-year growth forecast of roughly 3.0%. Here's the quick math: the company is growing more than 55 times faster than the sector average, but you need to watch the bottom line-Q2 2025 Earnings Per Share (EPS) was still negative at -$0.11, and they expect a 130% increase in net loss for Q3 2025 due to a warrant adjustment. Growth is expensive, so we watch cash flow closely.

Key Growth Drivers: Targeting Multicultural Audiences

The company's growth is built on a clear, high-impact strategy: dominating the multicultural media space, specifically serving Hispanic and Black audiences. This focus gives them a distinct competitive advantage, allowing them to reach over 20 million people each month across video, audio, and live events. This is a niche, but it's a rapidly expanding one, and MediaCo Holding Inc. has established an early lead.

Their product innovations and market expansions in 2025 are directly tied to this strategy:

• Content Innovation: Launching new programming like EstrellaTV's Don Cheto Al Aire Live and the new HOT 97 TV Free Ad-supported Streaming Television (FAST) Channel.
• Distribution Expansion: Adding new EstrellaTV Affiliates in key markets like Boston, Colorado, and Texas.
• Audio Reach: Bringing iconic brands like HOT 97 and WBLS to Dot 2 Audio across major U.S. cities, expanding their digital footprint.

Strategic Initiatives and Political Tailwinds

MediaCo Holding Inc. is strategically positioning itself to capture a significant portion of the growing political advertising spend. The 2026 election cycle is already a focus, with management noting that multicultural audiences will be critical.

A key strategic initiative is the launch of their 2026 Political Team, a 100+ person unit dedicated to political engagement. This team is leveraging an exclusive partnership with DO IT Outdoors for local advertising solutions, including out-of-home (OOH) media with advanced tools like geofencing. This cross-platform approach is already paying dividends: a recent Miller Kaplan report showed the company captured 44% of all political and advocacy revenue in the New York market through July 2025. That's a powerful revenue stream you can bank on in election years.

For a deeper dive into who is betting on this strategy, you should check out Exploring MediaCo Holding Inc. (MDIA) Investor Profile: Who's Buying and Why?

2025 Financial Performance Snapshot

To put the growth into perspective, here is a breakdown of the most recent 2025 financial data:

What this estimate hides is the dilution risk. The company has been issuing new shares, expanding the share count by 15% over the last year, which splits future earnings among more owners. This is a common trade-off for high-growth companies that need capital for expansion, but it's something you must factor into your per-share valuation.