0001400891-25-000046
SEC filingDigital Audio growth offset Multiplatform decline; Adjusted EBITDA rose 4% despite macro uncertainty.
For Q2 2025, iHeartMedia reported consolidated revenue of $933.7 million, a 0.5% increase from $929.1 million in Q2 2024. The growth was driven by a 13.4% surge in Digital Audio Group revenue, which reached $323.9 million, partially offset by a 5.4% decline in Multiplatform Group revenue to $544.6 million. Operating income swung to a profit of $35.4 million from a loss of $909.7 million in the prior year, primarily because Q2 2024 included $920.2 million in non-cash impairment charges. Net loss improved to $84.0 million from $982.0 million. Adjusted EBITDA rose 3.9% to $156.1 million, with margin expansion in Digital Audio (33.2% vs 32.2%) and cost discipline across segments. Free cash flow was negative $13.2 million, compared to positive $5.6 million a year ago, due to lower operating cash flow from working capital timing and capital expenditures of $20.0 million.
Multiplatform Group revenue declined 5.4% as broadcast radio fell 7.0% (spot revenue down) amid ongoing market uncertainty. Networks grew 1.1%, while Sponsorship and Events dropped 6.7%. Segment Adjusted EBITDA decreased 7.6% to $96.4 million, with margin contracting to 17.7% from 18.1%, as cost savings (employee compensation, sales commissions) partially mitigated revenue loss. Digital Audio Group continued its strong momentum, with podcast revenue jumping 28.5% and digital ex-podcast up 4.7%. Segment Adjusted EBITDA rose 17.1% to $107.6 million, and margin improved to 33.2%. Higher variable content costs (profit share, third-party costs) were outpaced by revenue growth. Audio & Media Services Group revenue slipped 3.3% to $67.7 million, primarily due to lower political advertising as Q2 2024 benefitted from the presidential election cycle. Segment Adjusted EBITDA was nearly flat at $23.7 million, with margin edging up to 35.0% from 34.0% on cost controls.
Management acknowledged persistent macroeconomic headwinds, including inflation and interest rate pressures, which continue to dampen radio advertising demand. They highlighted the One Big Beautiful Bill Act (OBBBA) enacted July 2025, which is expected to reduce cash taxes but whose full impact is still under assessment. The company drew $100 million on its ABL Facility in May 2025 to enhance short-term liquidity, leaving $290.8 million available under the facility. As of June 30, 2025, total available liquidity was $526.7 million. Management expects sufficient liquidity to fund operations for at least the next twelve months, despite anticipated debt service payments of approximately $238.4 million in the remainder of 2025. No specific revenue or earnings guidance was provided, but the modernization initiatives launched in 2024 are on track to deliver approximately $150 million in net savings for full year 2025, supporting margin improvement even if top-line growth remains challenged.
As of June 30, 2025, iHeartMedia held $235.9 million in cash and cash equivalents, down from $259.6 million at December 31, 2024. Total available liquidity was $526.7 million, including $290.8 million available under the $450 million ABL facility (net of $100 million drawn and $34.3 million in letters of credit). The company borrowed $100 million under the ABL facility in May 2025 as a short-term liquidity management strategy. Total debt stood at $5,137.5 million, with a weighted average interest rate of 9.2%. The aggregate market value of the company's debt was approximately $3.7 billion. Stockholders' deficit was $(1,726.2) million, driven by an accumulated deficit of $(4,704.8) million.
The filing does not disclose a separate purchase commitments table. However, the company reported $264.7 million of remaining performance obligations from contracts with customers with original duration greater than one year, substantially all expected to be recognized over the next five years. Additionally, the company had outstanding surety bonds of $8.5 million and commercial standby letters of credit of $34.3 million as of June 30, 2025.
No share buybacks or dividends were reported. Capital expenditures totaled $39.7 million for the six months ended June 30, 2025, representing 2.3% of revenue. Debt activity included $100 million in borrowings under the ABL facility and $27.2 million in repayments on long-term debt. The company also recognized a $1.5 million loss on extinguishment of debt during the six-month period.
The company reports three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. For Q2 2025, Multiplatform Group revenue was $544.6 million (down 5.4% YoY), Digital Audio Group revenue was $323.9 million (up 13.4% YoY), and Audio & Media Services Group revenue was $67.7 million (down 3.3% YoY). Segment Adjusted EBITDA was $96.4 million, $107.6 million, and $23.7 million, respectively. No geographic mix is disclosed.
Operating cash flow (CFO) for H1 2025 was -$54.1 million, a significant deterioration from -$32.5 million in H1 2024. The net loss improved from -$1.0 billion to -$364.9 million, but large non-cash charges (impairment, depreciation, deferred taxes) drove the cash flow differences. Capex remained high at $39.7 million, resulting in a free cash flow deficit (CFO minus capex) of -$93.8 million, though the company does not explicitly report FCF. The negative CFO was driven by working capital outflows: accounts receivable decreased by $105.1 million (favorable), but prepaid assets increased $75.8 million, accounts payable decreased $32.0 million, and accrued expenses decreased $109.7 million, collectively absorbing cash. Financing activities provided $70.7 million, including $100.0 million in borrowings from the ABL facility, which helped offset the cash used in operations and investing. No share repurchases were made, and dividends to noncontrolling interests were minimal at $0.9 million. The company had $235.9 million in cash at period end. The high capex and negative CFO suggest reliance on debt financing to support operations and investments.