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iHeartMedia (IHRT)
NASDAQ:IHRT
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iHeartMedia
(NASDAQ:IHRT)
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Rating:52Neutral
Price Target:
$5.00
▲(8.23% Upside)
iHeartMedia's stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high leverage. While technical indicators show bullish momentum, the valuation remains unattractive due to ongoing losses. The earnings call provided mixed insights, with growth in digital segments but challenges in others. The new CFO appointment is a positive step but has limited immediate impact.
Positive Factors
Digital Audio Growth
Strong growth in the Digital Audio Group indicates a successful expansion in digital platforms, enhancing long-term revenue potential and market position.
Podcast Revenue Increase
The significant increase in podcast revenue showcases iHeartMedia's effective monetization of digital content, supporting sustainable growth in the evolving media landscape.
Cost Reduction Initiatives
Ongoing cost reduction efforts improve operational efficiency, allowing iHeartMedia to better manage financial challenges and enhance profitability over time.
Negative Factors
High Leverage
High leverage and negative equity pose significant financial risks, limiting iHeartMedia's flexibility to invest in growth opportunities and manage economic downturns.
Operating Loss
Continued operating losses highlight ongoing profitability challenges, potentially undermining long-term financial stability and investor confidence.
Declining Revenue in Key Segments
Declining revenue in key segments like the Multiplatform Group indicates challenges in maintaining market share and competitiveness in traditional media channels.
iHeartMedia (IHRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$627.63M
Dividend YieldN/A
Average Volume (3M)1.26M
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth1.39%
EPS Growth61.75%
CountryUS
Employees8,080
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)-0.43
Shares Outstanding128,971,190
10 Day Avg. Volume1,728,311
30 Day Avg. Volume1,256,865
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)-0.22
Price to Sales (P/S)0.08
P/FCF Ratio-11.45
Enterprise Value/Market Cap9.76
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit2.72
Enterprise Value/Ebitda11.03
Forecast
1Y Price Target
$4.50Price Target Upside-2.60% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-2.58
Revenue Forecast (FY)$3.82B
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:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong growth and new partnerships in the Digital Audio Group and podcasting segment, but faced challenges in the Multiplatform Group and Audio and Media Services Group. While cost-saving measures are positive, the operating loss and negative free cash flow reflect ongoing challenges.Q3-2025 Updates
Positive Updates
Digital Audio Group Revenue Growth
The Digital Audio Group generated third quarter revenue of $342 million, up 13.5% versus prior year, above guidance of high single digits.
Podcast Revenue Increase
Podcast revenue grew 22.5% compared to the prior year, with 50% of podcasting revenue generated by the local sales force.
New Partnership with TikTok
A partnership with TikTok was announced, including a slate of podcasts from TikTok creators and a dedicated broadcast radio station.
Cost Reduction Initiatives
The company is on track to generate $150 million net savings in 2025 and announced additional $50 million savings beginning in 2026.
Negative Updates
Multiplatform Group Revenue Decline
The Multiplatform Group's revenue was $591 million, down 4.6% versus prior year, and adjusted EBITDA was down 8.3%.
Audio and Media Services Group Revenue Drop
Revenue for this segment was $67 million, down 26% year over year, primarily due to the absence of political advertising.
Operating Loss
The company reported a third quarter GAAP operating loss of $116 million, including a $29 million impairment charge related to FCC licenses.
Free Cash Flow Decline
Free cash flow was a negative $33 million compared to $73 million in the prior year quarter, influenced by timing of working capital items.
