iHM Broadcast Down, Podcasts Up During Q2

iHeartMedia, Inc. released its Q2 2025 earnings report Monday, after market close. 

Key financial highlights:

• Consolidated Revenue: $934 million, up 0.5% year-over-year (YoY). Excluding political revenue, revenue increased by 1.5%. This performance exceeded the consensus estimate of $912.35 million.
• GAAP Operating Income: $35 million, a significant improvement compared to a GAAP operating loss of $910 million in Q2 2024.
• Adjusted EBITDA: $156 million, up 3.9% from $150 million in Q2 2024, slightly above the company’s guidance range.
• Cash Flow: Cash provided by operating activities: $7 million.
• Free Cash Flow: Negative $13 million, compared to $5.6 million in Q2 2024, primarily due to timing of receivable collections and interest payments.
• Liquidity: Cash balance of $236 million and total available liquidity of $527 million as of June 30, 2025.

Segment Performance

Digital Audio Group: 

• Revenue: $324 million, up 13.4% YoY.
• Podcast Revenue: $134 million, up 28% YoY, driven by strong demand for podcast advertising.
• Digital Revenue (excluding Podcast): $190 million, up 5% YoY.

The strong growth in this segment reflects increasing advertiser interest in digital audio, particularly podcasts.

Multiplatform Group:

• Revenue: $545 million, down 5.4% YoY, primarily due to a decline in broadcast advertising amid uncertain market conditions. Excluding political revenue, revenue was also down 5%.

The decline was attributed to lower spot revenue in broadcast radio, though modernization initiatives helped reduce operating expenses.

Audio & Media Services Group:

• Revenue: $67.7 million, down 3.3% YoY, primarily due to lower political revenues (as 2024 was a presidential election year) partially offset by increased digital advertising.

Bob Pittman, Chairman and CEO: Highlighted the solid Q2 performance, with Adjusted EBITDA at the upper end of guidance and revenue slightly above expectations. He emphasized progress in ad tech capabilities and the strategic addition of Lisa Coffey to drive digital integration.

Rich Bressler, President, COO, and CFO: Noted the Digital Audio Group’s strong performance and the Multiplatform Group’s results aligning with the higher end of guidance despite market challenges. He reaffirmed the company’s focus on modernization to drive cost efficiencies.

The Digital Audio Group’s robust growth, particularly in podcasting, highlights iHeartMedia’s successful pivot toward digital platforms, which now account for a significant portion of revenue. However, the Multiplatform Group’s decline underscores ongoing challenges in traditional broadcast radio due to market uncertainties.