Abstract

Clear Channel Outdoor Holdings Inc will announce quarterly results on February 26, 2026 Pre-Market, with investors focused on an anticipated year-over-year revenue decline and mixed profit trends as operating efficiency and debt costs remain in focus.

Market Forecast

- For the current quarter, Clear Channel Outdoor Holdings Inc is projected to deliver revenue of $448.86 million, implying a -24.25% year-over-year change; EBIT is estimated at $105.84 million with a -9.08% year-over-year change, and EPS is expected at $0.01 with a 69.44% year-over-year increase. Margin commentary from the prior quarter suggests gross profit margin around the mid-50% range and net profit margin likely negative, though improving, given forecasted EPS normalization. - The company’s main revenue driver remains customer contracts, with segment revenues concentrated in core advertising contracts and property leases. The most promising segment centers on contracted advertising sales tied to customer contracts, which generated $305.58 million last quarter, while leases contributed $100.06 million; contract-driven placements are expected to be more resilient as digital inventory yields and placement optimization continue.

Last Quarter Review

- In the previous quarter, Clear Channel Outdoor Holdings Inc reported revenue of $405.64 million, a gross profit margin of 54.53%, GAAP net loss attributable to shareholders of $60.09 million, a net profit margin of -14.81%, and adjusted EPS of -$0.12; year-over-year revenue growth was -27.43% and adjusted EPS growth was -100.00%. - A notable financial highlight was positive EBIT of $80.72 million despite the GAAP loss, reflecting ongoing operating discipline. Main business results showed $305.58 million from customer contracts and $100.06 million from leases, indicating a revenue mix skewed toward contracted advertising sales.

Current Quarter Outlook (with major analytical insights)

Main business: Customer contracts and core ad inventory monetization

Customer contracts remain the backbone of Clear Channel Outdoor Holdings Inc’s revenue model, anchoring cash flows and providing visibility into demand patterns. The latest quarter’s $305.58 million from customer contracts underscores the concentration of revenue in contracted bookings, supported by recurring advertisers and long-term agreements across airports, transit, and roadside assets. As brands prioritize efficient reach, contracted placements, especially on high-traffic roadside and airport panels, help mitigate volatility in spot buying. The near-term question is pricing discipline and occupancy, as the industry navigates mixed macroeconomic signals. With forecasted revenue at $448.86 million for the new quarter against a subdued year-ago base, the implied softness (-24.25% YoY) suggests management and the market are bracing for cautious ad budgets and seasonality effects. Operating leverage should still aid gross margin resilience in the mid-50% range, with continued focus on yield management across premium digital boards likely helping sustain blended gross profit margin. Conversion of contracted pipeline into delivered campaigns will be crucial for stabilizing cash generation and creating a base for recovering EPS.

Most promising business: Digitally enabled contracted placements

Digitally enabled contracted placements within customer contracts provide the clearest path to improving unit economics, as dynamic content rotation and audience targeting allow higher impressions yield and pricing flexibility. Given the company’s revenue mix, digital inventory embedded in contracted packages should lift average revenue per display and reduce idle time through programmatic and dayparting strategies. This segment benefits from faster campaign turnarounds and the ability to scale creative across locations, supporting better sell-through amid cautious discretionary budgets. While the finance tool aggregates customer contracts as $305.58 million last quarter, a growing share is likely attributable to digital formats, which typically carry higher margin due to lower incremental operating cost scaling. In the approaching quarter, management’s focus on optimizing digital fill rates and maintaining rate cards where engagement is measurable could offset softer demand from shorter-cycle advertisers. The ability to upsell advertisers from static to digital packages remains a catalyst for EBIT stabilization, especially as the EBIT outlook indicates a -9.08% year-over-year change, a milder decline than revenue suggests, reflective of mix and efficiency gains.

Stock price drivers this quarter: Margin trajectory, debt service, and airport/transit demand

The stock is likely to react to signs that gross margin can hold near the mid-50% level while net loss narrows, as forecast EPS at $0.01 implies potential breakeven dynamics. Investors will parse operating expense control, particularly corporate overhead and site lease expenses, given leases accounted for $100.06 million last quarter and are a key determinant of operating leverage. Debt service remains a focal point for equity holders: progress on interest expense moderation and refinancing could help narrow the gap between EBIT and net income, improving the net margin trajectory from -14.81% last quarter. Demand trends in airports and transit are another swing factor; steady travel volumes and advertiser appetite for high-intent audiences support premium placements, while any weakness in local/regional advertisers would show up in roadside occupancy. Disclosure on Q1 pacing and forward bookings will shape the near-term narrative, especially if management can demonstrate that the forecast -24.25% revenue comparison reflects lapping one-off factors rather than a structural slowdown.

Analyst Opinions

The balance of recent commentary skews cautious, with a larger share of institutional views emphasizing near-term revenue pressure and a focus on profitability metrics rather than growth. Commentary highlights the gap between solid EBIT generation and net earnings, pointing to interest costs and non-operating items as the bridge to close. Analysts expect the company’s digital mix and operating discipline to help protect gross margin, but consensus reflects concern that year-over-year revenue softness and negative EBIT growth (-9.08% YoY) could cap near-term upside. Cited perspectives emphasize that potential positive surprises would likely come from stronger-than-expected airport/transit bookings and clearer progress on deleveraging.