PodcastOne, Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Podcast One Fiscal Fourth Quarter 2025 Business Update and Financial Results Conference Call and Webcast. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. On our call today is Kit Gray, President and Founder of Podcast One, and myself, Ryan Carhart, Chief Financial Officer. I would like to remind you that some of the statements made on today's call are forward looking and are based on current expectations, forecasts, and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to Podcast 1's filing with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in Podcast 1's Form 10-K for the year ended March 31, 2025, filed by the company with the SEC on July 2, 2025, and subsequent SEC filings made by the company. You will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its investor relations website. The company encourages you to periodically visit its investor relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, July 3, 2025. And except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I'd like to highlight to investors that this call is being recorded. Podcast One is making it available to investors and the media via webcast. And a replay will be available on Podcast One's IR website in the events section shortly following the conclusion of the call. Additionally, it is the property of the company, and any redistribution, retransmission, or rebroadcast of the call or the webcast in any form without the company's express written consent is strictly prohibited. Now, I would like to turn the call over to Podcast One's President, Kit Gray.

Thank you, and welcome to our fiscal fourth quarter 2025 earnings call. As a reminder, we are not on a calendar reporting year, and our fiscal year 2025 ends on March 31st. Today, I will provide a brief overview of Podcast One in the continuously growing podcast market and highlight our recent successes before passing on to Ryan for the financial results. After his comments, I will close with an update on our strategic initiatives and what we are looking forward to in the quarters to come. Lastly, we will open it up for Q&A. Podcast One is a premier podcasting network that has played a key role in the evolution of the podcast industry since its founding in 2012. As the only pure play publicly traded podcast company in the United States, Podcast One provides a platform for top tier content creators offering comprehensive support across production, marketing, sales, and distribution. Podcasting has become one of the most trusted and engaging media formats with over 4 million podcasts registered worldwide as of 2025. The industry continues to grow with advertisers projected to invest over $2.4 billion in podcast advertising this year. Podcast One is a sales network for over 500 of the largest advertisers to reach core demographics effectively and efficiently. Podcast One and its 206 shows are positioned at the center of this growth, capitalizing on both the increasing audience demand and the effectiveness of podcast advertising as a high ROI media channel. Podcast One has been ranked as a top 10 U.S. podcast publisher for the six consecutive months by PodTrack with a monthly unique U.S. audience of 6 million and 16.9 million U.S. downloads and streams. With our industry-leading platform, we empower podcast hosts to reach their full potential by providing comprehensive world-class support. Our 360-degree marketing capabilities drive growth and exposure, enabling talent to focus on what they do best, creating great content. This support includes access to studio space, marketing, production, editing, distribution, and public relations. Additionally, our experienced direct sales team leverages longstanding relationships with advertisers and brands seeking to connect with the highly engaged audiences of podcasts on our platform. In Q4, we renewed several of our highest performing legacy shows, including the Adam Carolla Show, Off the Vine, the Adam and Drew Show, and the Brendan Schaub Network. further solidifying our foundation of long-standing high-engagement content. We also expanded our partnership with A&E and the History Channel by adding Ancient Aliens to our roster, a key addition that blends mass appeal with cult fandom. New original titles this quarter include Kate and Ty Break It Down and Detox Retox with Tom Schwartz, each drawing strong early audience. We successfully began our official migration to Amazon's Art19 platform, hitting our minimum guarantee milestone in April. This migration introduces a new core monetization channel alongside our direct sales and programmatic revenue streams. Additionally, our innovative pod role network and Podcast One Pro services have begun contributing meaningfully to our revenue mix. Podcast One Pro, launched with our new state-of-the-art studio in Beverly Hills, has quickly become a draw for brands like Lovesac and Motor Trend. These clients rely on our infrastructure and talent to produce high-quality branded content. Podcast One Pro offers a la carte or full 360-degree production solutions, empowering brands to harness podcasting with unmatched efficiencies. We also completed a fully renovation of our Beverly Hills studio, further elevating the quality, flexibility, and aesthetic appeal of our in-house production capabilities. We continue to drive value through brand integration, celebrity guest appearances, and experiential events. Q4 guest highlights include Mel Robbins on both Off the Vine and I've Had It, Sebastian Maniscalco on The Adam Carolla Show, and Tamron Hall on Lady Gang. Speaking of Lady Gang, we are proud to announce the upcoming Lady World Tour, which builds on their incredible brand equity and community. We expect this initiative to drive incremental audience growth, brand sponsorships, and live event revenue in the second half of 2025. Thanks to these expanding revenue streams, Part 19, PodRoll, Podcast One Pro, and premium subscriptions, we saw a 20% year-over-year increase in revenue from Q4 2024 to Q4 2025. This performance reflects our continued focus on monetization, diversification, and premium content. Now, before going any further, I'd like to turn the call over to Ryan, our CFO, to walk through the financial results for the fiscal fourth quarter. Ryan?

Thank you, Kit. As Kit mentioned at the beginning of the call, I want to again remind listeners that our fiscal year ends on March 31st. As a review of the fiscal fourth quarter financial results, revenue in the fiscal fourth quarter of 2025 increased 20% to $14.1 million compared to $11.7 million in the same quarter a year ago. Operating loss in the fiscal fourth quarter of 2025 was $1.8 million compared to an operating loss of $1.2 million in the same quarter a year ago. This was primarily driven by higher non-cash stock compensation expense. Net loss in the fiscal fourth quarter of 2025 was 1.8 million or a loss of six cents per basic and diluted share compared to a net loss of 1 million or five cents per basic and diluted share in the quarter a year ago. Adjusted EBITDA in the fiscal fourth quarter of 2025 was positive 0.9 million compared to adjusted EBITDA of positive 0.3 million in the same quarter a year ago. The change in adjusted EBITDA was primarily due to timing of content acquisition costs. We ended the fiscal fourth quarter with no debt on our balance sheet and $1.1 million in cash and cash equivalents as of March 31st, 2025. As a review of the fiscal FY25 financial results, revenue in the fiscal year of 2025 increased 20% to $52.1 million compared to $43.3 million in fiscal year 2024. Operating loss in the fiscal year of 2025 was 6.4 million compared to an operating loss of 5 million in fiscal year 2024. This was primarily driven by higher non-cash stock compensation expense. Net loss in the fiscal year 2025 was 6.4 million or 27 cents per basic and diluted share compared to a net loss of 14.7 million or 68% loss per basic and diluted share in fiscal year 2024. Adjusted EBITDA in the fiscal year of 2025 was negative $0.5 million compared to adjusted EBITDA of positive $0.5 million in fiscal year 2024. As we look ahead, I'd like to also briefly touch on guidance. We are pleased with the progress this quarter and given the revenue generating deals that are currently in place for fiscal year 2026, along with the equity based revenue share deals with certain podcast talent, we are comfortable raising our fiscal year 2026 guidance. We expect revenues for the full year to be between $55 and $60 million. We are also expecting adjusted EBITDA for the full year to be between positive $3 and $5 million. Additionally, we have completed our financing after year end with our partners at JGB Capital, replacing our East West Bank line of credit. This will help facilitate the growth of our business, allowing us to sign new podcasts and potentially acquire podcast networks. We are poised for the future and excited about our next phase of growth. Now, I'd like to turn the call back to Kit for some additional comments on the quarter and fiscal year before wrapping up with questions from the audience.