IHRT

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 4:30 p.m. ET Senior Vice President of Investor Relations - Andrey Hart Chairman and Chief Executive Officer - Robert W. Pittman President and Chief Operating Officer - Richard J. Bressler Chief Financial Officer - Michael McGuinness Operator: Afternoon and welcome to iHeartMedia's Second Quarter 26 Earnings Call. All participants are in a listen only mode. After the speakers' remarks, we will conduct a question-and-answer session. As a reminder, this conference call is being recorded. I would now like to turn the call over to Andrey Hart, Senior Vice President of Investor Relations. You, please go ahead. Andrey Hart: Good afternoon, everyone. And thank you for taking the time to join us for our second quarter 26 earnings call. Joining me for today's discussion are Bob Pittman, our Chairman and CEO; Richard J. Bressler, our president and COO and Michael McGuinness, our CFO. At the conclusion of our prepared remarks, management will take your questions. Addition to our press release, we have an earnings presentation available on our website that you can use to follow along with our remarks. Please note that this call may include forward looking statements regarding our financial performance and operating results. These statements are based on management's current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings. Including our recent 8-Ks filing. Additionally, during this call, we will refer to certain non GAAP financial measures. Reconciliations between GAAP and non GAAP financial measures are included in our earnings release, earnings presentation and our SEC filings. Which are available in the Investor Relations section of our website. And now, I will turn the call over to Bob. Robert W. Pittman: Thanks, Andrey, and good afternoon, everyone. In the second quarter, our consolidated revenue was $977 million up 4.7% compared to the prior year quarter and above our guidance of up low-single digits. Excluding the impact of political, our consolidated revenue was up 3.5%. Generated adjusted EBITDA of $152 million in the second quarter, slightly above the midpoint of our previously provided guidance range of $140 million to $160 million. We generated $46 million of free cash flow in the quarter compared to a negative $13 million free cash flow in the prior year quarter. Significantly, our work in building our digital assets, including podcasting continues to pay off. This will be the sixth quarter in a row in which the Digital Audio Group adjusted EBITDA is larger than the multiplatform group adjusted EBITDA. And even when we get the multiplatform group back to growth, we expect this trend to continue. Additionally, we continue our drive for efficiencies in all areas of the company using AI and other technology tools. Turning to our individual operating segments, The Digital Audio Group generated second quarter revenue of $364 million up 12.4% versus prior year and ahead of our previously provided guidance of up approximately 10%. The Digital Audio Group generated second quarter adjusted EBITDA of $123 million up 14.5% versus prior year. The adjusted EBITDA margins were 33.8%. And as a reminder,, we expect to see the Digital Audio Group's full year adjusted EBITDA margins to be in the mid-30s. Within the Digital Audio Group, our podcast revenue momentum continues. It was $162 million for the quarter, up 20.7% compared to prior year of $134 million and in line with our guidance of up in the low-20s. Ending Q2, approximately 50% of our podcast revenue was again generated by our local markets sales force, which provides an additional vector of growth for podcast revenue and sets us apart from our podcast competitors. Our podcasting adjusted EBITDA margins remain accretive to our total company adjusted EBITDA margins, and we believe we are the most profitable podcasting business in the United States, driven by both having the number 1 audience podcasting as measured by both Podtrac and Triton and by applying rigorous financial discipline. We built and continue to build our podcast audience by using our unparalleled audience reach in broadcast radio. In addition to driving the audio only podcast marketplace, those radio assets have also allowed us to develop and drive the new video podcast marketplace, a new and meaningful growth opportunity. As the number 1 podcast publisher, we are now producing video versions of many of our own podcasts and distributing them on our iHeartRadio service as well as on a number of other select podcast platforms. We are also expanding the distribution of our video podcasts and the streaming video services including Netflix and others. In fact, iHeart has become the most successful video podcaster on Netflix, and we are expanding that relationship to now include podcasts from Kate Hudson and Oliver Hudson, Lily Singh, and Martha Stewart. As well as The Breakfast Club with Charlamagne becoming the only live daily show on Netflix. And we announced this morning that we are bringing 6 iHeart titles to Disney's Hulu streaming video service, including video episodes of Hey, Jonas, and Pod Meets World. In the second quarter, digital ex-podcast revenue grew 6.6% compared to prior year, above our previously provided guidance of up low-single digits. Turning now to the multiplatform group, which includes our broadcast radio networks, and events business. Second quarter revenue was $536 million down 1.6% versus prior year and slightly below our guidance range of approximately flat. Excluding the impact of political advertising, multiplatform group revenue was down 2.8%. The multiplatform group's adjusted EBITDA was $59 million compared to 96 million in the prior year. Like many other companies, we are not immune to macroeconomic uncertainty, in particular, gas and diesel prices, which have an impact on the entire economy. We believe the revenue of the multiplatform group and indeed the whole company was impacted in Q2 by this uncertainty. On the expense side, the noncash marketing expenses that we discussed in the last few earnings calls drove the majority of our lower multiplatform group adjusted EBITDA in this quarter. On the consumer side of the multiplatform group business, the company continues to do well. Unlike other traditional media, we have more use of broadcast radio today than we did 20 years ago. Indeed, our broadcast radio now has 2x the audience, of the largest TV network and 4x the audience reach of the largest digital only ad supported audio service. I have said before, we do not have a broadcast radio audience challenge; we