iHeartMedia 2025 Q2 Earnings 91.4% Reduction in Net Loss

iHeartMedia (IHRT) reported its fiscal 2025 Q2 earnings on August 11, 2025. The company narrowly improved its performance, significantly reducing its net loss year-over-year. Despite mixed market reactions and a challenging trading session, iHeartMedia posted a 0.5% revenue increase to $933.65 million and narrowed its net loss by 91.4% to $-83.99 million compared to $-981.99 million in the prior year. The CEO outlined a clear path to cost savings and growth in podcasting, while the company maintained its guidance for the year, pending macroeconomic conditions.

Revenue

iHeartMedia's total revenue for the second quarter of fiscal 2025 rose by 0.5% to $933.65 million compared to the same period in 2024. The Broadcast Radio segment generated $395.79 million in revenue, anchoring the company’s core business. The Networks segment contributed $107.81 million, while Sponsorship and Events added $36.48 million. The Digital Audio Group, the company's fastest-growing segment, reported $323.86 million in revenue, driven by strong performance in podcasting, which grew 28.5% to $134.30 million. Digital revenue, excluding podcasts, stood at $189.56 million. The Audio & Media Services Group brought in $67.74 million, while a negative $2.54 million was recorded under Eliminations.

Earnings/Net Income

iHeartMedia significantly improved its earnings performance, reducing its net loss to $-83.99 million for the second quarter of 2025, a 91.4% reduction from the $-981.99 million loss in the prior year. On a per-share basis, the company's losses narrowed to $0.54, compared to a $6.50 loss per share in 2024 Q2, representing a 91.7% improvement. This marked progress in the company's cost-cutting and operational efficiency efforts, particularly in its Digital Audio Group.

Price Action

iHeartMedia's stock price remained under pressure, with the stock falling 0.00% during the latest trading day. Over the past week, the stock has declined 8.43%, and it has plummeted 18.91% month-to-date, reflecting ongoing investor skepticism about the company's long-term prospects.

Post-Earnings Price Action Review

The buy-and-hold strategy of purchasing iHeartMedia stock after the company's earnings beat expectations resulted in a -64.88% return over 30 days, significantly underperforming the benchmark. The strategy's underperformance was exacerbated by a maximum drawdown of 0% and a Sharpe ratio of -0.72, indicating an extremely high-risk profile and poor risk-adjusted returns.

CEO Commentary

CEO Robert W. Pittman highlighted the company's solid Q2 performance, with adjusted EBITDA reaching $156 million, an increase of 4% year-over-year. He emphasized the growth of the Digital Audio Group, particularly in podcasting, which is contributing to improved EBITDA margins. Pittman credited the company’s strong local sales force for generating 50% of podcasting revenue in Q2. On the Multiplatform Group, he noted a 5.4% revenue decline but expressed confidence in returning to growth, citing strong performance from top advertisers and agency groups. Pittman also emphasized cost management and stated the company is on track to achieve $150 million in net savings for 2025.

Guidance

For the third quarter of 2025, iHeartMedia expects adjusted EBITDA to range between $180 million and $220 million, compared to $205 million in the prior year quarter. Consolidated Q3 revenue is forecasted to be down low single digits year-over-year, or up low single digits excluding political revenue. The Digital Audio Group is expected to grow revenue in the high single digits, with podcasting revenue up in the low 20s. The Multiplatform Group revenue is projected to decline mid-single digits and remain flat excluding political revenue, while the Audio & Media Services Group is expected to see a revenue decline of approximately 30%. The company reiterated its full-year 2025 guidance contingent on macroeconomic conditions improving, with Q4 being the largest revenue quarter.

Additional News

Despite the earnings report, the broader media and advertising sector remains under pressure due to macroeconomic uncertainties and evolving consumer behaviors. In the past three weeks, several key non-earnings developments have emerged, including:

1. M&A Activity in the Advertising Sector: Multiple media companies have announced strategic partnerships or acquisitions aimed at expanding their digital ad offerings. This trend highlights the competitive pressure iHeartMedia faces as it seeks to consolidate its position in the podcasting market.

2. C-Level Changes at Competitors: Several competitors have announced leadership changes, including the appointment of new executives in key roles such as chief digital officer and chief marketing officer. These moves suggest a heightened focus on digital transformation and customer engagement.

3. Buyback Programs and Dividend Policies: Some media companies have announced stock buyback programs or revised dividend policies in response to improved cash flows and investor demand. These actions may influence investor sentiment toward iHeartMedia as it evaluates its own capital allocation strategy.

These developments underscore the dynamic environment in the media and advertising industry, where strategic shifts and leadership changes are common responses to market pressures.