NEW YORK — Publicly traded MediaCo Holding Inc., which has seen its Nasdaq-listed stock trading below the $1 threshold since November 4, has notified the Securities & Exchange Commission that it will be late in filing its third quarter earnings report. That said, a preview of the results shows strong revenue growth — and a ballooning loss driven largely by accounting rules.
The Form 12b-25 filing from CFO and Treasurer Debra DeFelice shows the owner of Estrella Media and radio brands such as New York’s WBLS and WQHT “Hot 97” on Friday (11/14) filed for a five-day extension. Why? Mediaco could not complete its Form 10-Q for the quarter ending September 30 without “unreasonable effort or expense.”
The company expects to submit the delayed report within the SEC’s grace period. In the filing, MediaCo revealed what investors can expect in a single paragraph: Net revenue is projected to jump approximately 19% year-over-year in Q3, fueled primarily by growth in its digital operations. However, the company’s net loss is expected to more than double, widening by roughly 130%, largely due to a technical accounting adjustment related to outstanding warrants.
That market-to-market fair value adjustment on warrants is a non-cash item that does not reflect MediaCo’s operational performance but can significantly impact reported losses. The accounting treatment requires the company to revalue warrants each quarter based on current market conditions, which can create volatility in financial results.
DeFelice confirmed MediaCo remains current on all other periodic reports filed over the past year.
— Additional reporting by Adam R Jacobson
