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OUTFRONT reported Q2 FY2026 revenue of $522.5 million, above the consensus estimate of $508.8 million. Adjusted earnings per share, as counted by the consensus, were $0.68, also above the $0.59 estimate.
Revenue rose 13.5% from $460.2 million a year earlier. In its filing, OUTFRONT attributed growth in both its Billboard and Transit segments to higher average revenue per display and World Cup-related revenue, partly offset by lost billboard locations and changes in transit contracts.
Diluted earnings per share rose to $0.44 from $0.10. Gross margin increased to 52.9% from 49.7%, while operating margin rose to 22.2% from 12.2%. OUTFRONT reported free cash flow of $88.1 million, compared with $32.9 million a year earlier.
The filing said higher transit revenue was the primary driver of the increase in net income before allocation to noncontrolling interests.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $522.5 million | $460.2 million | 13.5% |
| Diluted EPS | $0.44 | $0.10 | 340.0% |
| Gross margin | 52.9% | 49.7% | 3.2 percentage points |
| Operating margin | 22.2% | 12.2% | 10.0 percentage points |
| Free cash flow | $88.1 million | $32.9 million | 167.8% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.68 | $0.59 | Beat by 15.3% |
| Revenue | $522.5 million | $508.8 million | Beat by 2.68% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, OUTFRONT said adding digital displays in locations with audiences is part of its growth strategy. The company said digital screens can carry multiple advertisements and allow customers to launch campaigns quickly while reducing print and installation costs.
OUTFRONT also said automated advertising platforms present a revenue opportunity. Its filing noted that the company relies on outside suppliers for digital displays and advertising technology and has previously experienced delays and price increases.
Guidance
CFO Matthew Siegel said OUTFRONT now expects reported AFFO to grow in 2026 compared with 2025. He said the outlook reflects expected revenue growth, business investments and the accounting treatment for the New York MTA contract.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating margin, New York Mta | Q4 FY2026 | OUTFRONT Media expects a large margin gain associated with the New York MTA in Q4 FY2026. | — | — |
| Revenue growth, Transit | Q3 FY2026 | 20.0% | — | New |
| Revenue | Q3 FY2026 | OUTFRONT Media expects revenue growth in the high single digits year over year in Q3 FY2026. | — | — |
| Dividend, Per Share | Q3 FY2026 | $0.33 | — | New |
| Operating expenses, New York Mta | Q4 FY2026 | $40.0 million | Q3 FY2026: $40.0 million | Held |
| Operating expenses, New York Mta | Q3 FY2026 | $40.0 million | — | New |
| Operating expenses, New York Mta | FY2026 | $161.0 million | — | New |
| Capex, Maintenance | FY2026 | $30.0 million–$35.0 million | — | New |
| Capex | FY2026 | $90.0 million | — | New |
| Units, Digital Boards | FY2026 | 125 | — | — |
| Operating expenses, Sga | FY2026 | OUTFRONT Media expects SG&A expense growth to outpace revenue growth for the remainder of FY2026. | — | — |