Cumulus Media(US:CMLS)2025-10-30 12:04Financial 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].