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Results reflected a rise in transit revenues, led by an increase in average revenue per display (yield) and a higher adjusted OIBDA margin. However, a decline in billboard revenues affected the growth tempo to some extent. OUT shares plummeted 6.36% in the pre-market trading session.
Quarterly revenues came in at $467.5 million, surpassing the Zacks Consensus Estimate of $456.6 million. Moreover, the top line increased 3.5% year over year.
OUT’s Third Quarter in Detail
During the reported quarter, billboard revenues were $352.8 million, reflecting a year-over-year decline of 2.2%. The fall was due to the impact of lost billboards and lower proceeds from condemnations in the period, partially offset by an increase in average revenue per display (yield), including the impact of programmatic platforms on digital billboard revenues. Our estimate was pegged at $355.2 million.
The company’s transit revenues of $112.4 million rose 23.7 % from the year-ago quarter. The growth was primarily due to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts in the period. Our estimate was pegged at $100 million.
OUTFRONT Media’s operating income totaled $89.9 million in the third quarter compared with an operating income of $71.3 million in the year-ago quarter.
Operating expenses were $230.7 million, which decreased 1% year over year. The drop was due to lost billboards and the impact of the Transaction and lower variable property lease expenses, partially offset by higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority due to inflation.
The adjusted OIBDA margin for the quarter came in at 29.3%, improving 340 basis points year over year.
Net interest expenses stood at $37 million compared with $37.1 million in the prior-year period. The weighted average cost of debt, as of Sept. 30, 2025, was 5.4% compared with 5.6% in the prior-year period.
OUT’s Cash Flow & Balance Sheet Position
As of Sept. 30, 2025, OUTFRONT Media’s liquidity position comprised unrestricted cash of $63 million and $494.9 million of availability under its $500 million revolving credit facility, net of $5.1 million of issued letters of credit and $150 million of additional availability under its accounts receivable securitization facility.
Total debt outstanding at the end of the third quarter was $2.6 billion.
In the reported quarter, no shares of the company's common stock were sold under its at-the-market (ATM) equity program. It had $232.5 million available under the ATM program at the quarter’s end.
OUT’s Dividend Update
Concurrent with its third-quarter earnings release, OUTFRONT Media announced its common stock quarterly cash dividend of 30 cents per share. The dividend will be paid out on Dec. 31 to its shareholders of record as of Dec. 5, 2025.
American Tower Corporation (AMT - Free Report) reported its third-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.78, beating the Zacks Consensus Estimate of $2.62. This compares favorably with the prior-year reported figure of $2.64.
Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 5% and total tenant billings growth of 5.5%.
Iron Mountain Incorporated (IRM - Free Report) reported third-quarter AFFO per share of $1.32, beating the Zacks Consensus Estimate of $1.29. This figure jumped 16.8% year over year.
Iron Mountain’s results reflected solid performances across all segments, including the storage, service, global RIM and data center business. However, higher interest expenses in the quarter undermined the performance to an extent. IRM raised its dividend.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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OUTFRONT Media Stock Down Despite Q3 AFFO & Revenue Beat
Key Takeaways
OUTFRONT Media Inc. (OUT - Free Report) reported third-quarter 2025 adjusted funds from operations (AFFO) per share of 57 cents, surpassing the Zacks Consensus Estimate of 50 cents. This compares favorably with the FFO of 49 cents a year ago.
Results reflected a rise in transit revenues, led by an increase in average revenue per display (yield) and a higher adjusted OIBDA margin. However, a decline in billboard revenues affected the growth tempo to some extent. OUT shares plummeted 6.36% in the pre-market trading session.
Quarterly revenues came in at $467.5 million, surpassing the Zacks Consensus Estimate of $456.6 million. Moreover, the top line increased 3.5% year over year.
OUT’s Third Quarter in Detail
During the reported quarter, billboard revenues were $352.8 million, reflecting a year-over-year decline of 2.2%. The fall was due to the impact of lost billboards and lower proceeds from condemnations in the period, partially offset by an increase in average revenue per display (yield), including the impact of programmatic platforms on digital billboard revenues. Our estimate was pegged at $355.2 million.
The company’s transit revenues of $112.4 million rose 23.7 % from the year-ago quarter. The growth was primarily due to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts in the period. Our estimate was pegged at $100 million.
OUTFRONT Media’s operating income totaled $89.9 million in the third quarter compared with an operating income of $71.3 million in the year-ago quarter.
Operating expenses were $230.7 million, which decreased 1% year over year. The drop was due to lost billboards and the impact of the Transaction and lower variable property lease expenses, partially offset by higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority due to inflation.
The adjusted OIBDA margin for the quarter came in at 29.3%, improving 340 basis points year over year.
Net interest expenses stood at $37 million compared with $37.1 million in the prior-year period. The weighted average cost of debt, as of Sept. 30, 2025, was 5.4% compared with 5.6% in the prior-year period.
OUT’s Cash Flow & Balance Sheet Position
As of Sept. 30, 2025, OUTFRONT Media’s liquidity position comprised unrestricted cash of $63 million and $494.9 million of availability under its $500 million revolving credit facility, net of $5.1 million of issued letters of credit and $150 million of additional availability under its accounts receivable securitization facility.
Total debt outstanding at the end of the third quarter was $2.6 billion.
In the reported quarter, no shares of the company's common stock were sold under its at-the-market (ATM) equity program. It had $232.5 million available under the ATM program at the quarter’s end.
OUT’s Dividend Update
Concurrent with its third-quarter earnings release, OUTFRONT Media announced its common stock quarterly cash dividend of 30 cents per share. The dividend will be paid out on Dec. 31 to its shareholders of record as of Dec. 5, 2025.
OUT’s Zacks Rank
Currently, OUTFRONT Media has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OUTFRONT Media Inc. Price, Consensus and EPS Surprise
OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote
Performance of Other REITs
American Tower Corporation (AMT - Free Report) reported its third-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.78, beating the Zacks Consensus Estimate of $2.62. This compares favorably with the prior-year reported figure of $2.64.
Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 5% and total tenant billings growth of 5.5%.
Iron Mountain Incorporated (IRM - Free Report) reported third-quarter AFFO per share of $1.32, beating the Zacks Consensus Estimate of $1.29. This figure jumped 16.8% year over year.
Iron Mountain’s results reflected solid performances across all segments, including the storage, service, global RIM and data center business. However, higher interest expenses in the quarter undermined the performance to an extent. IRM raised its dividend.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.