MediaCo’s bet on streaming and free ad-supported television pushed revenue higher for a fifth consecutive quarter, even as the multicultural broadcaster disclosed that it secured a lender waiver just in time to avoid a debt default this month.
Net revenue for the quarter ended June 30 reached $34 million, up 9% from $31.2 million a year earlier.
For the first six months, revenue climbed 10% to $65.4 million from $59.3 million, according to MediaCo Holding’s second-quarter Form 10-Q filed with the SEC. Operating loss narrowed to $4.9 million from $6.8 million, but net loss widened to $8.6 million from $7.4 million as interest expense on the company’s outstanding debt continued to rise.
Audio revenue fell to $11.6 million from $15.2 million as spot advertising softened. Digital advertising grew to $15.9 million from $9.4 million and now accounts for 47% of total net revenue, up from 30% a year earlier. The Video segment, anchored by EstrellaTV and MediaCo’s portfolio of free ad-supported television channels, posted a $7,000 operating profit for the quarter, reversing a $3.7 million loss in the same period last year.
The revenue gains came with a continued going concern.
The company cited near-term debt maturities, a working capital deficit, and liquidity constraints. MediaCo failed to satisfy the Audio Adjusted EBITDA covenant under its First Lien and Second Lien Credit Agreements for the quarter. Lenders WhiteHawk Capital Partners and HPS Investment Partners issued a waiver on August 14, allowing the company to avoid a covenant default.
However, the miss had an impact on the balance sheet. MediaCo was left to reclassify $63.3 million of previously long-term debt as current. In a separate amendment that same month, the maturity date for two Delayed Draw Term Loans was pushed from July 30 to October 31. The company also disclosed that a material weakness in its internal controls related to accounting for the 2024 Estrella acquisition remained unremediated as of June 30. In Q4 2025, Deloitte auditors issued a going-concern warning tied to the same working capital deficit now cited by MediaCo.
