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iHeartMedia (IHRT)
NASDAQ:IHRT
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iHeartMedia
(NASDAQ:IHRT)
Rating:48Neutral
Price Target:
$1.50
▼(-3.23%Downside)
Positive Factors
Cost Reduction
Cost reduction efforts have yielded $150 million for full-year 2025, helping to offset a softer ad market.
Podcast Revenue
Podcast revenue was very strong, up 28%.
Programmatic Advertising
IHRT appears poised to start generating incremental advertising revenue from programmatic.
Negative Factors
Economic Uncertainty
Economic uncertainty related to tariffs has the potential to negatively impact advertising trends.
Macroeconomic Uncertainty
Macroeconomic uncertainty is a downside risk to company guidance and forecasts.
Radio Ad Market
A difficult radio ad market remains a headwind, with macro concerns impacting multiple advertiser categories and causing revenue trends to falter.
iHeartMedia (IHRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$188.26M
Dividend YieldN/A
Average Volume (3M)606.73K
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth3.31%
EPS Growth-39.47%
CountryUS
Employees8,080
SectorCommunication Services
Sector Strength83
IndustryBroadcasting
Share Statistics
EPS (TTM)-1.84
Shares Outstanding126,434,425
10 Day Avg. Volume408,615
30 Day Avg. Volume606,730
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.14
Price to Sales (P/S)0.00
P/FCF Ratio5.16
Enterprise Value/Market Cap31.03
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit2.59
Enterprise Value/Ebitda-4.08
Forecast
1Y Price Target
$1.43Price Target Upside-7.74% Downside
Rating ConsensusHold
Number of Analyst Covering3
iHeartMedia Business Overview & Revenue Model
Company DescriptioniHeartMedia, Inc. (IHRT) is a leading global media and entertainment company specializing in radio broadcasting, digital streaming, podcasting, and live events. With a presence across multiple platforms, iHeartMedia operates radio stations, offers digital services through the iHeartRadio app, and produces a wide range of popular podcasts. The company's core products and services include traditional and digital audio content that engage audiences through diverse entertainment experiences.
How the Company Makes MoneyiHeartMedia generates revenue primarily through advertising sales across its various platforms, including traditional radio, digital streaming, and podcasts. The company leverages its vast reach to attract advertisers who seek to engage with diverse audiences. Key revenue streams include spot advertising on radio stations, digital advertising on its iHeartRadio app and website, and commercial sponsorships within its extensive podcast network. Additionally, iHeartMedia earns money from live events and concerts, offering brands sponsorship opportunities and exclusive partnerships. The company's ability to integrate cross-platform advertising solutions and its strategic partnerships with content creators and advertisers significantly contribute to its earnings.
iHeartMedia Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 20.16%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in digital audio and podcasting, with significant growth and margin improvements. However, the multi-platform group and audio & media services group faced declines, and the company reported an overall operating loss and negative free cash flow. The modernization program is on track to provide significant cost savings. Despite some challenges, digital growth provides a positive outlook.Q1-2025 Updates
Positive Updates
Digital Audio Group Growth
The Digital Audio Group generated first-quarter revenue of $277 million, up 16% versus prior year. Adjusted EBITDA was $87 million, up 27.8% versus prior year, with margins increasing to 31.4% from 28.5%.
Podcast Revenue Surge
Podcast revenue grew 28% compared to the prior year, well above the guidance of high teens growth. Podcasting EBITDA margins remain accretive to the total company margins.
Modernization Program Savings
The modernization program remains on track to generate $150 million in net savings in 2025, with $27 million of savings realized in Q1.
Premiere Broadcast Networks Revenue Growth
Premiere Broadcast Networks revenue returned to growth in Q1, up 2.1% compared to the prior year, indicating strength in national advertising.
Negative Updates
Multi-Platform Group Revenue Decline
Multi-Platform Group revenue was $473 million, down 4.2% versus prior year, with adjusted EBITDA down 9.3%.
