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Cumulus Media Inc (CMLS)
OTHER OTC:CMLS
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Cumulus Media
(OTC:CMLS)
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Rating:41Neutral
Price Target:
$0.07
▼(-7.50% Downside)
Cumulus Media's stock is rated poorly due to significant financial challenges, including declining revenues and high leverage. Technical analysis indicates bearish momentum, and valuation metrics are unfavorable with a negative P/E ratio. These factors collectively contribute to a low overall stock score.
Positive Factors
Podcasting Network Growth
The podcasting network taps into growing demand for on-demand audio, providing a durable revenue stream as digital content consumption rises.
Digital Marketing Services
Diversification into digital marketing services helps mitigate reliance on traditional radio, aligning with industry trends towards digital.
Extensive Audience Reach
A large portfolio of radio stations provides significant market presence and advertising reach, supporting long-term revenue potential.
Negative Factors
Declining Revenue
Ongoing revenue decline indicates challenges in maintaining market share and competitiveness, impacting long-term financial stability.
High Leverage
Excessive leverage limits financial flexibility and increases risk, potentially hindering growth and operational resilience.
Negative Profit Margins
Sustained negative profit margins reflect operational inefficiencies and ongoing losses, challenging long-term profitability.
Cumulus Media (CMLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.90M
Dividend YieldN/A
Average Volume (3M)29.57K
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth-6.94%
EPS Growth-92.29%
CountryUS
Employees2,250
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)-1.17
Shares Outstanding17,128,042
10 Day Avg. Volume22,326
30 Day Avg. Volume29,570
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.63
Price to Sales (P/S)0.01
P/FCF Ratio-0.50
Enterprise Value/Market Cap67.25
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit1.93
Enterprise Value/Ebitda17.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Cumulus Media Business Overview & Revenue Model
Company DescriptionCumulus Media Inc. is a leading American media and entertainment company that specializes in radio broadcasting. Headquartered in Atlanta, Georgia, Cumulus operates a large portfolio of over 400 radio stations across the United States, delivering a variety of programming including music, news, talk, and sports. The company also offers digital marketing services and operates a network of podcasts, making it a significant player in the audio content landscape.
How the Company Makes MoneyCumulus Media generates revenue primarily through advertising sales, which includes both traditional radio advertising and digital advertising across its online platforms. The company sells air time to advertisers who want to reach listeners in specific markets, capitalizing on its extensive audience reach. Additionally, Cumulus earns revenue from its digital marketing services, including social media management and website development for local businesses. The company also benefits from partnerships with national advertisers and content providers, enabling it to enhance its programming and expand its audience. Moreover, Cumulus monetizes its podcasting network through sponsorships and advertising, tapping into the growing demand for on-demand audio content.
Cumulus Media Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
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, negative profit margins, high leverage, and negative equity. Despite some improvement in cash flow growth, overall financial stability remains a concern.Income Statement
Cumulus Media's income statement reveals significant challenges. The company has experienced declining revenue over the past few years, with a negative revenue growth rate of -2.93% in the TTM. The gross profit margin has decreased from 60.79% in 2024 to 47.14% in the TTM, indicating reduced efficiency in generating profit from revenue. Net profit margins have also been negative, with a substantial decline to -38.42% in the TTM, reflecting ongoing losses. The EBIT and EBITDA margins are weak, further highlighting profitability issues.30
Negative
Balance Sheet
The balance sheet shows a precarious financial position. The debt-to-equity ratio is highly negative at -14.83 in the TTM, indicating excessive leverage and negative equity, which poses a significant risk. Return on equity is positive at 10.61% in the TTM, but this is due to negative equity, which distorts the metric. The company's equity ratio is not calculable due to negative equity, highlighting financial instability.20
Very Negative
Cash Flow
Cash flow analysis shows some improvement, with free cash flow growth of 123.68% in the TTM. However, free cash flow remains negative, and the operating cash flow to net income ratio is low at 0.06, indicating limited cash generation relative to net losses. The free cash flow to net income ratio is negative, reflecting ongoing cash flow challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 772.20M | 827.08M | 844.55M | 953.51M | 916.47M | 816.22M |
| Gross Profit | 484.00M | 502.83M | 511.19M | 596.03M | 557.78M | 479.14M |
| EBITDA | 54.19M | 59.20M | 81.83M | 158.40M | 138.13M | 37.02M |
| Net Income | -296.68M | -283.25M | -117.88M | 16.23M | 17.28M | -59.72M |
Balance Sheet | ||||||
| Total Assets | 1.08B | 1.12B | 1.44B | 1.61B | 1.72B | 1.86B |
| Cash, Cash Equivalents and Short-Term Investments | 90.41M | 63.84M | 80.66M | 107.43M | 177.03M | 271.76M |
| Total Debt | 843.97M | 794.71M | 813.08M | 862.35M | 988.00M | 1.13B |
| Total Liabilities | 1.14B | 1.11B | 1.15B | 1.20B | 1.30B | 1.46B |
| Stockholders Equity | -56.92M | 6.95M | 286.58M | 408.40M | 419.50M | 397.59M |
Cash Flow | ||||||
| Free Cash Flow | -10.22M | -22.58M | 6.85M | 47.42M | 39.43M | 18.34M |
| Operating Cash Flow | 8.82M | -3.12M | 31.66M | 78.48M | 68.52M | 33.21M |
| Investing Cash Flow | -17.73M | -4.23M | -6.82M | -26.24M | -1.54M | 64.36M |
| Financing Cash Flow | 47.16M | -9.47M | -51.61M | -121.84M | -161.71M | 157.19M |
Cumulus Media Technical Analysis
Negative
0.08
Price Trends
0.11
Negative
0.13
Negative
0.18
Negative
Market Momentum
>-0.01
Positive
42.25
Neutral
41.56
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 0.08 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.11, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.25 is Neutral, neither overbought nor oversold. The STOCH value of 41.56 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $73.09M | 229.29 | 0.18% | 8.85% | -0.77% | -93.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $599.25M | -1.78 | ― | ― | 1.39% | 61.75% | |
46 Neutral | $9.06M | -1.09 | -5.90% | ― | -7.78% | -369.53% | |
44 Neutral | $49.89M | -0.39 | -90.36% | ― | -13.08% | -69.47% | |
41 Neutral | $13.90M | >-0.01 | -329.89% | ― | -6.94% | -92.29% | |
38 Underperform | $52.18M | -1.11 | -53.47% | ― | 83.96% | -73.70% |
* Communication Services Sector Average
CMLS
Cumulus Media
0.08
-0.63
-88.73%
BBGI
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5.16
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UONE
Urban One
1.11
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SGA
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4.73%
IHRT
iHeartMedia
4.62
2.65
134.52%
MDIA
Mediaco Holding
0.63
-0.57
-47.50%
Cumulus Media Corporate Events
Cumulus Media Reports Q3 2025 Earnings Amid Challenges
Oct 31, 2025
Cumulus Media is a leading audio-first media company that operates 395 radio stations across 84 markets and provides digital marketing services, engaging a vast audience through various platforms including radio, podcasts, and digital content.
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.