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iHeartMedia, Inc. (IHRT)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 revenue was $0.807B, up 1.0% year over year and above guidance of down low-single digits, led by Digital Audio (+16%) and podcasts (+28%) .
  • Adjusted EBITDA was $104.6M, flat YoY and at the midpoint of prior guidance ($100–$110M) .
  • Management guided Q2 revenue down low-single digits and Q2 Adjusted EBITDA of $140–$160M; segmentally, Digital up low-double digits with podcasting low-20s, Multiplatform down mid-high single digits, AMS down ~5% .
  • Stock narrative catalysts: a clear top-line beat versus consensus, strong podcast flywheel and margin expansion, continued programmatic/AI modernization, and cautious macro commentary (tariffs/consumer confidence) tempering Q2 guide .

What Went Well and What Went Wrong

What Went Well

  • Digital Audio accelerated: revenue $277M (+16%), segment Adjusted EBITDA $87M (+27.8%), margin up ~290 bps to 31.4%; podcasts $116M (+28%), well above “high-teens” guidance .
  • Revenue beat and execution: consolidated revenue rose 1.0% vs guidance of down low-single digits; Adjusted EBITDA delivered at guidance midpoint .
  • Strategic monetization and share gains: Premier Broadcast Networks returned to growth (+2.1% YoY); iHeart captured ~40% of radio ad revenue in Miller Kaplan markets, reflecting sales force scale and ad-tech/data investments .

Quotes

  • CEO: “We think these results demonstrate the resilience and relevance of our products and the tremendous growth opportunity we have with our podcast business” .
  • CFO: “March came in slightly better... in both our Multiplatform and Digital segments” and “Q1 margins were 31.4%, up from 28.5% in the prior year” .

What Went Wrong

  • Multiplatform softness: revenue $473M (-4.2%), segment Adjusted EBITDA $70M (-9.3%); broadcast spot revenue weakness continued amid uncertain conditions .
  • AMS decline: revenue $59M (-14.2%), segment Adjusted EBITDA $15.8M (-33.3%) due to nonrecurring prior-year contract termination fees and broader broadcast ad softness .
  • Macro headwinds and pacing: management cited tariff headlines, declining consumer confidence, and LA wildfires (largest market) as near-term constraints; April pacing down ~2% (ex-political down ~1.4%) .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Billions)$0.799 $1.118 $0.807
Operating Income (Loss) ($USD Millions)$(34.7) $104.5 $(25.4)
Adjusted EBITDA ($USD Millions)$104.6 $246.2 $104.6
Net Income (Loss) ($USD Millions)$(18.1) $31.9 $(280.9)

Segment performance

SegmentMetricQ1 2024Q1 2025
Multiplatform GroupRevenue ($MM)$493.5 $473.0
Multiplatform GroupSegment Adj. EBITDA ($MM)$77.2 $70.0
Multiplatform GroupSegment Adj. EBITDA Margin (%)15.6% 14.8%
Digital Audio GroupRevenue ($MM)$239.0 $277.3
Digital Audio GroupSegment Adj. EBITDA ($MM)$68.1 $87.1
Digital Audio GroupSegment Adj. EBITDA Margin (%)28.5% 31.4%
Audio & Media ServicesRevenue ($MM)$69.2 $59.3
Audio & Media ServicesSegment Adj. EBITDA ($MM)$23.7 $15.8
Audio & Media ServicesSegment Adj. EBITDA Margin (%)34.2% 26.6%

Key KPIs

KPIQ1 2024Q1 2025
Podcast Revenue ($MM)$90.6 $116.0
Digital ex. Podcast Revenue ($MM)$148.3 $161.3
Consolidated Revenue excl. Political ($MM)$787.4 $801.4
Cash Balance ($MM)—$167.7
Total Available Liquidity ($MM)—$559.1
Total Debt ($MM)—$5,054.6
Net Debt ($MM)—$4,608.8
Cash used in Operating Activities ($MM)$(59.3) $(60.9)
Free Cash Flow ($MM)$(80.9) $(80.7)
Capital Expenditures ($MM)$21.6 $19.7

Estimate comparison (S&P Global)

MetricConsensus (Q1 2025)Reported (Q1 2025)Surprise
Revenue ($MM)$787.4*$807.1 Bold beat by ~$19.7M (~2.5%)*
Primary EPS ($)-0.519*N/A (not disclosed in press release)N/A*
EBITDA ($MM)$105.8*Adjusted EBITDA $104.6 ~in line (definitions differ)*

