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Cumulus Media Inc (CMLS)
OTHER OTC:CMLS
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Cumulus Media
(OTC:CMLS)
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Rating:42Neutral
Price Target:
$0.00
▼(-100.00% Downside)
Cumulus Media's overall stock score is primarily impacted by its poor financial performance and valuation metrics. The company's high leverage and negative equity pose significant risks. While there are positive developments in digital growth and cost management, these are insufficient to offset the broader financial challenges. Technical analysis also indicates bearish trends, further weighing down the score.
Positive Factors
Digital Revenue Growth
The strong growth in digital revenue, particularly in digital marketing services, indicates a successful pivot towards digital platforms, which can provide a sustainable revenue stream as media consumption habits shift.
Cost Management
Significant cost reductions enhance operational efficiency and can improve margins over time, providing more financial flexibility to navigate challenging market conditions.
AI Integration
The integration of AI to drive growth and efficiency can lead to long-term competitive advantages by optimizing operations and creating innovative content delivery methods.
Negative Factors
High Leverage
High leverage and negative equity limit financial flexibility and increase risk, potentially hindering the company's ability to invest in growth opportunities or weather economic downturns.
Revenue Decline
Declining revenue, especially in core broadcasting, suggests challenges in maintaining market share and profitability, necessitating strategic shifts to stabilize and grow the business.
Negative Cash Flow
Negative free cash flow indicates difficulties in generating sufficient cash to cover capital expenditures, which could constrain future investments and growth initiatives.
Cumulus Media (CMLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.85M
Dividend YieldN/A
Average Volume (3M)31.48K
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth-4.57%
EPS Growth-103.56%
CountryUS
Employees2,250
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)-0.74
Shares Outstanding17,128,042
10 Day Avg. Volume36,447
30 Day Avg. Volume31,482
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap62.91
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit1.90
Enterprise Value/Ebitda14.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
Cumulus Media Business Overview & Revenue Model
Company DescriptionCumulus Media Inc., an audio-first media company, owns and operates radio stations in the United States. It owns and operates 406 stations in 86 markets, as well as approximately 9,500 affiliated stations through Westwood One. The company's content portfolio includes sports, news, talk, and entertainment programming from various brands, including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and other partners. It also provides digital marketing services, such as email marketing, geo-targeted display and video solutions, website and microsite building, hosting, social media management, reputation management, and search engine marketing and optimization. The company serves advertisers through broadcast and on-demand digital, mobile, social, and voice-activated platforms. Cumulus Media Inc. was incorporated in 2002 and is based in Atlanta, Georgia.
How the Company Makes MoneyCumulus Media generates revenue primarily through advertising sales, which is the largest portion of its income. The company sells airtime to advertisers who want to promote their products or services to the station's listeners. Additionally, Cumulus earns money from digital media initiatives, including online streaming and podcast advertising, which have become increasingly important as consumption habits shift. The company also benefits from partnerships with local businesses for cross-promotions and event sponsorships. Furthermore, Cumulus Media has engaged in strategic acquisitions to enhance its market presence and expand its revenue base, allowing it to capitalize on synergies and improve operational efficiencies.
Cumulus Media Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company facing significant revenue challenges due to macroeconomic pressures and weak national advertising, partially offset by strong digital growth and effective cost management. While there are positive strategic initiatives and engagement from employees and shareholders, the revenue decline and high leverage present ongoing challenges.Q2-2025 Updates
Positive Updates
Digital Marketing Services Growth
Digital marketing services business was up 38% year-over-year, with an expected surpass of $100 million run rate early next year. This reflects a strategic growth area for the company with a significant contribution to digital revenue.
Cost Reduction Achievements
The company has achieved over $175 million of fixed cost reductions over the last 5 years, with an additional $5 million in annualized cost reductions in the recent quarter.
Revenue Market Share Growth
Cumulus Media grew its revenue market share in all broadcast spot revenue channels and digital revenue market share, indicating strong performance relative to peers.
AI Integration and Efficiency
Significantly accelerated use of AI to create growth opportunities and business efficiencies across the company, with over 100 projects being prioritized for execution.
Strong Employee and Shareholder Engagement
93% of employees proud to work for Cumulus, and 86% have confidence in leadership. Shareholder engagement resulted in 90% plus average vote for Board members.
Negative Updates
Total Revenue Decline
Total revenue down 9.2%, with broadcast revenue particularly impacted by macroeconomic pressures and a weak national advertising environment.
Network Revenue Challenges
Network revenue down 20% due to weak market environment and loss of Daily Wire and Dan Bongino, along with a lack of demand for sports inventory.
High Leverage and Capital Constraints
Operating in a capital-constrained environment due to high leverage, limiting the ability to invest in strategic opportunities unless ROI is immediate.
Continued Weakness in National Advertising
No significant improvement in national advertising pacing, affecting overall revenue performance.
