Entravision (EVC)

As paid subscribers already know, Smadex matters so much because the risk-reward at $3.17 is very different from what it was when I first wrote it up at $1.93. That’s not because I think $EVC has become a pure Smadex bet, or that a slowdown in Smadex growth would kill the thesis. But Smadex has clearly become a much more important driver of upside from here than it was in the past, when it was growing more slowly, was less profitable, and made up a smaller share of the overall business.

And even though Smadex and the broader AdTech segment now make up more than 63% of EVC’s revenue in the most recent quarter—and likely around 55% for the full FY 2025—with revenue growing 104% and EBIT up 378% before operating leverage has fully kicked in, I still think it is the variable of the thesis that the market underappreciates the most.

growth since Entravision split its segments into Media and AdTech

After all, AdTech’s EBIT for 2025 should come in at more than $25M, with a current run-rate closer to $40M, while $EVC’s entire enterprise value is still only around $440M. And what’s left isn’t worthless, but a highly FCF-generative broadcasting business focused on a politically important Spanish-language audience, along with the most valuable spectrum assets relative to EV among publicly traded traditional media companies I’ve looked at. We covered the current state of both on the call as well.