Cumulus Media(CMLS) - 2025 Q2 - Quarterly Results

Operating Results Overview This section summarizes Cumulus Media's Q2 and year-to-date 2025 financial performance, including CEO insights and key financial metrics CEO Commentary Cumulus Media's CEO highlighted market share gains in broadcast spot revenue and significant digital growth, alongside $5 million in quarterly cost reductions - Outperformed radio peers in broadcast spot revenue channels, gaining market share[2] - Significantly outperformed in digital, delivering double the growth rate of radio peers[2] - Digital marketing services grew 38% year-over-year[2] - Executed $5 million of annualized cost reductions in the quarter, bringing total annualized cost reductions to $175 million over the last 5 years[2] Q2 & YTD 2025 Key Financial Highlights Q2 2025 saw a 9.2% net revenue decline and an 11.3% Adjusted EBITDA decrease, alongside a 53.7% reduction in net loss, with digital marketing services growing 38% Q2 2025 Key Financial Highlights | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :-------------------- | :--------------------- | :--------------------- | :------- | | Net revenue | $186,017 | $204,849 | (9.2)% | | Net loss | $(12,821) | $(27,699) | 53.7% | | Adjusted EBITDA | $22,358 | $25,213 | (11.3)% | | Basic loss per share | $(0.74) | $(1.64) | 54.9% | | Diluted loss per share| $(0.74) | $(1.64) | 54.9% | YTD June 30, 2025 Key Financial Highlights | Metric | YTD June 30, 2025 (in thousands) | YTD June 30, 2024 (in thousands) | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :------- | | Net revenue | $373,366 | $404,902 | (7.8)% | | Net loss | $(45,188) | $(41,853) | (8.0)% | | Adjusted EBITDA | $25,877 | $33,618 | (23.0)% | | Basic loss per share | $(2.61) | $(2.49) | (4.8)% | | Diluted loss per share| $(2.61) | $(2.49) | (4.8)% | - Digital revenue of $38.8 million decreased 1.4% year-over-year, but increased 20% excluding the $6.8 million impact from discontinuing Daily Wire and Dan Bongino relationships[5] - Digital marketing services grew 38% and now represent approximately 50% of total digital revenue[5] - Ended Q2 2025 with $96.7 million of cash, reflecting a $55.0 million draw on the revolving credit facility[5] - Total debt reported at $723.7 million, with total debt at maturity of $697.1 million and net debt less total unamortized discount of $600.4 million at June 30, 2025[5] Detailed Financial Performance This section details Cumulus Media's consolidated operating results, revenue streams, balance sheet, and capital expenditures for the reporting periods Consolidated Operating Results Consolidated operating results for Q2 and YTD June 30, 2025, show declining net revenue and Adjusted EBITDA, with Q2 net loss improving but YTD net loss worsening Consolidated Operating Results (Three Months Ended June 30) | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :------- | | Net revenue | $186,017 | $204,849 | (9.2)% | | Net loss | $(12,821) | $(27,699) | 53.7% | | Adjusted EBITDA | $22,358 | $25,213 | (11.3)% | | Basic loss per share | $(0.74) | $(1.64) | 54.9% | | Diluted loss per share| $(0.74) | $(1.64) | 54.9% | Consolidated Operating Results (Six Months Ended June 30) | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :------- | | Net revenue | $373,366 | $404,902 | (7.8)% | | Net loss | $(45,188) | $(41,853) | (8.0)% | | Adjusted EBITDA | $25,877 | $33,618 | (23.0)% | | Basic loss per share | $(2.61) | $(2.49) | (4.8)% | | Diluted loss per share| $(2.61) | $(2.49) | (4.8)% | Revenue Detail Summary Broadcast radio revenue declined significantly in Q2 and YTD 2025, while digital revenue showed mixed performance and 'Other' revenue remained stable Revenue Detail (Three Months Ended June 30) | Revenue Category | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | % Change | | :----------------- | :--------------------------- | :--------------------------- | :------- | | Broadcast radio: | | | | | Spot | $91,151 | $101,806 | (10.5)% | | Network | $27,286 | $34,306 | (20.5)% | | Total broadcast | $118,437 | $136,112 | (13.0)% | | Digital | $38,832 | $39,397 | (1.4)% | | Other | $28,748 | $29,340 | (2.0)% | | Net revenue | $186,017 | $204,849 | (9.2)% | Revenue Detail (Six Months Ended June 30) | Revenue Category | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | % Change | | :----------------- | :--------------------------- | :--------------------------- | :------- | | Broadcast radio: | | | | | Spot | $172,115 | $192,379 | (10.5)% | | Network | $71,219 | $83,468 | (14.7)% | | Total broadcast | $243,334 | $275,847 | (11.8)% | | Digital | $75,397 | $73,844 | 2.1% | | Other | $54,635 | $55,211 | (1.0)% | | Net revenue | $373,366 | $404,902 | (7.8)% | Balance Sheet and Capital Expenditures Cash and cash