second quarter of 2026
Filed Aug 6, 2026Lamar Advertising Company Announces Second Quarter Ended June 30, 2026 Operating Results
Second-quarter net revenues, operating income, net income, adjusted EBITDA, operating cash flow, free cash flow, FFO and AFFO all increased from the prior-year quarter, while the Company raised its full-year diluted AFFO per share guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | $616.7 million | – | 6.5% increase |
| Operating incomeGAAP | $208.0 million | – | increased $10.3 million |
| Net incomeGAAP | $164.6 million | – | 6.2% increase |
| Net income per diluted shareGAAP | $1.58 | – | – |
| Adjusted EBITDAnon-GAAP | $303.4 million | – | 9.0% increase |
| Cash flow provided by operating activitiesGAAP | $252.4 million | – | increase of $22.9 million |
| Free cash flownon-GAAP | $218.7 million | – | $19.6 million increase |
| Funds from operationsnon-GAAP | $236.8 million | – | 5.1% increase |
| Adjusted funds from operationsnon-GAAP | $247.9 million | – | 10.1% increase |
| Diluted AFFO per sharenon-GAAP | $2.40 | – | increased 8.1% |
| Acquisition-adjusted net revenuenon-GAAP | increased 6.1% | – | increased 6.1% |
| Acquisition-adjusted EBITDAnon-GAAP | increased 7.3% | – | increased 7.3% |
| Six-month net revenuesGAAP | $1.14 billion | – | 5.5% increase |
| Six-month operating incomeGAAP | $354.0 million | – | decreased $34.9 million |
| Six-month net incomeGAAP | $266.5 million | – | 9.4% decrease |
| Six-month net income per diluted shareGAAP | $2.58 | – | – |
| Six-month adjusted EBITDAnon-GAAP | $529.7 million | – | 8.4% increase |
| Six-month cash flow provided by operating activitiesGAAP | $399.8 million | – | increase of $42.6 million |
| Six-month free cash flownon-GAAP | $371.1 million | – | $50.9 million increase |
| Six-month funds from operationsnon-GAAP | $404.6 million | – | 6.0% increase |
| Six-month adjusted funds from operationsnon-GAAP | $425.5 million | – | 9.2% increase |
| Six-month diluted AFFO per sharenon-GAAP | $4.12 | – | increased 8.1% |
fiscal year 2026 outlook
- NoteDiluted earnings per share between $5.95 and $5.99
- NoteDiluted AFFO per share between $8.75 and $8.90
What drove it
- Acquisition-adjusted net revenue for the second quarter of 2026 increased 6.1% over acquisition-adjusted net revenue for the second quarter of 2025.
- Acquisition-adjusted EBITDA for the second quarter of 2026 increased 7.3% as compared to acquisition-adjusted EBITDA for the second quarter of 2025.
- The Company cited strong pacings for the balance of 2026.
Concerns
- Six-month operating income decreased $34.9 million to $354.0 million.
- Six-month net income decreased 9.4% to $266.5 million.
- The six-month net-income decrease was primarily related to the $67.8 million gain recorded for the sale of Lamar’s equity interest in Vistar Media, Inc. in 2025, offset by an additional gain of $8.0 million recorded in 2026 for the same sales transaction.
- The Company had $90.0 million in borrowings outstanding under its revolving credit facility and $250.0 million outstanding under the Accounts Receivable Securitization Program as of June 30, 2026.
What to watch
- Delivery against fiscal-year 2026 diluted earnings per share guidance of between $5.95 and $5.99.
- Delivery against fiscal-year 2026 diluted AFFO per share guidance of between $8.75 and $8.90.
- Sustainability of acquisition-adjusted net revenue growth of 6.1% and acquisition-adjusted EBITDA growth of 7.3%.
- Advertising demand trends and the Company’s stated pacings for the balance of 2026.
Balance sheet and cash flow
- $720.2 million in total liquidity as of June 30, 2026
- $652.2 million available for borrowing under its revolving senior credit facility as of June 30, 2026
- $68.0 million in cash and cash equivalents as of June 30, 2026
- $90.0 million in borrowings outstanding under the Company’s revolving credit facility as of June 30, 2026
- $250.0 million outstanding under the Accounts Receivable Securitization Program as of June 30, 2026
- Cash flow provided by operating activities was $252.4 million for the three months ended June 30, 2026
- Free cash flow was $218.7 million for the second quarter of 2026
- Cash flow provided by operating activities was $399.8 million for the six months ended June 30, 2026
- Free cash flow was $371.1 million for the six months ended June 30, 2026
Analysis
Lamar reported broad second-quarter growth. Net revenues were $616.7 million, up 6.5% from $579.3 million, while operating income increased $10.3 million to $208.0 million and net income increased 6.2% to $164.6 million. Net income per diluted share was $1.58, compared with $1.52 in the prior-year quarter.
Non-GAAP operating and cash-generation measures grew faster than revenue. Adjusted EBITDA increased 9.0% to $303.4 million, acquisition-adjusted net revenue increased 6.1%, and acquisition-adjusted EBITDA increased 7.3%. AFFO increased 10.1% to $247.9 million, while diluted AFFO per share increased 8.1% to $2.40. These results show growth both on a reported basis and after the Company’s stated acquisition and divestiture adjustments.
Cash generation also improved. Cash flow provided by operating activities increased $22.9 million to $252.4 million, and free cash flow increased $19.6 million to $218.7 million. At June 30, 2026, total liquidity was $720.2 million, including $652.2 million available under the revolving senior credit facility and $68.0 million of cash and cash equivalents. The Company also reported $90.0 million of revolving-credit borrowings and $250.0 million outstanding under its Accounts Receivable Securitization Program.
The six-month comparison is weaker on GAAP profitability despite higher revenue and adjusted EBITDA. Six-month net revenues increased 5.5% to $1.14 billion and adjusted EBITDA increased 8.4% to $529.7 million, but operating income decreased to $354.0 million and net income decreased 9.4% to $266.5 million. Lamar attributed the net-income decline primarily to the $67.8 million Vistar gain recorded in 2025, partially offset by an additional $8.0 million gain in 2026.
Management updated guidance issued in February 2026, with fiscal-year diluted earnings per share expected to be between $5.95 and $5.99 and diluted AFFO per share expected to be between $8.75 and $8.90. The release does not provide the prior numeric guidance ranges, so the size of the guidance increase cannot be quantified from this document.
Management, verbatim
Our business is in a great place right now. As our results demonstrate, customers appreciate our ability to connect them with their audiences and to deliver messages that resonate.
Sean Reilly, chief executive
With second-quarter results that exceeded our expectations and strong pacings for the balance of 2026, we are raising our guidance for full-year diluted AFFO per share to a range of $8.75 to $8.90.
Sean Reilly, chief executive
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics
- Segment revenue and segment profitability
- Gross profit and gross margin
- Operating-expense guidance
- Revenue guidance
- Tax-rate guidance
- Prior numeric fiscal-year 2026 guidance ranges issued in February 2026
- Dividend and share-repurchase activity
- Total debt
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.