iHeartMedia reported quarterly results below Wall Street expectations, citing weakness in its Multiplatform Group and advertising-market pressures that proved greater than anticipated.CEO Bob Pittman pointed to four factors: lower-than-expected political advertising revenue, brands delaying campaigns until after the election, a faster shift to programmatic audio buying and broader economic headwinds. He said “ongoing industry and macroeconomic revenue headwinds” had weighed more heavily on results than expected.
The shift toward programmatic audio buying also accelerated before iHeartMedia had fully rolled out its own programmatic and attribution tools. The company is developing AudioGraph to let advertisers buy radio inventory alongside digital advertising. Management expects the platform to help attract new spending, including from digital advertisers, and is targeting $100 million in additional broadcast programmatic revenue next year.
Podcasting provided a bright spot. Revenue in the Digital Audio Group rose year over year, led by podcasting, which grew nearly 25%. Management attributed the growth to stronger advertiser demand and broader distribution, including video podcasts on major streaming platforms. The company plans to report podcasting as a standalone segment in 2027.
The AudioGraph rollout has also contributed to pressure on Multiplatform Group margins through noncash marketing partnerships. Management said it plans to reduce those partnerships as the platform comes to market, easing some of the expense burden. The company also expects technology and artificial intelligence to help improve cost efficiency.
CFO Rich Bressler described the advertising environment as “one of the most uncertain periods” the company has managed, even compared with previous downturns. Management said continued podcasting growth, increased programmatic sales and cost reductions could support performance, while warning that economic and advertising-market uncertainty may continue to weigh on results in the near term.