MediaCo is pushing back its third-quarter earnings report, telling the SEC it needs more time to wrap up its financial statements, though the company offered a preview showing strong revenue growth offset by a ballooning loss driven by accounting rules.
The radio broadcaster filed for a five-day extension on November 14, stating it couldn’t complete its Form 10-Q for the quarter ending September 30 without “unreasonable effort or expense.” The company expects to submit the delayed report within the SEC’s grace period.
In the filing, MediaCo revealed what investors can expect: third-quarter revenue is projected to jump approximately 19% year-over-year, fueled primarily by growth in its digital operations. However, the company’s net loss is expected to more than double, widening by roughly 130%, largely due to a technical accounting adjustment related to outstanding warrants.
That mark-to-market fair value adjustment on warrants is a non-cash item that doesn’t reflect MediaCo’s operational performance but can significantly impact reported losses. The accounting treatment requires the company to revalue warrants each quarter based on current market conditions, which can create volatility in financial results.
CFO and Treasurer Debra DeFelice signed the extension request and confirmed MediaCo remains current on all other periodic reports filed over the past year. Investors will get the full picture once the 10-Q lands in the coming days.
