iHeartMedia(IHRT) - 2025 Q2 - Quarterly Results

Executive Summary & Financial Highlights Q2 2025 Consolidated Financial Highlights iHeartMedia reported solid Q2 2025 consolidated results, with slight revenue growth, a significant improvement in GAAP Operating Income from a loss to a profit, and an increase in Adjusted EBITDA | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | Revenue | $934M | $929M | 0.5% | | Revenue (Excl. Political) | - | - | 1.5% | | GAAP Operating Income (Loss) | $35M | ($910M) | N/A | | Consolidated Adjusted EBITDA | $156M | $150M | 3.9% | | Cash provided by operating activities | $7M | - | N/A | | Free Cash Flow | ($13M) | - | N/A | | Cash balance (as of Jun 30, 2025) | $236M | - | N/A | | Total available liquidity (as of Jun 30, 2025) | $527M | - | N/A | Q2 2025 Digital Audio Group Highlights The Digital Audio Group demonstrated strong performance in Q2 2025, driven by significant growth in podcast revenue and overall digital advertising demand, leading to increased Adjusted EBITDA and margin expansion | Metric | Q2 2025 (in millions) | Change (%) | | :-------------------------------- | :-------------------- | :--------- | | Digital Audio Group Revenue | $324M | 13% | | Podcast Revenue | $134M | 28% | | Digital Revenue excluding Podcast | $190M | 5% | | Segment Adjusted EBITDA | $108M | 17% | | Digital Audio Group Adjusted EBITDA margin | 33.2% | N/A | Q2 2025 Multiplatform Group Highlights The Multiplatform Group experienced a decline in Q2 2025 revenue and Adjusted EBITDA, primarily due to a decrease in broadcast advertising | Metric | Q2 2025 (in millions) | Change (%) | | :-------------------------------- | :-------------------- | :--------- | | Multiplatform Group Revenue | $545M | (5%) | | Multiplatform Group Revenue (Excl. Political) | - | (5%) | | Segment Adjusted EBITDA | $96M | (8%) | | Multiplatform Group Adjusted EBITDA margin | 17.7% | N/A | Q3 2025 Guidance For Q3 2025, iHeartMedia anticipates a low-single digit decline in consolidated revenue, but an increase when excluding political revenue, and a target range for Consolidated Adjusted EBITDA - Q3 Consolidated Revenue is expected to decline low-single digits, but increase in the low-single digits excluding the impact of Political Revenue[4] - Q3 Consolidated Adjusted EBITDA is expected to be approximately $180 million to $220 million[4] Statement from Senior Management Senior management highlighted solid Q2 performance, exceeding initial expectations for Adjusted EBITDA and consolidated revenue. Strategic progress includes advancing the ad tech platform for broadcast radio and ongoing modernization initiatives expected to yield $150 million in net savings in 2025 - Q2 adjusted EBITDA of $156 million was at the upper end of guidance and 4% above prior year, with consolidated revenue up 0.5% above prior year[5] - Progress is being made on the ad tech platform to enable broadcast radio inventory to be bought and sold like digital advertising, with Lisa Coffey joining as Chief Business Officer to drive these efforts[5] - Modernization initiatives are on track to generate net savings of $150 million in 2025 compared to 2024[5] Consolidated Results of Operations Q2 2025 Consolidated Financial Performance Consolidated revenue increased slightly by 0.5% in Q2 2025, driven by a 13.4% increase in Digital Audio revenue, which offset a 5.4% decrease in Multiplatform Group revenue and a 3.3% decrease in Audio & Media Services revenue. GAAP Operating income significantly improved from a substantial loss in Q2 2024 to a profit in Q2 2025, while Adjusted EBITDA saw a modest increase | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :-------------------------------- | :-------------------- | :-------------------- | :----- | | Consolidated Revenue | $933.7M | $929.1M | 0.5% | | Digital Audio Revenue | $323.9M | $285.6M | 13.4% | | Multiplatform Group Revenue | $544.6M | $575.9M | (5.4%) | | Audio & Media Services Revenue | $67.7M | $70.1M | (3.3%) | | GAAP Operating Income (Loss) | $35.4M | ($909.7M) | N/A | | Adjusted EBITDA | $156.1M | $150.2M | 3.9% | | Cash provided by operating activities | $6.8M | $26.7M | (74.5%) | | Free Cash Flow | ($13.2M) | $5.6M | N/A | Operating Expenses Analysis Consolidated direct operating expenses increased by 2.4% in Q2 2025, primarily due to higher variable content costs associated with increased digital revenues, including podcast profit share and third-party digital costs. This increase was partially mitigated by reduced