Core Insights - Cumulus Media's Westwood One has launched a new morning sports radio show hosted by Drake C. Toll, airing Monday to Friday from 6:00 AM to 9:00 AM, marking a significant development in sports audio broadcasting [1] Company Overview - Cumulus Media is an audio-first media company that reaches a quarter billion people monthly through 395 radio stations across 84 markets, offering high-quality local programming and nationally-syndicated content [5] - The company operates Westwood One, the largest audio network in America, providing a range of programming including sports, news, and entertainment [5] Host Background - Drake C. Toll has a diverse media background, starting with founding EagleVision in Arkansas, and has worked with major outlets like ESPN and Sports Illustrated [3] - Toll is known for his engaging broadcasting style and has previously hosted successful podcasts, including America's No. 1 Big 12 podcast [3] Show Concept - The new show aims to provide sharp insights and fearless opinions, utilizing multiple platforms to engage listeners and create an interactive sports experience [2][4] - Toll emphasizes a commitment to authenticity and connection, promising to deliver compelling content for a wide audience [4] Industry Positioning - Westwood One Sports is recognized for its extensive sports broadcasting, including exclusive partnerships with the NFL and coverage of major NCAA events [6] - The launch of Toll's show is part of a broader strategy to innovate and enhance the sports talk radio landscape, moving away from traditional formats [4]

Core Insights - Cumulus Media's Westwood One has appointed McGraw Milhaven as the new host of the nationally syndicated program America at Night, starting December 1st [1][2][4] Group 1: Show Details - America at Night will be broadcast live weeknights from 9:00 pm to midnight ET, featuring Milhaven's engaging interviews, sharp commentary, and dynamic listener interaction [2][3] - The show will cover a wide range of topics including politics, current events, sports, and entertainment, aiming to deliver news analysis and interactive discussions [3] Group 2: Host Background - McGraw Milhaven has over two decades of broadcasting experience and has been recognized nationally, including a spot on Talkers Magazine's Top 100 Talk Hosts in America [5] - Milhaven has a background in history and political science and is known for his resilience and humor, shaped by his upbringing as one of six children [6] Group 3: Company Overview - Cumulus Media is an audio-first media company that reaches a quarter billion people monthly through 399 radio stations across 84 markets and a large audio network [7] - The company provides a variety of programming including sports, news, talk, and entertainment, and offers integrated digital marketing services and live event experiences [7]

Core Insights - Cumulus Media has expanded its podcast portfolio by adding the Shots Podcast Network, enhancing its creator-led audio entertainment offerings [1][6] - The Shots Podcast Network is recognized for its viral content and includes popular shows like Full Send Podcast, One Night with Steiny, and The Rush with Maxx Crosby [2][3][4][5] Cumulus Media Overview - Cumulus Media is an audio-first media company reaching a quarter billion people monthly through 399 radio stations across 84 markets and the Cumulus Podcast Network [7] - The company provides a range of programming including sports, news, and entertainment through Westwood One, the largest audio network in America [7][8] Shots Podcast Network Highlights - Full Send Podcast has over 2.2 million YouTube subscribers and 430 million views, featuring high-profile guests and appealing to young adult audiences [3] - One Night with Steiny is a comedic interview podcast with over 190,000 YouTube subscribers, known for its entertaining and unfiltered content [4] - The Rush with Maxx Crosby offers exclusive insights into the NFL, featuring interviews with top athletes and is popular among football fans [5] Strategic Partnership - John Shahidi, CEO of Shots Podcast Network, emphasized that the partnership with Cumulus will enhance their ability to connect with audiences [6] - Collin Jones, President of Westwood One and Cumulus Podcast Network, highlighted Shots as a dynamic creator network that engages millions of fans [6]

