PodcastOne surges 15% after raising FY26 guidance on record Q3
Digital audio platform anticipates $58M-$60M revenue with 350%+ EBITDA growth, pays off $1.7M debt
PodcastOne (NASDAQ: PODC) shares surged 15% on Thursday after the digital audio platform raised its full fiscal year 2026 guidance, projecting record quarterly results that signal accelerating growth in the podcast advertising market.
The Beverly Hills-based company now expects revenue between $58 million and $60 million for fiscal 2026, with adjusted EBITDA of $5 million to $6 million. The upbeat guidance follows third-quarter performance that saw revenue reach $15.3 million to $15.5 million, surpassing analyst estimates of $15 million.
Adjusted EBITDA for the quarter is expected to reach $1.8 million to $2.3 million, representing more than 350% year-over-year growth. For the first nine months of fiscal 2026, revenue totaled $45 million to $46 million, with adjusted EBITDA of $3.4 million to $3.6 million, also showing 350%+ growth from the prior year.
"Our anticipated strong performance reflects the continued expansion of our podcast network, growing advertiser demand, and the success of our strategic partnerships," said Kit Gray, president and co-founder of PodcastOne. "As we continue to build strategic relationships that expand our reach and enhance monetization and innovation across the platform, we believe PodcastOne is well positioned for sustained, long-term growth."
The company also strengthened its balance sheet, paying off $1.7 million of Capchase debt in full during January. The debt reduction removes a significant financial burden and frees up cash flow for operational expansion.
Strategic investor confidence in the platform is evident in LiveOne's (NASDAQ: LVO) continued share accumulation. The music and entertainment streaming company acquired 771,000 PodcastOne shares year-to-date, including 186,000 shares during the third fiscal quarter. LiveOne now holds approximately 2.9% of PodcastOne's outstanding shares based on current share count data.
Robert Ellin, executive chairman of PodcastOne, highlighted the company's momentum and strategic positioning. "Our momentum continues to build as our revenue accelerates and EBITDA expands," Ellin said. "The addition of Dr. Phil, combined with a strengthened balance sheet and full repayment of Capchase debt, positions us exceptionally well for the next phase of growth, including strategic M&A."
PodcastOne's performance comes amid broader growth in the digital audio advertising sector. U.S. podcast ad spending is projected to reach approximately $2.6 billion in 2026, part of a digital audio advertising market expected to grow by $1.6 billion between 2024 and 2028. The industry is benefiting from improved targeting capabilities, omnichannel campaign integration, and growing advertiser recognition of podcast audiences' value.
Analysts currently rate PodcastOne as a buy, with an average target price of $4.33, representing 55% upside from Thursday's trading price of $2.78. The stock has rallied 38% over the past month and is now trading near its 52-week high of $2.94, well above its 52-week low of $1.28.
The company's market capitalization stands at $66.7 million, with approximately 26.9 million shares outstanding. Institutional ownership remains relatively low at 3.5%, while insiders control 80.4% of shares, according to market data.
PodcastOne's fiscal year ends in March, with the official third-quarter earnings call estimated for February 11. Investors will be watching for updates on the company's strategic M&A plans mentioned by management, as well as details on the Dr. Phil content integration and partnership developments that could drive further growth in fiscal 2027.