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iHeartMedia, Inc. (IHRT)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered modest top-line growth with consolidated revenue of $0.934B (+0.5% YoY; +1.5% ex-political) and Adjusted EBITDA of $156.1M (+3.9% YoY), landing at the upper end of guidance; FCF was negative due to receivable timing and interest payments .
  • Digital Audio Group continued to outperform, with revenue +13.4% YoY to $0.324B and podcast revenue +28.5% to $0.134B; segment Adjusted EBITDA rose +17.1% to $107.6M and margin expanded ~100 bps to 33.2% .
  • Multiplatform Group remained pressured (revenue -5.4% YoY; adjusted EBITDA -7.6%), reflecting soft broadcast spot demand, though management highlighted strength among top advertisers and agency holding companies as a leading indicator for recovery .
  • Q3 guidance: consolidated revenue down low-single digits YoY (up low-single digits ex-political) and Adjusted EBITDA $180–$220M; segment outlook calls for continued digital/podcast growth and flattish Multiplatform ex-political; Audio & Media Services down sharply on political lap .
  • Catalysts: accelerating podcast monetization, programmatic/buy-side integration progress, new CBO hire to drive advanced advertising (broadcast radio inventory transacting like digital), and cost savings tracking toward $150M in 2025; near-term stock narrative hinges on execution in ad tech and Q3 EBITDA delivery .

What Went Well and What Went Wrong

What Went Well

  • Digital momentum: Digital Audio Group revenue +13.4% YoY to $323.9M, podcast +28.5% to $134.3M; Adjusted EBITDA +17.1% to $107.6M, margin to 33.2% from 32.2% .
  • Strategic progress in ad tech and leadership: “We continue to make progress on our ad tech platform… to allow our broadcast radio inventory to be bought and sold like digital advertising,” alongside hiring Lisa Coffey as Chief Business Officer to lead advanced advertising products .
  • Cost discipline: SG&A -4.3% YoY; management reiterated tracking to $150M net savings in 2025, with $40M realized in Q2 and $27M in Q1 .

What Went Wrong

  • Broadcast softness: Multiplatform Group down 5.4% YoY (broadcast -7.0% YoY) and segment Adjusted EBITDA down 7.6%; pressure from uncertain macro and lower spot demand .
  • Free cash flow and operating cash: FCF of -$13.2M and CFO of +$6.8M, driven by receivable timing and interest payments; Net loss of -$84.0M amid higher interest/tax expense .
  • Macro uncertainty and revenue mix keep guidance range wider: Q3 Adjusted EBITDA guided at $180–$220M with commentary about broader range due to marketplace uncertainty and revenue mix effects .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Billions)$1.118 $0.807 $0.934
Adjusted EBITDA ($USD Millions)$246.2 $104.6 $156.1
EBITDA ($USD Millions)$88.7 $46.8 $125.5
Adjusted EBITDA Margin %22.0% 13.0% 16.7%
Diluted EPS - Continuing Ops ($)$0.21*-$1.84*-$0.54*

Values with asterisk retrieved from S&P Global.

Segment revenue and profitability trend:

SegmentQ4 2024 Revenue ($MM)Q1 2025 Revenue ($MM)Q2 2025 Revenue ($MM)
Multiplatform Group$684.0 $473.0 $544.6
Digital Audio Group$338.9 $277.3 $323.9
Audio & Media Services Group$97.8 $59.3 $67.7
Eliminations-$2.4 -$2.5 -$2.5
Total$1,118.3 $807.1 $933.7
Segment Adjusted EBITDA ($MM)Q4 2024Q1 2025Q2 2025
Multiplatform Group$149.9 $70.0 $96.4
Digital Audio Group$118.9 $87.1 $107.6
Audio & Media Services Group$48.7 $15.8 $23.7
Corporate & Reconciling-$71.4 -$68.3 -$71.6
Consolidated$246.2 $104.6 $156.1

KPIs

KPIQ4 2024Q1 2025Q2 2025
Podcast Revenue ($MM)$139.6 $116.0 $134.3
Digital ex. Podcast Revenue ($MM)$199.3 $161.3 $189.6
Broadcast Radio Revenue ($MM)$493.3 $340.7 $395.8
Networks Revenue ($MM)$113.3 $99.5 $107.8
Sponsorship & Events Revenue ($MM)$70.1 $28.6 $36.5
Net Debt ($MM)$4,517.9 $4,608.8 $4,635.3
Cash & Liquidity ($MM)Cash $259.6; Liquidity $685.9 Cash $167.7; Liquidity $559.1 Cash $235.9; Liquidity $526.7

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue YoYQ3 2025N/ADown low-single digits YoY; Ex-political up low-single digitsNewly issued
Adjusted EBITDA ($MM)Q3 2025N/A$180–$220Newly issued; wider range due to uncertainty
Digital Audio Group RevenueQ3 2025N/AUp high-single digits; Podcast low-20sNewly issued
Multiplatform Group RevenueQ3 2025N/ADown mid-single digits; approx flat ex-politicalNewly issued
Audio & Media Services RevenueQ3 2025N/ADown ~30%; down mid-single digits ex-politicalNewly issued
Adjusted EBITDA ($MM)Q2 2025$140–$160 (issued on Q1 call) Actual $156.1Achieved at upper end
FY 2025 Adjusted EBITDA ($MM)FY 2025~ $770 (Q4 2024 PR) Maintained but contingent on macro improvementMaintained; management flagged macro risk

