MNTN

• Overall Quarterly Performance • Delivered Q2 2026 revenue of $82.5 million (21% YoY growth) and adjusted EBITDA of $21.5 million (48% YoY growth), both at the high end of prior guidance • Gross margin improved 350 basis points YoY to 80%; adjusted EBITDA margin expanded 490 basis points YoY to 26.1% • Achieved GAAP net income of $6.7 million ($0.09 GAAP EPS); ended the quarter with $237 million in cash and no debt • Board authorized a $100 million Class A common stock repurchase program through August 2027

• Strategic Priorities & Product Development • The Performance TV category, created by Mountain, is shifting from early adopter adoption to mainstream marketing mix inclusion • Restructured the core PTV platform into three tiered offerings tailored to business size: Express (small business), Pro (mid-market), and Premium (upper mid-market) • Launched Mountain Express on April 1, 2026; gained over 7,000 sign-ups in the first 120 days, with hundreds of converted paying customers, and expects Express to become a meaningful revenue contributor in 2027 • Integrated agentic AI into the Pro tier to automate campaign decision-making and improve performance; 50% of the company's total headcount is in engineering, with an AI-native development culture • Quick Frame AI, the company's AI ad creation tool, lowered creative barriers to TV advertising; gained 37,000 Q2 sign-ups, bringing year-to-date total to over 73,000, with adoption across a wide range of industries

• Premium Inventory Expansion • Expanded access to super premium TV inventory, including nearly all major sports leagues and top streaming content • Customers can now access guaranteed ad placements in major televised events including the FIFA World Cup, March Madness, MLB, NBA, NHL, and upcoming NFL games for the first time, enabling businesses of any size to advertise during TV's highest-profile moments

• Go-To-Market Investments • Expanded and strengthened the sales organization starting in Q4 2025, adding new leadership across sales, marketing, and business development • Built industry-specific vertical sales teams to tailor the customer experience to unique industry needs and improve sales effectiveness • The company's top priority remains disciplined, aggressive investment in growth over near-term margin optimization to capitalize on the early-stage large Performance TV market opportunity

• Q3 2026 guidance: Revenue expected between $86 million and $89 million, representing 25% year-over-year growth at the $87.5 million midpoint; adjusted EBITDA expected between $22 million and $25 million
• Full-year 2026 guidance is reiterated unchanged: Revenue expected between $347 million and $357 million (over 24% year-over-year growth at the $352 million midpoint, excluding the impact of the max effort divestiture); adjusted EBITDA is still expected between $96 million and $101 million
• Management expects the benefits of recent strategic investments to drive stronger growth in the second half of 2026 and meaningful growth acceleration in 2027, with new revenue streams from Express and Premium complementing core business growth

Mountain does not report separate formal product segment results in this call. The core business is Performance TV (PTV), which generated total Q2 2026 revenue of $82.5 million (21% year-over-year growth), representing nearly all of the company's total revenue. The newly launched small business tier, Mountain Express, currently contributes a small percentage of total revenue, but is growing quickly. Quick Frame AI, the company's AI-powered ad creation tool, is currently offered at no charge and contributes no revenue to date. Trailing 12-month active PTV customers grew 40% year-over-year to 4,225, and existing customer expansion rate remains above 115%.

Management noted that all forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, and directed investors to the company's recently filed periodic reports for a full discussion of potential risks. No additional specific risks or operational failures were discussed or disclosed on this call.

Q: Asked how the tiered product launches (Express and Premium) will impact revenue growth this year and next, and what impact recent industry consolidation has on the Performance TV opportunity for Mountain.

A: Management noted the tiered product structure was built to address unique usability needs across small, mid-sized, and larger business segments, with early adoption of Express already very strong. The products are already contributing meaningfully to 2026 revenue, with far larger contribution expected in 2027. For industry consolidation, management states consolidation increases market awareness of the Performance TV opportunity, and creates more green space for Mountain, which is uniquely positioned in the small and medium business segment, to capture share.

Q: Asked how the go-to-market and cost structure strategy differs for the small business (Express) segment versus mid-market customers, and what benefits and opportunities came from the recent FIFA World Cup sports advertising access.

A: Management notes the overall investment theme for sales and marketing is consistent across segments, with continued expansion of investment to capture the growing mainstream demand for Performance TV from previously excluded businesses. The marketing mix leverages Mountain's own platform for customer acquisition across tiers, with slight adjustments in focus for Express versus mid-market. Securing access to major sports event inventory confirms Mountain can deliver access to top-tier premium content (not just remnant inventory), which performs well for advertisers due to larger concurrent audiences and validates Mountain's market leadership position.

Q: Asked if Quick Frame AI is being pursued as a standalone business, what its gross margin profile is, and if it creates cross-sell funnel opportunities for the core PTV business.

A: Management states Quick Frame AI was built to deliver standalone value, supporting ad creation for YouTube, social media, and PTV, and there is a standalone opportunity, though it is currently offered for free while the company assesses usage and engagement. The product is roughly gross margin neutral for the company overall, as efficiency improvements in hosting offset AI model costs. Quick Frame AI does create cross-sell opportunities for core PTV: many users (including independent creators) discover they can adapt their Quick Frame creatives for television advertising, driving new PTV customer acquisition.

Q: Asked what impact 2026 H2 political advertising will have on CPM volatility and customer ROAS, and what new features are planned for Quick Frame AI based on early user feedback.

A: Management notes Mountain does not participate meaningfully in political advertising, which is dominated by large enterprise agencies. Long-term negotiated pricing for Mountain's core small and medium business inventory is unaffected by political spending spikes, so there is minimal impact on customer CPMs or ROAS. For Quick Frame AI, the team releases new feature updates multiple times per week, with current focus on building fast, targeted workflows for specific use cases (such as repurposing existing ads into new creative) to improve user engagement and value.