A year into its post-Estrella identity, MediaCo is showing revenue momentum, even if the bottom line tells a more complicated story. Despite debt due on the horizon, MediaCo CEO and President Albert Rodriguez remains positive about remaining in “growth mode.”
Fourth quarter net revenue hit $38.7 million, up 17.9% year-over-year, with full-year revenue climbing 39.5% to $133.3 million. A $23.1 million non-cash impairment charge pushed Q4 net loss to $32.3 million, compared to $4.2 million a year earlier. Full-year net loss came in at $66.2 million versus $1.3 million in 2024.
Digital advertising crossed 50% of total ad sales for the first time, and full-year revenue posted its strongest growth since the company’s formation, driven almost entirely by the video and digital side of the business.
The video segment, built around EstrellaTV and its digital operations, nearly doubled revenue year-over-year from $38 million to $78.6 million, with digital revenue across the company surging 181% to $57 million. The audio segment, which includes Hot 97 (WQHT) and WBLS in New York, along with the Estrella radio stations in Los Angeles, Houston, and Dallas, saw revenue dip $2.8 million to $54.7 million, driven by declines in events and sponsorship revenue.
The company’s auditors at Deloitte issued a going concern warning alongside the results, citing near-term debt maturities, a $49 million working capital deficit, and liquidity constraints. MediaCo has $10 million in debt coming due in July 2026, and in December, Nasdaq sent a deficiency notice after the company’s stock fell below the $1.00 minimum bid requirement. The company has until June 17 to regain compliance.
Deloitte also flagged an unremediated material weakness in internal controls related to the accounting for the Estrella acquisition.
Even with the presence of said risks and concerns, Rodriguez reported, “In our first full calendar year of operation, we achieved substantial gains across every facet of our plan, reflecting disciplined execution and a relentless focus on growth, as we build on our leadership position in serving multicultural audiences at the national and local level.”
“We are building a modern, cross-platform, multicultural media ecosystem designed for scale, spanning television, radio, digital, and FAST platforms, with precision targeting and measurable results for our partners. Our unique pipeline of culturally relevant, high-impact programming is resonating with our audiences, as reflected in our strong ratings performance.”
On the distribution and content side, the company has been active heading into 2026. Hot 97 launched mornings with NYC media personality Kid Mero in January, and followed that with Hot 97 News, a daily national TV show streaming out of Atlanta. The Don Cheto Network added a Phoenix affiliate in KZOM in late 2025, and EstrellaTV secured new over-the-air agreements in New York via WMBC and in Orlando via WDYB-CD. Katz Television Group signed on as national sales rep for EstrellaTV’s owned-and-operated stations across six major markets.
In February, MediaCo launched Sigma Audio Networks, a national multicultural audio network designed to consolidate its Hispanic, Black, Asian American, and bicultural reach into a single national buy.
In closing, Rodriguez stated, “Going forward, we remain in growth mode as we capitalize on our platform expansion and ratings gains to attract a greater share of advertising dollars…Targeting a multicultural population of 150 million nationwide, we believe we are well-positioned on all fronts to pursue our vision and deliver further gains in the year ahead.”
