Mediaco Holding Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS MEDIACO HOLDING INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2026 2025 2026 2025 NET REVENUES $ 33,969 $ 31,245 $ 65,355 $ 59,275 OPERATING EXPENSES: Operating expenses 35,227 34,774 70,049 63,986 Corporate expenses 2,055 1,554 3,721 3,147 Depreciation and amortization 1,343 1,697 3,019 3,466 Loss on disposal of assets 233 5 985 144 Total operating expenses 38,858 38,030 77,774 70,743 OPERATING LOSS ( 4,889 ) ( 6,785 ) ( 12,419 ) ( 11,468 ) OTHER INCOME (EXPENSE): Interest expense, net ( 4,029 ) ( 3,855 ) ( 7,969 ) ( 7,609 ) Change in fair value of warrant shares liability — 1,410 — 1,410 Other income, net 543 2,119 4,222 2,230 Total other expense ( 3,486 ) ( 326 ) ( 3,747 ) ( 3,969 ) LOSS BEFORE INCOME TAXES AND EQUITY METHOD INVESTMENTS ( 8,375 ) ( 7,111 ) ( 16,166 ) ( 15,437 ) PROVISION FOR INCOME TAXES ( 150 ) 279 1,172 559 LOSS BEFORE EQUITY METHOD INVESTMENTS ( 8,225 ) ( 7,390 ) ( 17,338 ) ( 15,996 ) EQUITY LOSS IN INVESTMENTS ( 388 ) — ( 643 ) — NET LOSS ( 8,613 ) ( 7,390 ) ( 17,981 ) ( 15,996 ) Net income attributable to noncontrolling interest — 278 — 475 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ ( 8,613 ) $ ( 7,668 ) $ ( 17,981 ) $ ( 16,471 ) Net loss per share attributable to common shareholders - basic and diluted $ ( 0.10 ) $ ( 0.10 ) $ ( 0.22 ) $ ( 0.21 ) Weighted-average common shares outstanding - basic and diluted 82,586 79,719 82,126 77,100 The accompanying notes are an integral part of these condensed consolidated financial statements. -3- Table of Contents MEDIACO HOLDING INC. CONDENSED CONSOLIDATED BALANCE SHEET June 30, 2026 December 31, 2025 (in thousands, except share data) (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,807 $ 5,109 Accounts receivable, net of allowance for credit losses of $ 892 and $ 1,671 , respectively 30,350 33,326 Current programming rights 310 655 Prepaid expenses and other current assets 1,033 2,556 Assets held for sale 700 427 Total current assets 34,200 42,073 PROPERTY AND EQUIPMENT, NET 14,838 17,639 GOODWILL 8,403 8,403 INTANGIBLE ASSETS, NET 171,394 172,718 OPERATING LEASE RIGHT OF USE ASSETS 39,225 45,830 OTHER NONCURRENT ASSETS 3,935 4,395 Total assets $ 271,995 $ 291,058 LIABILITIES AND EQUITY CURRENT LIABILITIES: Accounts payable $ 44,336 $ 36,913 Accrued expenses 13,581 14,815 Current maturities of long-term debt 74,956 10,000 Accrued salaries and commissions 3,547 5,337 Deferred revenue 7,194 9,598 Operating lease liabilities 5,852 6,746 Income taxes payable 5,357 4,972 Other current liabilities 1,400 2,683 Total current liabilities 156,223 91,064 LONG TERM DEBT, NET OF CURRENT — 63,284 SERIES B PREFERRED STOCK 44,547 41,320 OPERATING LEASE LIABILITIES, NET OF CURRENT 28,998 36,007 UNRECOGNIZED TAX LIABILITY 8,838 8,386 OTHER NONCURRENT LIABILITIES 4,747 4,683 Total liabilities 243,353 244,744 COMMITMENTS AND CONTINGENCIES (See Note 9) EQUITY: Class A common stock, $ 0.01 par value; authorized 170,000,000 shares; issued and outstanding 76,899,738 shares and 76,307,330 shares at June 30, 2026, and December 31, 2025, respectively 769 763 Class B common stock, $ 0.01 par value; authorized 50,000,000 shares; issued and outstanding 5,413,197 shares at June 30, 2026, and December 31, 2025 54 54 Class C common stock, $ 0.01 par value; authorized 30,000,000 shares; none issued — — Additional paid-in capital 140,572 140,269 Accumulated deficit ( 112,753 ) ( 94,772 ) Total equity 28,642 46,314 Total liabilities and equity $ 271,995 $ 291,058 The accompanying notes are an integral part of these condensed consolidated financial statements. -4- Table of Contents MEDIACO HOLDING INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) Class A common stock Class B common stock Warrant Shares Additional paid-in capital Accumulated Deficit Noncontrolling Interests Total (in thousands, except share data) Shares Amount Shares Amount BALANCE, DECEMBER 31, 2025 76,307,330 $ 763 5,413,197 $ 54 $ — $ 140,269 $ ( 94,772 ) $ — $ 46,314 Net loss — — — — — — ( 9,368 ) — ( 9,368 ) Stock-based compensation expense — — — — — 4 — — 4 Issuance of class A to employees, officers and directors, net of withholdings ( 2,492 ) — — — — ( 2 ) — — ( 2 ) Equity Clawback (Note 12) — — — — — ( 1,095 ) — — ( 1,095 ) BALANCE, MARCH 31, 2026 76,304,838 $ 763 5,413,197 $ 54 $ — $ 139,176 $ ( 104,140 ) $ — $ 35,853 Net loss — — — — — — ( 8,613 ) — ( 8,613 ) Stock-based compensation expense — — — — — 1,017 — — 1,017 Issuance of class A to employees, officers and directors, net of withholdings 594,900 6 — — — ( 6 ) — — — Equity Clawback (Note 12) — — — — — 385 — — 385 BALANCE, JUNE 30, 2026 76,899,738 $ 769 5,413,197 $ 54 $ — $ 140,572 $ ( 112,753 ) $ — $ 28,642 BALANCE, DECEMBER 31, 2024 41,274,103 $ 413 5,413,197 $ 54 $ — $ 89,726 $ ( 28,074 ) $ 20,402 $ 82,521 Net (loss) income — — — — — — ( 8,803 ) 197 ( 8,606 ) Sale of class A common shares 7,240 — — — — 8 — — 8 Stock-based compensation expense — — — — — 38 — — 38 Issuance of class A to employees, officers and directors, net of withholdings ( 53,823 ) ( 1 ) — — — ( 64 ) — — ( 65 ) Warrant shares — — — — 32,155 — — — 32,155 BALANCE, MARCH 31, 2025 41,227,520 $ 412 5,413,197 $ 54 $ 32,155 $ 89,708 $ ( 36,877 ) $ 20,599 $ 106,051 Net (loss) income — — — — — — ( 7,668 ) 278 ( 7,390 ) Stock-based compensation expense — — — — — — — — — Issuance of class A to employees, officers and directors, net of withholdings ( 26,053 ) — — — — — — — — Noncontrolling interest resulting from Estrella transaction 7,051,538 71 — — — 20,806 — ( 20,877 ) — Warrant shares — — — — ( 32,155 ) — — — ( 32,155 ) BALANCE, JUNE 30, 2025 48,253,005 $ 483 5,413,197 $ 54 $ — $ 110,514 $ ( 44,545 ) $ — $ 66,506 The accompanying notes are an integral part of these condensed consolidated financial statements. -5- Table of Contents MEDIACO HOLDING INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (in thousands) 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net loss $ ( 17,981 ) $ ( 15,996 ) Adjustments to reconcile net loss to net cash used in operating activities - Depreciation and amortization 3,019 3,466 Amortization of debt discount 408 310 Amortization of fair value debt adjustments 1,533 1,126 Noncash change in warrant shares — ( 1,410 ) Noncash interest expense 3,023 2,865 Noncash lease expense 1,168 1,386 Noncash gain on remeasurement of lease ( 1,614 ) — Provision for bad debts ( 330 ) 1,313 Provision for deferred income taxes 399 559 Loss on equity method investment 643 — Other noncash items 2,018 223 Changes in assets and liabilities Accounts receivable 3,306 ( 2,779 ) Prepaid expenses and other current assets 1,866 1,452 Other assets 94 4,866 Accounts payable and accrued liabilities 4,160 4,894 Deferred revenue ( 2,404 ) ( 539 ) Operating lease liabilities ( 852 ) ( 820 ) Income taxes 330 2,826 Other liabilities ( 1,555 ) ( 4,635 ) Net cash used in operating activities ( 2,769 ) ( 893 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment ( 158 ) ( 277 ) Investment in equity method investment ( 643 ) — Proceeds from the sale of property and equipment 551 — Net cash used in investing activities ( 250 ) ( 277 