Cumulus Media (CMLS) AI Stock Analysis

• Market Cap: $14.67M
• Dividend Yield: N/A
• Average Volume (3M): 19.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -2.92%
• EPS Growth: -165.37%
• Country: US
• Employees: 2,250
• Sector: Communication Services
• Sector Strength: 82
• Industry: Broadcasting
• EPS (TTM): -1.88
• Shares Outstanding: 17,128,042
• 10 Day Avg. Volume: 20,680
• 30 Day Avg. Volume: 19,942
• PEG Ratio: <0.01
• Price to Book (P/B): -0.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.29
• Enterprise Value/Market Cap: 50.46
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.54
• Enterprise Value/Ebitda: -2.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $0.00 ▼(-100.00%Downside)

Cumulus Media's overall stock score is heavily influenced by its poor financial performance and unattractive valuation, both reflecting significant financial challenges. The technical analysis shows a persistent bearish trend. Despite positive developments in digital growth and cost management, broader economic uncertainties and revenue declines weigh down the outlook.

Positive Factors

Cost management

Management has been diligent in reducing its fixed cost base, making room for growing variable expense tied to its digital businesses, executing on $35 million in cost reduction in Q4.

Digital business growth

The DMS business has been the main source of growth in the digital segment, growing 30% in the quarter, and is expected to grow at a similar pace in Q2.

Negative Factors

Ad sales relationship loss

The end of an ad sales relationship towards year end is expected to be a $15 million headwind for 2025.

Debt obligations

The company has $24 million of principal due next year, and the difficult ad environment is a strain on cash flow trends.

Macro uncertainty

Macro uncertainty, particularly around tariffs and rates were noted as adding to uncertainty and pressuring ad spend, in addition to the shorter-term challenges from the loss of some content relationships.

Cumulus Media Business Overview & Revenue Model

Company Description

Cumulus 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 Money

Cumulus Media generates revenue primarily through advertising sales across its radio stations and digital platforms. The company sells commercial airtime to local, regional, and national advertisers, who seek to reach the audience that tunes into Cumulus' diverse range of programming. Additionally, Cumulus Media monetizes its digital content by offering podcast sponsorships and digital advertising opportunities. Strategic partnerships and syndication deals with content creators and distribution networks further enhance its revenue streams. The company's earnings are also influenced by market conditions, advertising demand, and the performance of its affiliates and syndication partners.

Cumulus Media Financial Statement Overview

Summary

Cumulus Media is facing significant financial challenges, including declining revenues, negative profitability, high leverage, and net losses. The balance sheet reflects financial instability, with negative stockholders' equity and cash flow issues. Urgent strategic adjustments are required to stabilize the financial health of the company.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	827.08M	844.55M	953.51M	916.47M	816.22M
Gross Profit	502.83M	511.19M	596.03M	557.78M	479.14M
EBITDA	-158.52M	35.85M	158.40M	119.65M	59.51M
Net Income	-283.25M	-117.88M	16.23M	17.28M	-59.72M
Balance Sheet
Total Assets	1.12B	1.44B	1.61B	1.72B	1.86B
Cash, Cash Equivalents and Short-Term Investments	63.84M	80.66M	107.43M	177.03M	271.76M
Total Debt	794.71M	813.08M	862.35M	952.96M	1.13B
Total Liabilities	1.11B	1.15B	1.20B	1.30B	1.46B
Stockholders Equity	6.95M	286.58M	408.40M	419.50M	397.59M
Cash Flow
Free Cash Flow	-22.58M	6.85M	47.42M	39.43M	18.34M
Operating Cash Flow	-3.12M	31.66M	78.48M	68.52M	33.21M
Investing Cash Flow	-4.23M	-6.82M	-26.24M	-1.54M	64.36M
Financing Cash Flow	-9.47M	-51.61M	-121.84M	-161.71M	157.19M

Cumulus Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.13 is above the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and below the 200-day MA of 0.58, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMLS.

Cumulus Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXDO	76 Outperform	$170.12M	72.44	4.73%	―	13.85%	38.33%
RDCM	76 Outperform	$229.86M	27.16	9.35%	―	18.23%	81.31%
SGA	74 Outperform	$85.42M	23.79	2.06%	7.45%	-1.65%	-51.45%
Sector *	62 Neutral	$41.97B	-1.66	-12.07%	3.33%	2.07%	-69.32%
MCHX	61 Neutral	$90.00M	―	-16.55%	―	-2.67%	21.65%
IHRT	47 Neutral	$266.65M	―	86.54%	―	3.31%	-39.47%
CMLS	44 Neutral	$14.67M	―	-243.54%	―	-2.92%	-165.37%

Cumulus Media Corporate Events

Cumulus Media Holds Annual Shareholder Meeting

On May 30, 2025, Cumulus Media held its Annual Meeting where shareholders voted on several key proposals. All seven nominees were elected as directors, the compensation for named executive officers was approved, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025.