employee compensation costs from 2024 modernization initiatives - Consolidated direct operating expenses increased $9.1 million, or 2.4%, driven by higher variable content costs (podcast profit share, third-party digital costs) related to increased digital revenues[7] - The increase was partially offset by a decrease in employee compensation cost due to modernization initiatives taken in 2024[7] SG&A Expenses Analysis Consolidated Selling, General & Administrative (SG&A) expenses decreased by 4.3% in Q2 2025, mainly due to cost savings initiatives, including lower employee compensation from modernization efforts and reduced sales commissions. This was partially offset by increases in non-cash trade and barter expense and employee benefit expense from the reestablishment of the 401(k) match program - Consolidated SG&A expenses decreased $18.5 million, or 4.3%, primarily due to decreased costs from cost savings initiatives, including lower employee compensation and sales commissions[8] - The decrease was partially offset by increases in non-cash trade and barter expense and employee benefit expense related to the reestablishment of the 401(k) match program in Q1 2025[8] Business Segment Performance Multiplatform Group Results The Multiplatform Group's revenue declined by 5.4% year-over-year in Q2 2025, primarily due to a decrease in broadcast advertising. Despite a 5.0% reduction in operating expenses, Segment Adjusted EBITDA decreased by 7.6%, and the Adjusted EBITDA margin slightly narrowed | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (%) | | :------------------------ | :--------------------- | :--------------------- | :--------- | | Revenue | $544,598 | $575,907 | (5.4%) | | Operating expenses | $448,234 | $471,644 | (5.0%) | | Segment Adjusted EBITDA | $96,364 | $104,263 | (7.6%) | | Segment Adjusted EBITDA margin | 17.7% | 18.1% | (0.4 pp) | - Revenue decreased due to a $29.7 million (7.0%) decline in broadcast revenue, driven by lower spot revenue, and a $2.6 million (6.7%) decrease in Sponsorship and Events revenue[11] - Operating expenses decreased primarily due to lower employee compensation from modernization initiatives and reduced sales commissions[12] Digital Audio Group Results The Digital Audio Group achieved robust growth in Q2 2025, with revenue increasing by 13.4% year-over-year, largely fueled by a 28.5% surge in Podcast revenue. This strong top-line performance, despite an 11.6% rise in operating expenses, led to a 17.1% increase in Segment Adjusted EBITDA and an improved Adjusted EBITDA margin | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (%) | | :------------------------ | :--------------------- | :--------------------- | :--------- | | Revenue | $323,856 | $285,614 | 13.4% | | Operating expenses | $216,246 | $193,744 | 11.6% | | Segment Adjusted EBITDA | $107,610 | $91,870 | 17.1% | | Segment Adjusted EBITDA margin | 33.2% | 32.2% | 1.0 pp | - Podcast revenue increased $29.8 million (28.5%) to $134.3 million due to continued advertiser demand, and Digital, excluding Podcast revenue, increased $8.5 million (4.7%) to $189.6 million[14] - Operating expenses increased primarily due to higher variable content costs, including podcast profit share and third-party digital costs, related to revenue growth[15] Audio & Media Services Group Results The Audio & Media Services Group experienced a 3.3% year-over-year revenue decrease in Q2 2025, mainly due to lower political revenues (2024 being a presidential election year) and a decline in broadcast advertising. Despite a decrease in operating expenses, Segment Adjusted EBITDA saw a marginal decline, though the Adjusted EBITDA margin improved | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (%) | | :------------------------ | :--------------------- | :--------------------- | :--------- | | Revenue | $67,736 | $70,082 | (3.3%) | | Operating expenses | $44,015 | $46,233 | (4.8%) | | Segment Adjusted EBITDA | $23,721 | $23,849 | (0.5%) | | Segment Adjusted EBITDA margin | 35.0% | 34.0% | 1.0 pp | - Revenue decreased primarily due to lower political revenues (2024 was a presidential election year) and a decrease in broadcast advertising, partially offset by increased digital advertising demand[17] - Operating expenses decreased due to reduced employee compensation costs from modernization initiatives[18] Liquidity and Financial Position Liquidity and Financial Position Overview As of June 30, 2025, iHeartMedia maintained a cash balance of $235.9 million and total