Loading...
01/11 11:27
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals. Strong financial performance with increased revenue and EBITDA is offset by negative cash flow and construction issues in Las Vegas affecting bookings. The reaffirmation of 2025 guidance and positive rebooking trends for 2026 are encouraging, but concerns remain over SG&A expenses and cash position. The Generis acquisition provides future revenue potential, but current financial impacts are unclear. Given the company's market cap, the overall sentiment is neutral, anticipating a -2% to 2% stock price movement.
Total Revenue (Q3 2025) $77.5 million, up from $72.6 million in the prior year quarter, reflecting a year-over-year increase. The increase was primarily due to acquisitions and higher organic revenues.
Organic Revenue (Q3 2025) Down 6.8% year-over-year. The decline was attributed to ongoing construction at the Las Vegas Convention Center and tariff headwinds, which specifically affected the largest event of the quarter.
Adjusted EBITDA (Q3 2025) $12.8 million, up from $12.5 million in the prior year quarter, representing a 2.4% increase. The increase was driven by higher operating income from events and cost management.
Year-to-Date Total Revenue (2025) $330.7 million, an increase of 13.3% compared to the prior year, driven by acquisitions and higher organic revenues.
Year-to-Date Organic Revenue (2025) Increased by 1% year-over-year. Including acquisitions, organic revenue growth would have been 4.3%.
Year-to-Date Adjusted EBITDA (2025) $90.8 million, up from $68.6 million in the prior year period, representing a 32.4% increase. The improvement was driven by strong revenue growth from acquired businesses and margin optimization.
SG&A Expenses (Q3 2025) $51.3 million, up from $40.8 million in the prior year quarter. The increase was due to incremental expenses from acquisitions, higher stock-based compensation, and elevated legal and consulting costs.
Free Cash Flow (Q3 2025) Slightly negative, compared to a $6.7 million inflow in the prior year quarter. The decline was due to timing of payables tied to a large show and acquisition-related cash flow adjustments.
Cash Balance (as of September 30, 2025) $95.4 million, down from $156.4 million as of June 30, 2025, primarily due to funding the Generis acquisition.
Net Debt to Covenant EBITDA Ratio (as of September 30, 2025) 2.96x, slightly below the sub-3.0x financial policy target, following the Generis acquisition.
AI-powered event agent: Launched across selected shows to automate attendee interactions before, during, and after events. This tool simplifies attendee experience, improves service, and enhances customer experience. Plans to expand this platform into 2026.
Generis acquisition: Emerald acquired Generis, a leader in peer-to-peer executive events, hosting 17 events annually across the U.S. and Europe. This acquisition strengthens Emerald's portfolio in high-growth sectors and reduces exposure to slower growth verticals.
International business: Continued progress in markets like Italy, Germany, UAE, and Brazil, signaling growing global interest in accessing the U.S. market. International exhibitors represent 10% of total revenue.
Operational efficiencies: Centralized platform for event delivery allows for cost benefits, improved margins, and sharing of best practices. Strategic selling efforts and centralized marketing functions aim to improve lead generation and brand consistency.
Portfolio diversification: Three acquisitions in 2025, including Generis, This is Beyond, and Insurtech, to build a high-growth portfolio of live experiences. Focused on expanding into high-value verticals and creating premium experiences.
Live engagement focus: Emerald emphasizes live events as a core growth channel, with strong rebooking momentum for 2026 and record-setting attendance at flagship events like Advertising Week in New York.
Ongoing construction at the Las Vegas Convention Center: The construction has negatively impacted the company's largest event of the quarter, leading to a 6% negative impact on Organic Revenue in the period.
Tariff headwinds: Tariffs have specifically affected the company's largest event of the quarter, contributing to a decline in Organic Revenue. Although the overall exposure to tariffs is limited, the impact was more visible due to the seasonally small quarter.
Incremental expenses from acquisitions: The acquisitions have led to higher SG&A expenses, including costs related to stock-based compensation, remeasurement of contingent consideration, and elevated legal and consulting costs.
Timing of payables: A timing shift in payables tied to a large show resulted in a high single-digit million outflow in the third quarter, impacting free cash flow.
Limited international revenue exposure: International exhibitors represent only 10% of total revenue, which may limit growth opportunities in global markets.
Dependence on live events: The company's reliance on live events as a core revenue driver exposes it to risks from potential disruptions, such as economic downturns or unforeseen events affecting in-person gatherings.
Full-Year 2025 Guidance: Emerald has increased its full-year 2025 guidance to reflect the Generis acquisition. The updated guidance range is $460 million to $465 million in revenue and $122.5 million to $127.5 million in adjusted EBITDA.
2026 Pacing and Customer Confidence: Emerald is seeing solid rebooking momentum for the first half of 2026, reflecting sustained customer confidence across its portfolio. This indicates strong forward bookings and ongoing exhibitor renewals.
International Business Growth: Emerald anticipates continued momentum in international markets such as Italy, Germany, the United Arab Emirates, and Brazil. The company expects a more constructive trade environment heading into 2026.
AI-Powered Event Agent Expansion: Emerald plans to expand its AI-powered event agent platform across its events later in 2025 and into 2026. This initiative aims to simplify attendee interactions and enhance the overall customer experience.
Strategic M&A Approach: Emerald will continue to pursue strategic and selective M&A opportunities to drive meaningful growth and long-term value for shareholders. The focus will remain on high-growth sectors and premium experiences.
Quarterly Dividend: The Board declared a quarterly dividend of $0.015 per share.
Share Repurchase Program: Repurchased approximately 116,094 shares of common stock at an average price of $4.87 per share in the third quarter. Since the program's inception in 2021, a total of 17 million shares have been repurchased for $70 million.
Share Repurchase Authorization: The Board approved an extension and expansion of the share repurchase authorization, allowing for the repurchase of up to $25 million of common stock through December 31, 2026. At the end of the third quarter, $20.3 million remained available under the prior authorization.
The earnings call presents mixed signals. Strong financial performance with increased revenue and EBITDA is offset by negative cash flow and construction issues in Las Vegas affecting bookings. The reaffirmation of 2025 guidance and positive rebooking trends for 2026 are encouraging, but concerns remain over SG&A expenses and cash position. The Generis acquisition provides future revenue potential, but current financial impacts are unclear. Given the company's market cap, the overall sentiment is neutral, anticipating a -2% to 2% stock price movement.
Emerald's earnings call indicates strong financial performance, with revenue and EBITDA growth, and a positive outlook for the year. The acquisition strategy and share repurchase plan reflect management's confidence. Despite a temporary setback due to construction, guidance remains strong, with positive organic growth anticipated in Q4. The Q&A section shows management addressing concerns effectively, and AI initiatives are promising. The company's market cap suggests a moderate reaction, but overall sentiment is positive, predicting a 2% to 8% stock price increase.
Emerald's earnings call highlighted strong financial performance with a 10% YoY revenue increase and 34.7% rise in adjusted EBITDA. The company also announced a $25 million share repurchase program, boosting shareholder confidence. Despite competitive pressures in China and Canada, Emerald's guidance remains optimistic with expected revenue growth and improved EBITDA margins. The Q&A section confirmed expected challenges but also indicated strategic steps to mitigate them. Considering the small-cap market cap, the overall sentiment and strategic initiatives suggest a positive stock price movement in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