Core Insights - Chris Van Vliet's podcast "Insight" is joining the Cumulus Podcast Network, enhancing its distribution and monetization capabilities [1][4] - The podcast has become a leading platform in professional wrestling media, driven by the industry's mainstream success and significant audience engagement [2][4] Company Overview - Cumulus Media is a major audio-first media company, reaching a quarter billion people monthly through various platforms, including 399 radio stations and the Cumulus Podcast Network [6] - The Cumulus Podcast Network aims to deliver premium content and has a strong focus on original podcasts that are engaging and thought-provoking [6] Industry Context - Professional wrestling is experiencing unprecedented success, with billion-dollar streaming deals and record viewership for major brands like WWE and AEW [2] - The partnership with Cumulus is expected to leverage the growing interest in wrestling content, providing fans with exclusive live events and bonus content [4][5]

Core Points - Cumulus Media held its third quarter 2025 earnings conference call, featuring key executives including the President and CEO, Mary Berner, and CFO, Frank Lopez-Balboa [2] - The company emphasized that certain statements made during the call may be forward-looking and subject to risks and uncertainties, which could lead to actual results differing from those projected [2][3] - Non-GAAP financial measures will be discussed, which the company believes provide useful supplementary information to investors, although they are not considered superior to GAAP measures [3]

Core Insights - Cumulus Media reported a quarterly loss of $1.17 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.83, and compared to a loss of $0.61 per share a year ago, indicating a significant earnings surprise of -40.96% [1] - The company generated revenues of $180.26 million for the quarter ended September 2025, slightly surpassing the Zacks Consensus Estimate by 0.28%, but down from $203.6 million in the same quarter last year [2] - Cumulus shares have declined approximately 78.1% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Financial Performance - Over the last four quarters, Cumulus has exceeded consensus EPS estimates twice and topped revenue estimates two times as well [2] - The current consensus EPS estimate for the upcoming quarter is -$0.69 on revenues of $194.7 million, and for the current fiscal year, it is -$4.14 on revenues of $747.83 million [7] Industry Outlook - The Broadcast Radio and Television industry, to which Cumulus belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting a challenging environment for performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Cumulus's stock performance [5] Future Expectations - The sustainability of Cumulus's stock price movement will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [3][4] - The estimate revisions trend for Cumulus was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 decreased by 11.5%, or 5% when excluding the impact of Political, The Daily Wire, and The Dan Bongino Show, consistent with prior guidance [5][18] - EBITDA for the quarter was reported at $16.7 million [18] - Digital revenue increased by 8% year-over-year, excluding the impact of The Daily Wire and Dan Bongino, with Digital Marketing Services growing by 34% [18] Business Line Data and Key Metrics Changes - Broadcast spot revenue market share grew for the third consecutive quarter, indicating strong sales execution and local programming [5] - Digital Marketing Services business saw a 34% year-over-year growth, driven by an 88% increase in new accounts and an 8% increase in campaign order size [7] - Podcasting revenue increased by 15% year-over-year, contributing to an overall digital revenue growth of over 8% when normalized [8] Market Data and Key Metrics Changes - In Dallas, the largest market, the company gained almost 4 points of market share, with total revenue up mid-single digits while peers were down nearly 10% [9] - National advertising environment remained weak, leading to a 27% decline in total network revenue, although market share was gained year-to-date [10] Company Strategy and Development Direction - The company is focused on leveraging core competencies and valuable assets, including a vast audience reach and established client relationships [15] - Plans to launch the Westwood One Sports 24/7 Network to capitalize on strong consumer brand recognition and digital distribution opportunities [11] - Continued investment in Digital Marketing Services is expected to yield strong returns, with a focus on AI-driven projects to enhance efficiency and growth [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds in the broadcast radio sector but expressed confidence in outperforming peers through strategic execution [15] - The company anticipates continued revenue pacing down mid-single digits, excluding political impacts, and down mid to high teens when including those impacts [12][20] Other Important Information - The company ended the quarter with $90 million in cash and $109 million in total liquidity, with a debt maturity of $697 million [19] - A litigation against Nielsen was acknowledged, with a preliminary injunction hearing scheduled for early December [16] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating a lack of detailed Q&A during the call [21][22]

