What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-08 · 134 added, 59 removed, 201 unchanged (49% of the section changed)

16 unchanged sentences

Percentages may not add due to rounding.

Three Months Ended March 31,

(In thousands) Dollars % of Revenue Dollars % of Revenue

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands) Dollars % of Revenue Dollars % of Revenue Dollars % of Revenue Dollars % of Revenue

Revenues $ 89,389 100.0 % $ 85,837 100.0 % $ 175,098 100.0 % $ 172,632 100.0 %

7 unchanged sentences

Loss from operations (1,681) (1.9) % (1,928) (2.2) % (3,747) (2.1) % (3,805) (2.2) %

Interest expense, net (1,758) (2.1) % (572) (0.7) %

(Loss) gain from foreign currency transactions (3,803) (4.3) % (248) (0.3) % (5,546) (3.2) % 715 0.4 %

Interest expense, net (1,553) (1.7) % (444) (0.5) % (3,311) (1.9) % (1,016) (0.6) %

Other income, net — — % 376 0.4 % — — % 651 0.4 %

Loss before income taxes (7,037) (7.9) % (2,244) (2.6) % (12,604) (7.2) % (3,455) (2.0) %

Income tax benefit 1,574 1.8 % 157 0.2 %

Income tax (provision) benefit (2,455) (2.7) % 536 0.6 % (881) (0.5) % 693 0.4 %

Net loss $ (9,492) (10.6) % $ (1,708) (2.0) % $ (13,485) (7.7) % $ (2,762) (1.6) %

10 unchanged sentences

These shared costs include employee costs, purchased data, operational overhead, data storage and technology that supports both solution groups.

Revenues for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

Revenues for the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue $ Variance % Variance

5 unchanged sentences

Total revenues $ 89,389 100.0 % $ 85,837 100.0 % $ 3,552 4.1 %

Content & Ad Measurement revenue increased due to renewals and new business in local TV and an increase in our Cross-Platform revenue, primarily driven by increased usage of our Proximic products.

This increase was offset by a decrease in revenue from our national TV and syndicated digital products due to lower renewals.

Content & Ad Measurement revenue increased due to higher renewals and new business in local TV and an increase in our Cross-Platform revenue, primarily driven by increased usage of our Proximic and CCR products and adoption of our CCM offering.

Included in Syndicated Audience revenue is local TV revenue from a new contract with a large enterprise media client that resulted in revenue being recognized earlier in the year than we anticipated.

This increase was partially offset by a decrease in revenue from our national TV and syndicated digital products due to lower renewals.

Research & Insight Solutions revenue decreased primarily due to lower deliveries of certain custom digital products.

Revenues for the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue $ Variance % Variance

Content & Ad Measurement

Syndicated Audience $ 127,457 72.8 % $ 128,789 74.6 % $ (1,332) (1.0) %

Cross-Platform 22,462 12.8 % 16,020 9.3 % 6,442 40.2 %

Total Content & Ad Measurement 149,919 85.6 % 144,809 83.9 % 5,110 3.5 %

Research & Insight Solutions 25,179 14.4 % 27,823 16.1 % (2,644) (9.5) %

Total revenues $ 175,098 100.0 % $ 172,632 100.0 % $ 2,466 1.4 %

This increase was partially offset by a decrease in revenue from our national TV and syndicated digital products due to lower renewals.

Research & Insight Solutions revenue decreased primarily due to lower deliveries of certain custom digital products.

Cost of Revenues

3 unchanged sentences

Additionally, cost of revenues includes allocated overhead, lease expense and other facilities-related costs, and depreciation expense generated by general purpose equipment and software.

Cost of revenues for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

Cost of revenues for the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue

2 unchanged sentences

Employee costs 11,276 12.6 % 9,930 11.6 % 1,346 13.6 %

Lease expense and depreciation 7,057 8.2 % 6,099 7.0 % 958 15.7 %

Systems and bandwidth costs 7,619 8.5 % 6,548 7.6 % 1,071 16.4 %

Lease expense and depreciation 7,093 7.9 % 6,543 7.6 % 550 8.4 %

Panel costs 3,600 4.0 % 3,073 3.6 % 527 17.1 %

Royalties and resellers 1,905 2.1 % 1,472 1.7 % 433 29.4 %

Professional fees 1,690 1.9 % 2,048 2.4 % (358) (17.5) %

Sample and survey costs 1,529 1.7 % 1,438 1.7 % 91 6.3 %

Technology 1,183 1.3 % 1,076 1.3 % 107 9.9 %

Other 318 0.4 % 282 0.3 % 36 12.8 %

Total cost of revenues $ 53,099 59.4 % $ 51,953 60.5 % $ 1,146 2.2 %

Employee costs increased primarily due to a shift in headcount toward supporting our products and an increase in employee bonuses.

