Comscore outlines flat 2025 revenue outlook while advancing cross-platform measurement and recapitalization

Earnings Call Insights: comScore, Inc. (SCOR) Q3 2025

MANAGEMENT VIEW

* CEO Jonathan Carpenter stated that the company generated "just under $89 million in revenues, slightly up year-over-year and driven by continued solid double-digit growth in key strategic areas of our business." He highlighted local measurement as a particular strength, reporting "double-digit growth that continues to highlight our product strength in measuring audiences at a hyperlocal level across platforms." Carpenter noted 20% year-over-year growth in cross-platform, adding that "absent this shift, which we believe is unrelated to our product, but does have a second half impact on the revenue, our cross-platform business was up 35% in the quarter."
* Carpenter emphasized the launch and adoption of Comscore Content Measurement (CCM), describing it as a solution that "solves one of the industry's most persistent and long-standing problems, fragmented measurement and positions Comscore as the company that can finally bridge linear and digital truthfully and at scale." He said, "We've already seen a number of clients leaning in, signing long-term contracts, which is a strong endorsement of this innovative solution."
* Regarding the recapitalization agreement announced in September, Carpenter explained, "the agreement includes the elimination of more than $18 million in annual preferred dividends, the cancellation of a $47 million special dividend obligation, the reduction in our overall Board size... and the exchange of more than $80 million in preferred stock for common stock at a significant premium."
* CFO Mary Curry reported, "Total revenue for the third quarter was $88.9 million, up 0.5% from $88.5 million the same quarter a year ago. Content and ad measurement revenue of $75.5 million was up 0.3% from the prior year quarter, driven by growth in our cross-platform and local TV offerings."

OUTLOOK

* Curry stated, "Based on current trends and expectations, we are revising our full year revenue guidance to be roughly flat with the prior year." She clarified, "Our previous guidance was based on the expectation that growth from our cross-platform solutions would exceed the declines we anticipated from our syndicated digital and national TV products."
* Curry added, "We are maintaining our adjusted EBITDA guidance for the full year with an anticipated margin of 12% to 15%."

FINANCIAL RESULTS

* Curry detailed, "Cross-platform revenue of $12.3 million was up 20.2% compared to the prior year, driven by higher usage of our Proximic and Comscore Campaign Ratings solutions as well as the continued adoption of Comscore Content Measurement, which launched earlier this year."
* She further reported, "Syndicated audience revenue of $63.2 million was down 2.8% compared to the prior year quarter, driven by declines in our national TV and syndicated digital products, partially offset by growth from our other syndicated offerings, including double-digit growth in local TV."
* Curry noted, "Our movies business also remained strong, generating $9.5 million of revenue in the third quarter, up 1.9% from the prior year. Research and Insights Solutions revenue of $13.4 million was up 1.4% from Q3 of '24, primarily due to new business in the quarter, including revenue from the launch of a new AI measurement solution."
* "Adjusted EBITDA for the third quarter was $11 million, down 11.1% from the prior year quarter, resulting in an adjusted EBITDA margin of 12.4%."

Q&A

* Cal Bartyzal, Craig-Hallum Capital Group: "Can you just provide some additional color on the large retail media advertiser that shifted away from Proximic and what kind of went into that decision?" CEO Carpenter: "It was a large retail media client who has access to a tremendous amount of first-party data... It's something that was a headwind down the stretch in the third quarter, and we anticipate seeing it again in the fourth quarter. We anticipate it being short term in nature."
* Bartyzal: "What you're seeing in the pipeline that gives confidence that the cross-platform growth opportunities can more than replace this lost revenue?" CEO Carpenter: "CCM has really taken off... We've signed a number of new long-term deals with major partners and the pipeline for that product is incredibly encouraging."
* Bartyzal: "Have you seen any benefit materialize in the market to date from a competitor no longer measuring local TV stations that are not subscribers?" CEO Carpenter: "Our prowess in local measurement across channels is certainly one of this company's great strengths... We continue to invest in that capability to support not just our local broadcast partners, but to support our cross-platform capability."
* Bartyzal: "How does the recapitalization improve your EBITDA to free cash flow conversion?" CEO Carpenter: "We're excited about what this agreement does for common shareholders... Once approved, I'd be happy to share more detail on the benefit beyond what I articulated on the call today."

SENTIMENT ANALYSIS

* Analysts pressed on the sustainability of cross-platform growth and the impact of client shifts, with a neutral to slightly cautious tone, seeking clarity on the pipeline and competitive positioning.
* Management maintained a confident tone in prepared remarks and Q&A, emphasizing product momentum and the benefits of recapitalization, with language such as "we fully anticipate it to continue to pay off" and "the pipeline for that product is incredibly encouraging."
* Compared to the previous quarter, analyst tone shifted from congratulatory and optimistic to more probing about specific business headwinds, while management's tone remained confident but was more focused on defending and explaining near-term impacts.

QUARTER-OVER-QUARTER COMPARISON

* The company revised its full-year revenue guidance to flat, whereas last quarter guidance reflected expected growth; this shift reflects the impact of a major client’s strategy change in cross-platform and continued declines in national TV and digital products.
* Cross-platform revenue growth slowed to 20.2% year-over-year from 60% in the previous quarter, a significant deceleration attributed to the retail media client shift.
* Management’s tone shifted from celebrating growth and early product adoption to emphasizing resilience, product pipeline, and recapitalization benefits.
* Analyst questions moved from product excitement to probing about client churn, pipeline strength, and competitive advantages.

RISKS AND CONCERNS

* Management identified the strategy shift by a large retail media client as having a significant short-term negative impact on cross-platform revenue in both Q3 and Q4.
* Curry indicated ongoing declines in national TV and syndicated digital products continue to offset gains elsewhere.
* Management is mitigating by focusing on expanding adoption of CCM, driving long-term partner engagements, and seeking approval and implementation of the recapitalization plan to enable more flexible investment.

FINAL TAKEAWAY

Comscore’s third quarter highlighted double-digit growth in local and cross-platform solutions, but was overshadowed by a short-term revenue headwind from a large retail media client’s strategy shift. The company responded by revising its full-year revenue guidance to flat, while maintaining its adjusted EBITDA margin outlook and emphasizing the growing adoption of its Comscore Content Measurement product. With a recapitalization plan poised to improve financial flexibility and shareholder alignment, management remains confident in the long-term opportunities presented by their cross-platform suite and sees the current headwinds as temporary, supported by a robust product pipeline and new long-term client engagements.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/scor/earnings/transcripts]

MORE ON COMSCORE

* comScore, Inc. (SCOR) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4837918-comscore-inc-scor-q3-2025-earnings-call-transcript]
* Comscore Q3 2025 Earnings Preview [https://seekingalpha.com/news/4513263-comscore-q3-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Comscore [https://seekingalpha.com/symbol/SCOR/ratings/quant-ratings]
* Historical earnings data for Comscore [https://seekingalpha.com/symbol/SCOR/earnings]
* Financial information for Comscore [https://seekingalpha.com/symbol/SCOR/income-statement]