OUTFRONT Media — Third Quarter 2026 Earnings Summary

Financial Performance

• Consolidated revenues reached $511.1 million for the quarter ended September 30, 2026, an increase of $43.6 million (9.3%) year-over-year from $467.5 million; nine-month revenues totaled $1,463.2 million, up from $1,318.4 million.
• Operating income was $102.8 million for the quarter, up from $89.9 million in the prior-year period; nine-month operating income was $274.8 million compared to $160.0 million.
• Adjusted OIBDA was $145.3 million for the quarter, a 5.9% increase from $137.2 million; nine-month Adjusted OIBDA was $406.0 million, up from $325.5 million.
• Net income attributable to OUTFRONT Media Inc. was $64.8 million for the quarter, a 26.3% increase from $51.3 million; nine-month net income was $161.4 million versus $50.2 million.
• Diluted earnings per share were $0.36 for the quarter, up from $0.29; nine-month diluted EPS was $0.91 compared to $0.26.
• Funds From Operations (FFO) attributable to the company was $105.6 million for the quarter, up 5.9% from $99.7 million; nine-month FFO was $292.6 million versus $196.6 million.
• Adjusted Funds From Operations (AFFO) attributable to the company was $102.9 million for the quarter, up 5.0% from $98.0 million; nine-month AFFO was $284.7 million versus $208.2 million.
• Net cash flow provided by operating activities for the nine months ended September 30, 2026, was $311.6 million, a 64.4% increase from $189.5 million.
• Total capital expenditures for the nine months were $60.7 million, a 5.2% decrease from the prior-year period.
• Net interest expense was $36.9 million for the quarter, compared to $37.0 million in the prior year; the weighted average cost of debt was 5.5% as of September 30, 2026.
• Total indebtedness as of September 30, 2026, was $2.5 billion, excluding $18.9 million of deferred financing costs.

Guidance and Future Outlook

• Management expects 2026 to be a double-digit revenue growth year, driven by focused execution and the re-emergence of In-Real-Life (IRL) marketing in advertiser campaigns.
• The company expects to recoup some, but not all, MTA equipment deployment costs incurred prior to December 31, 2025, and does not expect to recoup current or future MTA equipment deployment costs under the current agreement, even if revenues exceed the minimum annual guarantee threshold.

Business Segments and Product Lines

• Billboard Segment: Revenues were $373.7 million, up 5.9% year-over-year, driven by increased average revenue per display (yield) from programmatic and direct sale platforms and revenues related to the 2026 FIFA World Cup. Adjusted OIBDA was $139.5 million, flat at $139.3 million.
• Transit Segment: Revenues were $135.3 million, up 20.4% year-over-year, driven by higher yield and 2026 FIFA World Cup revenues, partially offset by new and lost franchise contracts. Adjusted OIBDA surged 84.1% to $28.9 million from $15.7 million.
• Other Segment: Revenues decreased 8.7% to $2.1 million due to a decrease in third-party digital equipment sales; Adjusted OIBDA was flat.
• Corporate: Corporate expenses increased 29.1% to $23.5 million, driven by higher compensation and professional fees.

Market and Competitive Landscape

• The company highlights the re-emergence of IRL marketing as a key trend integral to advertisers' campaigns.
• The 2026 FIFA World Cup contributed positively to revenue growth in both the Billboard and Transit segments.
• Transit segment growth outside of New York was a significant driver for higher variable franchise expenses and revenues.

Risks and Challenges

• The company faces the risk of not recouping MTA equipment deployment costs under the current accounting treatment, where revenues above the minimum guarantee are applied to the earliest unrecovered investments first.
• Operating expenses increased due to higher variable billboard property lease expenses, higher guaranteed minimum annual payments to the MTA due to inflation, and higher site-related costs.
• SG&A expenses increased significantly due to higher compensation, professional fees (including software and technology), and a higher allowance for bad debt.
• The press release notes general risks including declines in advertising conditions, competition, government regulation, debt levels, and REIT qualification requirements.

Management Commentary and Tone

• CEO Nick Brien stated that third-quarter revenues grew over 9% given broad strength across all aspects of the business, resulting in healthy Adjusted OIBDA and AFFO growth.
• Management expressed confidence in the company's focused execution and the role of IRL marketing in future growth.
• The tone reflects optimism regarding the 2026 full-year outlook while acknowledging specific accounting challenges related to the MTA agreement.

Other Key Points

• The Board of Directors declared a quarterly cash dividend of $0.33 per share, payable on December 31, 2026, to stockholders of record on December 4, 2026.
• Cash dividends paid in the nine months ended September 30, 2026, totaled $164.4 million.
• Liquidity as of September 30, 2026, included $74.1 million in unrestricted cash, $494.9 million available under a $500.0 million revolving credit facility, and $50.0 million available under an accounts receivable securitization facility.
• The company modified its AFFO calculation starting at the end of 2025 to include amortization of direct lease acquisition costs rather than cash paid, with prior periods recast to conform.
• No shares were sold under the at-the-market equity offering program during the quarter, with $232.5 million remaining available.
• The company plans to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, the day following the press release.