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Programmatic/ad tech for broadcastDebt exchange and modernization program; initial DSP integrations (DV360, Yahoo, Magnite); aim to sell radio like digital Continued platform build; newly hired CBO Lisa Coffey to drive commercialization and advertiser adoption Advancing commercialization
Podcast performance and monetizationQ1: podcast +28% YoY; strong flow-through and ad sales leverage via ~1,000 local sellers Q2: podcast +28.5% YoY; segment margin +100 bps; ~50% podcast revenue via local sales (up from ~14% in 2020) Accelerating, margin accretive
Broadcast radio demand/macroQ1: Multiplatform -4.2% YoY; national networks up 2.1%; macro visibility limited; pacing volatile Q2: Multiplatform -5.4% YoY; top-50 advertisers +4% and top agency groups +7% in Multiplatform provide leading indicators; revenue mix drives wider Q3 range Stabilizing early signs; still pressured
Cost savings/modernizationQ4: announced $200M gross/$150M net 2025 savings; Q1: $27M realized Q2: $40M realized; reaffirm $150M net savings target; expect similar cadence in Q3/Q4 On track
Liquidity/leverageQ4: lowest Net Debt; liquidity $686M; target net leverage 3.2x by end-2028 Q2: net debt ~$4.6B; liquidity $527M; intent to repay $100M ABL in H2 as FCF seasonally builds Stable; seasonal FCF expected
Regulatory/tariffs/methodologyQ1: analysts asked about tariff impacts; management pointed to national advertisers resilience; Nielsen methodology updates seen as positive for measurement No specific Q2 update beyond macro uncertainty commentary Neutral

Management Commentary

  • Bob Pittman (CEO): “Our second quarter performance was solid… Q2 adjusted EBITDA of $156 million at the upper end of our previously provided guidance… we continue to make progress on our ad tech platform… to allow our broadcast radio inventory to be bought and sold like digital advertising,” and announced Lisa Coffey as CBO to drive these efforts .
  • Rich Bressler (President/COO/CFO): Digital Audio Group revenue $324M “slightly above our guidance,” Adjusted EBITDA $108M (+17.1% YoY); Multiplatform revenue $545M “at the higher end of our guidance range” and Adjusted EBITDA $96M; reaffirmed $150M net savings in 2025 .
  • Q&A clarifications: Wider Q3 EBITDA range reflects revenue mix and marketplace uncertainty; cost savings cadence expected to be ~$40M per quarter through year-end .

Q&A Highlights

  • Guidance framing: EBITDA range widened to account for revenue mix (digital vs broadcast) and lingering macro uncertainty; management emphasized leading indicators from largest advertisers/agency groups underpin confidence .
  • Cost savings cadence: $40M net savings per quarter expected for Q2–Q4; $27M realized in Q1; tracking to $150M net for 2025 .
  • Programmatic progress: Continued integrations across DSPs; new CBO charged with monetization and commercialization of advanced advertising products; goal remains treating broadcast inventory like digital .
  • Segment outlook: Q3 Digital up high-single digits with podcast low-20s; Multiplatform down mid-single digits (approx flat ex-political); Audio & Media Services down ~30% (ex-political down mid-single digits) .

Estimates Context

  • Q2 2025 vs Wall Street consensus (S&P Global): Revenue beat ($933.7M actual vs $912.3M consensus); GAAP EBITDA came below EBITDA consensus ($125.5M actual vs $151.6M consensus); EPS missed (actual -$0.54 vs -$0.27 consensus). Note: company guides and reports “Adjusted EBITDA,” while consensus here references “EBITDA” (non-adjusted), so comparisons differ in definition .
  • Forward consensus (S&P Global): Q3 2025 revenue est. ~$0.980B; EBITDA est. ~$203.3M; EPS est. -$0.01; Q4 2025 revenue est. ~$1.099B; EBITDA est. ~$226.6M; EPS est. $0.13.*

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Digital remains the growth engine; podcasting scale and local sales force leverage are driving outsized growth and accretive margins — continue to anchor the thesis on Digital Audio Group execution .
  • Broadcast stabilization signals: despite YoY declines, strength among top advertisers and large agencies suggests trajectory improvement; monitor Q3 ex-political Multiplatform guidance (approx flat) for inflection evidence .
  • Estimate framing matters: Street’s EBITDA consensus tracks GAAP EBITDA, while IHRT manages to Adjusted EBITDA; expect ongoing communication gaps — trade the print on revenue and Adjusted EBITDA vs company guidance .
  • Cost actions are tangible and recurring; $40M/quarter cadence supports margins and FCF recovery into H2 and Q4 seasonal strength — watch for ABL repayment and liquidity trends .
  • Near-term setup: Q3 guide ($180–$220M Adjusted EBITDA) sets a wider band; delivery toward the upper half would support re-rating amid macro uncertainty; downside risk if broadcast demand underperforms .
  • Strategic catalyst: CBO hire to accelerate programmatic monetization of broadcast inventory; successful integration into key buying systems could expand addressable demand and pricing power .
  • Medium-term thesis: deleveraging path depends on sustained digital growth, broadcast monetization modernization, and disciplined cost execution; monitor FY25 Adjusted EBITDA trajectory vs ~$770M long-term target commentary and macro sensitivity .

Sources

  • Q2 2025 press release and 8-K: consolidated and segment results, guidance, non-GAAP reconciliations .
  • Q2 2025 earnings call: prepared remarks and Q&A topics .
  • Q1 2025 press release and call: prior quarter trends and guidance .
  • Q4 2024 press release: baseline trajectory, debt exchange, and FY25 commentary .
  • Additional Q2 relevant PR: Lisa Coffey appointed CBO to lead advanced advertising .