iHeartMedia(US:IHRT)2025-11-10 21:11Revenue Performance - Consolidated revenue for Q3 2025 was $997.0 million, a decrease of $11.1 million, or 1.1%, compared to $1,008.1 million in Q3 2024[111] - Multiplatform Group revenue decreased by $28.3 million, or 4.6%, with Segment Adjusted EBITDA down by $10.7 million, or 8.3%[111] - Digital Audio Group revenue increased by $40.7 million, or 13.5%, and Segment Adjusted EBITDA rose by $30.3 million, or 30.3%[111] - Audio & Media Services Group revenue decreased by $23.4 million, or 26.0%, with Segment Adjusted EBITDA down by $21.8 million, or 49.1%[111] - Consolidated revenue decreased by $11.1 million, or 1.1%, to $997.0 million for the three months ended September 30, 2025, compared to $1,008.1 million in the same period of 2024[113] - Digital Audio Group revenue increased by $40.7 million, or 13.5%, driven by higher demand for digital and podcast advertising[113] - Consolidated revenue increased by $1.5 million, or 0.1%, to $2,737.8 million for the nine months ended September 30, 2025, compared to the same period of 2024[114] - Digital Audio Group revenue increased by $117.2 million, or 14.2%, during the nine months ended September 30, 2025, driven by increased demand for digital advertising[114] - Revenue from the Multiplatform Group decreased by $28.3 million, or 4.6%, year-over-year for the three months ended September 30, 2025, primarily due to lower political revenues and broadcast advertising[130] Operating Loss and Net Loss - The operating loss for Q3 2025 was $116.3 million, a change of $193.0 million from an operating income of $76.7 million in Q3 2024, primarily due to non-cash impairment charges of $208.5 million related to FCC licenses[111] - Net loss increased to $65.8 million, up $24.4 million from $41.3 million in Q3 2024[111] - Net loss attributable to the Company increased by $25.0 million to $66.3 million for the three months ended September 30, 2025, primarily due to non-cash impairment charges[127] - The company reported a net loss of $65.8 million for the three months ended September 30, 2025, compared to a net loss of $41.3 million in the prior year[144] Cash Flow and Expenses - Cash flows used for operating activities were $9.5 million, a change from cash flows provided by operating activities of $102.8 million in Q3 2024[111] - Free cash flow was $(32.8) million, a decrease from $73.3 million in Q3 2024[111] - Consolidated direct operating expenses decreased by $10.6 million, or 2.6%, during the three months ended September 30, 2025, primarily due to lower employee compensation costs[115] - Consolidated SG&A expenses decreased by $4.4 million, or 1.1%, during the three months ended September 30, 2025, driven by cost savings initiatives[117] - Free cash flow for the three months ended September 30, 2025, was $(32.8) million, compared to $73.3 million in the prior year[146] - For the nine months ended September 30, 2025, cash used for operating activities was $63.7 million, compared to cash provided of $70.2 million in 2024, indicating a significant decline[151] - Cash used for investing activities was $57.9 million in the nine months ended September 30, 2025, primarily due to $63.0 million in capital expenditures[152] - Cash provided by financing activities totaled $53.9 million during the nine months ended September 30, 2025, mainly from a $100.0 million borrowing under the ABL Facility[154] Debt and Liquidity - As of September 30, 2025, total available liquidity was $509.8 million, consisting of $192.2 million in cash and cash equivalents and $317.5 million available for borrowing[156] - Total debt as of September 30, 2025, was $5,120.3 million, with net debt amounting to $4,673.8 million after accounting for cash and cash equivalents[161] - The company anticipates cash payments to service its debt of approximately $102.1 million for the remainder of 2025, reflecting increased interest rates[158] - The company acknowledges challenges from market uncertainty but believes it has sufficient liquidity to fund operations for at least the next twelve months[159] Impairment and Future Projections - Non-cash impairment charges of $208.5 million were recorded during the three months ended September 30, 2025, primarily to reduce the carrying values of indefinite-lived FCC licenses[120] - The company recorded a $208.5 million impairment of indefinite-lived intangible assets as of July 1, 2025, resulting in a carrying value of $601.4 million for FCC licenses[176][180] - Revenue growth assumptions include 2.0% over-the-air revenue growth and 3.0% digital revenue growth beyond the initial five-year period, with a terminal period growth rate of 1.0%[178] - The estimated fair value of the company's FCC licenses could decrease by $77.1 million due to a 100 bps decline in revenue growth rate assumptions[179] - Future cash flows are based on detailed multi-year forecasts reflecting the current advertising outlook, with projections extending beyond 2029[184] Market Risks and Strategic Opportunities - The company is exposed to market risks including fluctuations in advertising revenue and competition from alternative media platforms[188] - The company expects to pursue strategic opportunities such as acquisitions or disposals of certain businesses in the future[160] - The company acknowledges potential risks related to economic conditions, advertising expenditures, and regulatory requirements that could impact future performance[186]