PodcastOne is a buy, this analyst says

PodcastOne (PodcastOne Stock Quote, Chart, News, Analysts, Financials NASDAQ:PODC) is building a stronger position in the podcast market despite a softer-than-expected fiscal Q1, says Roth Capital Partners analyst Sean McGowan.

In an Aug. 18 update, McGowan maintained his “Buy” rating and $5 target on PodcastOne.

McGowan said fiscal Q1 revenue and Adjusted EBITDA missed his estimates, but the company continues to show progress in revenue growth, profitability, content expansion and asset monetization.

PodcastOne reported fiscal Q1 revenue of $16.1-million, up 7.5% year-over-year but below McGowan’s $17.7-million estimate. Adjusted EBITDA was $1.58-million, up from $670,000 a year earlier but slightly below his $1.69-million forecast.

McGowan said PodcastOne remains a unique asset as the only publicly traded U.S. pure-play podcast company. He said the market continues to gain share of advertising dollars from other media.

The company has expanded its audio and video catalogue, with about two-thirds of its content now available in video formats. It has also licensed some podcast content to major streaming services, including Netflix.

McGowan said PodcastOne is also using AI tools to increase audience, lower production costs and optimize advertising revenue. He said major AI model operators see value in PodcastOne’s audio content for training large language models.

Management maintained fiscal 2027 guidance for revenue of $68-million to $75-million and Adjusted EBITDA of $8-million to $10-million.

McGowan lowered his fiscal 2027 revenue estimate to $71.2-million from $72.8-million, while maintaining his Adjusted EBITDA estimate at $8.25-million.

The analyst expects PodcastOne to generate Adjusted EBITDA of $8.2-million on revenue of $71.2-million in fiscal 2027, improving to Adjusted EBITDA of $10.1-million on revenue of $84.0-million in fiscal 2028.

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