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Performance was significantly bolstered by the FIFA World Cup, which generated over $50 million in total revenue, with approximately half of that considered incremental to typical business levels.
Management is repositioning the company from a legacy media vendor to a ‘premier platform company of IRL (In Real Life) media,’ emphasizing the scarcity and credibility of physical assets in an AI-saturated digital landscape.
Billboard yield grew 12% year-over-year, driven by strategic efforts to establish higher rates across the asset portfolio and supported by high-demand events.
The company is seeing a surge in demand from AI technology firms, particularly in San Francisco, as these companies seek the ‘trust and credibility’ of physical billboards to anchor their brands.
Transit revenue saw exceptional growth of 32%, led by a 48% increase in New York MTA performance, which management attributes to high-profile creative takeovers and successful event-based campaigns.
Strategic investments in AdQuick and the hiring of a Chief Data Officer are intended to modernize measurement and attribution, making out-of-home media a ‘load-bearing wall’ in omnichannel planning.
Third-quarter revenue is expected to grow in the high single digits, supported by a $16 million remaining benefit from the World Cup and 20% growth in the transit segment.
Management expects SG&A expense growth to outpace revenue growth for the remainder of 2026 due to accelerated investments in programmatic sales teams, data analytics, and AI-enabled CRM tools.
The company raised its 2026 AFFO growth guidance to the low-20% range, reflecting underlying business strength and specific accounting treatments for the MTA contract.
Capital allocation will shift toward more opportunistic M&A activity, specifically targeting high-quality billboard inventory in existing markets and potentially new DMAs as leverage remains at the low end of the target range.
The company plans to add approximately 125 new digital boards in the full year 2026, maintaining a CapEx spend of approximately $90 million.