equivalents increased significantly by June 30, 2025, partly due to a revolving credit facility draw, while total debt principal also rose and capital expenditures decreased Balance Sheet Summary (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $96,745 | $63,836 | | Term Loan due 2026 | $1,203 | $1,203 | | Senior Notes due 2026 | $22,697 | $22,697 | | Term Loan due 2029 | $325,073 | $326,514 | | Senior Notes due 2029 | $319,730 | $321,181 | | 2020 Revolving credit facility | $55,000 | — | Capital Expenditures (in thousands) | Period | June 30, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------ | | Three Months Ended | $5,528 | $4,387 | | Six Months Ended | $11,068 | $12,553 | Company Information and Disclosures This section provides essential company information, details on non-GAAP financial measures, forward-looking statements, and investor contact information About Cumulus Media Cumulus Media is an audio-first media company operating 400 radio stations, the Westwood One network, and the Cumulus Podcast Network, reaching over a quarter billion people monthly - An audio-first media company delivering premium content to over a quarter billion people every month[15] - Operates 400 radio stations across 84 markets and delivers nationally-syndicated programming through Westwood One to over 9,500 affiliated stations[15] - Inspires listeners through the Cumulus Podcast Network, an established platform for original podcasts[15] - Provides advertisers with integrated digital marketing services, full-service audio solutions, and live event experiences[15] Non-GAAP Financial Measures Cumulus Media utilizes non-GAAP measures like Adjusted EBITDA and net debt to assess performance and leverage, acknowledging they are not GAAP substitutes - Adjusted EBITDA is used by management to allocate resources, analyze performance, and determine compliance with credit agreement covenants[16] - Adjusted EBITDA excludes interest, taxes, depreciation, amortization, stock-based compensation, gains/losses on asset disposal or debt extinguishment, restructuring costs, acquisition/divestiture expenses, non-routine legal expenses, and non-cash impairments[17] - Total debt at maturity (total debt principal less unamortized discount) and net debt less total unamortized discount (total debt at maturity less cash) are used to monitor leverage and evaluate the balance sheet[20] - Non-GAAP measures are not substitutes for GAAP measures and comparability may be limited[21] Forward-Looking Statements This section cautions that forward-looking statements are not guarantees of future performance and involve risks, with no obligation for the company to update them - Statements in the release that are not historical facts are considered forward-looking and relate to future operating, financial, and strategic performance[14] - Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors that may cause actual results to differ[14] - Factors include strategic operating plan implementation, uncertain financial/economic conditions, and the rapidly changing media industry[14] - Cumulus Media assumes no responsibility to update any forward-looking statements[14] Earnings Conference Call and Investor Resources Cumulus Media held a Q2 2025 earnings conference call on August 7, 2025, with webcast and presentation resources available on its investor relations website - A conference call was held on August 7, 2025, at 8:30 AM ET to discuss Q2 2025 operating results[10] - Participants were required to register in advance via the company's investor relations website[10] - The call was also broadcast live in listen-only mode and a recording is available on the investor relations website[12] - An updated investor presentation is available on the company's investor relations website[13] Contact Information Inquiries for further information can be directed to Cumulus Media Inc.'s Investor Relations Department via email or phone - Contact for further information: Cumulus Media Inc. Investor Relations Department[22] - Email: IR@cumulus.com, Phone: 404-260-6600[22] Supplemental Financial Data and Reconciliations This section presents unaudited condensed consolidated statements of operations and reconciliations for net loss to Adjusted EBITDA, net revenue, and total debt Unaudited Condensed Consolidated Statements of Operations The unaudited statements of operations detail revenues and expenses for Q2 and YTD June 30, 2025, showing decreased content and SG&A costs but increased restructuring and impairment charges Condensed Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :---------------------------------- | :-------- | :-------- | | Net revenue | $186,017 | $204,849 | | Content costs | $59,426 | $73,631 | | Selling, general & administrative | $93,227 | $94,359 | | Depreciation and amortization | $14,116 | $14,725 | | Corporate expenses | $11,218 | $12,122 | | Stock-based compensation expense | $574 | $1,336 | | Restructuring costs | $2,358 | $1,988 | | Debt exchange costs | — | $16,271 | | Impairment of assets held for sale | $1,420 | — | | Total operating expenses | $182,339 | $214,432 | | Operating income (loss) | $3,678 | $(9,583) | | Net loss | $(12,821) | $(27,699) | Condensed Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :---------------------------------- | :-------- | :-------- | | Net revenue | $373,366 | $404,902 | | Content costs | $138,757 | $158,688 | | Selling, general & administrative | $186,606 | $189,119 | | Depreciation and amortization | $28,912 | $29,603 | | Corporate expenses | $22,518 | $24,752 | | Stock-based compensation expense | $1,423 | $2,408 | | Restructuring costs | $4,826 | $4,118 | | Debt exchange costs | — | $16,271 | | Impairment of assets held for sale | $1,420 | — | | Total operating expenses | $384,462 | $424,959 | | Operating income (loss) | $(11,096) | $(20,057) | | Net loss | $(45,188) | $(41,853) | Reconciliation of Net Loss to Adjusted EBITDA This section reconciles GAAP net loss to Adjusted EBITDA for Q2 and YTD June 30, 2025, detailing adjustments for taxes, non-operating expenses, depreciation, and debt exchange costs Reconciliation of Net Loss to Adjusted EBITDA (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :---------------------------------- | :-------- | :-------- | | GAAP net loss | $(12,821) | $(27,699) | | Income tax expense | $372 | $779 | | Non-operating expense, net | $16,127 | $17,507 | | Depreciation and amortization | $14,116 | $14,725 | | Stock-based compensation expense | $574 | $1,336 | | Impairment of assets held for sale | $1,420 | — | | Gain on early extinguishment of debt| — | $(170) | | Restructuring costs | $2,358 | $1,988 | | Debt exchange costs | — | $16,271 | | Non-routine legal expenses | $42 | $280 | | Franchise taxes | $170 | $196 | | Adjusted EBITDA | $22,358 | $25,213 | Reconciliation of Net Loss to Adjusted EBITDA (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :---------------------------------- | :-------- | :-------- | | GAAP net loss | $(45,188) | $(41,853) | | Income tax expense | $2,019 | $2,278 | | Non-operating expense, net | $32,073 | $19,688 | | Depreciation and amortization | $28,912 | $29,603 | | Stock-based compensation expense | $1,423 | $2,408 | | Impairment of assets held for sale | $1,420 | — | | Gain on early extinguishment of debt| — | $(170) | | Restructuring costs | $4,826 | $4,118 | | Debt exchange costs | — | $16,271 | | Non-routine legal expenses | $42 | $888 | | Franchise taxes | $350 | $387 | | Adjusted EBITDA | $25,877 | $33,618 | Reconciliation of Net Revenue and Adjusted EBITDA (Excluding Political Impact) These reconciliations present net revenue and Adjusted EBITDA excluding cyclical political advertising impact, showing smaller declines when political contributions are removed Net Revenue Reconciliation (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------------ | :-------- | :-------- | | As reported net revenue | $186,017 | $204,849 | | Political revenue | $(1,149) | $(1,909) | | As reported net revenue, excluding political| $184,868 | $202,940 | Adjusted EBITDA Reconciliation (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------------ | :-------- | :-------- | | As reported Adjusted EBITDA | $22,358 | $25,213 | | Political EBITDA | $(1,034) | $(1,718) | | As reported Adjusted EBITDA, excluding political| $21,324 | $23,495 | Net Revenue Reconciliation (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------------ | :-------- | :-------- | | As reported net revenue | $373,366 | $404,902 | | Political revenue | $(1,981) | $(4,108) | | As reported net revenue, excluding political| $371,385 | $400,794 | Adjusted EBITDA Reconciliation (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------------ | :-------- | :-------- | | As reported Adjusted EBITDA | $25,877 | $33,618 | | Political EBITDA | $(1,783) | $(3,697) | | As reported Adjusted EBITDA, excluding political| $24,094 | $29,921 | Reconciliation of Total Debt Total debt principal, gross, increased from $674.4 million in 2024 to $723.7 million in 2025, with corresponding increases in total debt at maturity and net debt Reconciliation of Total Debt (As of June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------ | :-------- | :-------- | | Total debt principal, gross | $723,703 | $674,364 | | Less: Total unamortized discount | $(26,586) | $(32,242) | | Total debt at maturity | $697,117 | $642,122 | | Less: Cash and cash equivalents | $(96,745) | $(53,492) | | Net debt less total unamortized discount| $600,372 | $588,630 |