Cumulus Net Loss Surges During 'Challenging Ad Environment'

Cumulus Media Inc., today released its operating results for the three months and year ended December 31, 2024. 

Here’s a summary of the key financial highlights based on the available data:

For the three months ended December 31, 2024 (Q4 2024), Cumulus Media reported net revenue of $218.6 million, which reflects a modest decrease of 1.2% compared to $221.3 million in the same period of 2023. This decline indicates a challenging advertising environment, though the drop was relatively contained. 

The company experienced a significant net loss of $231.1 million for the quarter, a sharp contrast to the $98.1 million net loss in Q4 2023. This substantial increase in net loss could suggest one-time charges, impairments, or operational challenges that impacted profitability. Adjusted EBITDA, a key measure of operational performance, was $25.0 million, up slightly from $22.8 million in Q4 2023, showing some resilience in core earnings despite the revenue dip and larger net loss.

For the full year ended December 31, 2024, Cumulus Media reported net revenue of $827.1 million, down 2.1% from $844.5 million in 2023. This year-over-year decline reflects broader industry headwinds, including a slowdown in local radio advertising and national market challenges. 

The net loss for the year was $283.3 million, significantly higher than the $117.9 million loss in 2023, pointing to increased financial pressure or extraordinary expenses during the year. Adjusted EBITDA for 2024 was $82.7 million, a decrease from $90.7 million in 2023, indicating a reduction in operational cash flow generation amid the revenue contraction.

Mary Berner

Mary G. Berner, President and CEO of Cumulus Media, commented on the results, noting that 2024 presented tough economic and secular challenges for the radio industry, including accelerated national headwinds and a local advertising slowdown. 

Despite these difficulties, the company focused on growth areas like digital marketing services, which showed promising momentum heading into 2025. Berner highlighted that Cumulus outperformed peers in prior years on metrics like cost reduction and cash flow generation, though 2024 brought additional pressures. The company also managed its balance sheet, ending the year with total debt of $671.6 million (with $642.1 million due at maturity) and net debt less unamortized discount at $578.3 million, alongside $63.8 million in cash and an undrawn $125.0 million ABL facility.

These results paint a picture of a company navigating a difficult landscape with some success in maintaining operational stability (as seen in Q4 EBITDA growth) but facing significant profitability challenges, likely due to broader market conditions and possibly non-recurring financial impacts. The focus on digital growth and cost management suggests a strategic effort to adapt to evolving industry dynamics.