Lamar Advertising Co. (NASDAQ:LAMR) Reports Mixed Q2 2025 Earnings with Revenue Miss but Strong AFFO Beat

Lamar Advertising Co. (NASDAQ:LAMR) reported its second-quarter 2025 earnings, delivering mixed results relative to analyst expectations. The company posted net revenues of $579.3 million, a 2.5% increase year-over-year but falling short of the consensus estimate of $592.3 million. Adjusted funds from operations (AFFO) per share came in at $2.22, significantly above the estimated $1.49, reflecting stronger profitability despite softer top-line growth.

Key Financial Highlights

• Revenue Growth: Net revenues rose to $579.3 million, up from $565.3 million in Q2 2024, though slightly below expectations.
• Net Income: Net income increased 12.7% to $155.0 million, or $1.52 per diluted share, compared to $137.6 million ($1.34 per share) in the prior-year quarter.
• Adjusted EBITDA: Adjusted EBITDA grew 2.5% to $278.4 million, maintaining a steady margin.
• Free Cash Flow: Free cash flow declined slightly to $199.1 million from $203.5 million in Q2 2024, reflecting higher capital expenditures.

Market Reaction

The stock is trading down approximately 1.8% in pre-market activity, likely reflecting investor disappointment over the revenue miss despite the earnings beat. Over the past month, shares have been relatively flat (-0.45%), suggesting muted sentiment ahead of earnings.

Outlook and Guidance

Management revised its full-year 2025 diluted AFFO per share guidance to a range of $8.10 to $8.20, down from the prior forecast of $8.13 to $8.28. The adjustment reflects expectations of slower-than-anticipated revenue growth in the second half of the year.

Strategic Developments

Lamar completed an acquisition of Verde Outdoor in early July, adding over 1,500 billboard faces across ten states. This marks the first-ever UPREIT (Umbrella Partnership Real Estate Investment Trust) transaction in the billboard industry, signaling continued expansion efforts.

Analyst Estimates vs. Company Performance

• Q2 Revenue: Reported $579.3M vs. estimated $592.3M (-2.2% miss)
• Q2 AFFO per Share: Reported $2.22 vs. estimated $1.49 (+49% beat)
• Full-Year 2025 Revenue Estimate: Analysts project $2.321B, while Lamar’s revised guidance suggests a more conservative outlook.

Conclusion

While Lamar’s profitability exceeded expectations, the revenue shortfall and tempered guidance appear to be weighing on investor sentiment. The company’s strategic acquisitions and steady cash flow generation provide a solid foundation, but macroeconomic uncertainties may be influencing caution.

For more detailed earnings estimates and historical performance, visit Lamar Advertising’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.