our Chief Executive Officer and Chair of the Board, and Mark Boelke, our Chief Financial Officer and Chief Operating Officer. Before we begin, I would like to inform you that this call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to Entrevision's SEC filings for a list of risks and uncertainties that could impact actual results. The press release is available on the company's investor relations page and was filed with the SEC on Form 8-K. Additional information may also be found on our quarterly report on Form 10-Q, which was also filed today. If you would like to ask a question, please use the Q&A function on your screen, indicate your name and company, and submit your question. We will try to answer any questions that relate to the topics contained in today's call. I will now turn the call over to Michael Christenson.

Thank you for joining our call today. We appreciate your interest in Entravision. As you saw in our press release, on a consolidated basis, Entravision revenue increased 88% to $226 million in 3Q26 compared to 3Q25. Our operating income was $35 million in 3Q26 compared to $6 million in 3Q25. For our Advertising Technology and Services segment, ATS, Revenue increased 132% to $177 million in 3Q26 compared to 3Q25. We had more monthly active customers and we had more revenue per monthly active customer. Operating profit for ATS was $35 million in 3Q26 compared to $10 million in 3Q25. ATS is the growth engine for Entrevision, and we continue to invest to build our business. We focus on three areas for investment for ATS. First and most important, we invest to build more powerful AI capabilities into our platform. This requires substantial ongoing investments in product and engineering talent that are critical to delivering competitive performance for our customers. Next, we invest in sales and customer operations capacity. to acquire and serve customers. We focus on growing our customer count and revenue per customer to grow our business faster than the market overall. Third, we invest in our infrastructure capabilities and our ability to efficiently scale our business and build operating leverage into our business model. Again, our strategy is to invest in our ATS business to drive growth in revenue and operating income. Now for our media segment. Revenue in our media segment increased 10% to $49 million in 3Q26 compared to 3Q25. Our media segment produced a small operating profit and more. Our media segment revenue in 3Q26 included $6 million of political advertising revenue. Political revenue for Entrevision for all of 2026 will be approximately $25 million. This compares to political revenue for Entrevision in 2024, which included the presidential election of $34 million, and in 2022, the last midterm of $32 million. We had an internal target range for political revenue for 2026. $25 million was in the range, but at the lower end. We had nine critical races in 2026 that we expected would produce most of our political advertising revenue. The Texas US Senate race, the gubernatorial races in California, Nevada, and Texas, and five critical house races in Texas and one in Florida. Ad spend for us was good in the Texas House races, but most of the others were at the low end of our targets. The most disappointing race for Spanish language media was the Texas US Senate race. Texas is a state where 32% of the registered voters are Hispanic. Importantly, 50% of Hispanic registered voters in Texas request their ballot in Spanish. James Tallarico had a low double digit allocation of media spend to Spanish language. Ken Paxton did not invest at all in Spanish language media. The lesson is clear. You will not win an election in Texas if you ignore the Hispanic voter. Now I would like to provide an update on our Univision affiliation. We filed an 8K on October 5th when we extended our affiliation agreement with Univision through March 31, 2027. The extension was to provide additional time for us to continue discussions with Televisa Univision. However, we have decided to explore strategic alternatives for our TV business without a Univision affiliation. Now I'll ask Mark to share with you more details of our financial results for 3Q26. Thank you, Mike.

