MNTN Reports Strong First Earnings, Touts New AI Creative Tools

The numbers

$68.5 million: MNTN’s total revenue for the second quarter, up 25% year-over-year.

Nearly 4,000: The number of advertisers currently using MNTN’s technology, according to CEO Mark Douglas. “That rate is increasing at over 1,000 a quarter,” he added.

97%: The percentage of MNTN’s new (as of 2025) customers that had never advertised on TV before using the platform.

$69.5-70.5 million: How much the company expects to make in the third quarter.

77%: MNTN’s gross margin, up from 70% in Q2 of 2024. That represents a 700 basis point improvement, the company said, largely due to MNTN’s decision to spin off Ryan Reynolds’ creative agency, Maximum Effort.

The watercooler talk

Ahead of its first earnings call, MNTN saw a spike in stock price that took it to almost double the $16-per-share value it debuted at on May 21, dropping only slightly after yesterday’s earnings call.

While Douglas didn’t offer an explanation for the dip, he pointed to the overall positive trend of the company’s stock prices as evidence of investors’ confidence in MNTN’s proposition: to give small- and midsized businesses access to performance-based CTV advertising.

Douglas also claimed that the growth MNTN saw this quarter—85% uptick in active performance TV customers—is sustainable for the foreseeable future.

“There are just a significant number of small- [and] midsized businesses,” he told ADWEEK. “We’re bringing them into the TV realm, and the rate at which are doing that is accelerating—we think it’s actually sustainable for quite a while.”

He pointed to Meta, which made $46.6 billion in ad revenue in Q2 from millions of advertisers.

The company is also piloting generative AI tools that help advertisers create TV ads, Douglas said.

“We’re already generating thousands of AI-generated ads—over 1,000 customer-facing and 18,000 test ads,” he said. MNTN plans to officially launch the product later this year, which Douglas expects will make it easier for smaller advertisers to create 30-second TV spots at a significantly cheaper rate.

The key quote

MNTN expects to be able to continue to increase its gross margin following a significant jump in the past year, targeting growth between 75-80% in future quarters.

“We’re sitting at 77% for the quarter, and that’s a quarter in which we didn’t have [Maximum Effort] and the creative costs, so that that’s a significant reduction,” Patrick Pohlen, MNTN’s chief financial officer, told investors during the call. By cutting hosting and media costs over the next few quarters, Pohlen expects MNTN will continue to improve on gross margin, he said.