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CUMULUS MEDIA INC (CMLS)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue of $180.3M declined 11.5% year over year; diluted EPS was a loss of $1.17, versus a loss of $0.61 in Q3 2024. Adjusted EBITDA was $16.7M, down 30.8% YoY .
  • Digital Marketing Services grew 34% YoY and now accounts for ~50% of total digital revenue; total digital revenue was $39.0M, down 2.6% YoY but up 8.4% excluding the $6.9M impact from discontinuing Daily Wire and Dan Bongino .
  • Management reinforced cost discipline with $7M of annualized fixed cost cuts in the quarter (YTD $20M); cash ended at $90.4M and net debt less unamortized discount was $606.7M .
  • Q4 outlook: revenue pacing down mid-single digits excluding political/Daily Wire/Bongino; including those impacts pacing down mid-to-high teens. Westwood One Sports 24/7 network launches at year-end—a potential monetization and cost efficiency catalyst .

What Went Well and What Went Wrong

What Went Well

  • “We continued to outperform…gained market share in total broadcast spot as well as in digital…Digital Marketing Services business…up 34% in the quarter” .
  • Digital outperformance ex-Daily Wire/Dan Bongino: total digital revenue grew ~8.4% YoY when normalized for discontinued relationships; DMS now ~50% of digital revenue .
  • Cost actions: $7M annualized fixed cost reductions in Q3; cumulative annualized cuts since 2019 now ~$182M (>30%), supporting liquidity and flexibility .

What Went Wrong

  • Broadcast network revenue contracted sharply amid weak national ad demand (network down 26.5% YoY; total broadcast radio down 17.2% YoY) .
  • Corporate expense increased due to ~$8M royalty settlements (ASCAP/BMI) and restructuring, contributing to higher GAAP loss (net loss $20.4M vs. $10.3M LY) .
  • Headwinds persist: management does not expect near-term relief in legacy media advertising; Q4 pacing implies continued mid-teens decline including political/Daily Wire/Bongino impacts .

Financial Results

Headline P&L vs Prior Periods

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$203.6 $186.0 $180.3
Net Income ($USD Millions)$(10.3) $(12.8) $(20.4)
Diluted EPS ($)$(0.61) $(0.74) $(1.17)
Adjusted EBITDA ($USD Millions)$24.1 $22.4 $16.7

Margins (SPGI definitions; may differ from company-reported Adjusted EBITDA)

MetricQ3 2024Q2 2025Q3 2025
EBITDA Margin %10.66%*11.60%*3.97%*
EBIT Margin %3.46%*4.01%*-3.02%*
Net Income Margin %-5.07%*-6.89%*-11.32%*
Values retrieved from S&P Global.*

Segment Revenue Breakdown

Segment ($USD Millions)Q3 2024Q3 2025YoY Change
Spot$96.4 $83.7 -13.1%
Network$42.6 $31.3 -26.5%
Total Broadcast Radio$139.0 $115.0 -17.2%
Digital$40.0 $39.0 -2.6%
Other$24.6 $26.3 +6.8%
Total Revenue$203.6 $180.3 -11.5%

KPIs and Balance Sheet

KPIQ3 2024Q2 2025Q3 2025
Digital Marketing Services YoY Growthn/a+38% +34%
Digital Revenue ($USD Millions)$40.0 $38.8 $39.0
Cash & Cash Equivalents ($USD Millions)$52.2 $96.7 $90.4
Total Debt Principal, Gross ($USD Millions)$673.0 $723.7 $722.2
Total Debt at Maturity ($USD Millions)$642.1 $697.1 $697.1
Net Debt less Unamortized Discount ($USD Millions)$590.0 $600.4 $606.7
Capex ($USD Millions)$3.33 (Q3’24) $5.53 (Q2’25) $4.39 (Q3’25)

Actuals vs Wall Street Consensus (S&P Global)

MetricQ3 2025 ConsensusQ3 2025 ActualSurprise
Revenue ($USD Millions)179.8*180.3 +0.3%*
Primary EPS ($)-0.825*-1.1707*Miss (more negative)
EBITDA ($USD Millions, SPGI def.)13.1*7.16*Miss
Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue (ex Political, ex-Daily Wire/Bongino)Q4 2025Not providedPacing down mid-single digits New commentary
Total Revenue (including Political/DW/Bongino impacts)Q4 2025Not providedPacing down mid-to-high teens New commentary
CapexFY 2025< $22.59M (prior call) Still expected below prior level Maintained
Asset Sale ProceedsQ4 2025Not provided~$10.5M (Nashville) + ~$2M (NM land) expected in Q4 New details