Systems and bandwidth costs increased primarily due to higher cloud computing and processing costs attributable to certain custom TV data set deliveries.

These increases were partially offset by a decrease in data costs primarily due to the December 2024 amendment to our data license agreement with Charter Operating, for which fees are now paid based on household counts provided during the period.

Cost of revenues for the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue

$ Change % Change

Data costs $ 34,141 19.4 % $ 38,330 22.4 % $ (4,189) (10.9) %

Employee costs 21,932 12.5 % 19,825 11.5 % 2,107 10.6 %

Systems and bandwidth costs 14,471 8.3 % 13,329 7.7 % 1,142 8.6 %

Lease expense and depreciation 14,150 8.1 % 12,642 7.3 % 1,508 11.9 %

Panel costs 7,099 4.1 % 6,110 3.5 % 989 16.2 %

Royalties and resellers 3,956 2.3 % 2,675 1.5 % 1,281 47.9 %

Professional fees 3,099 1.8 % 3,305 1.9 % (206) (6.2) %

Sample and survey costs 3,071 1.8 % 3,178 1.8 % (107) (3.4) %

Technology 2,359 1.3 % 2,111 1.2 % 248 11.7 %

1 unchanged sentence

Total cost of revenues $ 104,846 59.9 % $ 102,020 59.1 % $ 2,826 2.8 %

Lease expense and depreciation increased primarily due to higher depreciation driven by an increase in capitalized internal-use software and finance leases.

Royalties and resellers costs increased primarily due to increased sales for products in which we pay royalties.

Data costs decreased primarily due to the December 2024 amendment to our data license agreement with Charter Operating, for which fees are now paid based on household counts provided during the period.

Employee costs increased primarily due to a shift in headcount toward supporting our products and an increase in employee bonuses.

Lease expense and depreciation increased primarily due to an increase in capitalized internal-use software and finance leases.

Royalties and resellers costs increased primarily due to increased sales of products for which we pay royalties.

Systems and bandwidth costs increased primarily due to higher cloud computing and processing costs attributable to certain custom TV data set deliveries.

Selling and Marketing

Selling and marketing expenses consist primarily of employee costs, including salaries, benefits, commissions, stock-based compensation and other related costs for personnel associated with sales and marketing activities, as well as costs related to online and offline advertising, industry conferences, promotional materials, public relations, other sales and marketing programs and allocated overhead, lease expense and other facilities-related costs, and depreciation expense generated by general purpose equipment and software.

Selling and marketing expenses for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

Selling and marketing expenses for the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue $ Change % Change

Employee costs $ 12,838 14.3 % $ 11,508 13.4 % $ 1,330 11.6 %

Marketing and advertising 1,242 1.4 % 653 0.8 % 589 90.2 %

Technology 813 0.9 % 796 0.9 % 17 2.1 %

Professional fees 701 0.8 % 519 0.6 % 182 35.1 %

Lease expense and depreciation 521 0.6 % 836 1.0 % (315) (37.7) %

Other 548 0.6 % 500 0.6 % 48 9.6 %

Total selling and marketing expenses $ 16,663 18.6 % $ 14,812 17.3 % $ 1,851 12.5 %

Employee costs increased primarily due to severance expense for terminated employees.

Selling and marketing expenses for the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue $ Change % Change

Employee costs $ 24,465 14.0 % $ 23,436 13.6 % $ 1,029 4.4 %

Marketing and advertising 1,886 1.1 % 1,500 0.9 % 386 25.7 %

Technology 1,624 0.9 % 1,590 0.9 % 34 2.1 %

Professional fees 1,380 0.8 % 1,216 0.7 % 164 13.5 %

Lease expense and depreciation 1,078 0.6 % 1,526 0.9 % (448) (29.4) %

1 unchanged sentence

Total selling and marketing expenses $ 31,466 18.0 % $ 30,176 17.5 % $ 1,290 4.3 %

Employee costs increased primarily due to severance expense for terminated employees.