I'll start by reviewing the performance of each of our two reporting segments, media and advertising technology and services. In our media segment, third quarter revenue was $49.1 million, which was up 10% compared to the third quarter of 2025. This increase was primarily due to an increase in political advertising broadcast revenue. In the third quarter, media segment total operating expense increased $1.0 million compared to third quarter 25, an increase of 3%, primarily due to an increase in costs associated with the increase in advertising revenue. Total operating expenses represent the sum of direct operating expenses and selling general and administrative expenses, as those two line items are reported in our segment results. The media segment had an operating profit of $0.1 million in Q3 26. This was compared to an operating loss of $3.5 million in Q3 25. As Mike noted, we're evaluating strategic alternatives for our TV business. As part of this evaluation, we expect to reset our organizational structure and expenses for our media segment in order to align expenses with revenue and generate a profit in 2027. In addition, we also announced today that we have entered into an agreement to sell our TV stations serving the Tampa, Florida market for $30 million. Now I'll turn to our Advertising Technology and Services segment, or ATS. Third quarter revenue for the ATS segment was $177.2 million. This was an increase of 133% compared to third quarter 25. We had a higher number of monthly active accounts and higher revenue per monthly active account. We have had success executing our strategies in the ATS business, including strengthening the performance capabilities of our technology platform, and strengthening and expanding the ATS sales team and geographic sales coverage. Sequentially, ATS revenue was down 3% from Q2 26. As we've mentioned, one of our priorities is to win larger clients whose advertising spending on our platforms can be variable for various reasons. This can have a meaningful impact on ATS results in any given quarter and can lead to some variability in ATS quarterly results. Our goal is to build a solid foundation for growth over the long term. ATS total operating expenses increased 72% in the third quarter 26 compared to third quarter 25, an increase of $14.4 million. Operating profit for the ATS segment was $35.2 million in Q3 26. This was an increase of 261% versus Q3 25. A significant amount of the increase in operating expenses was due to the expense of cloud computing services as a result of processing more client transactions, and an increase in sales commissions and performance-related compensation as a result of the revenue increase and achievement of other performance metrics compared to the prior year. Sequentially, ATS operating profit was down 12% from Q2 26, The reduction in operating margin was due to two primary reasons. First, the ATS business invested in additional sales, engineering, and ad operations staff in the first half of the year in order to drive future growth and expand into new geographic territories, and these hires were fully onboarded by Q3. In addition, the Smatics team implemented a multi-cloud migration strategy for certain components of the Smatics platform infrastructure. We believe this strategy will allow us to have more efficient cloud spending in the future. However, this resulted in some temporary additional cloud expense for a period of time during Q3, which we did not expect to recur in future quarters. One of our goals for the ATS business is to generate positive operating leverage, and the ATS revenue increase exceeded the increase in operating expenses in terms of percentage and absolute dollars. At the same time, our goals also include having consistent improvement in operating leverage over time. On our last earnings call, we said that we expected Q4 to have significant year-over-year revenue growth of more than 100%. That expectation is still true. We believe that our ATS business is strong and we continue to see overall growth in the number of active monthly accounts and revenue per account as we execute on our strategic and operational priorities in the ATS business. Again, our goals include to grow revenue, generate positive operating leverage, and build the ATS business over the long term. Combining our two operating segments on a consolidated basis, revenue for third quarter 2026 was $226.3 million, up 88% compared to third quarter 2025. The two segments together generated a consolidated segment operating profit of $35.2 million in Q3 26 compared to $6.2 million in Q3 25. The increase was primarily a result of operating profit in the ATS segment. We had a consolidated operating income of $28.3 million in Q3 26 compared to an operating loss of $9.1 million in Q3 25. Corporate expenses in Q3 26 were $6.8 million, a 7% increase compared to Q3 25, or about $0.4 million, primarily due to an increase in stock-based compensation. We have taken steps to significantly reduce corporate expenses over the past few years. Entrevision's balance sheet remains strong, with $90 million in cash and marketable securities at the end of Q3 2026. Our current strategy regarding allocation of cash is to first reduce debt and maintain low leverage and second return capital to our shareholders. In third quarter 26, we made a debt repayment of $5 million, reducing our credit facility indebtedness to $153 million at the end of the quarter. We remain committed to reducing debt and maintaining a strong balance sheet. In addition, we paid $4.6 million in dividends to stockholders in the third quarter, or 5 cents per share. For the fourth quarter of 2026, our Board of Directors has approved a 5-cent dividend per share, payable on December 31, 2026, to stockholders of record as of December 17, for a total payment of approximately $4.6 million. We'd like to thank you all for joining our call today. And at this time, we'd like to open the call for questions from the investment community. Roy, I'll turn it back over to you.

Thank you, Mark. We will now begin the questions and answer session. As a reminder, if you have a question, please use the Q&A function on your Zoom screen, indicate your name and company, and submit your question. Please hold as we review potential questions. I see several questions from investors on the topic of capital allocation. Given the growth in the ATS business and improvement in operating profit this year, are you considering any change to that strategy? Mark, do you want to address this question? Sure, Ryan. Thanks for the question.

We intend to complete 2026 under our current strategy, which, as I mentioned, is to first reduce debt and maintain low leverage, and second, to return capital to shareholders, primarily through dividends. We've executed on both pieces of this strategy this year. Year to date, we've paid down $15 million of debt, bringing our credit facility balance to $153 million at the end of the third quarter. and we paid approximately $14 million in dividends to stockholders and the board approved an additional 5 cent dividend for the fourth quarter, payable on December 31st, 2026. That said, the business looks different today than it did when we first set those priorities, including due to the performance of our ATS business, as well as the sale of assets such as our TV station and the Tampa market that I mentioned earlier on this call. So it's appropriate for management and the board to take a fresh look. We plan to review our capital allocation priorities in early 2027, and we expect to share our thoughts on that review with investors on our fourth quarter earnings call, which will be held in early 2027.

Thank you, Mark. We also received several questions from investors about the customer concentration in the ATS segment. Can you give an update on how you're thinking about large customers and concentration?

Sure, thanks Roy. I can address that question as well. As we said last quarter, we limit our disclosure on individual customers to what's required for SEC reporting. Beyond that, we keep customer details confidential for competitive and other business reasons. What I can say is that our strategy is what I discussed earlier on this call. Competing for and winning advertising budgets from large customers remains a priority for ATS, and adding more large customers would allow us to reduce the concentration of any single customer. That said, given the size of our business, variability in spending by our largest customers can have a meaningful impact on our results in any given quarter, and we're prepared to accept that variability as we manage the business to achieve long-term growth. At the same time, we're also focused on growing the customer base and number of customers overall, and we continue to see growth in the total number of monthly active customers.

Thank you, Mark. At this time, we do not have any additional questions, and we will conclude the Q&A session. We'd like to thank you for joining our call today. If you have any questions that we were not able to address, please reach out to us at ir.androvision.com. We are committed to answering your questions and we will follow up with you. We also welcome our investors to connect with us through the investor relations page investor.entravision.com where you will have access to the transcript of this call, the press release containing our third quarter financial results and a copy of our quarterly report filed with the SEC on Form 10-Q. We look forward to speaking with you again when we report our fourth quarter and full year 2026 results. Thank you very much. You may now disconnect.