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iHeartMedia (IHRT)
NASDAQ:IHRT
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iHeartMedia
(NASDAQ:IHRT)
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Rating:48Neutral
Price Target:
$3.00
▲(3.09% Upside)
Action:ReiteratedDate:03/03/26
IHRT scores lower primarily due to a stressed financial profile (high leverage, negative equity, and persistent net losses with limited recent free cash flow). The earnings call provides a meaningful offset via upbeat 2026 EBITDA/FCF guidance and defined cost-savings and digital growth drivers, but technicals remain weak and valuation signals are constrained by negative earnings.
Positive Factors
Digital Audio scale & margins
iHeart's Digital Audio Group combines strong revenue growth with very high adjusted EBITDA margins (~34%), creating a durable, higher-margin revenue pool that diversifies the business away from cyclical broadcast ad sales. Scale in DAG supports recurring cash flow and long-term margin resilience.
Podcast growth & local monetization
Rapid podcast revenue growth and a shift toward local sales increase monetization depth and advertiser stickiness. Host‑read and dynamically inserted ads are margin-accretive, making podcasting a structural revenue stream that buffers against national ad cycles and supports durable digital monetization.
Programmatic build & cost-savings roadmap
A clear programmatic revenue target and defined $100M cost-savings program are structural levers to improve margins and free cash flow. Programmatic scale and DSP partnerships create recurring inventory monetization, while sustained cost reductions materially improve leverage and financial flexibility over months.
Negative Factors
Very high leverage & negative equity
Elevated debt and negative equity materially constrain strategic flexibility and increase refinancing risk. Heavy leverage magnifies sensitivity to ad downturns and leaves less room for investment. Interest burden and covenant sensitivity can persistently divert cash from growth or deleveraging.
Persistent net losses & weak GAAP profitability
Ongoing GAAP losses indicate the core business has not fully re-earned the cost of capital. Even with positive EBITDA, negative net margins reflect interest and nonoperating strain, limiting retained earnings accumulation and making equity rebuilding and sustainable shareholder returns a long-term challenge.
Inconsistent cash generation and narrow FCF
Volatile and very modest free cash flow provides limited capacity to pay down debt or withstand ad-revenue shocks. Narrow FCF increases reliance on one-off proceeds, working‑capital timing, or transitory political receipts, delaying durable deleveraging and keeping financial risk elevated.
iHeartMedia (IHRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$408.78M
Dividend YieldN/A
Average Volume (3M)831.54K
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth1.39%
EPS Growth61.75%
CountryUS
Employees8,080
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)-0.27
Shares Outstanding129,552,140
10 Day Avg. Volume1,100,840
30 Day Avg. Volume831,536
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)-0.35
Price to Sales (P/S)0.17
P/FCF Ratio59.17
Enterprise Value/Market Cap15.00
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit3.24
Enterprise Value/Ebitda9.55
Forecast
1Y Price Target
$3.13Price Target Upside7.56% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering4
EPS Forecast (FY)0.45
Revenue Forecast (FY)$4.07B
iHeartMedia Business Overview & Revenue Model
Company DescriptioniHeartMedia, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents approximately 120 syndicated radio programs and services to approximately 6,400 radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news through approximately 2,100 radio stations and 170 television affiliates, and Internet and mobile partnerships. As of December 31, 2021, this segment owned 863 radio stations, which included 249 AM and 614 FM radio stations. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web-based service for radio stations, digital-only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business. This segment also provides cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to approximately 10,000 radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. iHeartMedia, Inc. is headquartered in San Antonio, Texas.
How the Company Makes MoneyiHeartMedia generates revenue primarily through advertising sales, which account for a significant portion of its earnings. The company sells advertising inventory across its radio stations and digital platforms, allowing businesses to reach diverse audiences through targeted marketing campaigns. Additionally, iHeartMedia monetizes its podcasting initiatives and streaming services, attracting advertisers looking to engage with listeners in innovative ways. The company also earns revenue from live events, including concerts and festivals, which not only serve as entertainment but also as platforms for brand sponsorships. Strategic partnerships with various advertisers and technology providers enhance iHeartMedia's ability to deliver comprehensive advertising solutions, further solidifying its revenue streams.
iHeartMedia Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasizes strong momentum in Digital Audio and podcasting (double-digit revenue and EBITDA growth, improving margins), meaningful programmatic and partnership progress, improved free cash flow and a concrete cost-savings plan. Offsetting these positives are near-term profitability pressure in the Multiplatform and Audio & Media Services segments (largely driven by tough political-year comps), high net leverage and interest expense, and some timing-related EBITDA volatility from noncash programmatic investments. Management provided constructive 2026 guidance (targeting ~$800M EBITDA, ~$200M FCF, and ~50% programmatic growth) and clear cost-savings targets, signaling confidence in recovery and margin expansion over the year.Q4-2025 Updates
Positive Updates
Consolidated Revenue Growth (Ex-Political)
Consolidated revenue of $1.1B in Q4, up 0.8% year-over-year; excluding the impact of political revenue, consolidated revenue was up 7.7%.
