AFFO guidance for 2025 remains mid-single-digit growth, supported by cost reductions and revenue expectations.
Billboard adjusted OIBDA margin increased by 50 basis points to 38.3%.
Billboard expenses decreased by over $7 million (3.3%) year-over-year, mainly from lease cost reductions.
Billboard revenues declined 2.5% due to exits of two large marginally profitable contracts in New York and Los Angeles.
Corporate expenses rose by about $2 million, mainly due to market fluctuations on an unfunded equity-linked retirement plan and higher professional fees.
Digital revenues grew 1.5%, representing over 34% of total organic revenues; excluding exited contracts, digital growth would be about 5%.
Net leverage was 4.8x as of June 30, within the target range of 4 to 5x.
OIBDA was $124 million and AFFO was $85 million for the quarter.
Organic revenues were essentially flat in Q2 2025, aligning with prior guidance.
Q2 CapEx was $26 million, including $7 million for maintenance; 22 new digital boards were converted, offset by a decline of 114 small format digital boards.
Transit expenses increased by 3%, with transit adjusted OIBDA improving by nearly $3 million.
Transit revenues grew 5.6%, driven by 17% growth in digital revenues.
Adjusted EBITDA was $804 million, down 7.3% year-over-year but slightly up sequentially, with a margin of 37.4% declining 130 basis points year-over-year.
Broadband ARPU grew 0.9% year-over-year to $74.77, while residential ARPU declined 1.7% to $133.68, pressured mainly by video.
Cash capital expenditures were $384 million in Q2, up 10% year-over-year, with full year 2025 CapEx expected around $1.2 billion.
Gross margin expanded by 120 basis points to 69.1%, driven by a shift towards broadband and optimized video margins.
Other operating expenses increased by approximately 4%, driven by consulting fees, sales and marketing investments, and employee health and wellness costs.
Total revenue declined 4.2% year-over-year, primarily due to video cord-cutting which accounted for about 85% of the decline.
Adjusted EBITDA for Q2 was $271 million, representing about 39% of revenue.
Adjusted net income was $203 million or $0.41 per diluted share.
Cash flow remained strong with $165 million in net cash from operations and $117 million in free cash flow.
Operating expenses excluding stock-based compensation rose 23% year-over-year to $448 million, driven by investments in platform operations and AI capabilities.
The company ended the quarter with $1.7 billion in cash, cash equivalents, and short-term investments.
The Trade Desk reported Q2 2025 revenue of $694 million, a 19% year-over-year increase, or approximately 20% excluding political ad spend from the prior year.
The Trade Desk repurchased $261 million of Class A common stock during the quarter.
Dafinchi