Executive Summary

Q4 2024: Revenue $1.118B (+4.8% YoY; ex-political −1.8%), Adjusted EBITDA $246M (+18.2% YoY), GAAP operating income $105M (vs $80M LY). Results came in below company guidance for both revenue (“up high-single digits”) and Adjusted EBITDA (~$290M) due to lighter political spend and a pre-/post-election slowdown in non-political advertising .
Balance sheet/cash: Completed ~$4.8B debt exchange (92% participation) extending maturities by ~3 years; net debt $4.52B; liquidity $686M. Q4 free cash flow was −$24M (fees and accelerated interest for exchange); adjusted FCF $111M .
Segment performance: Digital Audio revenue $339M (+6.7%) with margin 35.1%; Multiplatform revenue $684M (flat) with margin 21.9%; Audio & Media Services revenue $97.8M (+44.7%) with margin 49.8% .
Outlook: Q1 2025 revenue down low-single digits; Q1 Adjusted EBITDA $100–$110M. FY 2025 revenue ~flat; Adjusted EBITDA ~$770M; FCF ~$200M. Programmatic catalysts: broadcast inventory to be available via Yahoo DSP and Google DV360 in March, supporting medium-term monetization of radio reach .

What Went Well and What Went Wrong

What Went Well

Digital Audio delivered record full-year performance and solid Q4: revenue $339M (+6.7%), Adjusted EBITDA $119M (+2.1%), margin 35.1%. Management reiterated #1 podcast publisher status and expects Q1 podcast revenue to grow high teens .
Cost actions and capital structure: Completed debt exchange (maturities to 2029–2031) while keeping consolidated annual cash interest “essentially flat,” reducing total debt and achieving lowest net debt in company history (~$4.52B). Modernization program expected to net ~$150M annual savings in 2025 .
Segment margins expanded: Multiplatform margin up to 21.9% from 20.7% YoY; Audio & Media Services margin up to 49.8% from 30.5% YoY, supported by political and digital demand .

What Went Wrong

Q4 missed internal guidance: Adjusted EBITDA $246M vs guided ~ $290M; revenue +4.8% vs guided “high-single digits,” driven by weaker-than-expected political spend and non-political ad pause around the election that did not re-express post-election as hoped .
Cash flow optics: Reported FCF −$24M due to $89M debt exchange fees and $46M accelerated interest; while adjusted FCF was $111M, reported optics may concern investors near term .
Digital Audio margin compression: Segment margin declined to 35.1% from 36.7% YoY due to higher variable content and third-party costs, even as revenue grew .

Financial Results

Consolidated performance vs prior quarter(s)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$929.1	$1,008.1	$1,118.3
Operating Income ($USD Millions)	$(909.7)	$76.7	$104.5
Adjusted EBITDA ($USD Millions)	$150.2	$204.6	$246.2
Net Income ($USD Millions)	$(982.0)	$(41.3)	$31.9
Cash from Operations ($USD Millions)	$26.7	$102.8	$1.2
Free Cash Flow ($USD Millions)	$5.6	$73.3	$(24.2)
Adjusted EBITDA Margin %	16.2%	20.3%	22.0%

YoY comparison

Metric	Q4 2023	Q4 2024
Revenue ($USD Millions)	$1,066.8	$1,118.3
Operating Income ($USD Millions)	$79.8	$104.5
Adjusted EBITDA ($USD Millions)	$208.2	$246.2
Net Income ($USD Millions)	$14.0	$31.9
Cash from Operations ($USD Millions)	$154.1	$1.2
Free Cash Flow ($USD Millions)	$141.9	$(24.2)

Segment breakdown (Q4 2024 vs Q4 2023)

Segment	Revenue Q4 2023 ($MM)	Revenue Q4 2024 ($MM)	Segment Adj. EBITDA Q4 2023 ($MM)	Segment Adj. EBITDA Q4 2024 ($MM)	Margin Q4 2023	Margin Q4 2024
Multiplatform Group	$684.0	$684.0	$141.5	$149.9	20.7%	21.9%
Digital Audio Group	$317.7	$338.9	$116.5	$118.9	36.7%	35.1%
Audio & Media Services	$67.6	$97.8	$20.6	$48.7	30.5%	49.8%

KPIs: revenue streams (Q4 2024 vs Q4 2023)

Revenue Stream	Q4 2023 ($MM)	Q4 2024 ($MM)	YoY Change
Broadcast Radio	$484.7	$493.3	+1.8%
Networks	$119.9	$113.3	−5.6%
Sponsorship & Events	$71.1	$70.1	−1.5%
Other	$8.3	$7.4	−10.9%
Digital ex. Podcast	$186.0	$199.3	+7.1%
Podcast	$131.7	$139.6	+6.0%