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of class A common stock — 8 Finance lease principal payments ( 276 ) ( 233 ) Settlement of tax withholding obligations — ( 95 ) Net cash used in financing activities ( 276 ) ( 320 ) CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 3,295 ) ( 1,490 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH: Beginning of period 7,095 6,933 End of period $ 3,800 $ 5,443 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 2,898 $ 3,090 Cash paid for income taxes $ — $ — SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING: Capital expenditures received in exchange for liabilities included in deferred revenue $ 240 $ 123 The accompanying notes are an integral part of these condensed consolidated financial statements. -6- Table of Contents MEDIACO HOLDING INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in Thousands Unless Indicated Otherwise) (Unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization MediaCo Holding Inc., and its subsidiaries (collectively, “MediaCo” or the “Company”) is an owned and operated multi-media company formed in Indiana in 2019, focused on television, radio and digital advertising, premium programming and events. Our portfolio includes a national network, as well as digital, and commercial operations. Our broadcasting assets consist of thirteen radio stations, including two located in New York City, WQHT(FM) and WBLS(FM) (the “Stations”), which serve the New York City demographic market area and primarily target Black, Hispanic, and multi-cultural consumers. The remaining eleven radio stations serve Los Angeles, CA, Houston, TX, and Dallas, TX. Our assets also include nine television stations serving Los Angeles, CA, Houston, TX, Denver, CO, New York, NY, Chicago, IL and Miami, FL. Our portfolio includes the Estrella brands including the EstrellaTV network, its linear and digital video content business, and its digital channels, including eight free ad-supported television (“FAST”) channels: EstrellaTV, Estrella News, Cine EstrellaTV, Estrella Games, EstrellaTV Mexico, Curiosity Explora, Curiosity Motores, and Curiosity Animales. We derive our revenues primarily from radio, television and digital advertising sales, and also generate revenues from events, including sponsorships and ticket sales, licensing, and syndication. Unless the context otherwise requires, references to “we,” “us,” and “our” refer to MediaCo and its subsidiaries. Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Accordingly, they do not include all disclosures required for annual financial statements. In the opinion of management, all adjustments necessary for a fair presentation, consisting of normal recurring adjustments, have been included. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain amounts have been reclassified to conform to the current year presentation. Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. The significant accounting policies applied in preparing these condensed consolidated financial statements are consistent with those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“fiscal year 2025”), filed with the SEC on March 31, 2026, except as otherwise disclosed herein. There have been no significant changes to the Company’s significant accounting policies during the six months ended June 30, 2026. Cash, Cash Equivalents and Restricted Cash Restricted cash of $ 2.0 million as of June 30, 2026 and December 31, 2025 was held as collateral for a letter of credit entered into in connection with the lease in New York City for our radio operations and corporate offices, which expires in October 2039. The Company may be eligible to reduce the required security deposit in future periods upon satisfaction of certain conditions under the lease. Allowance for Credit Losses The activity in the allowance for credit losses for the three and six months ended June 30, 2026 and 2025 was as follows: -7- Table of Contents Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Beginning Balance $ 1,222 $ 872 $ 1,671 $ 1,079 Change in Provision 84 1,520 ( 330 ) 1,313 Write Offs ( 414 ) — ( 449 ) — Ending Balance $ 892 $ 2,392 $ 892 $ 2,392 Fair Value Measurements The Company’s fair value hierarchy classification of financial instruments measured at fair value on a recurring basis has not changed during the three and six months ended June 30, 2026. The carrying value of the Company’s long-term debt approximates fair value due to its variable interest rate structure. The Company did not have any material transfers between Levels 1, 2, or 3 of the fair value hierarchy during the period. Goodwill and Indefinite-lived Intangibles The Company evaluates goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events or changes in circumstances indicate potential impairment. No impairment charges were recorded during the three and six months ended June 30, 2026 and 2025. Stock-based Compensation Costs Stock-based compensation expense totaled $ 1.0 million for both the three and six months ended June 30, 2026, compared with $ 0.0 million and $ 0.0 million, respectively, for the corresponding periods in 2025. The increase in stock-based compensation expense was primarily attributable to immediately vesting equity awards granted during the current year, resulting in increased compensation expense recognized over the requisite service periods. The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those described in the Company’s Form 10-K for fiscal 2025. Production Costs Amortization expense included in operating expenses was $ 0.9 million and $ 1.1 million for the three and six months ended June 30, 2026 and $ 0.6 million for both the three and six months ended June 30, 2025. Advertising Costs Advertising costs are expensed when incurred. Advertising expenses were $ 0.1 million and $ 0.4 million for the three and six months ended June 30, 2026 and $ 0.1 million and $ 0.3 million for the three and six months ended June 30, 2025. Deferred Revenue and Barter Transactions Deferred revenue includes makegood liabilities associated with network sales contracts and deferred barter transactions. As of June 30, 2026 and December 31, 2025, the makegood liability balance was $ 5.1 million and $ 7.7 million, respectively. The makegood liability is expected to be recognized over various periods not anticipated to exceed four years . The makegood liability account activity and the barter revenue and barter expense transactions for the three and six months ended June 30, 2026 and 2025, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Beginning Makegood Liability Balance $ 6,251 $ 9,408 $ 7,651 $ 9,221 Makegood Revenue Recognized 1,387 1,171 2,819 1,713 New Makegood Obligations 196 515 228 1,244 Ending Makegood Liability Balance $ 5,060 $ 8,752 $ 5,060 $ 8,752 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Barter Revenue $ 575 $ 782 $ 1,061 $ 1,221 Barter Expenses $ 581 $ 782 $ 1,067 $ 1,189 -8- Table of Contents Variable Interest Entities Prior to May 1, 2025, the Company consolidated certain entities as a variable interest entity (“VIE”). Following shareholder approval on March 6, 2025, of the issuance of Class A common stock in connection with the exercise of a warrant and a Put Right, the Put Right was exercised on May 1, 2025, pursuant to which the Company acquired 100 % of the equity interests of Estrella and certain subsidiaries in exchange for 7,051,538 shares of Class A common stock. As a result, Estrella became a wholly owned subsidiary and is no longer considered a VIE. Accordingly, the Company did not consolidate any VIEs subsequent to May 1, 2025. Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates. Going Concern The accompanying condensed consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of June 30, 2026, the Company has near-term debt maturities, a working capital deficit, and liquidity constraints and the potential for future violations of financial covenants under its credit agreements. Management evaluated these conditions in accordance with applicable accounting guidance and determined that, absent the successful execution of its plans, substantial doubt exists about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. The Company’s failure to satisfy the Audio Adjusted EBITDA covenant for the quarter ended June 30, 2026 was waived by the applicable lender; however, the waiver applies only to the covenant period ended June 30, 2026 and does not extend to subsequent covenant periods. Accordingly, the Company may be required to obtain additional waivers or amendments to its credit agreements if it fails to satisfy applicable financial covenants in future periods. Management has concluded that our ability to continue as a going concern is dependent on our ability to execute our business plan and/or implement other strategic options. Management is prepared to implement additional cost cutting measures, as necessary, intends to seek refinancing and to raise additional capital to meet its debt service and working capital obligations, if needed. However, while the Company has been successful in obtaining additional liquidity in the past, no assurances can be made that the Company will receive such liquidity in the future, or that the other actions described above will alleviate substantial doubt about our ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Recent Accounting Pronouncements Implemented In July 2025, the FASB issued ASU 2025‑05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendment provides a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from revenue transactions. Under the expedient, an entity may assume that current conditions at the balance‑sheet date remain constant over the remaining life of these assets, simplifying the application of the current expected credit loss model. ASU 2025‑05 is effective for annual periods beginning after December 15, 2025, and is to be applied on a prospective basis. Early adoption is permitted. The Company adopted ASU 2025-05 effective January 1, 2026. There was no material impact to the Company’s unaudited condensed consolidated financial statements as a result of adopting ASU 2025-05. Recent Accounting Pronouncements Not Yet Implemented In November 2024, the FASB issued ASU 2024-03, Accounting Standards Update 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. An entity may apply the amendments prospectively for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating this guidance and its impact on the Company's condensed consolidated financial statements and financial statement disclosures. -9- Table of Contents 2. REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS Revision of Q2 2025 Financial Statements As discussed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, during the third quarter of 2025, the Company determined that its Warrant Shares, originally issued in 2024 and valued at $ 32.2 million as of June 30, 2025, should have been presented as a liability rather than as permanent equity. Due to the liability classification, there was also a $ 1.4 million mark to market adjustment that should have been recorded in Change in fair value of warrant shares liability in the condensed consolidated statements of operations for the three-month and six-month periods ended June 30, 2025. As a result, the accompanying unaudited condensed consolidated statement of changes in equity for the three-months ended June 30, 2025, have been revised to reflect this liability presentation of the Warrant Shares. In accordance with SAB No. 99, Topic 1.M, Materiality, SAB No. 99, Topic 1.N, Considering the Effects of Misstatements when Quantifying Misstatements in the Current Year Financial Statements, and ASC 250, Accounting Changes and Error Corrections , the Company assessed the materiality of this misstatement to its previously issued consolidated financial statements. Based upon the Company’s evaluation of both quantitative and qualitative factors, the Company concluded this misstatement was immaterial to the Company’s previously issued condensed consolidated financial statements as of and for the periods ended June 30, 2025. The following table details the impact of the misstatements and provides revisions to the impacted financial statement line items in the previously-issued condensed consolidated statements of operations for the periods presented (in thousands, except per share data): Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 As reported Adjustment As revised As reported Adjustment As revised Change in fair value of warrant shares liability $ — $ 1,410 $ 1,410 $ — $ 1,410 $ 1,410 Total other expense ( 1,736 ) 1,410 ( 326 ) $ ( 5,379 ) $ 1,410 $ ( 3,969 ) LOSS BEFORE INCOME TAXES AND EQUITY METHOD INVESTMENTS ( 8,521 ) 1,410 ( 7,111 ) ( 16,847 ) 1,410 ( 15,437 ) LOSS BEFORE EQUITY METHOD INVESTMENTS ( 8,800 ) 1,410 ( 7,390 ) ( 17,406 ) 1,410 ( 15,996 ) NET LOSS ( 8,800 ) 1,410 ( 7,390 ) ( 17,406 ) $ 1,410 ( 15,996 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS ( 9,078 ) 1,410 ( 7,668 ) ( 17,881 ) $ 1,410 ( 16,471 ) Net loss per share attributable to common shareholders - basic and diluted ( 0.11 ) 0.01 ( 0.10 ) ( 0.23 ) $ 0.02 ( 0.21 ) The following table details the impact of the misstatements and provides revisions to the impacted financial statement line items in the previously-issued condensed consolidated statements of changes in equity for the periods presented (in thousands): Three Months Ended June 30, 2025 As reported Adjustment As revised Net (loss) income ( 8,800 ) 1,410 ( 7,390 ) Warrant shares 32,155 ( 32,155 ) — Balance, June 30, 2025 $ 97,251 $ ( 30,745 ) $ 66,506 The following table details the impact of the misstatements and provides revisions to the impacted financial statement line items in the previously-issued condensed consolidated statements of cash flows for the periods presented (in thousands): Six Months Ended June 30, 2025 As reported Adjustment As revised Consolidated net loss $ ( 17,406 ) $ 1,410 $ ( 15,996 ) Noncash change in warrant shares — ( 1,410 ) ( 1,410 ) -10- Table of Contents 3. EARNINGS PER SHARE Basic and diluted net loss per share is computed using the two-class method, which allocates earnings to each class of common stock and participating securities based on their respective rights to receive dividends and undistributed earnings. Certain