Company Guidance
In the third quarter of 2025, iHeartMedia, Inc. reported adjusted EBITDA of $205 million, aligning closely with the midpoint of their guidance range of $180 million to $220 million and remaining flat compared to the prior year. The company's consolidated revenue was down 1.1% year-over-year, which was at the high end of their guidance range of down low single digits. Excluding political impacts, consolidated revenue actually increased by 2.8%. The Digital Audio Group achieved revenue of $342 million, marking a significant 13.5% increase from the previous year, surpassing guidance expectations of high single-digit growth. This segment also saw its adjusted EBITDA margin rise to 38.1%, up from 33.2% the previous year. Podcast revenue grew by 22.5%, in line with guidance, supported by a strong local sales force which contributed to 50% of podcasting revenue. The Multiplatform Group's revenue was $591 million, a decrease of 4.6% from the previous year, but within the expected guidance range. Excluding political advertising, this segment's revenue was down 2.5%, with an adjusted EBITDA of $119 million, down 8.3% year-over-year. The company has also been advancing its sales modernization efforts with partnerships like Amazon for programmatic audio sales, aiming for additional cost savings and revenue growth opportunities. iHeartMedia remains optimistic about its digital business growth and is focused on improving monetization strategies across its platforms.iHeartMedia Financial Statement Overview
Summary
iHeartMedia is facing significant financial challenges. The income statement shows declining revenues and persistent losses, the balance sheet is burdened with high leverage and negative equity, and cash flow improvements are needed to support operations and reduce financial risk.Income Statement
iHeartMedia's income statement reveals significant challenges, with declining revenue growth and negative net profit margins over the TTM period. The gross profit margin remains relatively stable, but the negative EBIT and net income indicate ongoing profitability issues. The company needs to address these challenges to improve its financial health.45
Neutral
Balance Sheet
The balance sheet shows a concerning financial structure with negative stockholders' equity and a high debt-to-equity ratio, indicating significant leverage. Return on equity is negative, reflecting poor profitability. The company faces substantial financial risk and needs to improve its equity position to stabilize its balance sheet.30
Negative
Cash Flow
Cash flow analysis indicates some improvement in free cash flow growth, but operating cash flow remains negative in the TTM period. The operating cash flow to net income ratio is low, suggesting challenges in converting income into cash. The company must enhance its cash flow generation to support operations and reduce financial risk.40
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 | 2.25B | 2.27B | 2.26B | 2.43B | 2.23B | 1.81B |
| EBITDA | 555.41M | 569.15M | 599.46M | 529.39M | 682.01M | 404.06M |
| Net Income | -399.48M | -1.01B | -1.10B | -264.66M | -159.20M | -1.91B |
Balance Sheet | ||||||
| Total Assets | 5.09B | 5.57B | 6.95B | 8.34B | 8.88B | 9.20B |
| Cash, Cash Equivalents and Short-Term Investments | 192.24M | 259.58M | 346.38M | 336.24M | 352.13M | 723.34M |
| Total Debt | 5.87B | 5.86B | 6.05B | 6.33B | 6.57B | 6.92B |
| Total Liabilities | 6.88B | 6.94B | 7.34B | 7.65B | 7.97B | 8.15B |
| Stockholders Equity | -1.79B | -1.38B | -394.15M | 674.90M | 907.36M | 1.04B |
Cash Flow | ||||||
| Free Cash Flow | -150.87M | -26.16M | 110.39M | 259.11M | 147.20M | 130.74M |
| Operating Cash Flow | -62.46M | 71.43M | 213.06M | 420.07M | 330.57M | 215.94M |
| Investing Cash Flow | -80.89M | 508.00K | -51.33M | -129.23M | -346.79M | -147.81M |
| Financing Cash Flow | -96.01M | -158.34M | -152.16M | -306.11M | -352.12M | 241.18M |
iHeartMedia Technical Analysis
Positive
4.62
Price Trends
3.80
Positive
3.11
Positive
2.32
Positive
Market Momentum
0.21
Negative
60.12
Neutral
38.31
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 4.62 is above the 20-day moving average (MA) of 4.16, above the 50-day MA of 3.80, and above the 200-day MA of 2.32, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 38.31 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $360.54M | -9.30 | 1.81% | ― | -3.27% | 86.01% | |
63 Neutral | $72.77M | 229.29 | 0.18% | 8.85% | -0.77% | -93.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $275.66M | -2.36 | -81.68% | 6.60% | -45.95% | -75.87% | |
52 Neutral | $627.63M | -1.75 | ― | ― | 1.39% | 61.75% | |
46 Neutral | $9.31M | -1.05 | -5.90% | ― | -7.78% | -369.53% | |
38 Underperform | $51.80M | -1.09 | -53.47% | ― | 83.96% | -73.70% |
* Communication Services Sector Average
IHRT
iHeartMedia
4.62
2.65
134.52%
BBGI
Beasley Broadcast Group
5.16
-3.32
-39.15%
SSP
E. W. Scripps Company Class A
4.06
2.02
99.02%
EVC
Entravision
3.03
0.83
37.73%
SGA
Saga Communications
11.30
0.51
4.73%
MDIA
Mediaco Holding
0.63
-0.57
-47.50%
iHeartMedia Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
iHeartMedia Announces New CFO Appointment
Positive
Dec 1, 2025
On November 25, 2025, iHeart Management Services, a subsidiary of iHeartMedia, announced an amendment to the employment agreement with Michael McGuinness, effective January 1, 2026. McGuinness will assume the role of Chief Financial Officer, with an extended contract through June 30, 2030, and an increased annual salary and bonus structure, reflecting the company’s strategic focus on strengthening its financial leadership.
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.