Audio & Media Services Group Challenges
Revenue for this segment was $59 million, down 14.2% year-over-year, with adjusted EBITDA down 33.3%.
Overall Operating Loss
The company reported a GAAP operating loss of $25.4 million for the first quarter.
Negative Free Cash Flow
Free cash flow was negative $80.7 million in the first quarter, flat compared to the prior year.
Company Guidance
During iHeartMedia's first quarter 2025 earnings call, the company provided various metrics reflecting their financial performance and guidance. The first quarter saw the company generate an adjusted EBITDA of $105 million, which was consistent with their prior guidance. Consolidated revenue increased by 1% year-over-year, surpassing their guidance of a low single-digit decline. The Digital Audio Group reported a revenue increase of 16% to $277 million, with podcast revenue growing 28%, exceeding expectations of high teens growth. Meanwhile, the Multiplatform Group saw a 4.2% revenue decline to $473 million, but Premiere Broadcast Networks returned to growth with a 2.1% revenue increase. Additionally, iHeartMedia's share of the radio industry advertising revenue grew to 40%. For the second quarter, the company expects adjusted EBITDA between $140 million and $160 million and anticipates a low single-digit decline in consolidated revenue. The company also highlighted ongoing cost-saving initiatives projected to yield $150 million in net savings for 2025, with $27 million realized in Q1.iHeartMedia Financial Statement Overview
Summary
iHeartMedia faces significant financial challenges, with high leverage, negative equity, and ongoing net losses. The company's financial health is under pressure due to declining profitability and cash flow issues.Income Statement
iHeartMedia's income statement reveals a concerning trend with declining revenue and persistent net losses. Despite a slight increase in revenue in 2024, the company reported a significant net loss, resulting in negative net and EBIT margins. The company's gross profit margin improved due to a reduction in cost of goods sold, but the overall profitability remains weak.30
Negative
Balance Sheet
The balance sheet shows a negative equity position, indicating potential financial instability. The debt-to-equity ratio is undefined due to negative equity, highlighting the company's high leverage. Total liabilities surpass total assets, and the company's equity ratio is negative, reflecting an unsustainable financial structure.20
Very Negative
Cash Flow
Cash flow analysis shows a decline in free cash flow in the latest year, which is a concern for liquidity. Although operating cash flow covers net income, indicating some operational efficiency, the negative free cash flow to net income ratio points to challenges in generating cash from operations.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.86B | 3.85B | 3.75B | 3.91B | 3.56B | 2.95B | Gross Profit |
| 2.26B | 2.27B | 2.26B | 2.43B | 2.23B | 1.79B | EBIT |
| -753.83M | -763.11M | -797.31M | 366.04M | 226.68M | 1.75B | EBITDA |
| -494.02M | -378.88M | 601.75M | 837.32M | 708.85M | 411.04M | Net Income Common Stockholders |
| -1.27B | -1.01B | -1.10B | -262.67M | -158.39M | -1.92B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 361.40M | 259.58M | 346.38M | 336.24M | 352.10M | 720.66M | Total Assets |
| 6.76B | 5.57B | 6.95B | 8.34B | 8.88B | 9.20B | Total Debt |
| 6.04B | 5.86B | 6.05B | 6.33B | 6.57B | 6.86B | Net Debt |
| 5.68B | 5.60B | 5.71B | 6.00B | 6.21B | 6.14B | Total Liabilities |
| 7.16B | 6.94B | 7.34B | 7.65B | 7.97B | 8.15B | Stockholders Equity |
| -404.97M | -1.38B | -394.15M | 684.50M | 915.80M | 1.05B |
| Cash Flow | Free Cash Flow | ||||
| 34.96M | -26.16M | 110.39M | 259.11M | 147.20M | 130.74M | Operating Cash Flow |
| 130.71M | 71.43M | 213.06M | 420.07M | 330.57M | 215.94M | Investing Cash Flow |
| -97.57M | 508.00K | -51.33M | -129.23M | -346.79M | -147.81M | Financing Cash Flow |
| -165.84M | -158.34M | -152.16M | -306.11M | -352.12M | 241.18M |
iHeartMedia Technical Analysis
Positive
1.55
Price Trends
1.24
Positive
1.64
Negative
1.80
Negative
Market Momentum
0.06
Negative
69.02
Neutral
75.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IHRT, the sentiment is Positive. The current price of 1.55 is above the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.24, and below the 200-day MA of 1.80, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 69.02 is Neutral, neither overbought nor oversold. The STOCH value of 75.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IHRT.
