MNTN earnings call transcript, November 4, 2026

You'll know we're live when you see the live message in the chat and you'll hear Kevin start his introduction.

Hello and welcome to Mountain's third quarter 2026 results webcast. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star nine to raise your hand and star six to unmute. I will now. And the conference over to Brinley Johnson. Please go ahead.

Good afternoon.

And thank you for joining us for my with me today.

See you.

Please see our most recently filed, periodic report, which is also available on our website. We will also discuss non-GAAP financial measures on today's call. Reconciliation...

With that, I will turn the call over to Joe. Please go ahead.

Thank you for joining us.

Thanks, Joe.

Let's start with the numbers.

Adjustment EBITDA was 19.9 million, compared with guidance of 22 to 25 million. For the fourth quarter, we expect an adjustment EBITDA

are Q3 results and much higher expectations. Before accepting this role, I would- we know how to make our market fit. Customer demand, our technology, and our-

The company recently made significant changes in the sales team. It did not work out. Most notably, a new compensation structure modeled after the biggest platforms in our industry, like Google and Meta, were implemented too quickly, resulting in-

40% of our experience, reducing our ability to bring in new business. We've since corrected the compensation plan.

16 new sellers, and our first new hire class starts later this month. Additionally, we've added two proven executives. Lynn Kinnak from...

They both report to me. It will take time for these sellers to fully ramp, and our updated outlook assumes that the disruption we saw in Q3 will continue into Q3. Our new leaders have instilled more discipline around hiring, training, and supervision, resulting in increased new starting budgets. We changed the leadership behind the decisions that got us.

I set my career on the advertisers' side of the table. Mountain does what marketers have always wanted. Reach the right people and measure the return on their average. In a category full of complexity, I love how Mountain keeps it simple. We provide one frictionless platform that allows customers to be channeled with clear.

Our experience and data help them decide which messages to run, how to allocate their budgets, and how to measure results all in one place as easily as they buy on Meta or Google. And we give them the attribution they've come to agree with. Timing their TV spend to site visits and sales. I believe our opportunity for growth remains strong. Mountain is a performance channel like search and social. Combined with the- What Mountain needs is operational rigor to achieve our goals. I plan to take a three-fold approach. One, identify the opportunities- and the weaknesses early and address them quickly. Two, get the right leaders in charge of each-

I will rigorously review pipeline work, conversion of demos into paying customers, and starting budgets with the team. I plan to judge our progress by whether those improvements-

I'm pleased to announce that Anna Sayer, who led marketing at the Trade Desk for seven years, joined us this week as Mountain's Chief Marketing Officer. She'll make our offerings salient to generate new customer-

I excel at building cultures of accountability where the teams are focused on it. I've been delighted to learn that some of the best industry talent is already inside our company. Giving them the support. Let me wrap up by saying that I know we have to earn while we're hiring.

Have delivered to that point. Patrick, over to you to walk through the numbers in the algorithm and then we will take your questions.

Thank you, Tony.

80.3 million dollars of 15 percent. Revenue growth this quarter was impacted by unforeseen execution disruption in our go-to-market organization. Third quarter gross margins remain consistent at 79 percent. Flat with the prior year period. Our expansion rate, which measures the spend of our current customers as compared to those same customers' spend a year ago, remains quite healthy and is still well north. Total operating expenses for the third quarter. $4.7 million to $54.5 million. This was primarily driven by a decrease in personnel costs as a result of the reduction in force in the second quarter and at one time stock-based that also would be achieved positive net income of $7.7 million for net income of $6.4 million. and GAAP EPS of $0.09 in the prior year period. Adjusted EBITDA for the quarter increased to $19.9 million, up from $16 million in Q3 of 2025, an increase of 24%. The company's adjusted EBITDA margin grew to 24.8%, up 200 basis points compared to 22.8% in Q3 of 2025. We plan on continuing to make this...

...to drive broader customer adoption. We expect sales and marketing expenses to increase approximately...

...and we ended the quarter at $252 million in cash and cash equivalent in shares outstanding. We are reducing our fourth quarter in full... ...to reflect ongoing changes to our go-to-market organization. It will take time for sellers to fully ramp, and our guidance assumes that the disruption we saw in Q3 will continue into the fourth quarter. For Q4, we expect revenue to be between... $75 and $78 million. We expect adjusted EBITDA to be between $8 and $10 million. Our fourth quarter guidance includes additional non-recurring general and administrative expenses. Related to our executive year, 2026, we are lowering our revenue guidance range to $311 million to $300 million, representing $10 million, excluding the impact of the maximum. We expect adjusted EBITDA to be between. We are basing the revised outlook on our expectation for how the business will perform as we realign the go-to market.

We'll provide more detail on the operating plan and the outlook for 2027 when we announce our fourth quarter and fiscal year results. We will now begin the question and answer session. Please limit yourself to one. Question and one follow-up. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. Please stand by as we compile the Q&A roster.

Your next question comes from line of Andrew Merrick with Raymond James. Your line is open. Please go ahead.

Hi, thanks for taking my questions. Two if I could. So maybe again. On the kind of culture reset and the operational rigor that you were talking about. Is there anything else beyond kind of the sales force compensation structure that you were alluding to that you wanted to kind of put your stamp on the business in a particular way? And then I have a follow up after that.

My analysis has determined that that is the number one issue.

Later.

Towards reporting real-time insights that are relevant to the growth of the business or falls in general under.

Got it. All right.

Thank you for the color there. And then one more, if I could. Just kind of on some of these Salesforce issues, is there any way to kind of disaggregate what you were seeing in terms of new customers versus existing customers? Your spend and kind of the shortfalls that each of those buckets attributed. Thank you.

We're the ones where the attrition was. By contrast...

Great. Thank you.

And your next question comes from the line of Robert Kolberth with Evercore ISI. Your line is open. Please go ahead.

OK, thank you very much. And your next question comes from Andrew Boone with Citizens.

There are no further questions at this time. I will now turn the call... ...back to management for closing remarks.

Thank you all.

...and having an ongoing dialogue as we pursue the plans that we've outlined. I really appreciate your time and attention today, and thank you for joining us.

This concludes today's call.

Thank you for attending.

You may now disconnect.