Research and Development

Research and development expenses include product development costs, consisting primarily of employee costs including salaries, benefits, stock-based compensation and other related costs for personnel associated with research and development activities, third-party expenses to develop new products and third-party data costs and allocated overhead, lease expense and other facilities-related costs, and depreciation expense related to general purpose equipment and software.

Research and development expenses for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

Research and development expenses for the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue $ Change % Change

5 unchanged sentences

Total research and development expenses $ 7,804 8.7 % $ 8,373 9.8 % $ (569) (6.8) %

Research and development expenses for the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue $ Change % Change

Employee costs $ 12,262 7.0 % $ 12,880 7.5 % $ (618) (4.8) %

Technology 1,508 0.9 % 1,540 0.9 % (32) (2.1) %

Professional fees 1,085 0.6 % 1,217 0.7 % (132) (10.8) %

Lease expense and depreciation 826 0.5 % 1,275 0.7 % (449) (35.2) %

Other 241 0.1 % 228 0.1 % 13 5.7 %

Total research and development expenses $ 15,922 9.1 % $ 17,140 9.9 % $ (1,218) (7.1) %

Employee costs decreased primarily due to a shift in headcount toward supporting our products.

General and Administrative

1 unchanged sentence

equipment and software, amortization of cloud-computing implementation costs, changes in the fair value of our contingent consideration liability, Board of Directors compensation and expenses incurred for other general corporate purposes.

General and administrative expenses for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

General and administrative expenses for the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue $ Change % Change

5 unchanged sentences

Total general and administrative expenses $ 12,872 14.4 % $ 11,334 13.2 % $ 1,538 13.6 %

Employee costs increased primarily due to an increase in employee bonuses.

General and administrative expenses for the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended June 30,

(In thousands) 2025 % of Revenue 2024 % of Revenue $ Change % Change

Employee costs $ 14,876 8.5 % $ 12,407 7.2 % $ 2,469 19.9 %

Professional fees 6,079 3.5 % 6,696 3.9 % (617) (9.2) %

Technology 1,705 1.0 % 1,693 1.0 % 12 0.7 %

Lease expense and depreciation 545 0.3 % 750 0.4 % (205) (27.3) %

Other 2,142 1.2 % 3,001 1.7 % (859) (28.6) %

Total general and administrative expenses $ 25,347 14.5 % $ 24,547 14.2 % $ 800 3.3 %

Employee costs increased primarily due to an increase in employee bonuses and severance expense for terminated employees.

Amortization of Intangible Assets

Amortization expense consists of charges related to the amortization of intangible assets associated with acquisitions, primarily our 2016 Rentrak merger.

Amortization of intangible assets was $0.6 million and $0.8 million during the three months ended March 31, 2025 and 2024, respectively.

Amortization of intangible assets was $0.6 million and $0.8 million during the three months ended June 30, 2025 and 2024, respectively and $1.3 million and $1.6 million during the six months ended June 30, 2025 and 2024, respectively.

Organizational Restructuring

We incurred $0.5 million and $1.0 million of restructuring expense during the three and six months ended June 30, 2024, respectively, related to the implementation of a restructuring plan that included a workforce reduction communicated in 2022.

The 2022 restructuring plan was substantially completed in 2024.

Interest Expense, Net

2 unchanged sentences

Interest expense primarily relates to interest and amortization of debt issuance costs under our Credit Agreement, our Prior Credit Agreement and our finance leases.

We incurred interest expense, net of $1.8 million and $0.6 million during the three months ended March 31, 2025 and 2024, respectively.

The increase in interest expense, net for the three months ended March 31, 2025 as compared to 2024 was primarily due to the increase in debt balance related to the Credit Agreement executed on December 31, 2024.

We incurred interest expense, net of $1.6 million and $0.4 million during the three months ended June 30, 2025 and 2024, respectively, and $3.3 million and $1.0 million during the six months ended June 30, 2025 and 2024, respectively.

The increase in interest expense, net for the three and six months ended June 30, 2025 as compared to 2024 was primarily due to the increase in debt balance related to the Credit Agreement executed on December 31, 2024.

For additional information, refer to Footnote 5 , Debt.

4 unchanged sentences

Dollars are in a net asset position.

For the three months ended March 31, 2025, the loss from foreign currency transactions was $1.7 million.

The loss was primarily driven by fluctuations in the Chilean Peso against the U.S.

Dollar and the U.S.

Dollar against the Euro.

For the three months ended March 31, 2024, the gain from foreign currency transactions was $1.0 million.

