ROAS to Riches

research update

Hello,

Since I first wrote up $EVC in April 2025, Entravision’s AdTech segment has gone from being a semi-important piece of an attractive SOTP story to the dominant driver of the thesis.

At the time of my initial investment, AdTech was growing revenue at a 42% year-over-year clip, accounted for 39% of total revenue, and generated $8 million of segment EBIT for the full year 2024.

In Q1 2026, that same segment grew revenue 204% YoY, accounted for 78% of total revenue, and generated more than $34 million of segment EBIT in a single quarter.

The share price followed the positive numbers, making Entravision my largest portfolio position. And once a company holds that spot, I need to stay on top of any fundamental changes at Smadex and the broader AdTech segment, as well as EVC’s valuation. That is why I’ve been doing some additional maintenance diligence and wanted to share my learnings below.

This update is part of that maintenance work. I wanted to better understand the nuances of Smadex’s business model, the programmatic advertising industry, DSP peers, the growth runway, and what valuation might be reasonable if management continues to execute.