Street Calls of the Week
RESTON, Va. - Comscore, Inc. (NASDAQ:SCOR), currently trading at $6.12 per share and operating with $358.5 million in revenue over the last twelve months, on Monday announced a recapitalization agreement with its preferred stockholders that will eliminate its annual dividend obligations of over $18 million and reduce senior capital in its structure. According to InvestingPro analysis, the company currently operates with moderate debt levels but faces challenges with short-term obligations exceeding liquid assets.
The transaction, expected to close in December 2025, involves Charter Communications, Liberty Broadband Corporation, and an affiliate of Cerberus Capital Management exchanging their Series B preferred shares for common stock and new Series C preferred stock. This restructuring comes as InvestingPro data shows the company maintaining a current ratio of 0.69, highlighting the importance of improving its capital structure.
Under the agreement, approximately $80 million of existing liquidation preference will be exchanged for common stock at an effective price of $8.11 per share, representing a 48% premium to the 90-day volume-weighted average price as of September 26. The remaining $183.7 million will be exchanged for new Series C preferred stock priced at $14.50 per share.
The new Series C preferred stock will be convertible to common stock at an initial 1:1 ratio and will pay no annual dividends, eliminating the company’s current dividend obligation. The deal also removes preferred stockholders’ right to a special dividend of at least $47 million.
As part of the transaction, Comscore’s board will be reduced from 10 to 7 members, with preferred stockholders’ director designation rights decreasing from 6 to 4.
"This transaction strengthens Comscore’s foundation for long-term growth," said Jon Carpenter, Comscore’s CEO, in the press release statement.
The recapitalization requires approval from stockholders, including a separate vote by disinterested common stockholders. A special meeting is expected in December 2025.
Comscore provides cross-platform media measurement services across digital, linear TV, over-the-top and theatrical viewership. While the company posted negative earnings in recent quarters, InvestingPro analysts project profitability for the current fiscal year, with detailed analysis available in the comprehensive Pro Research Report, one of 1,400+ company deep-dives available to subscribers.
In other recent news, Comscore reported a 4.1% increase in revenue for the second quarter of 2025, reaching $89.4 million. Despite this revenue growth, the company provided flat revenue guidance for the upcoming quarter, which might have influenced investor sentiment. Additionally, Comscore launched its AI-powered Data Partner Network, designed to help third-party data providers create privacy-focused audiences. This initiative leverages Proximic by Comscore’s predictive technology, significantly expanding audience reach for advertisers. The company highlighted that applying this AI technology to its "online holiday shoppers" segment resulted in a growth of over 95%. These developments showcase Comscore’s efforts to innovate and adapt to the evolving digital landscape.
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