The gain was primarily driven by fluctuations between the Chilean Peso, U.S.

Dollar and Euro exchange rates.

For the three and six months ended June 30, 2025, the loss from foreign currency transactions was $3.8 million and $5.5 million, respectively.

The losses were primarily driven by fluctuations in the Euro, Chilean Peso and U.S.

Dollar exchange rates.

For the three and six months ended June 30, 2024, the (loss) gain from foreign currency transactions was $(0.2) million and $0.7 million, respectively.

The loss during the three months ended June 30, 2024 and gain during the six months ended June 30, 2024 were primarily driven by fluctuations in the Euro and Chilean Peso against the U.S.

Dollar and the Chilean Peso against the Euro.

Other Income, Net

Other income, net represents income and expenses incurred that are generally not recurring in nature or are not part of our regular operations.

Other income, net was zero and $0.3 million for the three months ended March 31, 2025 and 2024, respectively.

Income Tax Benefit

Other income, net was zero during the three and six months ended June 30, 2025, and $0.4 million and $0.7 million during the three and six months ended June 30, 2024, respectively.

Income Tax (Provision) Benefit

A valuation allowance has been established against our net U.S.

2 unchanged sentences

deferred taxes for tax deductible goodwill and other indefinite-lived liabilities.

For the three months ended March 31, 2025 and 2024, we recorded an income tax benefit of $1.6 million and $0.2 million, respectively, resulting in effective tax rates of 28.3% and 13.0%, respectively.

For the three months ended June 30, 2025 and 2024, we recorded an income tax provision of $2.5 million and an income tax benefit of $0.5 million, respectively, resulting in effective tax rates of 34.9% and 23.9%, respectively.

For the six months ended June 30, 2025 and 2024, we recorded an income tax provision of $0.9 million and an income tax benefit of $0.7 million, respectively, resulting in effective tax rates of 7.0% and 20.1%, respectively.

These effective tax rates differ from the U.S.

2 unchanged sentences

The following table summarizes our cash flows for each of the periods identified:

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands) 2025 2024

3 unchanged sentences

Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,032 (616)

Net increase (decrease) in cash, cash equivalents and restricted cash 1,033 (4,019)

Our principal uses of cash consist of cash paid for data, payroll and other operating expenses, including expenses incurred in prior periods;

Net decrease in cash, cash equivalents and restricted cash (3,942) (8,093)

Our principal uses of cash consist of cash paid for data, payroll and other operating expenses;

payments related to investments in equipment, primarily to support our consumer panels and technical infrastructure required to deliver our products and services and support our customers;

and service of our debt and lease facilities.

As of March 31, 2025, our principal sources of liquidity consisted of cash, cash equivalents and restricted cash totaling $34.5 million, including $3.5 million in restricted cash (primarily related to letters of credit);

As of June 30, 2025, our principal sources of liquidity consisted of cash, cash equivalents and restricted cash totaling $29.5 million, including $3.5 million in restricted cash (primarily related to letters of credit);

cash flows from our operations;

and amounts available to us under our Credit Agreement, as described below.

We had outstanding letters of credit of $3.2 million as of March 31, 2025.

We had outstanding letters of credit of $2.8 million as of June 30, 2025.

On June 24, 2025, each holder of Preferred Stock waived its right to receive on June 30, 2025 the annual dividends otherwise payable by us on that date.

Under the waivers and the Certificate of Designations, the deferred dividends will accrue and accumulate at a rate of 9.5% per year from June 30, 2025 until declared and paid, with payment to occur on or before December 31, 2025.

As of June 30, 2025, accrued dividends for the Preferred Stock totaled $17.9 million.

On December 31, 2024, we entered into the Credit Agreement with Blue Torch Finance LLC.

2 unchanged sentences

Initial proceeds from the Term Loan were used to resolve our aged accounts payable, cash collateralize our outstanding letters of credit, pay transaction fees and expenses, and strengthen our cash position.

As of March 31, 2025, we had no borrowings outstanding under the Revolving Facility, with remaining borrowing capacity of $15.0 million.

As of June 30, 2025, we had no borrowings outstanding under the Revolving Facility, with remaining borrowing capacity of $15.0 million.

On July 24, 2024, we issued 13.3 million additional shares of Preferred Stock to the existing holders of Preferred Stock in exchange for cancellation of our obligation to pay accrued dividends to such holders for dividend periods ended in 2023 and 2024.