available liquidity of $526.7 million. The company reported cash used for operating activities of $54.1 million and capital expenditures of $39.7 million for the six months ended June 30, 2025, with total debt at $5,137.5 million and Net Debt at $4,635.3 million | Metric | As of June 30, 2025 (in millions) | | :-------------------------------- | :-------------------------------- | | Cash balance | $235.9 | | Total available liquidity | $526.7 | | Cash used for operating activities (6 months) | $54.1 | | Cash used for investing activities (6 months) | $40.6 | | Cash provided by financing activities (6 months) | $70.7 | | Capital expenditures (6 months) | $39.7 | | Total debt | $5,137.5 | | Net Debt | $4,635.3 | Revenue Streams Overview Q2 2025 Revenue by Stream A detailed breakdown of revenue streams for Q2 2025 shows that Digital Audio Group, particularly Podcast revenue, was the primary growth driver, while Broadcast Radio and Sponsorship and Events within the Multiplatform Group experienced declines. Overall consolidated revenue increased slightly | Revenue Stream | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | Multiplatform Group | | | | | Broadcast Radio | $395,789 | $425,490 | (7.0%) | | Networks | $107,813 | $106,591 | 1.1% | | Sponsorship and Events | $36,485 | $39,121 | (6.7%) | | Other | $4,511 | $4,705 | (4.1%) | | Total Multiplatform Group | $544,598 | $575,907 | (5.4%) | | Digital Audio Group | | | | | Digital ex. Podcast | $189,560 | $181,093 | 4.7% | | Podcast | $134,296 | $104,521 | 28.5% | | Total Digital Audio Group | $323,856 | $285,614 | 13.4% | | Audio & Media Services Group | $67,736 | $70,082 | (3.3%) | | Revenue, total | $933,653 | $929,092 | 0.5% | Company Information About iHeartMedia, Inc. iHeartMedia is the leading audio company in the United States, reaching nine out of ten Americans monthly through its three business groups: Multiplatform, Digital Audio, and Audio & Media Services. These groups encompass broadcast radio, national sales, live events, podcasting, digital services, ad tech, and media representation - iHeartMedia is the number one audio company in the United States, reaching nine out of 10 Americans every month[28] - The Multiplatform Group includes over 860 live broadcast stations, National Sales, live and virtual events, Premiere Networks, and SmartAudio for analytics and targeting[29] - The Digital Audio Group comprises the number one podcast publisher, the iHeartRadio digital service, digital sites, newsletters, digital advertising technology companies, and a strong social media presence[30] - The Audio & Media Services segment includes Katz Media Group (largest media representation company) and RCS (leading provider of broadcast and webcast software)[31] Conference Call Information iHeartMedia, Inc. will host a conference call on August 11, 2025, at 4:30 p.m. Eastern Time to discuss Q2 2025 results and business outlook, with replay options available for thirty days - Conference call to discuss results and business outlook on August 11, 2025, at 4:30 p.m. Eastern Time[27] - Dial-in numbers: (888) 596-4144 (U.S.) and +1 (646) 968-2525 (International), passcode 8885116[27] - A live audio webcast will be available on investors.iheartmedia.com, with a replay available for thirty days[27] Forward-Looking Statements Forward-Looking Statements Disclaimer This section contains forward-looking statements regarding iHeartMedia's future performance, strategic initiatives, and financial outlook, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. Investors are cautioned not to place undue reliance on these statements - Statements regarding guidance, beliefs, expectations, estimates, and forecasts are forward-looking and involve known and unknown risks and uncertainties[33] - Examples of forward-looking statements include those related to realizing debt exchange benefits, positioning in uncertain economic environments, anticipated growth, cost savings, new technologies, advertising demand, and future liquidity[33] - Key risks include global economic uncertainty, dependence on advertising revenues, competition, operating cost fluctuations, technological changes, and risks related to indebtedness and regulatory requirements[33] Appendix: Financial Tables & Non-GAAP Reconciliations Consolidated Operating Performance Comparison This table provides a comparison of consolidated operating performance for the three and six months ended June 30, 2025 and 2024, detailing revenue, various operating expenses, and