During an earnings call Monday, iHeartMedia announced a third round of cost cuts targeting $50 million in additional annualized savings as it posted 9.6% revenue growth in the first quarter and pledged to return its broadcast business to profitability growth before the end of 2026.
The new phase of modernization, which includes AI adoption, layoffs, vendor consolidation, and reduced occupancy costs, will begin delivering savings in the second half of 2026.
Combined with prior initiatives, the full program now totals $150 million in annualized reductions. The Multiplatform Group, home to the company’s AM/FM radio stations, is absorbing the largest portion of the savings.
CEO Bob Pittman described the effort as a continuous efficiency drive rather than a short-term reaction.
“We continually reevaluate our organizational structure, flatten layers of management, and push the adoption of new technologies and tools, including AI, to improve our operating efficiency,” he said on the earnings call.
iHeartMedia reported first-quarter revenue of $884 million, up 9.6% from the prior-year period. The company narrowed its net loss to $95.6 million from $280.9 million a year earlier.
The standout performer was the Digital Audio Group. Podcast revenue climbed 26.9% to $147.2 million, beating internal guidance. Broadcast programmatic advertising also gained momentum, with the company projecting roughly $200 million in total programmatic revenue for 2026, a roughly 50% increase from $135 million in 2025.
President and COO Rich Bressler noted that programmatic is tracking a growth path similar to the one podcasts followed in recent years.
The Multiplatform Group, which houses the core radio portfolio, saw revenue rise 4.3% to $493 million. Broadcast radio revenue specifically increased 6.1% to $361.4 million. Gains were driven largely by non-cash trade activity, while spot revenue declined amid softer market conditions.
The latest cost-saving round and focus on returning broadcast to profitable growth underscore iHeart’s ongoing efforts to modernize its traditional radio operations while accelerating digital revenue streams.