warrants to purchase Class A common stock are considered participating securities because they have the right to participate in distributions with common shareholders on an as-exercised basis. During periods of net loss, participating securities are not allocated losses as they are not contractually obligated to share in such losses. The Company has elected to allocate earnings based on loss from operations. For periods in which the Company reports a net loss, all potentially dilutive securities are anti-dilutive. Accordingly, basic and diluted weighted-average shares outstanding are the same for the periods presented. The following table presents a reconciliation of basic and diluted net loss per share attributable to Class A and Class B common shareholders: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Numerator: Net loss $ ( 8,613 ) $ ( 7,390 ) $ ( 17,981 ) $ ( 15,996 ) Less: Net income attributable to noncontrolling interests — ( 278 ) — ( 475 ) Net loss attributable to common shareholders for basic and diluted earnings per share $ ( 8,613 ) $ ( 7,668 ) $ ( 17,981 ) $ ( 16,471 ) Denominator: Weighted-average shares of common stock outstanding - basic and diluted 82,586 79,719 82,126 77,100 Earnings per share of common stock attributable to common shareholders: Net loss per share attributable to common shareholders - basic and diluted $ ( 0.10 ) $ ( 0.10 ) $ ( 0.22 ) $ ( 0.21 ) The following items were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive. Restricted stock awards excluded from the calculation include 474,302 shares underlying awards that vested but were not issued due to the Company's inability to fund the employee tax withholding obligations associated with such awards. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Option agreement shares — 1,860 — 4,441 Restricted stock awards 1,103 450 1,102 427 Total anti-dilutive shares 1,103 2,310 1,102 4,868 4. INVESTMENT IN UNCONSOLIDATED AFFILIATES On January 1, 2026, the Company acquired an investment in Sigma (“Investee”), a limited liability company operating an audio advertising and media network. The Company accounts for the investment under the equity method of accounting as it does not control the Investee. Under the Investee’s operating agreement, eMedia serves as manager and controls the significant operating activities of the Investee. Pursuant to the operating agreement, the Company is committed to fund up to $ 1.0 million of the Investee’s operating needs during the initial funding period. Contributions are accounted for as capital contributions and included in the carrying value of the investment. As of June 30, 2026, the Company has contributed $ 0.6 million to the Investee. The Company has remaining funding commitments of $ 0.4 million, under the agreement. Under the operating agreement, the Company is allocated 100 % of the Investee’s profits and losses until recovery of its initial capital contributions, after which profits and losses are allocated 60 % to the Company and 40 % to eMedia. -11- Table of Contents During the three and six months ended June 30, 2026, the Company recognized losses of $ 0.4 million and $ 0.6 million , respectively, which is included in equity loss in investments in the condensed consolidated statements of operations. This has reduced the investment in the Investee balance to zero as of June 30, 2026. No cash distributions were received during the period. Summarized financial information for equity method investees has not been presented as such information is not material to the Company’s condensed consolidated financial statements. 5. INTANGIBLE ASSETS AND GOODWILL As of June 30, 2026 and December 31, 2025, intangible assets and goodwill consisted of the following: June 30, 2026 December 31, 2025 Goodwill $ 8,403 $ 8,403 Indefinite-lived intangible assets: FCC licenses $ 162,800 $ 162,800 Definite-lived intangible assets: Customer relationships $ 7,957 $ 9,083 Software 618 791 Other 19 44 Total definite-lived intangible assets, net $ 8,594 $ 9,918 Total intangible assets, net and goodwill $ 179,797 $ 181,121 Definite-lived intangibles The following table presents the weighted-average useful life at June 30, 2026, and the gross carrying amount and accumulated amortization for each major class of definite-lived intangible assets at June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 12.7 $ 13,704 $ 5,747 $ 7,957 $ 13,704 $ 4,621 $ 9,083 Software 2.0 1,733 1,115 618 1,733 942 791 Other 0.4 256 237 19 256 212 44 Total $ 15,693 $ 7,099 $ 8,594 $ 15,693 $ 5,775 $ 9,918 The software was developed internally by our radio operations and represents our updated website and mobile application, which offer increased functionality and opportunities to grow and interact with our audience. They cost $ 1.7 million to develop and useful lives of five years and seven years were assigned to the application and website, respectively. The customer relationships and time brokerage agreements (“Other”) were acquired as part of the Estrella acquisition. Total amortization expense from definite-lived intangible assets for each of the three and six months ended June 30, 2026 and 2025 and included in the depreciation and amortization line item in the condensed consolidated statements of operations was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amortization expense $ 605 $ 735 $ 1,325 $ 1,567 -12- Table of Contents The Company estimates amortization expense for each of the next five years as follows: Amortization Expense 2026 (from July 1) $ 1,154 2027 1,931 2028 1,398 2029 992 2030 766 After 2030 2,353 Total $ 8,594 6. PROGRAMMING RIGHTS Program rights expected to be amortized to expense in the following 12-month period are classified as current assets and program rights payable within the following 12-month period are classified as current liabilities. Long-term program rights assets are classified as noncurrent acquired programming rights. The Company did not have any long-term program rights liabilities as of June 30, 2026 and December 31, 2025. All program rights payables are included in other current liabilities as of June 30, 2026 and December 31, 2025. Amortization expense included in operating expenses was $ 0.2 million and $ 0.4 million for the three and six months ended June 30, 2026, respectively and amortization expense for the three and six months ended June 30, 2025, was $ 0.2 million and $ 0.6 million, respectively. The Company evaluates programming rights for impairment whenever indicators of loss are present. No impairment was recorded during the periods presented. The Company estimates amortization expense as follows: Amortization Expense 2026 (from July 1) $ 212 2027 122 2028 7 Total $ 341 Sublicense Agreement On July 3, 2025, the Company entered into a three-year sublicense agreement with a programming syndicate to obtain non-exclusive Spanish-language broadcast and distribution rights to certain live sporting events. The sublicense covers the 2025-26, 2026-27, and 2027-28 seasons within the United States and Canada. Under the agreement, the syndicate provides the live clean feeds of these sporting events and related highlights, and the Company is permitted to air and monetize such programming across its linear and digital platforms. The Company is obligated to pay fixed license fees totaling $ 7.2 million over the term of the contract, payable in monthly installments during each season. Additional consideration is due for playoff events and for per-event production services. The Company also agreed to provide the syndicate $ 1.0 million per season of promotional airtime, measured at fair value, in lieu of cash consideration. The sublicense expires following completion of the 2027-28 season and is non-renewable except by mutual agreement. There were no promotional airtime expenses, license fees expensed were $ 0.2 million and $ 0.9 million, respectively, and production costs expensed were immaterial and $ 0.2 million, respectively, for the three and six months ended June 30, 2026. 