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
AI initiativesQ1: Strategic transformation emphasis; tariffs impacting macro . Q2: Continued execution; cost actions .Building sales prospecting agents, chatbots, near-real-time sports clipping; >100 AI projects prioritized .Expanding programmatic deployment
Macro/AdvertisingQ1: Worsening headwinds incl. tariffs . Q2: Legacy media backdrop challenging .Weak national ad environment; network down 27% YoY; local market share gains (e.g., Dallas) .Persistent pressure; local outperformance
Digital Marketing Services (DMS)Q1: +30% YoY; streaming +4%; podcasting ex-DW +39% . Q2: +38% YoY; ~50% of digital revenue .+34% YoY; ~50% of digital; normalized digital +8.4% .Sustained high growth
Westwood One Sports 24/7n/aAnnounced Oct 21; rebrand with Audacy; lineup anchored by Jim Rome .New growth/cost initiative
Cost actionsQ1: $7.5M fixed cost cuts . Q2: $5M fixed cost cuts .$7M fixed cost cuts; cumulative $182M since 2019 .Ongoing discipline
Legal/Regulatoryn/aLitigation filed against Nielsen; expedited schedule, hearing in early December .Emerging legal action
Asset salesQ1: n/aQ3: Nashville property ($10.5M) and NM land (~$2M) expected Q4; more non-core sales into next year (FCC delays) .Monetizing non-core assets

Management Commentary

  • Mary Berner: “In an advertising environment that remained challenging for legacy media, we continued to outperform…our digital marketing services business…was up 34% in the quarter…reducing annualized fixed costs by $7 million and accelerating…AI initiatives to drive efficiencies and enhance growth” .
  • On local execution: “We once again gained total revenue market share…as evidenced in Dallas…gained almost 4 points of market share…September…total revenue up mid-single digits while our peers were down almost 10%” .
  • On network strategy: “We will be launching the Westwood One Sports 24/7 Network…anchored by…The Jim Rome Show and You Better You Bet…provides a pathway for revenue growth from new digital distribution and monetization rights…launched in a way that actually reduces our overall costs” .
  • CFO Lopez-Balboa: Corporate expense increased “primarily driven by $8 million of royalty settlements with ASCAP and BMI and increased restructuring expenses” .

Q&A Highlights

  • The transcript reflects prepared remarks without a published Q&A segment; management invited follow-up calls, indicating openness to guidance clarifications offline .
  • Commentary clarified Q4 pacing (down mid-single digits ex-political and down mid-to-high teens including impacts), capex below prior level, and expected asset sale proceeds .

Estimates Context

  • Q3 2025: Revenue slightly beat consensus ($180.3M vs $179.8M); EPS missed (-$1.17 vs -$0.825). SPGI EBITDA definition missed (actual $7.16M vs $13.1M est.), while company-reported Adjusted EBITDA was $16.7M, highlighting definitional differences . Values retrieved from S&P Global.*
  • Q4 2025: Consensus revenue $180.5M*, EPS -$1.03*, reflecting expectations for continued softness; management’s pacing commentary suggests risk skew to the downside including political/DW/Bongino impacts .
  • Coverage is thin with two estimates on revenue and EPS, implying potential volatility around revisions as management commentary and macro trends evolve.*

Key Takeaways for Investors

  • Local share gains and DMS growth are offsetting some national ad headwinds; near-term narrative hinges on continued DMS execution and Westwood One Sports 24/7 rollout for monetization and cost savings .
  • Q4 setup is cautious: ex-political mid-single-digit revenue decline, including impacts mid-to-high teens; traders should expect negative estimate revisions if national demand remains depressed .
  • Non-GAAP add-backs were significant (e.g., ~$8.6M non-routine legal expenses); monitor the gap between GAAP losses and Adjusted EBITDA in assessing cash generation and covenant headroom .
  • Liquidity remains adequate (cash $90.4M; revolver drawn $55M), with planned asset sales (~$12.5M) supporting near-term cash; watch net debt trajectory and interest expense amid 2026 maturities .
  • Legal action vs Nielsen introduces event risk and potential measurement changes; an expedited schedule could catalyze headlines in December .
  • The Audacy collaboration and sports network rebrand can expand digital distribution and sponsorship opportunities—medium-term driver if execution aligns with cost reduction claims .
  • Portfolio positioning: favor valuation framed on normalized digital growth and local spot outperformance; hedge exposure to national network ad softness and macro-sensitive categories per management’s pacing.
Notes:
- Asterisked margin and estimate values are from S&P Global and may reflect SPGI-standard definitions rather than company-reported non-GAAP measures. Values retrieved from S&P Global.