PodcastOne, Inc.

Thank you for standing by. Welcome to Podcast One Q2 Fiscal 2026 Financial Results and Business Update Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star one again. Thank you. I would now like to turn the conference over to Ryan Carhart, Chief Financial Officer. Please go ahead, sir.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Podcast One, Fiscal Second Quarter 2026, 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, 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 One's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements. 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 your responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, November 11, 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 Second Quarter 2026 Earnings Call. As a reminder, we are not on a calendar reporting year, and our fiscal year 2026 starts on April 1st. Today, I'll provide an overview of Podcast One, share key highlights from the quarter, and discuss how our AI-powered platform continues to drive innovation, growth, and monetization across the network before turning the call over to Ryan for financial results. Finally, we'll open it up for Q&A. We're thrilled to report a strong fiscal second quarter, demonstrating the power of our AI-driven platform to scale revenue, expand audience reach, and support our creators in delivering outstanding content. Podcast One continues to stand out as the leading pure play podcasting platform in the public market. Our vertically integrated approach from talent development and content creation to distribution, analytics, and monetization is by advanced AI tools that enhance efficiency and performance across every aspect of our business. Our AI toolkit is at the heart of this growth. Flight Path leverages predictive analytics to optimize profitability. Booster powers our advertising management, including a proposal recommendation engine that scales our ad revenue efficiently. Adobe Audition ensures superior audio quality through AI-driven noise and speech cleanup. Opus Pro turns long-form video into shorts with a single click, boosting audience engagement across platforms. We also continue to attract high-caliber creators who recognize the strength of our platform. One of our recently acquired shows shared when the host asked ChatGPT which podcast network would be the best fit for her show, Podcast One was the top recommendation. A great example of how our reputation and AI-driven innovation are resonating across the industry. Momentum remains strong and meaningful growth across multiple revenue channels. PodRoll, our dynamic ad marketplace, generated a 71% increase, which nearly tripled since last year, underscoring its rapid adoption and scalability. This is now a seven-figure revenue-generating tool for our podcast. Our creator monetization initiatives continue to perform exceptionally well. Adam Carolla's subscription and video channel spanning YouTube, Rumble, and Apple Plus rose 51% from last quarter, highlighting strong audience engagement and demand. Overall, we achieved a record high total revenues for the quarter, marking a significant milestone for Podcast One. Additionally, Programmatic and Amazon's ART19 revenues saw a 14% increase from Q1. Combined, the growing strength of our ad tech stack, demand from brand partners, and growth in our monthly capacity moved Podcast One to a higher revenue tier. Podcast One continues to attract high-profile talent and shows. This quarter, we celebrated Adam Carolla's record-breaking 4,000th episode featuring Jay Leno. Other notable guests across the network include Bill O'Reilly, Amanda Knox, Mel Robbins, Charlie Sheen, and more. We also expanded our content portfolio through strategic partnerships and acquisitions, including a new collaboration with media giant BuzzFeed on a brand-new original podcast series, Phone a Fangirl, and the acquisition of Beach Too Sandy, Water Too Wet, and exclusive sales rights to Not Sam Wrestling. Apple Podcasts also selected Pop Apologists for their Creators We Love campaign, a strong recognition of the quality and impact of our content. Our platform empowers creators with end-to-end support, enabling them to focus on producing exceptional content, while our AI-enhanced tools drive discoverability, audience growth, and monetization. From studio access and editing to distribution and marketing, combined with a data-driven sales approach, we ensure both creators and advertisers maximize value on our network. Operationally, this quarter was highly productive. Our AI-powered tools enable more efficient production, editing, and distribution, allowing our creators to focus on high-quality content. Video consumption continues to grow, supported by an expanded distribution across YouTube, Spotify, Apple+, TikTok, Rumble, and Substack. Popular titles like Bitch Bible, Fool Coverage, Pop Apologist, Some More News, The Adam Carolla Show, and You're Welcome experience significant engagement, highlighting the ongoing demand for video-driven podcast content. Now, before going further, I'd like to turn the call over to Ryan, our CFO, to walk through the financial results for the fiscal first quarter. Ryan?