7. REVENUE The Company generates revenue from the sale of services including, but not limited to: (i) on-air commercial broadcast time, (ii) non-traditional revenues including event-related revenues and event sponsorship revenues, and (iii) digital advertising. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue. Certain network sales contracts include a guaranteed number of units. If the guarantee is not met, the Company is obligated to provide additional units at no charge until the guaranteed number of units is met, referred to as a makegood liability. The liability for each contract is calculated by determining the cost per guarantee per the original contract, multiplied by the number of deficiency units. As of June 30, 2026, the makegood liability which is associated with these network sales and contracts was $ 5.1 million and is expected to be recognized at various times, but not anticipated to exceed four years and is included in Deferred revenue in the condensed consolidated financial statements. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Advertising revenues presented in the condensed consolidated financial statements are reflected on a net basis, after the deduction of advertising agency fees, usually at a rate of 15 % of gr oss revenues. -13- Table of Contents Spot Radio & TV Advertising On-air broadcast revenue is recognized when or as performance obligations under the terms of a contract with a customer are satisfied. This typically occurs over the period of time that advertisements are provided, or as an event occurs. Revenues are reported at the amount the Company expects to be entitled to receive under the contract. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue in the condensed consolidated balance sheets. Digital Digital revenue relates to revenue generated from the sale of digital marketing services (including display advertisements and video pre-roll and sponsorships) to advertisers on Company-owned websites and from revenue generated from content distributed across other digital platforms. Digital revenues are generally recognized as the digital advertising is delivered. Syndication Syndication revenue relates to revenue generated from the sale of rights to broadcast shows we produce as well as revenues from syndicated shows we broadcast for a fee. Syndication revenues are generally recognized ratably over the term of the contract. Events and Sponsorships Events and Sponsorships revenues principally consist of ticket sales and sponsorship of events our stations conduct in their local market. These revenues are recognized when our performance obligations are fulfilled, which generally coincides with the occurrence of the related event. Other Other revenue includes barter revenue, network revenue, talent fee revenue and other revenue. The Company provides advertising broadcast time in exchange for certain products and services, including on-air radio programming. These barter arrangements generally allow the Company to preempt such bartered broadcast time in favor of advertisers who purchase time for cash consideration. These barter arrangements are valued based upon the Company’s estimate of the fair value of the products and services received. Revenue is recognized on barter arrangements when we broadcast the advertisements. Advertisements delivered under barter arrangements are typically aired during the same period in which the products and services are consumed. The Company also sells certain remnant advertising inventory to third-parties for cash, and we refer to this as network revenue. The third-parties aggregate our remnant inventory with other broadcasters’ remnant inventory for sale to third parties, generally to large national advertisers. This network revenue is recognized as we broadcast the advertisements. Talent fee revenue are fees earned for appearances by our talent, which is recognized when our performance obligations are fulfilled, which generally coincides with the occurrence of the related appearance. Other revenue is comprised of brand integrations, custom on-air shows, or other amounts earned that do not fit in any other category and are recognized when our performance obligations are fulfilled. Disaggregation of revenue The following table presents the Company's revenues disaggregated by revenue source: Three Months Ended June 30, 2026 Audio Video Consolidated Net revenues: Spot Radio & TV Advertising $ 9,741 $ 6,657 $ 16,398 Digital 553 15,331 15,884 Syndication 210 — 210 Events and Sponsorships 179 11 190 Other 908 379 1,287 Total net revenues $ 11,591 $ 22,378 $ 33,969 -14- Table of Contents Three Months Ended June 30, 2025 Audio Video Consolidated Net revenues: Spot Radio & TV Advertising $ 12,727 $ 6,351 $ 19,078 Digital 130 9,319 9,449 Syndication 661 — 661 Events and Sponsorships 401 47 448 Other 1,317 292 1,609 Total net revenues $ 15,236 $ 16,009 $ 31,245 Six Months Ended June 30, 2026 Audio Video Consolidated Net revenues: Spot Radio & TV Advertising $ 17,945 $ 12,650 $ 30,595 Digital 930 30,493 31,423 Syndication 542 — 542 Events and Sponsorships 325 20 345 Other 1,612 838 2,450 Total net revenues $ 21,354 $ 44,001 $ 65,355 Six Months Ended June 30, 2025 Audio Video Consolidated Net revenues: Spot Radio & TV Advertising $ 23,330 $ 11,779 $ 35,109 Digital 1,255 17,731 18,986 Syndication 1,314 — 1,314 Events and Sponsorships 637 50 687 Other 2,392 787 3,179 Total net revenues $ 28,928 $ 30,347 $ 59,275 8. LONG-TERM DEBT, WARRANTS, AND SERIES B PREFERRED STOCK Long-term debt, and Series B Preferred Stock was comprised of the following at June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 First Lien Term Loans $ 45,000 $ 45,000 Second Lien Term Loan 31,771 30,446 Less: Current maturities ( 74,956 ) ( 10,000 ) Less: Unamortized original issue discount and deferred financing costs ( 1,815 ) ( 2,162 ) Total long-term debt $ — $ 63,284 Series B Preferred Stock $ 44,547 $ 41,320 First Lien Term Loans The Company has a first lien term loan credit facility (the “First Lien Credit Agreement”) of $ 45.0 million with WhiteHawk Capital Partners, LP, as administrative and collateral agent, and various lenders from time-to-time party thereto. -15- Table of Contents The term loans under the First Lien Credit Agreement bear interest at a rate of SOFR + 6.00 %.and require