Clear Channel Outdoor (CCO -0.40%), one of the largest out-of-home advertising companies in the U.S, reported results on August 4, 2025. The report showed both revenue and earnings (GAAP) ahead of expectations. Earnings per share (GAAP) reached $0.03, outperforming the consensus estimate of a $0.04 GAAP loss. Revenue (GAAP) was $402.8 million. Revenue came in $2.992 million above analyst estimates and rose 7.0% over the prior year. The results highlighted the company’s commitment to its strategy—accelerating digital transformation, focusing on the U.S. market, and streamlining its balance sheet. Overall, the quarter brought solid operational progress and momentum in key growth areas.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | N/A | N/A | N/A | N/A |
| Revenue | $402.8 million | $399.8 million | $376.5 million | 7.0 % |
| America Revenue | $303.1 million | $290.2 million | 4.4% | |
| Airports Revenue | $99.7 million | $86.2 million | 15.6 % | |
| Adjusted EBITDA | $128.6 million | $119.4 million | 7.7 % |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategic Focus
Clear Channel Outdoor is a major player in outdoor advertising, providing printed and digital billboards, airport signage, and transit ads across the United States. The company’s network featured over 61,000 displays, including more than 5,000 digital screens as of June 30, 2025, with a reach spanning most major American cities and airports. Its business centers on selling advertising space on these physical displays, helping clients reach consumers while they travel, commute, or shop.
Recently, Clear Channel Outdoor has sharpened its focus on three main areas: accelerating its shift to digital displays, divesting non-core international assets, and strengthening its U.S.-centered operations. Digital transformation is especially important for the company, as digital out-of-home displays bring more flexible and measurable advertising options, plus higher profit margins. Its overall success depends on expanding digital assets, managing regulatory complexities, and staying competitive in a crowded marketplace.
Key Developments and Performance This Quarter
Revenue (GAAP) increased 7.0% year over year, with the America segment rising 4.4% and the Airports segment up 15.6%. Digital revenue in America jumped 11.1% to $113.8 million, making up a growing share of the company’s performance. The Airports segment showed even faster digital growth, up 31.5% to $63.5 million. The company credited these results to new digital billboard deployments, strong demand in the New York and San Francisco regions, and particular success under a major Metropolitan Transportation Authority contract.
The period also saw continued progress on Clear Channel Outdoor’s divestiture plan, which aims to streamline the business and boost operating cash flow. The company finalized an agreement on May 6, 2025, to sell its Brazilian unit for approximately $14.7 million, subject to certain customary adjustments, and continued work on completing its exit from Spanish operations. Earlier sales of other international businesses have allowed the company to reduce debt and focus resources more effectively on its U.S. core. The company recognized $132.0 million in gains from these asset disposals in its GAAP year-to-date net income for the six months ended June 30, 2025.
Cost pressures affected the quarter, with America segment direct operating and selling, general, and administrative (SG&A) expenses rising 7.5% to $175.5 million (GAAP). Site lease costs—which cover payments for billboard locations—rose 11.1%, driven mainly by the new MTA contract. Airports segment expenses also grew 12.2%, including a 13.4% increase in site lease expense. Despite these cost increases, Adjusted EBITDA (non-GAAP) improved 7.7% to $128.6 million, and the company’s cash flow also strengthened, with adjusted funds from operations (AFFO, non-GAAP) up 75.9% to $27.8 million.
The company’s debt position improved sharply, in part thanks to proceeds from completed sales. It repurchased $229.7 million in senior notes during the quarter, and year-to-date debt reduction totaled approximately $605 million. After the quarter, Clear Channel Outdoor refinanced key notes, moving major debt maturities out to 2031 and 2033. Cash on hand rose to $138.6 million, with net debt at $4.93 billion as of June 30, 2025, a $620 million improvement from December 2024.
Looking Forward: Outlook and Guidance
For the third quarter of 2025, management expects consolidated revenue (GAAP) in the range of $395 million to $410 million, or an increase of 5–9% versus the prior year. The company forecasts full-year 2025 consolidated revenue of $1.57–$1.60 billion, 4–6% higher than fiscal 2024. Adjusted EBITDA (non-GAAP) is projected at $490–$505 million for FY2025, reflecting expected growth of 3–6%. AFFO guidance (non-GAAP) was set at $75–$85 million for full year 2025, showing anticipated increases of 28–45% as interest expense declines. The company also expects capital spending between $60 million and $70 million for the full year, a marked decrease from the prior year.
Looking ahead, investors should focus on progress in expanding digital displays. Another area to watch is the impact of regulatory developments on billboard placement and the total number of advertising locations. The company does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