Thank you, Kit. As Kit mentioned at the beginning of the call, I want to again remind listeners that our fiscal year starts on April 1st. Revenue in the fiscal second quarter of 2026 was $15.2 million. Operating loss in the fiscal second quarter of 2026 was $975,000 compared to an operating loss of $1.7 million in the same year-ago quarter. This was primarily driven by an increase in programmatic revenue and lower costs and operating expenses. Net loss in the fiscal second quarter of 2026 was $975,000, or $0.04 per basic and diluted share, compared to a net loss of $1.7 million, or $0.07 per basic and diluted share, in the same year-ago quarter. Adjusted EBITDA in the fiscal second quarter of 2026 was $1.1 million, compared to adjusted EBITDA loss of $403,000 in the same year-ago quarter. The change in adjusted EBITDA was primarily driven by higher revenue and talent revenue share paid from the form of shares. We ended the fiscal quarter with zero debt on our balance sheet and $2.8 million in cash and cash equivalents as of September 30, 2025. As we look ahead, I'd like to also briefly touch on guidance, reiterating expected fiscal 2026 revenue of $55 to $16 million and fiscal 2026 adjusted EBITDA of $4.5 to $6 million. Now I'd like to turn the call back to Kit for closing statements and questions from the audience.

Thanks. Looking ahead, we're excited to build on this momentum with several initiatives that leverage our AI capabilities to maximize impact and reach. From predictive ad analytics with Flight Path to streamlined ad management through Booster, our platform is continually optimizing operations and outcomes for creators and advertisers alike. We're also focused on expanding our audience through high-profile events and partnerships. In addition to our collaboration with BuzzFeed and Key Acquisitions, we are actively exploring opportunities to bring our creators to new audiences and continue strengthening Podcast One's position as the leading destination for podcast talent and innovation. To close, I want to recognize the hard work and dedication of our team, our partners, and our creators. Podcast One thrives because we stay focused on what matters most, compelling content, strategic monetization, and trusted relationships with talent and advertisers. With our AI tools and creator-first approach, we are well-positioned for continued growth, deeper audience engagement, and expanded monetization opportunities in the months ahead. We remain proud of our achievements this quarter and confident in the path forward. With that, we'll now open the line for questions. Operator?

Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press the star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press the star one again. You are called upon to ask your question and are listening by a loudspeaker on your device. Please pick up your handset and ensure that your phone is not on mute when asking your question. And your first question comes from the line of Sean McCowan with Broad Capital Partners. Please go ahead.

Hi, Kit. Hi, Ryan. How are you? Hey, Sean.

How are you? Good.

Good. A couple of questions. Let me start with you, Kit. Sometimes these podcast rankings numbers are a little, I don't want to say slippery, but like the growth in the audience is sometimes not consistent across the time period. So can you parse out for us how much of your ranking success, I think now you're like number nine, How much of that is real growth versus consolidation among competitors around you?

Well, you know, it's a good question. The rankings are really tricky. It's really up to who has a podcast network. um subscribes to the uh the service um what shows subscribe to it as well so not everyone's included in all the different rankers that are out there we've just had a really good relationship with pod track over the years and um we work with them uh and you know i think it's it's interesting the timing always is different right like as as um you know, NFL rolls out, typically the sports networks, you know, the, the strong ones like Barstool sports and so forth have, you know, good growth, um, you know, and for us being more of a, uh, you know, on, uh, the, the housewives and, and reality TV stuff, when we see a bump, when, you know, new Vanderpump shows start up or, um, dancing with the stars or, or things like that. So it's very much cyclical on that. Um, There's definitely been some consolidation in terms of podcast production, in terms of new shows being launched and dead shows. We're constantly monitoring our network and watching what other networks are doing on that side of things to make sure we're all aligned. The rankings at the end of the day, they're important, but not really a real reflection of actual growth. You know, when I look at things, I look at revenue growth, I look at sellout rates, I look at CPMs. And that's where, you know, you've seen the great financial results there. I mean, we've, we've grown. And I think each impression that we've had is more valuable. And I think that's how we kind of rate ourself or score ourselves in terms of performance. But yeah.