monthly interest payments. The First Lien Credit Agreement consists of an $ 35.0 million initial term loan (the “Initial Term Loan”) and delayed draw term loans in an aggregate amount up to $ 10.0 million (the “Delayed Draw Term Loans”). The first of such Delayed Draw Term Loans of $ 5.0 million was made on May 2, 2024 and the second of such Delayed Draw Term Loans of $ 5.0 million was made on July 17, 2024. The Initial Term Loan matures on April 17, 2029. During the first quarter of 2026, the Company obtained an amendment that extended the maturity of its First Lien Credit Agreement debt previously due in May 2026 to July 30, 2026 and waived certain covenant requirements. In August 2026, the Company entered into a second amendment to the First Lien Credit Agreement that further extended the maturity dates of both Delayed Draw Term Loans from July 30, 2026 to October 31, 2026. As of June 30, 2026, the Company was in compliance with all applicable financial covenants, with the exception of the Audio Adjusted EBITDA covenant. On August 14, 2026, the Company received a waiver from the applicable lender with respect to the Company’s failure to satisfy the Audio Adjusted EBITDA covenant for the quarter ended June 30, 2026. The waiver applies only to the covenant period ended June 30, 2026 and does not extend to any subsequent covenant periods. Accordingly, the Company has classified $ 34.1 million of outstanding long-term debt as current as of June 30, 2026. The Company has also reclassified $ 1.8 million of unamortized original issue discount and deferred financing costs associated with such debt to current liabilities, as applicable. Second Lien Term Loan The Company has a $ 30.0 million second lien term loan credit facility (the “Second Lien Credit Agreement” or the “2L Term Loan”) with HPS Investment Partners, LLC (“HPS”), as administrative and collateral agent, and various financial institutions from time-to-time party thereto. The Second Lien Credit Agreement was initially recorded at a discount and is accreted to its redemption value over its term, with such accretion recognized in Interest expense, net in the condensed consolidated financial statements. The 2L Term Loan will mature on April 17, 2029 and is subject to monthly interest payments at a rate of SOFR + 6.00 %, of which the 6.00 % may be paid-in-kind (“PIK”) at the Company’s election. In 2024, the Company elected to PIK the 6.00 % spread monthly. During the first quarter of 2026, the Company entered into an amendment to its Second Lien Credit Agreement that waived certain covenant requirements. As of June 30, 2026, the Company was in compliance with all applicable financial covenants, with the exception of the Audio Adjusted EBITDA covenant. On August 14, 2026, the Company received a waiver from the applicable lender with respect to the Company’s failure to satisfy the Audio Adjusted EBITDA covenant for the quarter ended June 30, 2026. The waiver applies only to the covenant period ended June 30, 2026 and does not extend to any subsequent covenant periods. Accordingly, the Company has classified $ 31.0 million of outstanding long-term debt as current as of June 30, 2026. Series B Preferred Stock The Company has 60,000 shares of Series B Preferred Stock with an aggregate initial liquidation value of $ 60.0 million. The Series B Preferred Stock was initially recorded at a discount and is accreted to its redemption value over its term, with such accretion recognized in Interest expense, net in the condensed consolidated financial statements. The Series B Preferred Stock was issued in April 2024 and accrues dividends at an annual rate of 6.00 % of its liquidation value, payable in kind, and is mandatorily redeemable after seven years from issuance in April 2031. The Series B Preferred Stock is not convertible into other equity securities and is classified as a long-term liability. The Series B Preferred Stock ranks senior to the Company’s common stock and restricts the Company’s ability to make certain distributions to junior or pari passu equity holders. Warrant Shares The Company issued a warrant to purchase up to 28,206,152 shares of Class A common stock, at an exercise price per share of $ 0.00001 . The warrant provided the holder with the right to participate in distributions on an as-exercised basis. Shareholder approval required for full exercise of the warrant was obtained on March 6, 2025. On September 5, 2025 the warrant issued in connection with the Company’s acquisition of certain assets of Estrella and its subsidiaries was exercised in exchange for 28,205,938 shares of MediaCo Class A Common Stock, par value $ 0.01 per share. -16- Table of Contents Based on amounts outstanding at June 30, 2026, mandatory principal payments of our debt for the next five years and thereafter, based on the original maturity schedules, are summarized below. The table excludes the First and Second Lien Term Loans, which are classified as current liabilities: Series B Preferred Stock Remainder of 2026 (from July 1) $ — 2027 — 2028 — 2029 — 2030 — Thereafter 60,000 Total $ 60,000 9. COMMITMENTS AND CONTINGENCIES Commitments The Company is subject to certain contingent liabilities arising in the normal course of business. These include guarantees, indemnifications, and other arrangements that could require the Company to make payments to third parties under certain circumstances. As of June 30, 2026, management has evaluated all known contingent matters and believes that any potential losses that may arise from such arrangements are not probable or are not reasonably estimable. Accordingly, no liability has been recorded in the accompanying financial statements. Legal Matters From time to time, our stations are parties to various legal proceedings arising in the ordinary course of business. In the opinion of management of the Company, however, there are no legal proceedings pending against the Company that we believe are likely to have a material adverse effect on the Company. 10. INCOME TAXES The effective tax rate for the six months ended June 30, 2026 and 2025 was ( 7 )% and ( 4 )%, respectively. Our effective tax rate for the six months ended June 30, 2026 differs from the statutory tax rate primarily due to the recording of additional interest and penalties on an uncertain tax position as well as the continued recognition of additional valuation allowance. ASC Subtopic 740-10 clarified the accounting for uncertainty in income taxes by prescribing a recognition threshold and measurement attribute of the financial statement recognition and measurement of a tax position taken or expected to be taken within a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest benefit that reaches greater than 50% likelihood of being realized upon ultimate settlement. As of June 30, 2026 and December 31, 2025, we recorded approximately $ 7.7 million of gross tax liability for uncertain tax positions related to federal and state income tax returns filed. Additionally, we recognize accrued interest and penalties related to unrecognized tax benefits as components of our income tax provision. As of June 30, 2026 and December 31, 2025, the amount of interest accrued was approximately $ 0.5 million and $ 0.2 million, respectively, and the amount of penalties accrued was approximately $ 0.7 million and $ 0.5 million, respectively, which did not include the federal tax benefit of interest deductions. 