Emerald Expositions Events ((EEX)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Emerald Expositions Events’ recent earnings call painted a picture of both growth and challenges. The company reported robust revenue and adjusted EBITDA growth, primarily driven by successful acquisitions and strong event attendance. However, the call also highlighted some hurdles, such as the ongoing construction at the Las Vegas Convention Center and tariff headwinds, which negatively impacted quarterly performance. Despite these challenges, Emerald remains optimistic about future growth prospects, buoyed by positive forward bookings and strategic initiatives, including AI integration.
Solid Revenue and Adjusted EBITDA Growth
Year-to-date, Emerald Expositions Events reported total revenue of $330.7 million, marking a 13.3% increase compared to the previous year. This growth was largely attributed to successful acquisitions and higher organic revenues. Additionally, the company achieved a year-to-date adjusted EBITDA of $90.8 million, reflecting a significant 32.4% increase from the prior year.
Successful Acquisitions and Portfolio Expansion
Emerald’s strategic acquisition of Generis has enhanced its portfolio in high-growth sectors, reducing exposure to slower growth verticals. In 2025, the company executed three meaningful acquisitions, advancing its strategy to build a high-growth portfolio, which is expected to drive future revenue streams.
Record Attendance at Advertising Week
The company’s flagship event, Advertising Week in New York, saw record-setting attendance and engagement. This success underscores the strong demand for high-quality in-person experiences, reinforcing Emerald’s position as a leader in the events industry.
Positive Forward Bookings and Confidence for 2026
Emerald reported solid rebooking momentum for the first half of 2026, indicating sustained customer confidence. The ongoing exhibitor renewals and strong forward bookings highlight the resilience of Emerald’s business model and its ability to weather external challenges.
AI-Powered Event Agent Launch
In a move to enhance the attendee experience, Emerald launched an AI-powered event agent. This innovation aims to simplify interactions, improve service, and enhance overall customer experience, positioning the company at the forefront of technological integration in the events sector.
Impact of Las Vegas Convention Center Construction
The ongoing construction at the Las Vegas Convention Center negatively affected Emerald’s largest event of the quarter, leading to a 6% negative impact on organic revenue. This challenge was a significant factor in the company’s quarterly performance.
Tariff Headwinds Affecting Revenue
Tariff headwinds, particularly impacting events with international exhibitors, contributed to revenue volatility. Countries like China and Canada were notably affected, adding to the challenges faced by Emerald in the third quarter.
Organic Revenue Decline in Q3 2025
Emerald reported a 6.8% year-over-year decline in organic revenue for the third quarter. This decline was primarily due to the construction at the Las Vegas Convention Center and the impact of tariff headwinds.
Slightly Negative Free Cash Flow in Q3
The third quarter saw a slightly negative free cash flow, contrasting with a $6.7 million inflow in the prior year. This was impacted by the timing of payables and recent acquisitions, highlighting the financial adjustments the company is navigating.
Forward-Looking Guidance
Emerald Holding provided updated guidance for the full year 2025, adjusting their revenue range to $460 million to $465 million and adjusted EBITDA to $122.5 million to $127.5 million. These adjustments reflect the impact of the recent acquisition of Generis. Despite a 6.8% year-over-year decline in third-quarter organic revenue, the company remains focused on growth through acquisitions and strategic initiatives, including AI-powered tools and international expansion.
In summary, Emerald Expositions Events’ earnings call highlighted a dynamic landscape of growth and challenges. While the company faces hurdles such as construction impacts and tariff headwinds, its strategic acquisitions and technological advancements position it well for future success. The overall sentiment remains optimistic, with strong forward bookings and a focus on long-term value creation underscoring Emerald’s resilience and growth potential.