Business Description

" for detailed information about our business, the industry in which we operate, certain industry trends and important recent business developments. 2025 Highlights During the year ended December 31, 2025, our revenue grew by double digits, driven primarily by revenue growth of 90% in our advertising technology & services segment, partially offset by a decrease in revenue in our media segment compared to the year ended December 31, 2024. In addition, during the year ended December 31, 2025: • investments in the AI capabilities of our platform and increased sales capacity enabled ATS to increase monthly active advertisers and revenue per monthly active advertiser. • amended our original 2023 Credit Agreement, or the original 2023 Credit Agreement, to provide more financial flexibility and accelerate debt reduction. • we continued to reduce our debt by making a voluntary prepayment of $10 million and scheduled amortization payments of $10 million under our Credit Facility. • management began to implement an ongoing organization design plan (the "Plan") to support revenue growth and reduce expenses, primarily in our media operations. As management continues to implement the Plan, and evaluate its early results, further changes may be made if management believes that is appropriate. For more details see Note 2 to Notes to Consolidated Financial Statements. Dispositions See Note 3 to Notes to Consolidated Financial Statements for details. 28 RESULTS OF OPERATIONS Separate financial data for each of our operating segments is provided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value of contingent consideration, impairment charge, other operating (gain) loss, and foreign currency (gain) loss. We evaluate the performance of our operating segments based on the following (in thousands): Year Ended December 31, % Change % Change 2025 2024 2023 2025 to 2024 2024 to 2023 Net Revenue Media $ 176,659 $ 222,061 $ 196,268 (20 )% 13 % Advertising Technology & Services 270,935 142,887 100,775 90 % 42 % Consolidated 447,594 364,948 297,043 23 % 23 % Cost of revenue Media 18,240 16,726 10,952 9 % 53 % Advertising Technology & Services 165,872 85,470 66,262 94 % 29 % Consolidated 184,112 102,196 77,214 80 % 32 % Direct operating expenses Media 109,583 110,988 96,925 (1 )% 15 % Advertising Technology & Services 47,219 25,274 16,306 87 % 55 % Consolidated 156,802 136,262 113,231 15 % 20 % Selling, general and administrative expenses Media 43,995 42,759 36,000 3 % 19 % Advertising Technology & Services 22,775 20,109 13,761 13 % 46 % Consolidated 66,770 62,868 49,761 6 % 26 % Depreciation and amortization Media 11,041 12,891 11,975 (14 )% 8 % Advertising Technology & Services 1,301 3,930 4,417 (67 )% (11 )% Consolidated 12,342 16,821 16,392 (27 )% 3 % Segment operating profit (loss) Media (6,200 ) 38,697 40,416 * (4 )% Advertising Technology & Services 33,768 8,104 29 317 % * Consolidated 27,568 46,801 40,445 (41 )% 16 % Corporate expenses 27,026 37,498 50,294 (28 )% (25 )% Change in fair value of contingent consideration — (629 ) 821 (100 )% * Impairment charge 55,380 61,220 13,267 (10 )% 361 % Loss on lease abandonment 25,191 — — * * Restructuring costs 2,813 — — * * Foreign currency (gain) loss 523 692 1,950 (24 )% (65 )% Other operating (gain) loss — — 609 * (100 )% Operating income (loss) (83,365 ) (51,980 ) (26,496 ) 60 % 96 % Interest expense (15,121 ) (16,472 ) (16,833 ) (8 )% (2 )% Interest income 2,286 2,458 3,405 (7 )% (28 )% Dividend income 9 10 35 (10 )% (71 )% Realized gain (loss) on marketable securities 7 (110 ) (93 ) * 18 % Gain (loss) on debt extinguishment (214 ) (91 ) (1,556 ) 135 % (94 )% Income (loss) before income taxes from continuing operations $ (96,398 ) $ (66,185 ) $ (41,538 ) 46 % 59 % Capital expenditures Media $ 6,597 $ 7,089 $ 21,208 Advertising Technology & Services 183 372 3,643 Consolidated $ 6,780 $ 7,461 $ 24,851 * Percentage not meaningful. 29 Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Consolidated Operations Net Revenue. Net revenue increased to $447.6 million for the year ended December 31, 2025 from $364.9 million for the year ended December 31, 2024.…