[8-K] OUTFRONT Media Inc. Reports Material Event

Rhea-AI Filing Summary

On 23 June 2025 OUTFRONT Media Inc. ("OUT") announced a restructuring and reduction-in-force plan designed to improve sales demand, customer experience and cost efficiency. Approximately 120 positions—about 6 % of the workforce—will be eliminated, with completion targeted by the end of Q2 2025.

The company expects to record total pre-tax restructuring charges of roughly $18.6 million in Q2 2025. These include $16.4 million of future cash expenditures for severance, benefits and professional fees, and $2.2 million of non-cash stock-based compensation. Management intends to exclude these costs from its non-GAAP metrics.

Annualised cost savings are projected at $18–20 million, and the fiscal-year 2025 portion is already embedded in guidance issued on 8 May 2025. The filing cautions that actual savings and timing may differ and that additional charges could arise. All forward-looking statements are subject to the risk factors previously disclosed by the company.

Positive

• $18–20 million projected annualised cost savings enhance long-term margin potential.
• Charges are primarily one-time; management plans to exclude them from non-GAAP metrics, preserving earnings comparability.
• Workforce reduction represents only 6 % of headcount, suggesting limited operational disruption.
• Savings already incorporated in 2025 guidance, indicating foresight in financial planning.

Negative

• Company will incur $18.6 million in restructuring charges, impacting Q2 2025 GAAP results.
• Headcount reduction may hurt morale and service levels, jeopardising revenue goals.
• Realisation of savings is uncertain; management warns actual outcomes may differ materially.
• Approximately $16.4 million of cash outflows will occur over the next 12 months, affecting near-term liquidity.

Insights

Financial Analyst

TL;DR: One-time $18.6 m charge offsets 6 % headcount cut; targeted $18-20 m annual savings could lift margins if execution succeeds.

The plan produces an immediate GAAP hit but relatively quick payback—cash costs of $16.4 m equal roughly one year of midpoint savings. Excluding charges from non-GAAP figures preserves comparability, so 2025 adjusted EBITDA guidance should remain intact. Investors will focus on management’s ability to realise savings without impairing revenue generation; at 6 % of staff, operational disruption appears limited. Overall, the move is modestly accretive to long-term margin profile and cash flow.

Human-Capital Risk Analyst

TL;DR: Workforce reduction saves cash but poses morale, retention and execution risks that could erode projected benefits.

The loss of 120 employees may affect client service and innovation, potentially counteracting revenue-side ambitions. Severance outlays extend over 12 months, delaying cash breakeven. Forward-looking statements highlight execution risk; any shortfall in savings directly pressures guidance. Stakeholders should monitor employee engagement metrics and customer churn during the transition.

0001579877FALSE00015798772025-06-242025-06-24

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________

FORM 8-K

__________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): June 24, 2025 (June 23, 2025)

 _________________________

OUTFRONT Media Inc.

(Exact name of registrant as specified in its charter)

 __________________________

Maryland

001-36367

46-4494703

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification Number)

90 Park Avenue, 9th Floor
New York,			New York						10016
(Address of principal executive offices)									(Zip Code)

Registrant’s telephone number, including area code: (212) 297-6400

__________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $0.01, par value			OUT			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐    

Item 2.05. Costs Associated with Exit or Disposal Activities.

On June 23, 2025, OUTFRONT Media Inc. (the “Company”) announced a restructuring and reduction in force plan (the “Plan”) intended to achieve the Company’s strategic goals of increasing sales demand, enhancing customer experience, optimizing internal cost efficiencies, and realigning its organization. The Plan provides for a reduction of the Company’s workforce by approximately 120 employees, or 6% of the Company’s total number of employees. The Company expects the reduction in force associated with the Plan to be completed by the end of the second quarter of 2025.

The Company estimates that it will incur approximately $18.6 million in total restructuring charges in connection with the Plan, consisting of severance payments, employee benefits and related costs and professional fees. The Company expects to incur these charges in the second quarter of 2025. These charges consist of approximately $16.4 million of future cash expenditures, the majority of which will be made over the next twelve months, and approximately $2.2 million in non-cash charges for stock-based compensation. The Company intends to exclude the charges associated with the Plan from its non-GAAP financial measures.

The charges and cash expenditures that the Company expects to incur in connection with the Plan are subject to a number of assumptions, and actual results may differ materially. The Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with the implementation of the Plan.

Item 7.01. Regulation FD Disclosure.

The Company expects projected cost savings on an annualized basis of approximately $18.0 million to $20.0 million in connection with the Plan, with the estimated fiscal year 2025 projected cost savings associated with the Plan contemplated in the 2025 financial guidance the Company provided on May 8, 2025.

The information contained in this Item 7.01 of this Current Report on Form 8-K is being furnished pursuant to Item 7.01. This information shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Cautionary Statement Regarding Forward-Looking Statements

We have made statements in this Current Report on Form 8-K that are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as “expects,” “may,” “might,” “will,” may,” “intends,” “plans,” “projects,” “estimates,” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions related to our capital resources, portfolio performance and results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: completing the Plan may be more difficult, costly, or time consuming for the Company and its management than expected and the anticipated benefits of the Plan, including but not limited to projected cost savings, may not be fully realized or realized at all; declines in advertising and general economic conditions; the severity and duration of pandemics, and the impact on our business, financial condition and results of operations; competition; government regulation; our ability to operate our digital display platform; our ability to obtain and renew key municipal contracts on favorable terms; taxes, fees and registration requirements; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; seasonal variations; acquisitions and other strategic transactions that we may pursue could have a negative effect on our results of operations; dependence on our management team and other key employees; and other factors described in our filings with the Securities and Exchange Commission (the “SEC”), including but not limited to the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025. All forward-looking statements in this report apply as of the date of this report or as of the date they were made and, except as required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

OUTFRONT MEDIA INC.

By:

/s/ Matthew Siegel

Name:

Matthew Siegel

Title:

Executive Vice President and

Chief Financial Officer

Date: June 24, 2025

FAQ

Why is OUTFRONT Media (OUT) implementing a restructuring plan?

The company aims to boost sales demand, enhance customer experience and optimise costs through a 6 % workforce reduction.

How many employees will be affected by OUTFRONT Media's reduction in force?

Approximately 120 employees, representing about 6 % of the total workforce.

What is the total expected cost of the restructuring for OUT?

OUT expects to record $18.6 million in charges, of which $16.4 million are cash and $2.2 million are non-cash stock-based compensation.

When will OUTFRONT Media realise the projected cost savings?

Annualised savings of $18–20 million are expected, with the FY-2025 portion already included in guidance.

Will these restructuring charges affect OUT's non-GAAP earnings?

Management intends to exclude the restructuring costs from its non-GAAP measures, so adjusted results should not reflect the charges.

What risks did the company highlight regarding the plan?

OUT noted potential difficulties in execution, possible additional costs and standard industry risks that could prevent full realisation of savings.