Emerald Holding, Inc. Q2 FY2025 earnings call

• Strong disciplined execution across the portfolio with results in line with earlier expectations. - Portfolio optimization efforts with targeted acquisitions like This is Beyond and Insurtech Insights contributing to growth. - Encouraging rebooking trends for the first half of 2026, indicating customer confidence. - International progress with 99% of full year international revenue target secured, despite softness in some regions. - Focus on 3 core pillars: customer centricity, 365-day engagement, and portfolio optimization. - Leveraging AI for employee productivity, cost reduction, customer engagement, and revenue initiatives with early pilots in various departments.

Total revenue for the second quarter was $105.5 million, compared to $86 million in the prior year quarter. Reported organic revenue was up 0.4% year-over-year, but on a pro forma basis with recently completed acquisitions included, organic growth would have been approximately 5%. Adjusted EBITDA was $24.4 million in the second quarter, compared to $15.3 million in the prior year period, an increase of 59.5%. International exhibitors account for approximately 10% of total revenue.

• Reaffirmed full-year 2025 guidance of revenue $450 million to $460 million and adjusted EBITDA $120 million to $125 million. - Q3 reported organic growth expected to be the weakest this year due to Las Vegas Convention Center construction, with Q4 expected to be a strongly positive organic growth quarter. - Acquisitions like This is Beyond have events in the second half of the year, contributing more to growth in the balance of the calendar year.

• Macro-related pressures, particularly tariffs, affecting certain end markets. - Uncertainty in international regions like China and Canada. - Timing of acquisitions impacting free cash flow, with adjustments needed to accurately evaluate cash generation. - Impact of Las Vegas Convention Center construction on event performance in certain quarters.

Q: Barton Crockett asked about Q3 organic growth being down year-over-year and if the Vegas construction is done after this year.

A: David B. Doft said Q3 organic growth is expected to be negative due to Vegas construction, and Herve Sedky confirmed the Las Vegas Convention Center is scheduled to be completed by the end of 2025.

Q: Allen Klee asked about GRC World acquisition and rebooking rates.

A: David B. Doft said GRC was acquired last summer, and Herve Sedky confirmed positive first half 2026 rebooking rates with 90%-ish of 2025 revenue booked, and David B. Doft explained free cash flow adjustment related to acquisitions.