The additional shares of Preferred Stock have the same terms and conditions as the Preferred Stock previously issued by us, including that they accrue annual dividends at a rate of 7.5% per annum.

The additional shares of Preferred Stock have the same terms and conditions as the Preferred Stock previously issued by us, including that they accrue annual dividends at a rate of 7.5% per annum, subject to increase under certain circumstances (including in connection with the dividend waivers described above).

Under the Credit Agreement, we are prohibited from paying cash dividends to the holders of Preferred Stock prior to April 1, 2026.

1 unchanged sentence

Macroeconomic Factors

In recent years, macroeconomic challenges such as inflation, rising interest rates, capital market disruptions and recession concerns have caused some advertisers to reduce or delay advertising expenditures.

Over the past two years, macroeconomic challenges such as inflation, capital market disruptions and recession concerns have caused some advertisers to reduce or delay advertising expenditures.

Recent developments in U.S.

1 unchanged sentence

These declines have had a direct impact on demand for our products, particularly those that are tied to advertising spend.

We expect that softness in the advertising market will continue to affect our business in 2025.

We expect that softness in the advertising market will continue to affect our business in the second half of

Although we cannot quantify the impact of macroeconomic factors on our future results, any worsening of ad market conditions could negatively impact our financial position and liquidity.

3 unchanged sentences

Shares of Preferred Stock are convertible into Common Stock as described in Footnote 4 , Convertible Redeemable Preferred Stock and Stockholders' Equity (Deficit) .

The holders of Preferred Stock are entitled to participate in all dividends declared on the Common Stock on an as-converted basis and are also entitled to a cumulative dividend at the rate of 7.5% per annum, payable annually in arrears and subject to increase under certain specified circumstances (including in connection with the dividend waivers described below).

In addition, such holders are entitled to request, and we must take all actions reasonably necessary to pay, a one-time special dividend on the Preferred Stock equal to the highest dividend that our Board of Directors determines can be paid at the applicable time (or a lesser amount agreed by the holders), subject to additional conditions and limitations described in Footnote 4 , Convertible Redeemable Preferred Stock and Stockholders' Equity (Deficit) .

2 unchanged sentences

On the same date, each holder of Preferred Stock waived its right to receive on June 30, 2023 the annual dividends otherwise payable by us on that date.

Upon receipt of the waivers, our Board elected to defer the June 2023

Upon receipt of the waivers, our Board elected to defer the June 2023 payment.

Under the waivers and the Certificate of Designations, the deferred dividends would accrue and accumulate at a rate of 9.5% per year from June 30, 2023 until declared and paid, with payment to occur on or before December 31, 2023.

10 unchanged sentences

After further reducing the threshold by annual dividends paid in prior years, the current special dividend threshold is $47.0 million.

As of March 31, 2025, each share of Preferred Stock was convertible into 0.052830 shares of Common Stock, with such conversion rate scheduled to return to 0.05 upon payment of accrued dividends.

On June 24, 2025, each holder of our Preferred Stock waived its right to receive on June 30, 2025 the annual dividends otherwise payable by us on that date.

As of June 30, 2025, each share of Preferred Stock was convertible into 0.053779 shares of Common Stock, with such conversion rate scheduled to return to 0.05 upon payment of accrued dividends.

Any payment of dividends (annual or special) in the form of cash could significantly impact our financial position and liquidity.

3 unchanged sentences

The Credit Agreement provides a borrowing capacity of $60.0 million consisting of the $45.0 million Term Loan and the $15.0 million Revolving Facility.

As of March 31, 2025, the interest rate for the Term Loan was 11.56% based on the Adjusted Term SOFR rate, as defined in the Credit Agreement.

As of June 30, 2025, the interest rate for the Term Loan was 11.56% based on the Adjusted Term SOFR rate, as defined in the Credit Agreement.

In addition, the Credit Agreement provides for an unused commitment fee equal to 1.0% per annum of the unused Revolving Facility.

5 unchanged sentences

With respect to dividends, the Credit Agreement prohibits the payment of cash dividends to holders of the Preferred Stock prior to April 1, 2026 and imposes certain limitations on cash dividends, including a heightened Liquidity requirement, on and after that date.

As of March 31, 2025, we were in compliance with our covenants under the Credit Agreement.

As of March 31, 2025, we had $44.9 million outstanding under the Term Loan and no borrowings outstanding under the Revolving Facility, with a remaining borrowing capacity of $15.0 million.

