iHeartMedia 2025 Q3 Earnings Widening Losses Amid Digital Growth

iHeartMedia (IHRT) reported mixed third-quarter results, with revenue beating estimates but a significant earnings miss driving a sharp stock decline. The company reiterated its focus on digital transformation and cost-cutting, though weak profitability and high debt weighed on investor sentiment.

Revenue

iHeartMedia’s total revenue fell 1.1% year-over-year to $997.01 million, exceeding Wall Street’s $975.29 million forecast. Broadcast Radio led the way with $427.02 million, while the Digital Audio Group (DAG) drove growth at $341.69 million, up 13.5% YoY. Podcast revenue surged 22% to $139.67 million, and non-podcast digital revenue rose 8% to $202.02 million. The Multiplatform Group, which includes radio and events, reported $591.21 million, down 4.6% YoY. Sponsorship and Events revenue declined nearly 10% to $45.50 million, while the Audio & Media Services Group posted $66.61 million.

Earnings/Net Income

Net losses widened to $65.76 million ($0.43 per share) in 2025 Q3, a 59.1% increase from $41.33 million ($0.27 per share) in 2024 Q3. The broader loss margins and negative free cash flow of $32.82 million signaled deteriorating profitability despite digital progress.

Post-Earnings Price Action Review

The stock initially surged 5.65% post-earnings, reflecting optimism around digital strides, but reversed course sharply. Shares fell 9% after the earnings call, driven by concerns over the widening loss, weak multiplatform performance, and high net debt of $4.7 billion. The mixed price action highlighted investor uncertainty about the company’s ability to sustain digital momentum while addressing traditional revenue declines.

CEO Commentary

CEO Bob Pittman emphasized progress in digital growth, noting DAG’s 38.1% EBITDA margins and a $150 million cost-cutting plan for 2025. Strategic partnerships with Amazon Ads and TikTok were framed as pivotal for expanding advertising access. CFO Rich Bressler reiterated confidence in podcasting’s 20%+ growth potential and outlined $50 million in incremental savings for 2026.

Guidance

iHeartMedia expects Q4 2025 consolidated revenue to decline low-single digits YoY, with adjusted EBITDA projected at $200–240 million. Leadership remains cautious, balancing digital optimism with challenges in monetizing broadcast assets and political ad cycles.

Additional News

Recent non-earnings news includes a 9% stock plunge following the Q4 revenue forecast and a partnership with TikTok to launch a dedicated radio station and podcast network. The company also announced $50 million in cost savings for 2026, driven by AI and operational efficiency. Separately, a potential Netflix deal for video podcast exclusivity briefly boosted shares to a two-year high in early October.

Polished Transitions and Formatting:

• Enhanced flow between sections with cohesive transitions.

• Removed irregular spacing and ensured consistent punctuation.

• Maintained original structure and bold headings.

• Embedded

appropriately after the Post-Earnings Price Action Review section.

• Preserved all numerical data and factual accuracy.