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Cumulus Media Inc (CMLS)
NASDAQ:CMLS
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Cumulus Media
(NASDAQ:CMLS)
35Underperform
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.
Debt Management
Pushing out maturities for the majority of its debt earlier this year to 2029 is helpful, providing time for Cumulus to execute on its strategy.
Negative Factors
Ad Sales Headwind
The end of an ad sales relationship towards year end is expected to be a $15 million headwind for 2025.
Revenue Decline
Cumulus reported a 1.2% decline in Q4 revenues to $218.6 million, consistent with the pacing guidance the company provided in November and matching our estimate.
Cumulus Media (CMLS) vs. S&P 500 (SPY)
Market Cap
$15.09M
Dividend YieldN/A
Average Volume (3M)910.41K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth-2.07%
EPS Growth-138.25%
CountryUS
Employees2,250
SectorCommunication Services
Sector Strength83
IndustryBroadcasting
Share Statistics
EPS (TTM)-16.66
Shares Outstanding17,128,042
10 Day Avg. Volume1,047,306
30 Day Avg. Volume910,413
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap62.48
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.88
Enterprise Value/EbitdaN/A
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. (CMLS) is one of the largest audio-first media companies in the United States. It operates in the radio broadcasting sector, providing a wide array of content through its extensive portfolio of FM and AM radio stations. The company also owns and operates the Westwood One network, which produces and distributes various syndicated programming. In addition to traditional radio, Cumulus Media offers digital streaming and podcasting services, catering to a diverse audience across multiple platforms.
How the Company Makes MoneyCumulus Media primarily generates revenue through advertising sales across its radio stations and digital platforms. As advertisers seek to reach large and varied audiences, Cumulus provides valuable advertising inventory on its local and national radio broadcasts, as well as through digital audio content like podcasts and streaming. The company also earns revenue from content syndication via its Westwood One network, which sells programming to other broadcasters. Additionally, Cumulus Media may engage in strategic partnerships and sponsorship deals that further contribute to its income.
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.30
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 | ||||
| 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 | EBIT |
| -239.66M | -41.28M | 79.79M | 69.12M | 21.40M | EBITDA |
| -158.52M | 35.85M | 158.40M | 119.65M | 59.51M | Net Income Common Stockholders |
| -283.25M | -117.88M | 16.23M | 17.28M | -59.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 63.84M | 80.66M | 107.43M | 177.03M | 271.76M | Total Assets |
| 1.12B | 1.44B | 1.61B | 1.72B | 1.86B | Total Debt |
| 794.71M | 813.08M | 862.35M | 952.96M | 1.13B | Net Debt |
| 730.87M | 732.42M | 754.92M | 775.93M | 858.54M | 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
Negative
0.15
Price Trends
0.44
Negative
0.63
Negative
0.99
Negative
Market Momentum
-0.07
Negative
24.87
Positive
26.82
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 0.15 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.44, and below the 200-day MA of 0.99, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 24.87 is Positive, neither overbought nor oversold. The STOCH value of 26.82 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 19 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $191.87M | 27.87 | 7.82% | ― | 18.23% | 81.31% | |
73 Outperform | $143.97M | 89.58 | 3.49% | ― | 14.36% | ― | |
68 Neutral | $73.12M | 20.59 | 1.99% | 8.81% | -1.80% | -64.47% | |
59 Neutral | $13.76B | 7.64 | -1.94% | 3.86% | 2.38% | -36.56% | |
38 Underperform | $65.41M | ― | -14.44% | ― | -3.58% | 50.73% | |
35 Underperform | $15.09M | ― | -193.00% | ― | -2.07% | -138.25% | |
29 Underperform | $149.00M | ― | 86.54% | ― | 2.76% | 9.71% |
* Communication Services Sector Average
Performance Comparison
CMLS
Cumulus Media
0.15
-2.60
-94.55%
CXDO
Crexendo
5.16
0.58
12.66%
MCHX
Marchex
1.49
0.13
9.56%
RDCM
Radcom
11.97
2.45
25.74%
SGA
Saga Communications
11.60
-10.17
-46.72%
IHRT
iHeartMedia
1.06
-1.19
-52.89%
Cumulus Media Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -34.78%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture for the company. There were several positive developments, particularly in the digital segment with strong growth in the digital marketing services and podcasting businesses, alongside effective cost management and AI implementation. However, these highlights were counterbalanced by significant challenges in the broadcast segment, a notable revenue decline, and broader economic and market uncertainties. The sentiment is Neutral as the highlights and lowlights are fairly balanced.Q1-2025 Updates
Positive Updates
Digital Marketing Services Growth
The digital marketing services business grew 30% during the quarter, with total customers up 41% and average campaign order size up 16%.
Podcasting Performance
Excluding the negative comparison from the loss of the Daily Wire relationship, podcasting revenue was up close to 40%.
Streaming Business Growth
The streaming business saw a 4% increase in revenue, benefiting from the transition to an in-house sales function last year.
Cost Reductions
The company executed $7.5 million of additional annualized net fixed cost reductions in the quarter.
Leverage of AI
The company is deploying AI across various functions, including sales and customer service, to improve efficiency and cost-effectiveness.
Negative Updates
Revenue Decline
Total revenue decreased by 6.4% year-over-year, with a 3.7% decline when excluding political and the impact of the Daily Wire.
Broadcast Business Challenges
The broadcast business faced significant challenges due to new tariffs and government spending cuts, leading to pullbacks in key advertising categories like automotive and retail.
Loss of Daily Wire Relationship
The loss of the Daily Wire relationship negatively impacted digital revenue growth, contributing to a 13% decline in podcasting revenue when included.
Economic Uncertainty Impact
Ongoing economic uncertainty and consumer demand issues led to a pacing down of approximately 10% for the upcoming periods.
Company Guidance
During the first quarter of fiscal year 2025, the company reported a 6% increase in its digital businesses, despite a challenging macroeconomic environment exacerbated by new tariffs and government spending cuts. The Digital Marketing Services (DMS) segment, the fastest-growing part of the business, saw a 30% rise in revenue, driven by a 41% increase in total customers and a 16% rise in average campaign order size. Despite a 6.4% decline in total revenue, or 3.7% when excluding political and Daily Wire impacts, the company achieved $7.5 million in annualized fixed cost reductions and maintained a cash reserve of $53 million. The podcasting segment saw a 40% increase excluding the loss of the Daily Wire, while streaming grew by 4%. Broadcast advertising faced setbacks due to economic pressures, with a notable decline in automotive, retail, and CPG categories. However, insurance and financial categories performed well, alongside sports content, which achieved record revenues during the NFL playoffs and Super Bowl. The company is also leveraging AI for efficiencies in advertising proposals and customer service. Looking forward, the firm anticipates continued digital growth, projecting DMS revenue to reach over $100 million by the end of the next year, while focusing on reducing net debt and exploring asset sales to improve liquidity.Cumulus Media Corporate Events
Executive/Board Changes
Cumulus Media Board Reshuffle: Galbraith Joins Directors
Positive
Jan 22, 2025
On January 22, 2025, Cumulus Media announced the resignation of Matthew Blank from its Board of Directors to focus on other commitments, with Steven M. Galbraith appointed as his replacement, effective immediately. Galbraith, a top shareholder and seasoned investment professional, is expected to bring valuable insights to the board, potentially enhancing the company’s growth and strategic positioning in the audio media industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.