Note: EPS was not disclosed in the company’s Q4 press release or 8-K materials; therefore EPS comparisons are unavailable in primary documents .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Actual	Change
Revenue (Consolidated)	Q4 2024	Up high-single digits	+4.8% actual	Miss
Adjusted EBITDA (Consolidated)	Q4 2024	~$290M	$246M actual	Miss
Revenue (Consolidated)	Q1 2025	N/A	Down low-single digits	New
Adjusted EBITDA (Consolidated)	Q1 2025	N/A	~$100–$110M	New
Revenue (Consolidated)	FY 2025	~Flat (non-political year)	~Flat (non-political year)	Maintained
Adjusted EBITDA (Consolidated)	FY 2025	~$770M	~$770M	Maintained
Free Cash Flow	FY 2025	~$200M	~$200M	Maintained
Cash Taxes	FY 2025	N/A	~10% of Adjusted EBITDA	New
Capital Expenditures	FY 2025	N/A	~$90M	New
Cash Restructuring	FY 2025	N/A	~$45M	New
Net Debt / Adjusted EBITDA	YE 2025	~5.5x	~5.5x	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4 2024)	Trend
Programmatic/Ad Tech	Building unified platform; tests (e.g., Magnite); integrating broadcast inventory into DSPs	Broadcast inventory to be available via Yahoo DSP and Google DV360 in March; learning year for revenue ramp	Execution phase; commercial availability imminent
Podcasting Growth & Profitability	Return to double-digit growth expected in H2; disciplined publisher strategy; margins accretive	Q4 revenue +6%; Q1 outlook high teen growth; #1 publisher reaffirmed	Accelerating into early 2025
Macro/Advertising Environment	Recovery year; political pacing +20% vs 2020; cautious optimism	Mixed start to ’25: Jan +5.5%, Feb pacing −~7%; uncertainty (tariffs, inflation, rates)	Near-term caution, medium-term constructive
Political Advertising	Strong H2 expected; battleground exposure; upfront cash benefits	Below expectations around election; did not re-express after; segment EBITDA still strong	2024 cycle ended softer than guided
Capital Structure & Cost	Engaged with debtholders; target net leverage improvement; ongoing tech-enabled efficiencies	Debt exchange completed (92%); net debt low; net savings ~$150M in 2025	Material de-risking achieved

Management Commentary

“We successfully completed the comprehensive exchange transaction... extending the majority of our debt maturities by three years; keeping our consolidated annual cash interest expense essentially flat; and providing overall debt reduction.” — Bob Pittman, CEO .
“At quarter end, we had the lowest Net Debt position in the history of our company, approximately $4.52 billion... total liquidity was $686 million... Net Debt to Adjusted EBITDA ratio was 6.4x; we expect ~5.5x by year end 2025 and 3.2x by the end of 2028.” — Rich Bressler, President/COO/CFO .
“In March... our broadcast radio inventory will be available via the Yahoo! DSP and Google’s DV360... a critical early step in aligning our broadcast assets with digital buying behavior.” — Bob Pittman .
“Q4 revenues were up 4.8%... below guidance primarily due to lower political advertising revenue than expected... and a slowdown in non-political advertising just before the presidential election... which did not re-express after.” — Rich Bressler .

Q&A Highlights

Programmatic ramp: Management emphasized 2025 is a learning/availability year; first step is getting into platforms (DV360, Yahoo), with more meaningful revenue impact likely in subsequent years .
Video podcasting: Company sees limited incremental CPM uplift vs audio and emphasizes consumer preference for audio; will add video where it monetizes but remains focused on host-driven audio content .
LA wildfires impact: Noted disruption in largest revenue market and national sales team; expect normalization; ironically, longer commutes (traffic) can benefit radio listening and ad efficacy .
Near-term pacing: January revenues +5.5%; February pacing approximately −7%, reflecting macro uncertainty (tariffs, inflation, rates) and typical Q1 seasonality .
Political spend shortfall: Post-election spend did not materialize as hoped; takeaway to further data-enable political offerings ahead of midterms .

Estimates Context

Wall Street consensus (S&P Global) for IHRT Q4 2024 was unavailable at time of analysis due to SPGI rate limits; thus estimate comparisons are omitted. The company’s results missed its own guidance (revenue “up high-single digits” vs +4.8%; Adjusted EBITDA guided ~ $290M vs $246M), indicating potential downward revision to near-term sell-side models on Q1 revenue decline and Q4 miss .

Key Takeaways for Investors

Q4 print was operationally solid but below guidance on political/non-political ad trends; near-term sentiment likely cautious given Q1 revenue decline and February pacing — watch programmatic activation milestones in March for catalysts .
Structural de-risking: Debt exchange and liquidity provide runway; net leverage path (to ~5.5x YE25, ~3.2x by 2028) supports equity optionality if ad recovery and cost savings filter through as planned .
Digital Audio remains growth/profit engine; podcast growth re-accelerating into Q1 with accretive margins; monitor margin mix between podcast and non-podcast digital .
Multiplatform margin expansion despite flat revenue underscores cost discipline; full monetization of radio reach via DSPs is the strategic swing factor for medium-term EBITDA .
Cash flow optics were impacted by debt exchange fees/interest; adjusted FCF normalization expected as one-offs roll off and restructuring cash spends step down in 2025 .
Political comps will be a headwind in Audio & Media Services in Q1; focus shifts to core advertiser demand and programmatic contributions across 2025 .
Tactical trade setup: Near-term choppy advertising backdrop and Q1 guide argue for patience; medium-term thesis hinges on programmatic commercialization, sustained digital growth, and operating leverage from modernization savings .

iHeartMedia, Inc. (IHRT)·Q4 2024 Earnings Summary