Values retrieved from S&P Global*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated RevenueQ1 2025Down low-single digits Actual +1.0% YoY Bold beat (better than guided)
Adjusted EBITDAQ1 2025$100–$110M Actual $104.6M Met midpoint
Consolidated RevenueQ2 2025—Down low-single digits New guide
Adjusted EBITDAQ2 2025—$140–$160M New guide
Digital Audio RevenueQ2 2025—Up low-double digits; podcast low-20s New segment guide
Multiplatform Group RevenueQ2 2025—Down mid- to high-single digits New segment guide
Audio & Media Services RevenueQ2 2025—Down ~5% (political impact) New segment guide
Consolidated RevenueFY 2025Approximately flat YoY Reiterated Maintained
Adjusted EBITDAFY 2025~$770M Reiterated ~$770M Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
AI/modernization cost programAnnounced $150M net savings for 2025; strong focus on tech-driven leverage Completed modernization; $150M net savings; reiterated operational streamlining $27M net savings realized in Q1; path to ~$40M per quarter through year Executing; scaling savings
Programmatic/Ad tech (broadcast inventory)Building programmatic platforms; automated buying as growth TAM Broadcast inventory entering Yahoo DSP & DV360 in March; early rollout Progress continues; not a material contributor yet; more impact over time Rolling out; early innings
Macro/tariffs/consumer confidencePolitical cycle tailwinds; late Q4 slowdown before election Tariffs/inflation uncertainty; Feb consumer confidence largest decline since Aug 2021; LA wildfires impact Stable ad spend with low visibility; April pacing down ~2% (ex-pol ~1.4%); cautious Q2 guide Cautious/soft near term
Podcasting momentum#1 Podtrac; DAG margins mid-30s target; podcast +11% Podcast +6% in Q4; high-teens Q1 guide; global expansion (Qatar) Podcast +28% in Q1; margin accretive; flywheel effect Strengthening
Broadcast radio monetization/shareRevenue -1.1% in Q3; ad-tech to return to growth MPG flat in Q4; broadcast audiences resilient Premier Networks +2.1%; industry share ~40% in measured markets Stabilizing
Measurement (Nielsen methodology)——Nielsen aiming to better capture listening; benefits media mix models Positive
Balance sheet/debt exchangeTSA with ~80% holders; extend maturities, keep cash interest flat Completed exchange; lowest net debt; maturities 2029–2031 Net debt ~$4.6B; liquidity ~$569M; ND/EBITDA ~6.5x Improved profile

Management Commentary

  • “Our consolidated revenues for the quarter were up 1%... above our guide of down low-single digits. Excluding political, up 1.8%” .
  • “Digital Audio Group revenue of $277 million, up 16%… Adjusted EBITDA of $87 million, up 27.8%… margins 31.4%” .
  • “Premier Broadcast Networks revenue returned to growth in Q1 and was up 2.1%… evidence of progress returning Broadcast Radio to revenue growth” .
  • “Modernization… generate net savings of $150 million in 2025; Q1 included $27 million of net savings” .
  • “We expect Q2 Adjusted EBITDA $140–$160 million… consolidated revenue down low-single digits” .
  • “Nielsen is making a priority to try and capture all the listening that’s really happening… improves media mix model attribution” .
  • Q4 set-up for programmatic: “Broadcast radio inventory will be available via Yahoo DSP and Google DV360” .

Q&A Highlights

  • Advertising visibility: Larger national advertisers resilient; SMBs more sensitive to headlines/tariffs; pacing data is point-in-time and can swing quickly .
  • Market share: iHeart aims to grow beyond ~40% share in measured markets; consolidation favors fewer, scaled partners; ad-tech/programmatic supports share gains .
  • Podcasting drivers: Growth from both volume and rates; broad category diversification; advantage from radio promotion and open distribution (no paywall) .
  • Programmatic adoption: Digital inventory live across key DSPs; broadcast inventory onboarding continues; not yet material to results .
  • Cost cadence: Savings path outlined—$27M in Q1, ~$27M in Q2, then ~$40M per quarter for the next three quarters towards $150M net in 2025 .

Estimates Context

  • Q1 revenue beat S&P Global consensus: $807.1M reported vs $787.4M consensus (beat ~2.5%); Adjusted EBITDA in line with guidance; EPS not disclosed in press release. Values retrieved from S&P Global*.
  • Forward consensus implies Q2 revenue ~$912.3M and FY 2025 revenue ~$3.84B; FY 2025 EPS consensus -$2.70*. Values retrieved from S&P Global*.
PeriodRevenue Consensus Mean ($MM)Primary EPS Consensus Mean ($)
Q1 2025787.4*-0.519*
Q2 2025912.3*-0.273*
FY 20253,836.9*-2.695*

Values retrieved from S&P Global*

Where estimates may need to adjust:

  • Digital Audio outperformance and stronger March suggest upward bias to podcast/digital assumptions; Multiplatform softness and Q2 down guide suggest caution on broadcast trajectory .
  • Cost savings ramp ($27M realized, rising through year) supports margin assumptions despite macro uncertainty .

Key Takeaways for Investors

  • Revenue execution beat both guide and consensus; Digital Audio structural growth and podcast flywheel are the quarter’s standouts—supports medium-term margin expansion trajectory .
  • Near-term macro remains cautious (tariffs, consumer confidence, LA disruption); Q2 guide down low-single digits keeps expectations grounded—watch pacing updates .
  • Programmatic broadcast integration (DV360/Yahoo) is a strategic catalyst; revenue contribution likely back-half 2025 onward, but positioning is important now .
  • Cost program provides tangible cushion: $27M net savings realized in Q1; cadence implies ~$150M net in 2025—supports EBITDA resilience even if ad market remains choppy .
  • Balance sheet reshaped: exchange completed; maturities extended to 2029–2031; net debt ~$4.6B, liquidity ~$559–$569M, ND/EBITDA ~6.4–6.5x—deleveraging path reiterated .
  • Trading setup: Continued podcast beats and any evidence of programmatic traction could be upside catalysts; downside risks include prolonged SMB weakness and slower broadcast normalization .
  • Monitor guidance checkpoints: Q2 delivery vs $140–$160M Adjusted EBITDA target and segment mix (podcast flow-through) will drive estimate revisions and sentiment .

Notes:

  • Press release and 8-K furnish detailed reconciliations and segment data .
  • Selected additional Q1-related corporate updates include appointment of David Hillman as Chief Legal Officer (April 24) .