Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary indicates strong financial performance, with the company achieving its first GAAP profitability in four years and significant growth in adjusted EBITDA. The Q&A section highlights effective strategies like QuickFrame AI and strategic partnerships contributing to growth. Despite a dip in sales and marketing expenses, future investments are planned, and the company has strong Q4 revenue guidance. The positive outlook on gross margin improvement further supports a positive sentiment. However, the lack of market cap data limits the precision of the stock price reaction prediction.
Revenue $70 million, up 31% year-over-year after adjusting for the divestiture of Maximum Effort on April 1, 2025. On a GAAP basis, total third quarter revenue grew 23% year-over-year. The increase was driven by continued customer adoption of Performance TV, particularly by small and midsized companies that had not previously advertised on television.
Gross Margin 79%, compared to 72% in Q3 of 2024, an increase of 720 basis points. The improvement was due to additional gross margin improvements across the core business and the impact of the Maximum Effort divestiture. The core PTV business improved over 400 basis points.
Active PTV Customers 3,316 active PTV customers, representing growth of 67% year-over-year. Growth was supported by moving into the SMB market opportunity, showcasing the platform's strength and applicability across companies of all sizes.
ARPU (Average Revenue Per User) $20,904, reflecting an increased mix of smaller customers in the base. This was in line with expectations.
Expansion Rate Well north of 115%, demonstrating that when customers achieve their desired returns on advertising spend, they continue to increase their budgets with MNTN.
Operating Expenses $47.7 million for the third quarter.
Net Income $6.4 million, marking the company's first quarter of GAAP profitability in the last 4 years. GAAP EPS was $0.09 per share.
Adjusted EBITDA $16 million, up from $10.5 million in Q3 of 2024, an increase of 52.9%. Adjusted EBITDA margin grew to 22.8% compared to 18.3% in Q3 of 2024. This improvement was driven by increased revenue and gross margin expansion.
Cash and Cash Equivalents $179 million, with no debt outstanding.
MNTN Performance TV: A self-serve platform that makes connected TV measurable, accessible, and performance-driven. It allows advertisers to launch campaigns across 200+ premium streaming networks, target audiences using AI-powered intent data, and measure business outcomes like site visits and conversions.
QuickFrame AI: A new platform powered by generative AI that enables advertisers to create complete TV spots in minutes, lowering the barrier to creating ads and accelerating businesses' ability to launch on MNTN.
Small and Medium-Sized Businesses (SMBs): MNTN focuses on SMBs, which make up 97% of its customers. These businesses are new to TV advertising and are driving growth in the connected TV (CTV) market.
Connected TV (CTV) Market: CTV is the fastest-growing segment in advertising, and MNTN is transforming it into a performance-driven channel, opening opportunities for SMBs to compete with larger brands.
Customer Growth: MNTN's active PTV customers grew by 67% year-over-year, reaching 3,316 customers. The company is successfully moving into the SMB market.
Revenue Growth: Q3 revenue increased to $70 million, up 31% year-over-year after adjusting for the divestiture of Maximum Effort.
Gross Margin: Gross margin improved to 79% in Q3 2025, up from 72% in Q3 2024, driven by core business improvements and the divestiture of Maximum Effort.
Profitability: Achieved positive net income of $6.4 million, marking the first quarter of GAAP profitability in four years. Adjusted EBITDA increased by 52.9% year-over-year to $16 million.
Market Positioning: MNTN is positioning itself as a leader in transforming TV into a performance marketing channel, similar to what Meta did for social and Google did for search.
Creative Tools Expansion: The launch of QuickFrame AI and the acquisition of QuickFrame are strategic moves to make professional creative accessible to all advertisers, reinforcing MNTN's ecosystem.
Market Conditions: The company is operating in a rapidly growing Connected TV (CTV) advertising market, but this market remains under-monetized and heavily reliant on a small number of large brands. This could pose challenges in scaling revenue from small and medium-sized businesses (SMBs).
Competitive Pressures: MNTN faces competition from established digital advertising platforms like Meta and Google, which already dominate the SMB advertising space. Competing with these giants for SMB budgets could be challenging.
Regulatory Hurdles: No explicit mention of regulatory hurdles was made in the transcript, but the forward-looking statements disclaimer suggests potential risks related to compliance and regulatory changes.
Economic Uncertainties: The company’s focus on SMBs makes it vulnerable to economic downturns, as smaller businesses are often the first to cut advertising budgets during financial uncertainty.
Strategic Execution Risks: The company’s growth strategy heavily relies on its ability to scale its Performance TV platform and maintain its competitive edge through innovation. Failure to execute on these fronts could impact its market position and financial performance.
Supply Chain Disruptions: No explicit mention of supply chain disruptions was made in the transcript.
Revenue Expectations for Q4 2025: The company expects revenue in the range of $85.5 million to $86.5 million, representing a 34% year-over-year growth rate at the midpoint of $86 million when normalizing for the effect of the divestiture of Maximum Effort. This translates into a reported GAAP growth rate of 23.2% at the midpoint.
Full Year 2025 Revenue Guidance: The company projects full year 2025 revenue between $288.5 million and $289.5 million, representing 35.5% year-over-year growth at the midpoint when normalizing for the Maximum Effort divestiture and 28.1% year-over-year growth on a GAAP basis.
Adjusted EBITDA Guidance for Q4 2025: Adjusted EBITDA is expected to be between $25 million and $26 million, reflecting continued leverage as the business scales while maintaining disciplined investments.
Full Year 2025 Adjusted EBITDA Guidance: Adjusted EBITDA is projected to be between $64.9 million and $65.9 million, with an EBITDA margin of 22.6% at the midpoint.
Gross Margin Outlook: The company expects to maintain and grow gross margins year-over-year, supported by additional improvements across its core business.
Market Trends and Growth Expectations: Connected TV (CTV) is identified as the fastest-growing segment in advertising, with MNTN positioned to capitalize on this trend by targeting small and medium-sized businesses (SMBs) that have not previously advertised on television.
Customer Growth and Expansion: The company has seen strong customer growth, with active PTV customers growing 67% year-over-year. The expansion rate remains above 115%, indicating that customers are increasing their advertising budgets with MNTN after achieving desired returns.
Strategic Investments: MNTN plans to continue investing strategically in sales, marketing, and R&D to support future revenue growth while focusing on delivering operating leverage.
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The earnings call summary indicates strong financial performance, with the company achieving its first GAAP profitability in four years and significant growth in adjusted EBITDA. The Q&A section highlights effective strategies like QuickFrame AI and strategic partnerships contributing to growth. Despite a dip in sales and marketing expenses, future investments are planned, and the company has strong Q4 revenue guidance. The positive outlook on gross margin improvement further supports a positive sentiment. However, the lack of market cap data limits the precision of the stock price reaction prediction.
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