As of June 30, 2025, we were in compliance with our covenants under the Credit Agreement.

As of June 30, 2025, we had $44.8 million outstanding under the Term Loan and no borrowings outstanding under the Revolving Facility, with a remaining borrowing capacity of $15.0 million.

For additional information on the Credit Agreement, refer to Footnote 5 , Debt .

3 unchanged sentences

Cash provided by operating activities is calculated by adjusting our net loss for changes in working capital, as well as by excluding non-cash items such as:

depreciation, stock-based compensation, non-cash operating lease expense, amortization expense of finance leases and intangible assets and deferred tax benefit.

Net cash provided by operating activities for the three months ended March 31, 2025 was $9.1 million compared to $6.9 million for the three months ended March 31, 2024.

The increase in cash provided by operating activities was attributable to a net increase in cash generated from

operating assets and liabilities, with $4.2 million of cash provided for the three months ended March 31, 2025 as compared to $1.7 million of cash used for the three months ended March 31, 2024, primarily due to higher cash collections in 2025 as a result of customer payment timing.

depreciation, stock-based compensation, non-cash operating lease expense, amortization expense of finance leases and intangible assets and deferred tax provision (benefit).

Net cash provided by operating activities for the six months ended June 30, 2025 was $10.0 million compared to $15.6 million for the six months ended June 30, 2024.

The decrease in cash provided by operating activities was attributable to a higher net loss offset by higher cash generated from operating assets and liabilities, primarily due to the timing of vendor payments and higher cash receipts from customers during the six months ended June 30, 2025 in comparison to the six months ended June 30, 2024.

Additionally, non-cash adjustments increased for the six months ended June 30, 2025 in comparison to the six months ended June 30, 2024 due to higher adjustments for depreciation and deferred tax provision.

Investing Activities

1 unchanged sentence

The extent of these investments will be affected by our ability to expand relationships with existing customers, grow our customer base and introduce new digital formats, as well as constraints on cash expenditures due to our financial position and the current economic environment.

Net cash used in investing activities for the three months ended March 31, 2025 was $5.7 million compared to $6.1 million for the three months ended March 31, 2024.

Net cash used in investing activities for the six months ended June 30, 2025 was $11.4 million compared to $12.1 million for the six months ended June 30, 2024.

The decrease in cash used in investing activities was primarily due to a decrease in cash paid for capitalized internally developed software.

Financing Activities

Net cash used in financing activities during the three months ended March 31, 2025 was $3.0 million compared to $4.4 million during the three months ended March 31, 2024.

The decrease in cash used in financing activities was primarily due to the third and final installment of the contingent consideration for the Shareablee acquisition paid during the three months ended March 31, 2025 being lower than the second installment paid during the three months ended March 31, 2024.

This decrease was partially offset by financing and debt issuance payments related to our Credit Agreement during the three months ended March 31, 2025.

Net cash used in financing activities during the six months ended June 30, 2025 was $4.6 million compared to $11.0 million during the six months ended June 30, 2024.

The decrease in cash used in financing activities was primarily due to the repayment of $6.0 million of the principal amount outstanding under the Prior Credit Agreement in 2025, in addition to lower contingent consideration for the Shareablee acquisition paid in 2025 compared to 2024.

The decrease was partially offset by financing and debt issuance payments related to our new Credit Agreement during six months ended June 30, 2025.

Contractual Payment Obligations

2 unchanged sentences

These agreements have remaining terms of less than one year to six years.

As of March 31, 2025, the total fixed payment obligations related to set-top box and connected TV data agreements are $118.4 million and $21.1 million, respectively.

As of June 30, 2025, the total fixed payment obligations related to set-top box and connected TV data agreements are $112.1 million and $25.7 million, respectively.

In addition, we expect to make variable payments related to a set-top box data agreement totaling an estimated $95.2 million over the next six years.

1 unchanged sentence

Our leases have remaining terms from less than one year to five years.

As of March 31, 2025, the total fixed payment obligation related to these agreements is $33.7 million.

As of June 30, 2025, the total fixed payment obligation related to these agreements is $30.5 million.

We have an agreement for cloud-based data storage and bandwidth to help process and store our data.

The remaining term for this agreement is less than one year.

As of March 31, 2025, the total fixed payment obligation related to this agreement is $10.0 million.

As of June 30, 2025, the total fixed payment obligation related to this agreement is $6.3 million.

Future Capital Requirements

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis