Emerald (NYSE:EEX) executives said 2025 was a “transformational year” for the live events operator, pointing to portfolio reshaping, acquisitions, and improved diversification as drivers of higher revenue and adjusted EBITDA. During the company’s fourth-quarter and full-year 2025 earnings call, management also initiated full-year 2026 guidance and discussed free cash flow expectations, capital allocation priorities, and operational initiatives such as automation and AI-enabled tools for exhibitors.
2025 results highlighted acquisitions and portfolio repositioning
President and CEO Hervé Sedky said Emerald remained focused on execution in 2025, translating strategic priorities into measurable progress and positioning the company to be “more resilient, better diversified, and structurally stronger” entering 2026. He said the company’s strategy has included exiting underperforming brands that did not recover post-COVID, while increasing exposure to higher-growth end markets through a mix of organic actions and targeted acquisitions.
Fourth-quarter and full-year financial performance
CFO David Doft reported fourth-quarter revenue of $132.7 million, up from $106.8 million in the prior-year quarter, driven primarily by 2025 acquisitions. Reported organic revenue growth in the quarter was 0.3%, which Doft said reflects the impacts of acquisitions, scheduling adjustments, and discontinued events. On a pro forma basis—assuming This is Beyond, Insurtech Insights, and Generis were owned in fourth-quarter 2024—Doft said organic revenue in fourth-quarter 2025 would have been up 5.3% year over year.
For the full year, Emerald reported total revenue of $463.4 million, up 16.2% from the prior year, driven by acquisition revenue and higher organic revenue. Reported organic revenue increased 1.1% year over year, while the same pro forma framing for the three acquisitions would imply 4.8% organic growth for 2025, management said.
Adjusted EBITDA in the fourth quarter was $36.3 million versus $33.1 million a year earlier, an increase of 9.7%. Full-year adjusted EBITDA totaled $127.1 million, up from $101.7 million in the prior year period, an increase of 25%. Doft attributed the improvement to strong revenue growth—particularly from acquired businesses—partially offset by higher bonus expense.
Cash flow, balance sheet, and shareholder returns
Free cash flow was $10.1 million in the fourth quarter, down from $18.4 million in the prior-year quarter. For the full year, free cash flow was $34.3 million compared with $37.0 million in 2024. Doft said underlying free cash flow would have been stronger than reported due to the timing of acquisitions, describing $30 million of cash flow from operations that would have been generated had Emerald owned the acquired businesses at the beginning of the year, but which instead was reflected as an offset to purchase price.
Doft also cited $6.5 million of fees related to January and August 2025 debt refinancings that flowed through the financials. Taken together, he said these items impacted full-year free cash flow by $36.6 million, which management believes should be considered when evaluating free cash flow conversion and cash generation.
On the balance sheet, Emerald ended 2025 with $100.9 million in cash as of December 31, up from $95.4 million as of September 30. Total liquidity was $210.4 million, including $110 million available on the revolving credit facility. Doft said the company’s net debt to covenant EBITDA ratio was 2.86x, below its sub-3.0x financial policy target.
Emerald also continued returning capital to shareholders. Doft said the company repurchased 282,386 shares in the fourth quarter at an average price of $4.56 per share. For the full year, Emerald repurchased 4,058,604 shares at an average price of $4.32 per share. As of December 31, 2025, $24.6 million remained under the current repurchase authorization. The board also declared a quarterly dividend of $0.015 per share.
2026 guidance and demand indicators
Management initiated 2026 guidance calling for revenue of $490 million to $495 million and adjusted EBITDA of $137.5 million to $142.5 million. Doft said that at the midpoint, the outlook implies approximately 6% revenue growth and 10% adjusted EBITDA growth year over year, reflecting portfolio repositioning, continued demand for live engagement, and ongoing operational efficiencies, while “maintaining a balanced view of the broader macro environment.”
In the Q&A, Doft addressed free cash flow expectations in a “normalized period,” saying the company would expect free cash flow of $85 million to $90 million alongside the projected EBITDA growth. He noted a caveat around potential one-time acquisition and integration expenses.
When asked about visibility underpinning guidance, management said sales pacing is tracking in line with the guidance and that more than 70% of the year’s revenue is already contracted, with higher visibility in the first half of the year and more remaining to sell in the second half.
Operations, AI initiatives, and strategic review
Sedky said Emerald is monitoring tariffs and has incorporated potential impacts into 2026 planning. He added that developments in the Middle East have not had a meaningful effect on operations and that Emerald does not maintain a direct presence in the region. In response to a question, Sedky said exposure to exhibitors coming from a broadly defined Middle East region is “very minimal,” and he quantified it as less than 1% of revenue from exhibitors in that region.
Management also discussed the Las Vegas Convention Center, where construction had affected certain brands in 2025. Sedky said the construction was completed at the end of 2025 and that the company expects to “cycle past” those impacts in 2026, with some brands potentially improving in later editions as customers experience the renovated venue.
On smaller business lines, Sedky said content and commerce each represent single-digit percentages of revenue. He said the commerce strategy remains focused on expanding across verticals, while the content business has launched a lead generation offering leveraging its content, with early signs of customer interest and sales beginning in October 2025. Doft added that content has faced challenges post-COVID and amid broader disruption in digital advertising, and management expects stabilization but not a meaningful contribution to growth in 2026 as new revenue streams ramp.
Regarding AI, Sedky said Emerald has implemented AI agents across several events to improve the exhibitor experience by enabling real-time access to event information. He said the rollout has been going well and is expected to scale across more events, and management is also piloting AI-related initiatives in areas including finance, marketing, customer service, and content. Doft said modernization of the finance stack in 2026 is expected to add automation and scalability, supporting longer-term margin plans through operating leverage.
Finally, Sedky reiterated that Emerald’s board is actively evaluating strategic options, a process previously announced in December, but said there were no updates and the company would not comment further until the review is completed or an agreement is reached. In the Q&A, management also said it continues to pursue M&A opportunities and does not expect that activity to change “for the foreseeable future,” characterizing the M&A environment as strong in a fragmented industry.
About Emerald (NYSE:EEX)
Emerald (NYSE: EEX) is a global provider of independent data, news and analytics for commodity, financial and energy markets. The company operates digital platforms that deliver real-time and historical price assessments, market commentary, research reports and risk-management tools. Its subscriber base spans traders, asset managers, corporate hedgers and financial institutions seeking timely intelligence to support trading, risk management and investment decisions.
Serving clients across North America, Europe and Asia-Pacific, Emerald covers a broad range of markets including metals, energy products, agriculture, freight, environmental emissions and treasury benchmarks.
