OUTFRONT Media (NYSE:OUT) reported first-quarter 2026 results that exceeded management’s prior expectations, with revenue gains in both its billboard and transit segments and a sharp increase in adjusted OIBDA and AFFO, executives said on the company’s earnings call.
Chief Executive Officer Nick Brien said consolidated revenue rose 10% in the quarter, supported by 22% growth in transit revenue and 7% growth in billboard revenue. Consolidated adjusted OIBDA increased 56% to about $100 million, while AFFO more than doubled to $61 million.
Brien said the quarter included $13.5 million of billboard condemnation revenue and related OIBDA that the company had previously highlighted when providing guidance in February. Excluding that item and the impact of the company’s exit from a large, marginally profitable billboard contract in Los Angeles, billboard revenue would have grown more than 4%, he said.
Transit Growth Led by New York MTA
Transit was the strongest area of growth in the quarter. Brien said transit revenue increased 22%, led by the New York MTA, which rose more than 26% in the period. The company’s strongest transit categories were technology and financial services, while its strongest billboard categories were legal and technology.
Chief Financial Officer Matthew Siegel said the MTA remains central to the company’s transit performance, noting that it accounts for more than half of OUTFRONT’s transit revenue and is “about seven or eight times” the size of the company’s next-largest transit franchise. He also said San Francisco’s BART franchise performed well, supported by technology advertising and repopulation trends in the city.
Transit adjusted OIBDA improved by about $13 million from the prior year, reaching a loss of slightly more than $1 million. Transit expenses increased just under 5%, including higher franchise expense, display production costs, posting and rotation costs, compensation-related expenses and professional fees.
Siegel said OUTFRONT now expects 2026 New York MTA revenue to exceed the defined baseline revenue level, commonly referred to as the minimum annual guarantee, or MAG. Because of that, the company expects to return to recouping digital investments made in the MTA contract since 2018. He said incremental expenses above the MAG will reduce OUTFRONT’s recoupable investment balance rather than be paid in cash, making incremental revenue “extremely accretive on a cash basis.”
Digital and Programmatic Revenue Continue to Expand
Digital revenue grew more than 11% in the quarter and represented about one-third of total revenue, Brien said. Excluding the exited Los Angeles contract, digital revenue would have grown nearly 15%. Programmatic and digital direct automated sales increased nearly 40% and represented 20% of total digital revenue, up from 16% a year earlier.
Brien also highlighted the hiring of senior digital sales leader Jeff Hackett, saying the addition was intended to advance OUTFRONT’s evolution into a media company focused on digital expertise, audience intelligence and measurable outcomes. He said Hackett’s leadership would help the company maximize its ad technology stack, data management platform and trading partnerships.
On measurement, Siegel said in response to an analyst question that the out-of-home industry has been “behind” on measurement capabilities but that OUTFRONT and other industry leaders are working with the OAAA and Geopath to move the issue forward. He pointed to OUTFRONT’s partnerships with AWS and AdQuick, saying AdQuick has measurement capabilities that could demonstrate a viable currency and potentially serve as a proof of concept for broader industry adoption.
Billboard Segment Benefits from Condemnation Revenue
Billboard revenue rose 7.1% on a reported basis. Static and other billboard revenue increased 7.6%, while digital billboard revenue rose 6.1%. Excluding the condemnation revenue and the exited Los Angeles contract, static and other billboard revenue would have been up nearly 2%, and digital billboard revenue would have been up more than 10%, Brien said.
Billboard yield increased 11% year over year to more than $2,900 per month, driven by higher rates and billboard condemnations. Excluding condemnation revenue from both periods, billboard yield would have increased about 6.5%.
Siegel said billboard expenses rose about $5 million, or roughly 2%, from the prior year. Lease costs increased about 2%, driven by higher variable lease costs and fixed lease escalators, partly offset by $4 million of savings from the Los Angeles contract exit. Total billboard adjusted OIBDA increased about $17 million, or 18%. Excluding the impact of condemnation revenue, billboard OIBDA would have been up around 4%.
Guidance Improves as Spring and Summer Demand Holds
Stephan Bisson, senior vice president of investor relations, said the company expects second-quarter revenue growth to accelerate to more than 10% year over year, driven by about 30% growth in transit and mid-single-digit growth in billboard. He said those expectations include a benefit related to the United States’ role as a World Cup host in June and July, as well as a headwind from the exited Los Angeles billboard contract, which generated about $4.4 million of revenue in the second quarter of 2025.
During the question-and-answer session, Siegel said OUTFRONT was not prepared to quantify the World Cup impact, but said the company had about 70 customers tied to the event and still expected to book additional business in the second and third quarters. Brien added that OUTFRONT has more than 40% of FIFA sponsors as customers and views the tournament as an opportunity to demonstrate how major brands can use its media in real-world environments.
Based on first-quarter results, expected revenue growth and business investments, Siegel said OUTFRONT now expects reported 2026 consolidated AFFO to grow in the mid-teens compared with reported 2025 AFFO of $338 million. The outlook includes maintenance capital expenditures, approximately $145 million of interest expense and a small amount of cash taxes.
Balance Sheet, Dividend and Investment Plans
OUTFRONT ended the quarter with more than $700 million of committed liquidity, including $70 million of cash, around $500 million available through its revolver and $150 million available through its accounts receivable securitization facility. Net leverage was 4.3 times as of March 31, within the company’s 4 times to 5 times target range.
The company’s board maintained a quarterly cash dividend of $0.30 per share, payable June 30 to shareholders of record as of June 5. Siegel said OUTFRONT spent just over $8 million on acquisitions during the quarter and continues to expect full-year acquisition activity to be similar to recent years.
Capital expenditures totaled about $24 million in the first quarter, including about $7 million of maintenance spending. OUTFRONT converted 14 billboards to digital during the quarter and expects to add about 125 digital billboard conversions for the full year. The company continues to expect approximately $90 million of capital expenditures in 2026, including $30 million to $35 million for maintenance.
Brien closed the call by pointing to OUTFRONT’s strategic repositioning around what the company calls “IRL Media,” emphasizing the value of physical media in a changing advertising environment. He said the organization has begun to see the benefits of initiatives launched in 2025 and said management expects to provide more detail when it reports second-quarter results in August.
About OUTFRONT Media (NYSE:OUT)
OUTFRONT Media Inc is a leading out-of-home (OOH) advertising company offering a broad range of billboard, transit and digital display solutions across major urban markets in the United States and Canada. Its portfolio encompasses traditional static billboards, high-resolution digital signage, transit media on buses, trains and taxis, as well as street furniture placements such as bus shelters, kiosks and urban panels. The company partners with brand marketers to deliver high-impact campaigns that engage consumers outside the home environment.
Through an extensive network of assets in key metropolitan areas, OUTFRONT provides advertisers with premium visibility along highways, city streets and transit corridors.
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