After a small delay, MediaCo posted a strong year-over-year revenue increase for Q3 2025, led by growth in digital and video advertising. However, higher operating expenses and non-cash valuations turned last year’s profit into a steep net loss for the quarter.
The WQHT (Hot 97) and WBLS in New York and Estrella Media owner reported revenue of $35.4 million for the three months ended September 30, up 18.5% from $29.9 million in the same period last year. However, operating expenses climbed 15.7% to $42.5 million, resulting in an operating loss of $7.1 million.
The biggest impact came from a $7.3 million non-cash accounting charge related to warrant liability. Last year, this same accounting item, which gives investors the right to buy company stock at a set price, produced a $65.4 million gain, a swing of roughly $72.7 million that turned what would have been a profit into a $17.9 million net loss.
As referenced by the company in an earlier filing, this marks a more than 130% drop year-over-year, when MediaCo had reported a $54.9 million profit.
As for the growth, digital advertising led the charge, with revenue jumping to $17.4 million from just $5.8 million a year earlier. Video revenue reached $21.8 million, while audio revenue totaled $13.6 million. Traditional spot radio and TV advertising declined to $15.8 million from $19.6 million, reflecting the company’s shift toward multi-platform content delivery.
Separately, MediaCo’s Board of Directors has expanded its membership and elected MediaCo President/CEO Albert Rodriguez as a Class II Director, effective immediately. Rodriguez will serve on the Board without additional compensation beyond his CEO salary.