iHeartMedia Risk Analysis
iHeartMedia disclosed 28 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $446.88M | 7.76 | 14.97% | ― | -33.83% | -38.30% | |
61 Neutral | $14.20B | 5.93 | -4.31% | 3.70% | 2.75% | -35.73% | |
60 Neutral | $539.16M | ― | -2.83% | 1.64% | 4.18% | -207.46% | |
59 Neutral | $943.04M | 6.86 | 34.07% | 7.38% | 11.62% | ― | |
57 Neutral | $73.75M | ― | -16.55% | ― | -2.67% | 21.65% | |
55 Neutral | $593.09M | ― | -51.21% | ― | -14.71% | 66.24% | |
48 Neutral | $188.26M | ― | 86.54% | ― | 3.31% | -39.47% |
* Communication Services Sector Average
Performance Comparison
IHRT
iHeartMedia
1.55
0.45
40.91%
GRVY
Gravity Co
62.86
-19.52
-23.70%
MCHX
Marchex
1.90
0.25
15.15%
MCS
Marcus
17.13
7.03
69.60%
SBGI
Sinclair Broadcast
12.79
0.93
7.84%
THRY
Thryv Holdings
13.47
-7.66
-36.25%
iHeartMedia Corporate Events
Executive/Board ChangesShareholder Meetings
iHeartMedia Holds 2025 Annual Stockholders Meeting
Neutral
May 19, 2025
On May 13, 2025, iHeartMedia, Inc. conducted its 2025 Annual Meeting of Stockholders, where 83.7% of the company’s Class A common stock was represented. During the meeting, all proposed directors were elected, and the appointment of Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2025, was ratified. Additionally, the compensation of the company’s named executive officers was approved on an advisory basis.
The most recent analyst rating on (IHRT) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on iHeartMedia stock, see the IHRT Stock Forecast page.
Executive/Board Changes
iHeartMedia Appoints New Chief Legal Officer
Positive
Apr 24, 2025
On April 24, 2025, iHeartMedia announced the appointment of David Hillman as Executive Vice President, Chief Legal Officer, and Secretary, effective April 28, 2025. Hillman brings extensive media experience from his previous roles at Venu Sports and Paramount Global. His appointment is expected to bolster iHeartMedia’s legal and corporate governance functions as the company continues to expand its leadership in the audio industry.
Executive/Board ChangesShareholder Meetings
iHeartMedia Nominates Robert Millard to Board of Directors
Neutral
Apr 1, 2025
On April 1, 2025, iHeartMedia announced that Brad Gerstner will not seek re-election to its Board of Directors, ending his tenure to focus on other commitments. Gerstner, who joined the board in 2019, has been influential in guiding iHeartMedia’s technology transitions and growth in the audio industry. Concurrently, iHeartMedia nominated Robert Millard, a seasoned executive with extensive experience in business and finance, to stand for election at the 2025 Annual Meeting. Millard’s potential appointment is expected to bring strategic insights and bolster iHeartMedia’s growth trajectory.
Executive/Board Changes
iHeartMedia Announces Resignation of Chief Legal Officer
Neutral
Mar 5, 2025
On March 3, 2025, iHeartMedia announced the resignation of Jordan R. Fasbender, the Executive Vice President, Chief Legal Officer, and Secretary, effective on or around April 1, 2025. Her departure is to pursue another opportunity outside the company and is not due to any disagreements regarding company operations, policies, or practices.
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.