iHeartMedia (IHRT) AI Stock Analysis

• Market Cap: $297.13M
• Dividend Yield: N/A
• Average Volume (3M): 844.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: 3.18%
• EPS Growth: 62.89%
• Country: US
• Employees: 8,080
• Sector: Communication Services
• Sector Strength: 89
• Industry: Broadcasting
• EPS (TTM): -0.54
• Shares Outstanding: 128,954,710
• 10 Day Avg. Volume: 724,947
• 30 Day Avg. Volume: 844,812
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 19.98
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: 13.57
• 1Y Price Target: $2.20
• Price Target Upside: 3.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $2.50 ▲(17.37% Upside)

iHeartMedia's overall stock score is driven by significant financial challenges, including high leverage and negative equity, which weigh heavily on its financial performance score. Despite positive technical indicators suggesting bullish momentum, valuation remains a concern due to ongoing losses. The earnings call provided a balanced view with strong digital growth but highlighted revenue declines in key segments.

Positive Factors

Earnings

Second quarter revenues were $933 million, above analyst's estimate of $907 million and at the high end of the company’s guidance.

Podcast Growth

Podcast continues to drive growth in the segment, increasing by 28.5% from the prior year, ahead of the company’s expectations.

Negative Factors

Macro Environment

Management noted that meeting its full year outlook likely required an improvement in the ad market.

Market Conditions

A difficult radio ad market remains a headwind.

Visibility

Visibility remains limited given recent macro uncertainty.

iHeartMedia Business Overview & Revenue Model

Company Description

iHeartMedia, 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 Money

iHeartMedia generates revenue primarily through advertising sales, which account for a significant portion of its earnings. The company sells advertising space across its radio stations, digital platforms, and live events, allowing businesses to reach targeted audiences. Additionally, iHeartMedia benefits from partnerships with various brands and advertisers, enabling sponsored content and promotional opportunities. The company's digital segment, including iHeartRadio, contributes to its revenue through digital advertising and subscription services. Furthermore, the company engages in live event promotions, generating income from ticket sales and sponsorship deals. Overall, iHeartMedia's diverse revenue streams, combined with its extensive reach in the media landscape, support its financial performance.

iHeartMedia Financial Statement Overview

Summary

iHeartMedia faces significant financial challenges with mixed income statement performance, high leverage, negative equity, and weak cash flow generation. While there is some revenue growth, profitability remains a concern with persistent net losses.

Income Statement

iHeartMedia's income statement shows mixed performance. The TTM data indicates a slight revenue growth of 11.8%, but the company continues to face challenges with profitability, as evidenced by a negative net profit margin of -9.68%. The gross profit margin has decreased compared to previous years, indicating potential cost management issues. Despite a positive EBIT margin in TTM, historical EBIT and EBITDA margins have been negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -3.87 in TTM, indicating a reliance on debt financing. The negative stockholders' equity suggests financial instability, and the return on equity, although positive in TTM, is driven by negative equity, which is concerning. The equity ratio is also negative, highlighting potential solvency issues.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a significant drop of -136.22% in TTM. The operating cash flow to net income ratio is low at 0.12, indicating limited cash generation relative to net losses. However, the company maintains a positive free cash flow to net income ratio, suggesting some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.87B	3.85B	3.75B	3.91B	3.56B	2.95B
Gross Profit	2.25B	2.27B	2.26B	2.43B	2.23B	1.79B
EBITDA	437.52M	-378.88M	-344.42M	529.39M	682.01M	404.06M
Net Income	-374.48M	-1.01B	-1.10B	-262.67M	-158.39M	-1.92B
Balance Sheet
Total Assets	5.38B	5.57B	6.95B	8.34B	8.88B	9.20B
Cash, Cash Equivalents and Short-Term Investments	235.93M	259.58M	346.38M	336.24M	352.10M	720.66M
Total Debt	5.90B	5.86B	6.05B	6.33B	6.57B	6.86B
Total Liabilities	7.11B	6.94B	7.34B	7.65B	7.97B	8.15B
Stockholders Equity	-1.73B	-1.38B	-394.15M	684.50M	915.80M	1.05B
Cash Flow
Free Cash Flow	9.41M	-26.16M	110.39M	259.11M	147.20M	130.74M
Operating Cash Flow	103.98M	71.43M	213.06M	420.07M	330.57M	215.94M
Investing Cash Flow	-96.01M	508.00K	-51.33M	-129.23M	-346.79M	-147.81M
Financing Cash Flow	-82.85M	-158.34M	-152.16M	-306.11M	-352.12M	241.18M

iHeartMedia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.13 is above the 20-day moving average (MA) of 2.06, above the 50-day MA of 1.97, and above the 200-day MA of 1.84, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 16.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IHRT.

iHeartMedia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGA	64 Neutral	$77.28M	35.99	1.23%	8.33%	-1.72%	-66.67%
SSP	61 Neutral	$264.12M	6.15	8.30%	―	5.25%	―
Sector *	60 Neutral	$44.01B	4.39	-12.81%	4.08%	1.86%	-42.71%
IHRT	58 Neutral	$297.13M	―	86.54%	―	3.18%	62.89%
EVC	54 Neutral	$235.63M	―	-75.89%	7.72%	-58.44%	-130.21%
BBGI	45 Neutral	$8.32M	3.37	-5.76%	―	-5.52%	87.59%
MDIA	―	$72.39M	4.59	55.64%	―	―	―

iHeartMedia Corporate Events

iHeartMedia Appoints New Principal Accounting Officer

On May 30, 2025, iHeartMedia, Inc. announced a transition in its accounting leadership, with Scott Hamilton moving to a consulting role effective June 2, 2025, and Michael B. McGuinness appointed as the new principal accounting officer on June 5, 2025. This change was not due to any disputes or disagreements within the company, ensuring a smooth transition in its financial leadership.

iHeartMedia Holds 2025 Annual Stockholders Meeting

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.