iHeartMedia (IHRT) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 0.5% year-over-year to $934 million, with adjusted EBITDA up 3.9% to $156 million, exceeding guidance, driven by digital advertising growth and offset by lower radio ad spending amid market uncertainty.

• Digital Audio Group revenue grew 13.4% to $324 million, with podcast revenue up 28.5%, while Multiplatform Group revenue declined 5.4% to $545 million.

• Operating income was $35.4 million, a significant improvement from a $909.7 million loss last year, mainly due to prior-year impairment charges.

• Modernization initiatives are on track, targeting $150 million in net savings for 2025, with $40 million realized in Q2.

• Lisa Coffey was appointed Chief Business Officer to drive ad tech platform integration and monetization.

Financial highlights

• Adjusted EBITDA was $156 million, up 3.9% year-over-year, with a margin of 16.7%.

• GAAP operating income was $35.4 million, reversing a $910 million loss in Q2 2024.

• Net loss was $84 million, a significant improvement from a $982 million loss year-over-year.

• Free cash flow was negative $13 million, down from $6 million in Q2 2024.

• Cash balance at quarter-end was $236 million, with total available liquidity of $527 million.

Outlook and guidance

• Q3 2025 adjusted EBITDA guidance is $180–$220 million, with consolidated revenue expected to decline low-single digits year-over-year; excluding political, revenue is expected to increase low-single digits.

• Digital Audio Group Q3 revenue is expected up high single digits, with podcasting revenue to grow in the low 20s.

• Full-year 2025 guidance depends on macro improvement and easing advertising market uncertainty.

• Management expects continued digital revenue growth but remains cautious due to macroeconomic uncertainty and potential recession risks.

• Modernization initiatives are projected to yield $150 million in net savings for full year 2025.