Company Guidance
In the call, Cumulus Media provided guidance reflecting a challenging fiscal environment but highlighted several key performance metrics. The company reported a 9.2% decline in total revenue for Q2 2025, slightly better than previous guidance, with a significant decline attributed to macroeconomic pressures. Despite these challenges, Cumulus Media noted a 38% year-over-year increase in their local digital marketing services business, contributing to a 20% rise in total digital revenue. The company achieved over $175 million in fixed cost reductions over five years, including $5 million in Q2, and ended the quarter with $97 million in cash, partly due to a $55 million draw on their ABL revolver. Additionally, the company's broadcast segment faced headwinds, with a 20% decline in network revenue partly due to the discontinuation of certain programs. Looking ahead to Q3, Cumulus Media anticipates revenue pacing down in the low double digits but remains optimistic about digital growth, projecting their digital marketing services business to surpass a $100 million run rate early next year.Cumulus Media Financial Statement Overview
Summary
Cumulus Media faces significant financial challenges with declining revenues, high leverage, and net losses. The negative equity and cash flow issues pose substantial risks, although there are slight improvements in operating cash flow. Urgent strategic and operational adjustments are needed to stabilize and improve financial health.Income Statement
Cumulus Media is experiencing declining revenue and negative profitability. TTM (Trailing-Twelve-Months) revenue decreased compared to the previous periods, with a current gross profit margin of 68.84%. The company reported significant net losses, and negative EBIT and EBITDA margins, indicating operational challenges.35
Negative
Balance Sheet
The balance sheet shows high leverage with a debt-to-equity ratio of -31.82 due to negative stockholders' equity, indicating financial instability. Return on equity is not meaningful given the negative equity. The equity ratio is also negative, highlighting potential solvency issues.20
Very Negative
Cash Flow
The company shows some improvement in operating cash flow to net income ratio, but overall free cash flow remains negative. The free cash flow to net income ratio is also negative, suggesting difficulties in generating cash relative to net losses.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 795.54M | 827.08M | 844.55M | 953.51M | 916.47M | 816.22M |
| Gross Profit | 491.23M | 502.83M | 511.19M | 596.03M | 557.78M | 479.14M |
| EBITDA | 65.60M | 59.20M | 81.83M | 158.40M | 119.65M | 59.51M |
| Net Income | -286.59M | -283.25M | -117.88M | 16.23M | 17.28M | -59.72M |
Balance Sheet | ||||||
| Total Assets | 1.11B | 1.12B | 1.44B | 1.61B | 1.72B | 1.86B |
| Cash, Cash Equivalents and Short-Term Investments | 96.75M | 63.84M | 80.66M | 107.43M | 177.03M | 271.76M |
| Total Debt | 845.92M | 794.71M | 813.08M | 862.35M | 952.96M | 1.13B |
| Total Liabilities | 1.14B | 1.11B | 1.15B | 1.20B | 1.30B | 1.46B |
| Stockholders Equity | -37.09M | 6.95M | 286.58M | 408.40M | 419.50M | 397.59M |
Cash Flow | ||||||
| Free Cash Flow | -4.57M | -22.58M | 6.85M | 47.42M | 39.43M | 18.34M |
| Operating Cash Flow | 13.41M | -3.12M | 31.66M | 78.48M | 68.52M | 33.21M |
| Investing Cash Flow | -17.15M | -4.23M | -6.82M | -26.24M | -1.54M | 64.36M |
| Financing Cash Flow | 46.99M | -9.47M | -51.61M | -121.84M | -161.71M | 157.19M |
Cumulus Media Technical Analysis
Negative
0.14
Price Trends
0.15
Negative
0.14
Positive
0.38
Negative
Market Momentum
>-0.01
Negative
48.18
Neutral
67.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMLS, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 67.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMLS.
Cumulus Media Risk Analysis
Cumulus Media disclosed 21 risk factors in its most recent earnings report. Cumulus Media reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cumulus Media Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | 80.69M | 37.58 | 1.28% | 7.98% | -1.72% | -66.67% | |
58 Neutral | 371.93M | -1.11 | 21.64% | ― | 3.18% | 62.89% | |
47 Neutral | 10.40M | -1.13 | -3.89% | ― | -5.52% | 87.59% | |
45 Neutral | 40.83M | -0.42 | -61.65% | ― | -10.63% | -61.23% | |
42 Neutral | $14.85M | ― | -274.30% | ― | -4.57% | -103.56% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
CMLS
Cumulus Media
0.14
-1.17
-89.31%
BBGI
Beasley Broadcast Group
5.77
-5.00
-46.43%
UONE
Urban One
1.45
-0.31
-17.61%
SGA
Saga Communications
12.53
-0.76
-5.72%
IHRT
iHeartMedia
2.71
0.86
46.49%
MDIA
Mediaco Holding
1.30
0.02
1.56%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.