iHeartMedia Inc. Monday reported third-quarter 2025 revenue of $997 million slightly down 1.1% year-over-year but topping analyst expectations of $980 million, as robust growth in podcasts and digital audio cushioned declines in traditional broadcast and political advertising.
The results, however, were marred by a $209 million non-cash impairment charge on FCC licenses, driving a GAAP operating loss of $116 million— a sharp reversal from last year's $77 million profit— and a net loss of $65.8 million. Adjusted EBITDA held steady at $205 million, aligning with company guidance, while shares dipped 2% in after-hours trading to $4.45 amid mixed reactions to ongoing cost-cutting efforts.
The quarter highlighted iHeartMedia's pivot toward digital platforms, with the Digital Audio Group delivering standout performance: revenue climbed 13.5% to $342 million, fueled by a 22% surge in podcast sales to $140 million, and adjusted EBITDA rose 30% to $130 million for a robust 38.1% margin.
Executives credited expansions in programmatic audio partnerships, like the recent Amazon Ads deal, and hit podcasts for the momentum, noting digital now accounts for over a third of total revenue. In contrast, the Multiplatform Group— encompassing broadcast radio— saw revenue fall 4.6% to $591 million, pressured by a post-election drop in political ad spend and softer local markets, trimming adjusted EBITDA 8% to $119 million.
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Free cash flow swung to a negative $33 million from last year's $73 million positive, reflecting higher capital investments in streaming tech and one-time restructuring costs, though the company maintained $192 million in cash and about $510 million in total liquidity against $4.67 billion in net debt.
iHeartMedia CEO Bob Pittman highlighted radio’s advertising resurgence during Monday’s analyst Q&A, touting AM/FM as a high-ROI, cost-effective complement to digital and social platforms.
“Radio’s got a little bit of a renaissance here,” Pittman said, emphasizing the company’s push to eliminate buying friction for media agencies. He noted that most agencies still operate within a single digital platform and screen, treating radio as a separate, manual purchase.
“We think it’s a structural issue,” Pittman added. “And we’ve invested heavily in fixing that structural issue.”
iHeartMedia, which reaches 250 million monthly users via 870 radio stations and top podcasts like "The Joe Rogan Experience," benefited from a 15% uptick in streaming hours but saw broadcast listenership dip 3% as cord-cutting accelerates.