11. LEASES We have operating leases for office space and tower space expiring at various dates through December 2047 and finance leases for broadcast tower space expiring in March 2029. Some leases have options to extend and some have options to terminate. Operating leases are included in lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities in our condensed consolidated balance sheets. Finance leases are included in deposits and other, other current liabilities, and other noncurrent liabilities in our condensed consolidated balance sheet. We elected not to apply the recognition requirements of ASC 842, Leases, to short-term leases, which are deemed to be leases with a lease term of 12 months or less. Instead, we recognized lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term and variable payments in the period in which the obligation for these payments was incurred. We elected this policy for all classes of underlying assets. Short-term lease expense recognized during both the three and six months ended June 30, 2026 and 2025 was not material. -17- Table of Contents On February 27, 2026, the Company entered into an amendment to an existing lease agreement. The amendment resulted in a remeasurement of the related lease liability and right-of-use (“ROU”) asset. As a result of the remeasurement, both the lease liability and the ROU asset decreased; however, the reduction in the lease liability exceeded the decrease in the ROU asset. As a result of the lease modification and remeasurement, the Company recorded a $ 7.0 million, reduction in lease liabilities during the first quarter of 2026, consisting of a $ 1.0 million reduction in current lease liabilities and a $ 6.0 million reduction in non-current lease liabilities, as well as a reduction of the ROU asset of $ 5.4 million. As a result, the Company recognized a remeasurement gain of $ 1.6 million, representing the excess of the reduction in the lease liability over the reduction in the ROU asset. This gain is included in other income in the Company’s condensed consolidated statements of operations. The impact of operating leases to our condensed consolidated financial statements was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating lease cost $ 1,698 $ 1,983 $ 3,421 $ 4,022 Operating cash flows from operating leases $ 1,521 $ 1,645 $ 3,075 $ 3,359 Right-of-use assets obtained in exchange for additional operating lease liabilities from lease modification $ — $ 457 $ — $ 457 June 30, 2026 December 31, 2025 Weighted average remaining lease term - operating leases (in years) 11.4 12.1 Weighted average discount rate - operating leases 11.5 % 11.7 % The impact of finance leases to our condensed consolidated financial statements was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Finance lease cost $ 143 $ 226 $ 276 $ 456 Cash flows from finance leases $ 201 $ 193 $ 395 $ 380 June 30, 2026 December 31, 2025 Weighted average remaining lease term - finance leases (in years) 2.8 3.2 Weighted average discount rate - finance leases 11.3 % 11.3 % As of June 30, 2026, the annual minimum lease payments of our operating and finance lease liabilities were as follows: Operating Leases Finance Leases 2026 (from July 1) $ 3,090 $ 402 2027 5,956 831 2028 5,855 866 2029 5,479 219 2030 5,396 — Thereafter 38,176 — Total lease payments 63,952 2,318 Less imputed interest ( 29,102 ) ( 321 ) Total recorded operating lease liabilities $ 34,850 $ 1,997 12. RELATED PARTY TRANSACTIONS Estrella Put Right and Equity Clawback In connection with the Company’s acquisition of Estrella, the Company entered into agreements with HPS, that contain equity clawback provisions. Under these provisions, the Company may require the return or forfeiture of equity interests under specified circumstances. -18- Table of Contents The potential exercise of these clawback provisions could result in the reduction or cancellation of equity interests held by such related party investors and the repayment or forfeiture of related debt obligations. The magnitude and timing of any such clawback would depend on the occurrence and amount of qualifying losses or obligations as defined in the applicable agreements and could be material to the Company’s consolidated financial statements. For the three and six months ended June 30, 2026 as a result of the increase in the uncertain tax position and corresponding interest and penalties, the Company increased equity by an additional $ 0.4 million and reduced equity by $ 0.7 million, respectively, pursuant to the equity clawback feature. At June 30, 2026 and December 31, 2025, $ 8.6 million and $ 7.9 million, respectively, of equity interests were subject to clawback, while no debt instruments have been subject to clawback. Second Lien Term Loan The Company entered into a $ 30.0 million Second Lien Credit Agreement with HPS, as administrative and collateral agent, and certain financial institutions affiliated with HPS. HPS is a significant shareholder of the Company and, as such, the Second Lien Credit Agreement constitutes a related-party transaction. The 2L Term Loan bears interest at a rate of SOFR + 6.00 %, which may be paid-in-kind (“PIK”) at the Company’s election. During 2024, the Company elected to PIK the 6.00 % spread monthly. Interest expense recognized on the 2L Term Loan, including both cash and PIK interest, totaled approximately $ 0.8 million for both the three months ended June 30, 2026 and 2025 and $ 1.6 million for both the six months ended June 30, 2026 and 2025. The outstanding balance owed to HPS as of June 30, 2026, was $ 31.8 million, inclusive of PIK interest accreted to principal. Additional details regarding the Second Lien Credit Agreement are provided in Note 8 — Long-Term Debt, Warrants, and Series B Preferred Stock Consulting Agreements & Other Activity On October 29, 2024, the Company and Standard Media Group LLC (“SMG”) a wholly owned subsidiary of Standard General, entered into an Employee Leasing Agreement, effective as of October 1, 2024 (the “Leasing Agreement”). Under the Leasing Agreement, the Company will obtain the services of several SMG employees to serve various roles for the Company, including with respect to the legal, digital products, broadcast IT, and news operations function. The Leasing Agreement is an at-cost arrangement, with the Company paying only for a percentage of the actual cost of employing each leased employee, with no markup or service fees above the Company’s share of the actual fully-loaded cost of each leased employee. For the three and six months ended June 30, 2026, fees of $ 0.2 million and $ 0.3 million, respectively, were incurred related to this agreement and for the three and six months ended June 30, 2025, $ 0.2 million and $ 0.3 million of fees were incurred related to this agreement. As of June 30, 2026 and December 31, 2025, the outstanding unpaid balances were $ 0.1 million and $ 