[Management View]
Acquisition-adjusted revenue growth rose 2.9% in Q3 2025, driven by national programmatic advertising and strength in the Atlantic and Northeast billboard regions. Programmatic revenue grew over 13%, marking the strongest quarter since Q2 2022. Digital billboard revenue increased 3.4% quarter-over-quarter, now accounting for 31% of billboard billing across 5,400 faces in 155 markets. Segment performance showed gains in services, healthcare, financials, and insurance, while beverages, real estate, and government/nonprofit underperformed due to policy uncertainties in Washington, D.C.

[Outlook]
Management projects meeting prior 2025 guidance despite difficult political advertising comparables in October and signals a favorable 2026 outlook supported by positive pacings and major customer commitments. Enterprise conversion remains on track for completion in mid-2026, with AI-driven operational benefits expected in 2027.

[Financial Performance]
Acquisition-adjusted revenue increased 2.9% YoY, accelerating 100 basis points over Q2 2025. EBITDA was $280.8 million in Q3 2025 despite higher operating expenses. Diluted AFFO per share increased 2.0% YoY. Capital expenditures were $50 million in Q3 2025, with full-year CapEx projected at $180 million. Total consolidated debt was $3.4 billion as of Q3 2025.

[Q&A Highlights]
Question 1: As you look ahead into 2026, what are the primary growth drivers for your business, and should we expect another acquisitive year ahead?
Answer: Acquisition activity has been strong, with approximately $300 million spent this year driving AFFO per share growth. Pacings for 2026 are markedly stronger compared to the same point in 2025. Political advertising will be a tailwind, contributing to a positive setup for 2026.

Question 2: Has AI company-related advertising influenced national growth this quarter, and is it an opportunity going forward?
Answer: The enterprise conversion will enable AI benefits in 2027. AI is good at words and pictures, which aligns with our out-of-home advertising. AI will help drive business growth.

Question 3: Other than political tailwinds, will the benefit from the Verde acquisition offset the headwind from the Vancouver exit in 2026?
Answer: The Verde acquisition and Vancouver exit will offset each other, providing clean revenue comparability for 2026. The Verde transaction will have better EBITDA flow-through than Vancouver.

Question 4: Can you expand on the auto insurance vertical's strength and sustainability, and how should we think about political advertising during a midterm cycle?
Answer: Political advertising in 2022 was approximately $21 million. Auto insurance vertical strength is consistent with industry trends, and we expect it to be sustainable.

Question 5: Will the year-end special distribution be all cash, and how will it be returned to shareholders?
Answer: The special year-end distribution will be all cash, around $0.25 per share, paid on December 31 alongside the regular dividend.

Question 6: Do you expect to bid on additional RFPs for airport advertising given the strength in this segment?
Answer: Lamar specializes in smaller middle-market airports, which has been a strong growth vehicle. We will continue to focus on this segment.

[Sentiment Analysis]
Analysts and management expressed optimism about future growth, driven by strategic acquisitions, digital expansion, and AI integration. The tone was positive, with confidence in meeting guidance and favorable outlook for 2026.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|-------------------------------|---------|---------|---------|
| Acquisition-adjusted revenue | +2.9% | +1.9% | +2.0% |
| Programmatic revenue growth | +13% | +10% | +8% |
| Digital billboard revenue | +3.4% | +2.5% | +3.0% |
| EBITDA | $280.8M | $270M | $275M |
| Diluted AFFO per share | +2.0% | +1.5% | +1.8% |
| Capital expenditures | $50M | $40M | $45M |
| Total consolidated debt | $3.4B | $3.3B | $3.2B |

[Risks and Concerns]
Political advertising comparables in October may pose challenges. Policy uncertainties in Washington, D.C. could impact government/nonprofit segment performance. The integration of Verde assets and the termination of the Vancouver transit contract may affect revenue comparability.

[Final Takeaway]
Lamar Advertising reported strong acquisition-adjusted revenue growth in Q3 2025, driven by digital and programmatic channels. Management remains optimistic about meeting 2025 guidance and anticipates a favorable 2026 outlook supported by strategic acquisitions and AI integration. Despite macroeconomic uncertainties, the company is confident in its resilience and future growth prospects.