Thanks, that's helpful. And I noticed, or it seems like you did a great job of calling out the various ways that AI is helping you across multiple fronts. So I guess the question I have is how much of that is stuff that you weren't doing before that you're doing now, as opposed to you've been doing it a while and you're just calling it out now. So how many of those tools have only recently been applied versus maybe they were there already? and we just didn't hear about it.

Yeah, you know, I think we'd all agree that over the last 12 months, AI has just, you know, drastically changed. When people were doing a year ago, they're not doing now. And even the The things that seem to be working, they've been enhanced tremendously over the last six, 12 months. So we are doing a lot more with the ones that I highlighted and there's others that we do work with as well. We're constantly talking to them about the enhancements that they're bringing to the table to make their products better or even new services. We really get approached almost like on a daily basis. with other AI-like companies that are designed to help us. Now, will they? Do they? That's really the question. So what we do as an industry or as a network and what gives us the advantage of being a small boutique company that can bring these new technologies on We test them. We test them with some of our shows, and then we activate if they work. And that has to do with the operational efficiencies. That has to do with production efficiencies, marketing, and sales, and really every single level. So we're constantly looking at new things. These are ones that have been really useful for us, and we're doubling down or tripling down on them. And we'll be continuing to add more over time.

Thanks, that's helpful. And then if I could switch to Ryan for a bit. So a couple of questions about expenses. There were some that were higher than I thought, some that were lower than I thought. And I just wanted to know if there's anything that you could point out that might be unusual or one time that would have driven that. For example, sales and marketing was quite a bit lower than I thought and quite a bit lower than it was last year. Was there anything unusual that brought it down or should we expect this kind of level? um you know similar with gna was actually higher you know is there anything unusual driving that up and same question with um i mean you've been talking about stock based comp so i guess we'll be at that level but is there anything you know kind of in the in this quarter that is not indicative of what we should expect going forward yes sean thanks good question um for sales and marketing what you're seeing this quarter is what we expect going forward so um

know maybe very very modest increases potentially um for things we're doing here in q3 and um you know the volume kicks up it'll go up a little bit but it's total marketing is pretty indicative of what you're going to see going forward um gna Quarter recorder is not a huge change. I think the change that you're seeing is additional stock that comes through, right? So that's the one thing that's flowing through the TNA line that was a little bit higher is we have some new awards that are a little bit higher, so you'll see that come through, but it gets adjusted out. through adjusted EBITDA this last quarter was a little higher on the professional fees side as well. And so you should see that part of it come down. So it'll be a little higher because of the stock comp, but lower in the future quarters because professional fees related, you know, audits and all the things we're doing on the professional side were a little higher during Q2.

Very helpful. Can you tell us now how much of the GNA, how much of the stock-based comp was reflected in the GNA line?

Hold on one sec. Can I give you that breakout and we talk in a bit?

Yeah, no problem. Thank you. That's it for me. Thank you. Thanks, Sean.

Thanks, Sean. Stay warm up there in New York, all right?

The next question comes from the line of Leo Carpio with Joseph Kenner. Please go ahead.

Hi, good morning, gentlemen. A couple of quick questions I had about the quarter. I just want to walk through them. First, can you talk about the competitive environment? Two of your higher rankings. Are you now in a better position to recruit higher tier talent? And how helpful is your stock as a currency in those negotiations?

Yeah, you know, we've been pretty competitive. You guys have seen, you know, our growth in terms of shows and content. We've got a huge slate of shows that we're currently pitching. And, you know, I think to me and my personal opinion is that, you know, we're known as a really good, solid company for people to come work with us. But not just a year or two years, but to really grow and build a business around it. You know, one of our shows that just came on to this, you know, chat TV TVT on what podcast network is the best network for them to join. And we came up and I think it's just super cool. Right. And I think that people out there are seeing, you know, the Jordan Harbingers, the Adam Corollas, the Lady Gangs, the Caitlyn's. The A&Es, the Stassis that are just coming over from other competing networks and seeing how well we're doing for them. And it's not necessarily a spot where we're asking them to do more, but using our resources and talented staff and tech stack and AI development to, you know, grow their shows not only in an audience base, but also, you know, monetarily for that same amount of content. So it's been great in that sense. I think we have that reputation out in the streets, not only with shows individually, but with the agents. So really competitive. It helps to be in the top 10 on PodTrack. It helps to be where we're at. It helps to be growing. And the stock side of things is a unique tool that really no one else uses like we do. And It gives everybody this swim in the same direction kind of feel. When we run promos on shows, they're getting equal and more value in return, but they're also, you know, they want to see these guys succeed. Everybody succeeds, then we all succeed. And that's the design by, you know, including them on the stock-based compensation. And that's what's really exciting. And I think it just far outweighs what we have to offer than other people have to offer as well. So it's a good spot to be.

Okay. Could you share some details on the expanded Amazon partnership? I saw in the press release you went from about $16.5 million to a $20 million annual run rate. I mean, what are the expectations from Amazon's perspective in terms of downloads, activity, any details you can share?

No problem. The design of that was as we grow, the deal grows, right? So as we're able to hit different impression thresholds to offer Amazon's marketplace, they give us more of a minimum guarantee. So we have um being able to hit uh some of those new thresholds in really short order so that's really exciting for us and um you know that has to do with bringing on new um programming uh having our existing programming um get you know more growth in terms of audio downloads and listenership but also promoting backlog episodes and classic episodes as as people go back and listen to these great episodes they they have the ability to monetize it. So we, we, um, we've just seen tremendous growth there. And I think, you know, if you'd ask Amazon, um, they're seeing more demand on the podcasting platforms and different ways to, uh, reach advertisers, you know, using, using that qualitative audience, right. People, people really see the value in the, in the strength and the podcast listener and, um so as we bring them more they're able to get more sellout rates higher cpms and so forth so um it's been a great partnership so far and and we're talking to them uh almost daily on new things that we can do and there's some exciting stuff coming okay and can you discuss the advertising environment if i understand your business model the holiday season is going to be is a major driver of ad revenue for your podcast talent and just between what's the early pulse check right now you're saying sure um so i was actually just looking at our upcoming every week we look at our pacing report just to see how things are going in the quarter um our direct sales led by sue mcnamara and you know our 12 sales people across the the country these are relationships with brands integrations in our shows this doesn't have anything to do with the amazon or um even the programmatic marketplaces which are are really driving some significant growth. That is at an all-time high for us as we are in this quarter. And, you know, we're still fighting for every dollar, but it's looking really strong in terms of us having a direct sales great quarter. And what that means for us is maybe less impressions available for the programmatic marketplaces and even R19, Amazon, but much higher CPMs, right? So when we look at the waterfall, it's always our direct sales has the highest CPMs and then we get into the R19 Amazon deal and then the programmatic marketplace and they're tiered, right? Based on priority and what's available to sell. So seeing our sales team kill it as they are, it's really good for the business and it's really good for us. You know, again, we're a company that goes well past spots and dots, and I think that's what is shown with our ability to put these integrations in, work with our production team to make sure advertisers are really happy, and that's what we do best. So we're excited about things so far.

Okay. And then my last question is about the revenue guidance you raised. What needs to be in place for you to achieve the high end of the guidance that is in the $59, $60 million range? Is it a factor of function of more shows on the platform, better revenues, more downloads?

Yeah, it's really keep doing what we're doing, right? Keep getting more and more consumption of our programs, current programs, new programs coming on. um our sales team to continue to to do a great job uh and then you know the r19 amazon deal continuing to do what it's been doing and and if we keep going that direction we'll get on the high end of it um so you know i think we're doing everything that we can to be there and you know as always there's a couple big deals that are are are there whether it's content or ad deals that you know we need to close and and we'll see how those go but um i'm i'm really uh excited about our opportunity to hit the eye end of that at least okay thank you and congrats on the quarter hey thanks leo it's good to talk to you man and once again if you would like to ask a question simply press the star 1 on your telephone keypad

And I'm showing no further questions at this time. I would like to turn it back to Keith Gray for closing remarks.

I'm sorry about that. It was on mute, but I just wanted to say thank you everyone for your time today and keep an eye out for podcast one in the news and listen to our podcasts. I hope everyone has a safe holiday season as we approach Thanksgiving and um the rest of the holidays throughout the remainder of the year thank you so much and have a great day thank you and this concludes this conference call thank you all for joining me now disconnect