Digital Audio Group Outperformance
Digital Audio Group (DAG) Q4 revenue $387M, up 14.1% YoY and above guidance; DAG adjusted EBITDA $132M, up 10.7% YoY; DAG adjusted EBITDA margins 34.1% in Q4 and full-year 34.4% (up from 32.5% prior year).
Strong Podcast Momentum
Podcast revenue grew to $174M in Q4, up 24.5% YoY and above guidance; ~47% of podcast revenue generated by local sales (vs ~13% in Q4 2020); podcasting margins accretive to company EBITDA.
Growth in Non‑Podcast Digital
Non-podcast digital revenue grew 6.8% YoY in Q4 to $213M, contributing to overall digital strength.
Programmatic & Strategic Partnerships
Committed programmatic build with partnerships (Amazon DSP, Yahoo! DSP, etc.); expected inclusion of broadcast inventory on Amazon DSP in H2; company expects programmatic revenue of ~$200M in 2026 (up ~50% vs $135M in 2025).
Free Cash Flow Improvement and Conversion
Q4 free cash flow $138M (or $158M including real estate proceeds) vs negative $24M prior year; Q4 EBITDA-to-free-cash-flow conversion ~70%; company guiding to ~ $200M free cash flow for full year.
Cost Savings and Efficiency Gains
Achieved previously announced $150M net cost savings in 2025; targeting $100M of in-year cost reductions for 2026 (includes $50M newly announced savings starting in Q2).
Positive Guidance and Roadmap for 2026
Q1 guidance: consolidated revenue up high single digits, adjusted EBITDA ~ $100M; Full-year guidance: adjusted EBITDA ~ $800M, FCF ~ $200M; expect Multiplatform Group to return to EBITDA growth and podcast & programmatic momentum to continue.
Negative Updates
Q4 Adjusted EBITDA Decline
Q4 consolidated adjusted EBITDA was $220M (midpoint of guidance) vs $246M prior year (down $26M, ~10.6%); prior-year quarter benefited from approximately $80M of political revenue, making comps challenging.
Multiplatform Group Profitability Pressure
Multiplatform Group revenue $665M, down 2.8% YoY; adjusted EBITDA $129M, down 14.2% YoY; adjusted EBITDA margin fell to 19.4% from 21.9% in prior-year quarter (prior benefited from ~ $40M political).
Audio & Media Services Decline
Audio & Media Services revenue $79M, down 19.3% YoY (prior-year quarter benefited from ~$35M political); adjusted EBITDA $31M, down 35.7% YoY — largely driven by political revenue comps.
High Leverage and Significant Interest Expense
Year-end net debt ~ $4.5B and net debt-to-adjusted-EBITDA 6.6x; total liquidity $640M and cash $271M (includes $50M borrowed under ABL); company expects interest expense of ~ $440M in 2026.
Quarterly Timing and Noncash Mismatches from Programmatic Build
Use of noncash co-marketing partnerships to build programmatic and audience database creates quarterly mismatches of noncash revenues and expenses that can drag near-term EBITDA and complicate quarter-to-quarter comparability.
GAAP Operating Income Decline
Q4 GAAP operating income $86M vs $105M in prior year, reflecting lower operating profitability on a GAAP basis.
Macro & Weather-Related Advertising Uncertainty
Management cited Q4 disruption from major weather events and macro/geo-political uncertainty (Middle East) that impacted advertising demand and contributed to short-term volatility.