Financial Performance - Net revenue for Q3 2025 decreased by $23.3 million, or 11.5%, compared to Q3 2024, primarily due to a reduction in spot and network revenues [109]. - Adjusted EBITDA for Q3 2025 was $16.7 million, down $7.4 million, or 30.8%, from $24.1 million in Q3 2024 [120]. - Net revenue for the nine months ended September 30, 2025, decreased by $54.9 million, or 9.0%, compared to the same period in 2024, primarily due to a reduction in spot and network revenues [121]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $42.5 million, a decrease of $15.1 million compared to $57.7 million for the same period in 2024 [134]. - The company recorded net losses of $65.6 million for the nine months ended September 30, 2025, compared to net losses of $52.2 million for the same period in 2024 [134]. Expenses - Content costs for Q3 2025 decreased by $16.1 million, or 21.1%, driven by reduced revenue share expenses and lower broadcast rights costs [110]. - Corporate expenses increased by $8.7 million, or 73.1%, in Q3 2025, primarily due to royalty settlements and increased restructuring charges [113]. - Selling, general and administrative expenses for Q3 2025 decreased slightly by $0.1 million, or 0.1%, compared to Q3 2024 [111]. - Depreciation and amortization expenses for Q3 2025 decreased by $2.0 million, or 13.6%, due to fully depreciated assets [112]. - Corporate expenses decreased by $10.1 million, or 16.9%, for the nine months ended September 30, 2025, primarily due to lower debt exchange costs and reduced stock compensation expenses [126]. - Selling, general and administrative expenses decreased by $2.6 million, or 0.9%, for the nine months ended September 30, 2025, primarily from lower personnel costs and reduced rent expenses [124]. Cash Flow and Financing - As of September 30, 2025, the company had $90.4 million in cash and cash equivalents, having used $8.2 million for operating activities in the nine months ended September 30, 2025 [136]. - Net cash used in operating activities decreased to $8.2 million for the nine months ended September 30, 2025, compared to $20.1 million in the same period of 2024 [154]. - Net cash used in investing activities increased to $14.5 million for the nine months ended September 30, 2025, primarily due to capital expenditures [155]. - Net cash provided by financing activities was $49.2 million for the nine months ended September 30, 2025, reflecting $55.0 million from borrowings under the 2020 Revolving Credit Agreement [157]. Corporate Developments - The company transitioned to trading on the OTC Markets' OTCQB® market tier on May 2, 2025, after being suspended from the Nasdaq Global Market [102]. - The Company completed a Notes Exchange Offer, exchanging $323.0 million of Senior Notes due 2026 for approximately $306.4 million of new Senior Notes due 2029 [148]. - A new share repurchase program was authorized for up to $25.0 million of Class A common stock, which is subject to significant restrictions under debt agreements [149]. - The Company did not repurchase any shares of its outstanding Class A common stock during the nine months ended September 30, 2025 [149]. Tax and Impairment - Income tax benefit for Q3 2025 was $0.2 million on a pre-tax book loss of $20.6 million, resulting in an effective tax rate of approximately 0.8% [118]. - The company recorded a $1.4 million impairment for assets held for sale during the nine months ended September 30, 2025 [129]. Revenue Sources - Digital revenue increased by $0.5 million for the nine months ended September 30, 2025, primarily from growth in digital marketing services [121]. Settlements - The Company accrued $8.0 million related to ASCAP and BMI settlements during Q3 2025 [153]. - The settlements with ASCAP and BMI establish final license fee rates retroactively from January 1, 2022, through December 31, 2029 [152].

