MediaCo’s latest quarter matters to publishers, songwriters, and rights holders because the company’s revenue mix has shifted sharply toward digital, even as its audio business weakened and its losses widened. For a multicultural broadcaster with major stations and networks in key markets, that split tells a clear story: digital is now doing more of the heavy lifting.
Digital Growth Drove Revenue to $31.4 Million
MediaCo posted a 12% revenue gain in Q1 2026, with net revenues rising to $31.4 million from $28.0 million a year earlier. Digital revenue nearly doubled, climbing from $9.5 million to $15.5 million, and digital’s share of total revenue increased to 50% from 34% a year earlier.
The company tied the growth to its expanded digital focus, but operating expenses also rose. Costs linked to digital platforms helped push operating expenses up 19% to $34.8 million.
Video Improved as Audio Slipped
The video segment showed the clearest benefit from the digital push. Anchored by EstrellaTV and MediaCo’s growing FAST channel portfolio, the segment narrowed its operating loss from $3.8 million to $1.1 million on a $7.3 million revenue increase.
The audio segment moved the other way. Audio revenues fell $3.9 million year over year to $9.8 million, while operating expenses rose $1.5 million. That shift took the segment from $695,000 in operating income to a $4.8 million operating loss.
Spot radio and television advertising also declined, falling to $14.2 million from $16.0 million. That reduced its share of the revenue mix from 57% to 45%.
Losses Widened as Debt Pressure Stayed in View
MediaCo’s net loss widened to $9.4 million from $8.6 million, and operating loss deepened 61% to $7.5 million.
The company’s auditors continue to maintain questions about whether MediaCo can stay solvent. As of March 31, the company held $5.1 million in cash and carried $54.5 million more in short-term obligations than it had in current assets. During the quarter, MediaCo renegotiated the terms of two of its major loans, buying more time on a $10.0 million debt payment that had been due in May and is now pushed to July 30.
MediaCo says it plans to refinance that debt, pay it from operating cash flow, or bring in new investment to cover it. Separately, the company’s internal accounting team flagged an ongoing error in how it has reported financials tied to its Estrella acquisition, specifically around the valuation of goodwill and intangible assets, and says it is working to fix the problem.
What to watch next: whether MediaCo can refinance or otherwise cover the $10.0 million payment now due July 30, and whether it resolves the reporting error tied to the Estrella acquisition.
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