The publicly traded broadcast media company that’s parent to the Hispanic-focused Estrella Media operation and heritage multicultural radio brands “HOT 97” and WBLS in New York enjoyed a digital revenue surge in the first quarter of 2026 that helped send overall revenue up 12%.
That said, audio revenue was down year-over-year as operating expenses rose.
MediaCo Holding Co., which has radio and TV stations once tied to Liberman Broadcasting and recently created the Sigma Audio Networks national arm, saw its net revenue rise to $31.4 million in Q1, improving from $28 million a year ago.
The big takeaway? Digital now comprises half of the total revenue, rising from 34% in Q1 2026 to $15.5 million, from $9.5 million.
The growth was linked to MediaCo’s expanded digital focus. However, though the corresponding rise in digital platform costs pushed operating expenses up 19% to $34.8 million.
The video segment reflected the digital momentum most clearly. Anchored by EstrellaTV and MediaCo’s growing FAST channel portfolio, the segment narrowed its operating loss from $3.8 million to $1.1 million on a $7.3 million revenue increase.
Alas, MediaCo’s audio segment moved in the opposite direction. Audio revenues fell $3.9 million year-over-year to $9.8 million as operating expenses rose $1.5 million, swinging the segment from $695,000 in operating income to a $4.8 million operating loss.
Spot radio and television advertising fell to $14.2 million from $16.0 million, dropping from 57% of the revenue mix to 45%.
Total it up, and the Q1 net loss widened to $9.4 million from $8.6 million; MediaCo’s operating loss deepened by 61%, to $7.5 million.
In addition, MediaCo’s auditors continue to present questions about whether the company can stay solvent. As of March 31, the company held $5.1 million in cash while carrying $54.5 million more in short-term obligations than it had in current assets.
During the quarter, MediaCo renegotiated the terms of two of its major loans, buying more time on a $10 million debt payment that had been due in May and is now delayed to July 30.
The company by CEO Albert Rodriguez says it plans to refinance that debt, pay it from operating cash flow, or bring in new investment to cover it.
Separately, MediaCo’s internal accounting team flagged an ongoing error in how the company has reported financials tied to its Estrella acquisition, specifically around the valuation of goodwill and intangible assets. The company says it is working to fix the problem, but has not yet resolved it.
