Total revenue reached $70 million, up 31% from $53.5 million in the same quarter last year. The increase was driven by a 67% jump in active performance‑TV customers, which lifted average spend per customer and helped offset the modest decline in revenue from the divested Maximum Effort unit. The company’s revenue beat the consensus estimate of $70.11 million by $110,000, a margin that reflects strong demand for its performance‑TV platform among small and mid‑size advertisers.
Gross profit climbed to $55.3 million, giving a gross margin of 79%, a 7‑percentage‑point lift over the 72% margin reported in Q3 2024. The margin expansion was largely due to higher pricing power in the performance‑TV segment and improved cost efficiency from the QuickFrame AI launch, which reduced creative production costs for advertisers. Adjusted EBITDA reached $16 million, a 22.8% margin, up from 18.3% in Q3 2024. Net income was $6.4 million, the first GAAP profit in four years, and earnings per share were $0.08, beating the $0.04 consensus by $0.04 or 100%. The EPS beat was driven by disciplined cost control and the higher mix of high‑margin performance‑TV contracts.
The active performance‑TV customer base grew to 3,316, a 67% year‑over‑year increase. This growth reflects the platform’s rapid adoption by small and mid‑size businesses, many of whom are first‑time TV advertisers. The launch of QuickFrame AI has lowered entry barriers for advertisers by automating creative creation, further accelerating customer acquisition. The company’s focus on this segment has positioned it to capture a larger share of the connected‑TV advertising market.
Management guided for Q4 2025 revenue between $85.5 million and $86.5 million, and full‑year 2025 revenue between $288.5 million and $289.5 million. The guidance represents a 3–4% increase over the prior year’s forecast, signaling confidence in continued demand for performance‑TV advertising. The company also reiterated its commitment to maintaining a high gross margin and improving operating leverage as the customer base scales.
Investors reacted with mixed sentiment. While the EPS beat and margin expansion were viewed positively, the slight revenue miss against consensus tempered enthusiasm. Analysts noted that the company’s ability to achieve GAAP profitability and sustain margin growth amid a competitive landscape suggests strong operational execution, but the revenue miss highlights the need for continued focus on top‑line growth.
CEO Mark Douglas said, “We delivered a record third quarter across revenue, margins, and profitability, driven by the strength of our Performance TV platform. We’re leading one of the biggest shifts in advertising, transforming Connected TV into a true performance channel.” CFO Patrick Pohlen added, “Our solid performance reflects continued customer adoption of Performance TV, particularly by small and midsized companies that had not previously advertised on television.”
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