MediaCo posted a 12% revenue gain in Q1 2026, fueled by a digital surge that pushed digital’s share of total revenue to 50%—up from 34% a year earlier— as the multicultural broadcaster’s digital revenue nearly doubled, climbing from $9.5 million to $15.5 million.
The New York-based company, whose portfolio includes Hot 97 (WQHT) and WBLS in New York City, eleven stations across Los Angeles, Houston, and Dallas, and Sigma Audio Networks, reported net revenues of $31.4 million for the quarter, up from $28.0 million a year earlier. The company tied the growth to its expanded digital focus, though the corresponding rise in digital platform costs pushed operating expenses up 19% to $34.8 million.
The video segment reflected the digital momentum most clearly. Anchored by EstrellaTV and MediaCo’s growing FAST channel portfolio, the segment narrowed its operating loss from $3.8 million to $1.1 million on a $7.3 million revenue increase.
The audio segment moved in the opposite direction. Audio revenues fell $3.9 million year-over-year to $9.8 million as operating expenses rose $1.5 million, swinging the segment from $695,000 in operating income to a $4.8 million operating loss. Spot radio and television advertising fell to $14.2 million from $16.0 million, dropping from 57% of the revenue mix to 45%.
Net loss for the quarter widened to $9.4 million from $8.6 million, and operating loss deepened 61% to $7.5 million.
In addition, MediaCo’s auditors maintain questions about whether the company can stay solvent. As of March 31, the company held $5.1 million in cash while carrying $54.5 million more in short-term obligations than it had in current assets. During the quarter, MediaCo renegotiated the terms of two of its major loans, buying more time on a $10.0 million debt payment that had been due in May — now pushed to July 30.
The company says it plans to refinance that debt, pay it from operating cash flow, or bring in new investment to cover it.
Separately, MediaCo’s internal accounting team flagged an ongoing error in how the company has reported financials tied to its Estrella acquisition, specifically around the valuation of goodwill and intangible assets. The company says it is working to fix the problem, but has not yet resolved it.