Company Guidance
iHeart guided to Q1 2026 adjusted EBITDA of approximately $100 million and consolidated revenue up high single digits (January was up ~1% YoY, versus a tough Jan‑2025 comp of +5.5%). Q1 segment guidance: Digital Audio Group revenue up mid‑teens with podcast revenue up in the low‑20s, Multiplatform Group revenue up mid‑single digits, and Audio & Media Services revenue up high single digits. For full‑year 2026 they expect adjusted EBITDA of ≈$800 million and free cash flow of ≈$200 million, including ~ $200 million of programmatic revenue (up ~50% from $135M in 2025), ~$100 million of in‑year cost savings ( $50M previously announced + $50M new, benefitting beginning in Q2), interest expense of ≈$440M, cash taxes ~5% of adjusted EBITDA, capex ≈$90M, cash restructuring ≈$50M, working capital to be a source of cash (driven by upfront political receipts), and a year‑end net leverage target in the mid‑5s (vs. ~6.6x at year‑end 2025); management also expects the Multiplatform Group to return to EBITDA growth and continued podcast and programmatic momentum.iHeartMedia Financial Statement Overview
Summary
Revenue rebounded sharply in 2025 (+23.2% YoY) and operating cash flow stayed positive, but profitability remains weak with persistent net losses and negative EBIT. Balance-sheet risk is elevated due to very high debt (~$5.8B) and negative equity (2023–2025), while free cash flow was only narrowly positive in 2025 (~$11M) after turning negative in 2024.Income Statement
Revenue rebounded strongly in 2025 (+23.2% YoY) after modest growth in 2024 and a decline in 2023, showing demand has improved. However, profitability remains weak: net losses persist across every year shown (2020–2025), and 2025 still posted a sizable loss (net margin about -12.2%). Operating performance is mixed—EBITDA is positive (2025 EBITDA margin ~7.5%) but has compressed versus 2021–2023 levels, while EBIT remains negative in recent years, indicating ongoing cost/interest burden that the core business has not consistently out-earned.34
Negative
Balance Sheet
Leverage is the key constraint. Total debt remains very high (~$5.8B in 2025), and stockholders’ equity is negative in 2023–2025, which is a meaningful balance-sheet stress signal and reduces financial flexibility. While total assets are sizable (~$5.1B in 2025), the negative equity position and history of heavy losses raise refinancing and volatility risk, especially if operating results soften.18
Very Negative
Cash Flow
Cash generation is positive but inconsistent. Operating cash flow stayed positive in each year shown, but it is relatively light in 2024–2025 ($71M and $93M) versus stronger performance in 2022–2023. Free cash flow swung from strong positives in 2021–2023 to negative in 2024, then narrowly positive in 2025 (~$11M), highlighting limited cushion. The business is converting only a modest portion of accounting losses into cash in 2024–2025 (free cash flow is small relative to net loss), which is helpful, but not yet strong enough to materially de-risk the capital structure.41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.86B | 3.85B | 3.75B | 3.91B | 3.56B |
| Gross Profit | 1.89B | 2.27B | 2.26B | 2.43B | 2.23B |
| EBITDA | 641.66M | 569.15M | 599.46M | 529.39M | 682.01M |
| Net Income | -472.87M | -1.01B | -1.10B | -264.66M | -159.20M |
Balance Sheet | |||||
| Total Assets | 5.13M | 5.57B | 6.95B | 8.34B | 8.88B |
| Cash, Cash Equivalents and Short-Term Investments | 270.90K | 259.58M | 346.38M | 336.24M | 352.13M |
| Total Debt | 5.79B | 5.86B | 6.05B | 6.33B | 6.57B |
| Total Liabilities | 6.71B | 6.94B | 7.34B | 7.65B | 7.97B |
| Stockholders Equity | -1.83B | -1.38B | -394.15M | 674.90M | 907.36M |
Cash Flow | |||||
| Free Cash Flow | 10.91M | -26.16M | 110.39M | 259.11M | 147.20M |
| Operating Cash Flow | 92.58M | 71.43M | 213.06M | 420.07M | 330.57M |
| Investing Cash Flow | -66.24M | 508.00K | -51.33M | -129.23M | -346.79M |
| Financing Cash Flow | -15.31M | -158.34M | -152.16M | -306.11M | -352.12M |
iHeartMedia Technical Analysis
Negative
2.91
Price Trends
3.41
Negative
3.71
Negative
2.95
Negative
Market Momentum
-0.18
Positive
41.71
Neutral
23.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IHRT, the sentiment is Negative. The current price of 2.91 is below the 20-day moving average (MA) of 3.13, below the 50-day MA of 3.41, and below the 200-day MA of 2.95, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 41.71 is Neutral, neither overbought nor oversold. The STOCH value of 23.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IHRT.
iHeartMedia Risk Analysis
iHeartMedia disclosed 30 risk factors in its most recent earnings report. iHeartMedia 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
iHeartMedia Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $293.36M | -3.41 | -98.27% | 6.56% | -45.95% | -75.87% | |
52 Neutral | $322.28M | -3.48 | 1.81% | ― | -3.27% | 86.01% | |
52 Neutral | $71.87M | -8.92 | 0.18% | 8.81% | -0.77% | -93.46% | |
48 Neutral | $408.78M | -1.37 | 27.00% | ― | 1.39% | 61.75% | |
44 Neutral | $52.55M | -1.45 | -49.86% | ― | 83.96% | -73.70% | |
40 Underperform | $6.64M | -0.67 | -5.86% | ― | -7.78% | -369.53% |
* Communication Services Sector Average
IHRT
iHeartMedia
2.91
1.33
84.18%
BBGI
Beasley Broadcast Group
3.68
-2.22
-37.63%
SSP
E. W. Scripps Company Class A
3.62
0.26
7.74%
EVC
Entravision
3.19
1.20
60.22%
SGA
Saga Communications
11.16
-0.76
-6.38%
MDIA
Mediaco Holding
0.64
-0.54
-45.59%
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.