0.7 million, respectively. On April 17, 2025, the Company and Paducah Television Operations LLC (“PTO”), a subsidiary of SMG, entered into a Support Agreement, effective as of April 17, 2025 (the “PTO Support Agreement”) and continues for a term of six months unless terminated earlier by either party with 30 days written notice. On November 5, 2025, an amendment was entered into to extend the term of this agreement for an additional 12 months. Under the PTO Support Agreement, the Company will provide operational support to PTO, including, but not limited to, finance and legal assistance, human resources, sales, and production of certain marketing materials. In return for providing these services, the Company will receive payment at the mutually agreed upon rate. For the three and six months ended June 30, 2026, $ 1.8 million and $ 4.2 million of fees were earned related to this agreement and $ 0.6 million for both the three and six months ended June 30, 2025 of fees were earned related to this agreement. These fees are recorded in other income on the condensed consolidated statements of operations. $ 0.1 million and $ 0.8 million of fees were still owed to the Company as of June 30, 2026 and December 31, 2025. 13. SEGMENT INFORMATION The Company and the chief operating decision maker (“CODM”) assesses performance and allocates resources in accordance with FASB ASC 280, Segment Reporting. The Company’s CODM is the Chief Executive Officer. The CODM primarily uses operating income (loss) to evaluate the financial performance of each segment, assess operating efficiency and profitability, and compare across segments. This measure is also used by the CODM to make decisions regarding the allocation of resources, including capital expenditures, programming and content investments, marketing initiatives, and headcount. We currently manage our operations through two business segments: (i) Audio, and (ii) Video. The Company’s Audio Segment includes both MediaCo’s and Estrella’s radio stations serving the New York City, NY, Los Angeles, CA, Houston, TX, and Dallas, TX demographic market areas that primarily target Black, Hispanic, and multi-cultural consumers. The Audio Segment derives revenues primarily from radio and digital advertising sales, but also generates revenues from events, including sponsorships and ticket sales, licensing, and syndication. The Company’s Video Segment includes Estrella’s television stations offering a unique aggregation of Spanish-language programming, including originals, topical entertainment, reality, news, and comedy. The Video Segment’s revenue is primarily -19- Table of Contents derived from television and digital advertising. The Company’s television stations serve Los Angeles, CA, Houston, TX, Denver, CO, New York, NY, Chicago, IL and Miami, FL. These business segments are consistent with the Company’s management of these businesses and its financial reporting structure. Corporate expenses, including transaction costs, are not allocated to reportable segments. The Company’s segments operate exclusively in the United States. The accounting policies as described in the Summary of Significant Accounting Policies included in Note 1 to these condensed consolidated financial statements are applied consistently across segments. Three Months Ended June 30, 2026 Audio Video Consolidated Net revenues $ 11,591 $ 22,378 $ 33,969 Operating expenses 13,413 21,813 Depreciation and amortization 786 557 Other segment items (2) 233 1 Segment operating (loss) income $ ( 2,841 ) $ 7 $ ( 2,834 ) Corporate and other (1) 2,055 Interest expense, net 4,029 Other income ( 543 ) Loss before income taxes and equity method investments $ ( 8,375 ) Three Months Ended June 30, 2025 Audio Video Consolidated Net revenues $ 15,236 $ 16,009 $ 31,245 Operating expenses 15,910 18,864 Depreciation and amortization 872 825 Other segment items (2) 3 2 Segment operating loss $ ( 1,549 ) $ ( 3,682 ) $ ( 5,231 ) Corporate and other (1) 1,554 Interest expense, net 3,855 Change in fair value of warrant shares liability ( 1,410 ) Other income ( 2,119 ) Loss before income taxes and equity method investments $ ( 7,111 ) Six Months Ended June 30, 2026 Audio Video Consolidated Net revenues $ 21,354 $ 44,001 $ 65,355 Operating expenses 26,123 43,925 Depreciation and amortization 1,742 1,277 Other segment items (2) 1,114 ( 128 ) Segment operating loss $ ( 7,625 ) $ ( 1,073 ) $ ( 8,698 ) Corporate and other (1) 3,721 Interest expense, net 7,969 Other income ( 4,222 ) Loss before income taxes and equity method investments $ ( 16,166 ) -20- Table of Contents Six Months Ended June 30, 2025 Audio Video Consolidated Net revenues $ 28,928 $ 30,347 $ 59,275 Operating expenses 27,844 36,142 Depreciation and amortization 1,796 1,670 Other segment items (2) 142 2 Segment operating loss $ ( 854 ) $ ( 7,467 ) $ ( 8,321 ) Corporate and other (1) 3,147 Interest expense, net 7,609 Change in fair value of warrant shares liability ( 1,410 ) Other income ( 2,230 ) Loss before income taxes and equity method investments $ ( 15,437 ) (1) Corporate and other is not an operating segment. Corporate expenses include expenses related to infrastructure and support, including information technology, human resources, legal, finance and administrative functions of the Company, as well as overall executive, administrative and support functions. (2) Audio’s other segment items consist of loss (gain) on disposal of assets. Assets by reportable segment were as follows: Total Assets Audio Video Corporate and other (3) Consolidated June 30, 2026 $ 142,734 $ 127,454 $ 1,807 $ 271,995 December 31, 2025 $ 169,222 $ 116,727 $ 5,109 $ 291,058 (3) Corporate and other is not an operating segment. Corporate and other assets primarily include cash and cash equivalents. 14. SUBSEQUENT EVENTS The Company evaluated subsequent events from June 30, 2026 through the date these financial statements were issued and except for those noted below has noted no subsequent events after June 30, 2026 for which disclosure is required. In August 2026, the Company entered into the Second Amendment to the First Lien Credit Agreement with WhiteHawk Capital Partners, LP, as administrative and collateral agent, and the lenders party thereto. The Second Amendment extended the maturity dates of the Company's two Delayed Draw Term Loans, with an aggregate principal balance of $ 10.0 million, from July 30, 2026 to October 31, 2026. All other material terms of the First Lien Credit Agreement remained substantially unchanged.. Additionally, the Company received a waiver from WhiteHawk Capital Partners, LP and HPS, as administrative and collateral agents, and the lenders party thereto, with respect to the Company’s failure to satisfy the Audio Adjusted EBITDA covenant for the quarter ended June 30, 2026. The waiver applies only to the covenant period ended June 30, 2026 and does not extend to any subsequent covenant periods. As a result of the waiver, the Company was not in default under the terms of the credit agreement as of June 30, 2026 or as of the date of this filing. The Company is in compliance with all other covenants under the agreement. -21- Table of Contents