comScore Q2 Earnings Call Highlights

Q2 performance weakened sharply: Revenue fell 11.3% year over year to $79.2 million, while adjusted EBITDA dropped 85% to $1.3 million. Declines were driven by lower syndicated audience, cross-platform and research revenue, as well as the Movies divestiture. Comscore launched its “ROI” restructuring plan —realign, optimize and invest—to simplify operations and reduce costs. The company expects $20 million to $25 million in annual run-rate savings, with $7 million to $9 million in one-time restructuring costs. Growth prospects are focused on local TV, AI, creator media and Proximic activation. Comscore expects no near-term growth and forecasts 2026 revenue of $315 million to $325 million with an adjusted EBITDA margin in the low- to mid-single digits, while targeting a leaner cost structure entering 2027.

Com Score NASDAQ: SCOR reported second-quarter revenue declines and a sharp reduction in adjusted EBITDA as the media measurement company unveiled a restructuring plan aimed at lowering costs, simplifying operations and concentrating investment on selected growth opportunities. Chief Executive Officer Matt McLaughlin, who joined the company in June, said Comscore exited the quarter in a stronger structural financial position after selling its Movies business in late May. The transaction eliminated $40 million of long-term debt and freed approximately $7 million of annual interest and principal payments, according to McLaughlin.

However, he said the company’s second-quarter results underscored the need for more urgent changes. Comscore recorded revenue of $79.2 million and adjusted EBITDA of $1.3 million during the period. McLaughlin said the company has valuable data assets, longstanding client relationships and a recognized role as an independent measurement provider, but is not organized or operating in a way that fully leverages those strengths.

Total second-quarter revenue fell 11.3% from a year earlier. On a pro forma basis excluding Movies business revenue from both periods, revenue was $73 million, down $6.8 million, or 8.5%, from $79.8 million in the second quarter of 2025, Chief Financial Officer Mary Margaret Curry said. Content and ad measurement revenue totaled $67.8 million, down 11.7% year over year. Syndicated audience revenue declined 13.6% to $55.2 million, reflecting the Movies divestiture, lower renewals in national TV and syndicated digital offerings, and the absence of a large one-time local TV deliverable recognized in the prior-year period. Cross-platform revenue decreased 2.1% to $12.5 million, as lower Proximic product usage was partly offset by new business in Comscore Content Measurement. Research and Insight Solutions revenue fell 9.2% to $11.5 million, primarily due to lower renewals and the timing of certain deliveries.

Adjusted EBITDA fell 85% to $1.3 million from $8.9 million a year earlier, producing an adjusted EBITDA margin of 1.7%, compared with 10% in the prior-year quarter. Core operating expenses decreased 2.8% to $87.9 million, mainly due to lower employee compensation costs, partly offset by professional fees associated with the Movies divestiture.

Curry said the divested Movies business had generated healthy margins and contributed to adjusted EBITDA and cash flow. She added that Comscore’s data and employee compensation costs are relatively fixed, meaning weaker revenue can have a disproportionate impact on profitability and cash generation.

Management introduced an “ROI” strategy, standing for realign, optimize and invest. The plan is intended to establish a more flexible cost structure, clearer accountabi...