Revenue Performance - Total net revenue for Q3 2025 was $180.3 million, a decline of 11.5% year-over-year[3] - Digital revenue reached $39.0 million, a decrease of 2.6% year-over-year, but an increase of 8.4% when excluding the impact from discontinued relationships[3] - For the nine months ended September 30, 2025, net revenue was $553.6 million, a decrease of 9.0% year-over-year[5] - Net revenue for the three months ended September 30, 2025, was $180,255, a decrease of 11.4% from $203,598 in the same period of 2024[23] - For the nine months ended September 30, 2025, net revenue was $553,621, down 9.0% from $608,500 in the same period of 2024[25] - Political revenue impact on net revenue for the three months ended September 30, 2025, was a reduction of $654[24] Profitability and Loss - The company recorded a net loss of $20.4 million in Q3 2025, compared to a net loss of $10.3 million in Q3 2024[3] - The net loss for the three months ended September 30, 2025, was $20,407, compared to a net loss of $10,321 in the same period of 2024[24] - Adjusted EBITDA for Q3 2025 was $16.7 million, down 30.8% from $24.1 million in Q3 2024[3] - Adjusted EBITDA for the three months ended September 30, 2025, was $16,653, down 30.8% from $24,051 in the prior year[24] - Adjusted EBITDA for the nine months ended September 30, 2025, was $42,530, a decrease of 26.2% from $57,669 in the prior year[25] Expenses and Cost Management - Year-to-date fixed cost reductions totaled $20 million, with total annualized fixed cost reductions since 2019 amounting to $182 million, or over 30%[3] - Total operating expenses for the three months ended September 30, 2025, were $184,564, compared to $196,919 in the same period of 2024, reflecting a decrease of 6.3%[23] - The company reported restructuring costs of $1,732 for the three months ended September 30, 2025, compared to $357 in the same period of 2024[24] Debt and Cash Position - Cash and cash equivalents at the end of Q3 2025 were $90.4 million[3] - Total debt as of September 30, 2025, was $722.2 million, with net debt less total unamortized discount at $606.7 million[3] - Total debt principal, gross, as of September 30, 2025, was $722,214, an increase from $672,994 in 2024[25] - Net debt less total unamortized discount as of September 30, 2025, was $606,703, compared to $589,963 in the previous year[25] Capital Expenditures - The company ended Q3 2025 with capital expenditures of $4.4 million, compared to $3.3 million in Q3 2024[8]

Core Insights - Cumulus Media reported a challenging advertising environment but managed to gain market share in both broadcast and digital segments, with digital marketing services revenue increasing by 34% in Q3 2025 [2][4] - The company achieved a net revenue of $180.3 million for Q3 2025, a decrease of 11.5% year-over-year, and a net loss of $20.4 million [4][6] - For the nine months ended September 30, 2025, net revenue was $553.6 million, down 9.0% from the same period in 2024, with a net loss of $65.6 million [5][8] Financial Performance - Q3 2025 net revenue was $180.3 million, down from $203.6 million in Q3 2024, reflecting an 11.5% decline [4][6] - The net loss for Q3 2025 was $20.4 million compared to a net loss of $10.3 million in Q3 2024, marking a 97.7% increase in losses [6][7] - Adjusted EBITDA for Q3 2025 was $16.7 million, down 30.8% from $24.1 million in Q3 2024 [4][6] Revenue Breakdown - Total broadcast radio revenue for Q3 2025 was $115.0 million, a decrease of 17.2% from $139.0 million in Q3 2024 [9] - Digital revenue for Q3 2025 was $39.0 million, down 2.6% year-over-year, but increased by 8.4% when excluding the impact of discontinued relationships [7][9] - Digital marketing services now account for approximately 50% of total digital revenue, reflecting strong growth in this segment [7] Cost Management - The company has successfully reduced annualized fixed costs by $7 million in Q3 2025, bringing total year-to-date savings to $20 million [2][7] - Since 2019, total annualized fixed cost reductions have reached $182 million, representing over 30% [7] Balance Sheet and Debt - As of September 30, 2025, Cumulus Media had cash and cash equivalents of $90.4 million and total debt of $722.2 million [10][27] - The total debt at maturity was reported at $697.1 million, with net debt less total unamortized discount at $606.7 million [10][27]