Adjusted EBITDA | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $933,653 | $929,092 | $1,740,754 | $1,728,130 | | Direct operating expenses | $391,194 | $382,049 | $747,520 | $723,409 | | Selling, general and administrative expenses | $413,082 | $431,614 | $793,876 | $816,758 | | Depreciation and amortization | $90,369 | $104,356 | $182,270 | $209,518 | | Impairment charges | $2,552 | $920,224 | $5,407 | $921,732 | | Operating income (loss) | $35,370 | ($909,667) | $9,936 | ($944,375) | | Adjusted EBITDA | $156,127 | $150,207 | $260,715 | $254,824 | Consolidated Statements of Operations This table presents the full consolidated statements of operations, including revenue, operating expenses, interest expense, net loss, and net loss attributable to the company for the three and six months ended June 30, 2025 and 2024 | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $933,653 | $929,092 | $1,740,754 | $1,728,130 | | Operating income (loss) | $35,370 | ($909,667) | $9,936 | ($944,375) | | Interest expense, net | $100,894 | $95,577 | $201,280 | $191,092 | | Loss before income taxes | ($65,735) | ($1,005,948) | ($211,259) | ($1,044,718) | | Income tax benefit (expense) | ($18,253) | $23,959 | ($153,612) | $44,621 | | Net loss | ($83,988) | ($981,989) | ($364,871) | ($1,000,097) | | Net loss attributable to the Company | ($83,480) | ($981,658) | ($364,704) | ($1,000,166) | Selected Balance Sheet Information This table provides selected balance sheet information, highlighting key assets, liabilities, and stockholders' deficit as of June 30, 2025, compared to December 31, 2024 | (In millions) | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Cash | $235.9 | $259.6 | | Total Current Assets | $1,348.2 | $1,361.8 | | Net Property, Plant and Equipment | $451.3 | $489.8 | | Total Assets | $5,379.3 | $5,571.7 | | Current Liabilities (excl. current portion of long-term debt) | $825.4 | $847.8 | | Long-term Debt (incl. current portion) | $5,137.5 | $5,071.5 | | Stockholders' Deficit | ($1,726.2) | ($1,371.8) | Supplemental Disclosure Regarding Non-GAAP Financial Information This section defines iHeartMedia's non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, revenue excluding political advertising, and Net Debt. It explains how these measures are calculated, their utility for management and investors in evaluating operating performance and liquidity, and clarifies their limitations as non-GAAP metrics - Adjusted EBITDA is defined as consolidated Operating income (loss) adjusted for restructuring, share-based compensation, depreciation, amortization, impairment, and other operating expenses, used to evaluate operating performance and for management compensation[39][40] - Free Cash Flow is defined as Cash provided by (used for) operating activities less capital expenditures, used to evaluate liquidity and ability to generate cash flow after necessary ongoing operations[43] - Net Debt is defined as Total Debt less Cash and cash equivalents and Debt Premium, used to evaluate the Company's ability to service long-term debt obligations[46] Reconciliation of Operating Income (Loss) to Adjusted EBITDA This table provides a reconciliation of GAAP Operating income (loss) to Adjusted EBITDA, detailing the adjustments made for non-cash and non-recurring items for the three and six months ended June 30, 2025 and 2024 | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating income (loss) | $35,370 | ($909,667) | $9,936 | ($944,375) | | Depreciation and amortization | $90,369 | $104,356 | $182,270 | $209,518 | | Impairment charges | $2,552 | $920,224 | $5,407 | $921,732 | | Other operating expense | $1,086 | $516 | $1,745 | $1,088 | | Restructuring expenses | $19,490 | $27,558 | $45,068 | $51,161 | | Share-based compensation expense | $7,260 | $7,220 | $16,289 | $15,700 | | Adjusted EBITDA | $156,127 | $150,207 | $260,715 | $254,824 | Reconciliation of Net Loss to EBITDA and Adjusted EBITDA This table reconciles GAAP Net loss to EBITDA and then to Adjusted EBITDA, providing a comprehensive view of adjustments for non-operating and non-cash items for the three and six months ended June 30, 2025 and 2024 | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | ($83,988) | ($981,989) | ($364,871) | ($1,000,097) | | Income tax expense (benefit) | $18,253 | ($23,959) | $153,612 | ($44,621) | | Interest expense, net | $100,894 | $95,577 | $201,280 | $191,092 | | Depreciation and amortization | $90,369 | $104,356 | $182,270 | $209,518 | | EBITDA | $125,528 | ($806,015) | $172,291 | ($644,108) | | (Gain) loss on investments, net | $901 | $412 | $19,495 | ($91,582) | | Loss on extinguishment of debt | $263 | — | $1,460 | — | | Impairment charges | $2,552 | $920,224 | $5,407 | $921,732 | | Restructuring expenses | $19,490 | $27,558 | $45,068 | $51,161 | | Share-based compensation expense | $7,260 | $7,220 | $16,289 | $15,700 | | Adjusted EBITDA | $156,127 | $150,207 | $260,715 | $254,824 | Reconciliation of Cash Provided by (Used for) Operating Activities to Free Cash Flow This table reconciles cash provided by (used for) operating activities to Free Cash Flow by deducting capital expenditures for the three and six months ended June 30, 2025 and 2024 | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cash provided by (used for) operating activities | $6,821 | $26,729 | ($54,123) | ($32,548) | | Purchases of property, plant and equipment | ($19,997) | ($21,172) | ($39,727) | ($42,754) | | Free cash flow | ($13,176) | $5,557 | ($93,850) | ($75,302) | Reconciliation of Revenue to Revenue Excluding Political Advertising This table provides a reconciliation of total revenue to revenue excluding political advertising for consolidated results and each business segment, illustrating the impact of political revenue on reported figures for the three and six months ended June 30, 2025 and 2024 | (In thousands) | Q2 2025 Revenue (in thousands) | Q2 2024 Revenue (in thousands) | Q2 2025 Excl. Political (in thousands) | Q2 2024 Excl. Political (in thousands) | | :------------------------------------------ | :----------------------------- | :----------------------------- | :------------------------------------- | :------------------------------------- | | Consolidated revenue | $933,653 | $929,092 | $927,500 | $914,185 | | Multiplatform Group revenue | $544,598 | $575,907 | $540,606 | $567,882 | | Digital Audio Group revenue | $323,856 | $285,614 | $322,543 | $284,404 | | Audio & Media Group Services revenue | $67,736 | $70,082 | $66,888 | $64,410 | Reconciliation of Total Debt to Net Debt This table reconciles the company's total debt to Net Debt as of June 30, 2025, by subtracting debt premium and cash and cash equivalents | (In thousands) | June 30, 2025 | | :-------------------------- | :------------ | | Current portion of long-term debt | $73,726 | | Long-term debt | $5,063,792 | | Total debt | $5,137,518 | | Less: Debt premium | $266,302 | | Less: Cash and cash equivalents | $235,932 | | Net debt | $4,635,284 | Detailed Segment Results These tables present detailed segment results for the Multiplatform, Digital Audio, and Audio & Media Services Groups, including revenue, operating expenses, Segment Adjusted EBITDA, and Adjusted EBITDA margin for the three and six months ended June 30, 2025 and 2024, along with consolidated operating income/loss | (In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Consolidated | | :-------------------------- | :------------------ | :------------------ | :--------------------------- | :----------- | | Three Months Ended June 30, 2025 | | | | | | Revenue | $544,598 | $323,856 | $67,736 | $933,653 | | Operating expenses | $448,234 | $216,246 | $44,015 | $777,526 | | Segment Adjusted EBITDA | $96,364 | $107,610 | $23,721 | $156,127 | | Adjusted EBITDA margin | 17.7% | 33.2% | 35.0% | 16.7% | | Operating income | | | | $35,370 | | Three Months Ended June 30, 2024 | | | | | | Revenue | $575,907 | $285,614 | $70,082 | $929,092 | | Operating expenses | $471,644 | $193,744 | $46,233 | $778,885 | | Segment Adjusted EBITDA | $104,263 | $91,870 | $23,849 | $150,207 | | Adjusted EBITDA margin | 18.1% | 32.2% | 34.0% | 16.2% | | (In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Consolidated | | :-------------------------- | :------------------ | :------------------ | :--------------------------- | :----------- | | Six Months Ended June 30, 2025 | | | | | | Revenue | $1,017,576 | $601,143 | $127,059 | $1,740,754 | | Operating expenses | $851,205 | $406,450 | $87,540 | $1,480,039 | | Segment Adjusted EBITDA | $166,371 | $194,693 | $39,519 | $260,715 | | Adjusted EBITDA margin | 16.3% | 32.4% | 31.1% | 15.0% | | Operating income | | | | $9,936 | | Six Months Ended June 30, 2024 | | | | | | Revenue | $1,069,370 | $524,582 | $139,250 | $1,728,130 | | Operating expenses | $887,925 | $364,585 | $91,706 | $1,473,306 | | Segment Adjusted EBITDA | $181,445 | $159,997 | $47,544 | $254,824 | | Adjusted EBITDA margin | 17.0% | 30.5% | 34.1% | 14.7% | | Operating loss | | | | ($944,375) |