have a broadcast radio monetization challenge. Which seems counterintuitive given radio strength with the consumer. We recognize that the reason for this is that advertisers are giving preference to services that are within their digital buying platforms. In response, we are now adding our broadcast radio inventory to DSPs, including Amazon, Google, and Yahoo, as well as developing offerings for other digital planning and buying platforms through our audio graph and programmatic offerings, and we feel confident that our broadcast radio participation in these digital platforms will significantly improve our radio revenue performance and will help the entire radio industry as well. Turning to the audio and media services group, revenue was $80 million. Up 18.8% year over year, driven primarily by the growth of the digital audio and video revenues. Excluding the impact of political revenue, the audio and media services group's revenue was up 10.6%. Adjusted EBITDA was $37 million, up 54.6% compared to the prior year. This segment includes our Cats TV, Cats Radio, and RCS businesses and has continued to grow adjusted EBITDA over time with a focus on an increasingly meaningful digital business, operating efficiencies. I also wanted to briefly touch on political advertising, which will be a major driver of adjusted EBITDA and free cash flow for this company in the back half of the year. As a reminder, historically, the vast majority of our political revenue comes in the back half of the year, and the majority of that is in Q4. Continue to believe that this will be a robust midterm election year in terms of generating political revenue. And with that, I will turn it over to Rich. Richard J. Bressler: Thanks, Bob, and good afternoon. Our Q2 2026 consolidated revenue was up 4.7% compared to the prior year quarter and above our guidance of up low-single digits. Robert W. Pittman: Although we saw some softness that appeared to correlate with the conflict in The Middle East, and the associated economic impacts, we were able to slightly beat our Q2 revenue guidance and the midpoint of our adjusted EBITDA guidance. Richard J. Bressler: Let me provide you with some additional detail on our advertising revenue performance in the second quarter. As a reminder, 1 of our strengths is our diversified advertising revenues. There is no advertising category greater than about 5% of our total advertising revenue and no individual advertiser that is more than 2% of our total advertising revenue. The second quarter, the largest category gainers in terms of absolute dollars were political, gambling, computers, electronics, appliances, and professional services And the 4 categories that declined the most in terms of absolute dollars were telecom, financial services, auto, and food and beverage. In the second quarter, our 5 largest advertising categories in terms of absolute dollars were home building and improvement, financial services, health care, auto, and professional services. Our consolidated direct operating expenses increased 2.4% for the quarter. This increase was primarily driven by higher variable content costs including higher third party digital costs related to the increase in digital revenues. Our consolidated SG&A expenses increased 11.8% for the quarter. This increase was primarily driven by expenses related to our noncash co marketing partnerships. We generated second quarter GAAP operating income of $35.5 million compared to GAAP operating income of $35.4 million in the prior year quarter. We generated adjusted EBITDA of $152 million in the second quarter, slightly above the midpoint of our previously provided guidance range of $140 million to $160 million As we have previously discussed, some of the investment in our proprietary audience database which is the foundation of our broadcast programmatic and audiograph offerings, takes the form of noncash co marketing partnerships to drive engagement with the iHeartRadio digital service. Continue to view these marketing activities as critical to the success of our audiograph and broadcast programmatic initiatives And as a reminder, this is all in support of our efforts to make our broadcast inventory as easy for our advertising partners to transact as our digital inventory. This is 1 of the important steps to returning the multiplatform group back to adjusted EBITDA growth. As discussed on the Q1 call, have continued these partnerships in Q2, and they will start to decrease in the second half of the year. As we have discussed before, all the revenue and expense associated with each partnership has zero impact on adjusted EBITDA over time. And as a reminder, the majority of this revenue and expense impacts the multiplatform group segment. Turning now to the performance of our operating segments. The second quarter, the Digital Audio Group's revenue was $364 million up 12.4% year over year and ahead of our previously provided guidance of up approximately 10%. The Digital Audio Group's adjusted EBITDA was $123 million, up 14.5% from the prior year, And as Bob mentioned, this is the sixth quarter in a row in which our Digital Audio Group adjusted EBITDA is larger than our multiplatform group adjusted EBITDA. Our Q2 adjusted EBITDA margins were 33.8%, compared to 33.2% in the prior year. Within the digital audio group, our podcasting revenue was $162 million, which grew 20.7% year over year, and in line with our guidance we provided about low twenties. Our second quarter Digital Audio Group ex podcasting revenue grew 6.6% year over year to $202 million. Turning now to the multiplatform group. Revenue was $536 million, down 1.6% compared to prior year, slightly below our guidance range of approximately flat. Adjusted EBITDA was $59 million down from $96 million in the prior year quarter. Turning to the audio and media services group. Which includes Katz TV, which, as you know, has a much bigger revenue swing with political years. Revenue was $80 million, Up 18.8% year over year driven primarily by the growth of the digital audio and video revenues. Excluding the impact of political revenue, the audio and media services group's revenue was up 10.6%. Adjusted EBITDA was $37 million, up 54.6% compared to the prior year. The second quarter, our company's free cash flow was $46 million compared to a negative $13 million in the prior year quarter. In fact, the strong free cash flow in this quarter gives us additional confidence about our free cash flow for the full year. And a political year like this also helps drive our free cash flow because political advertisers pay upfront. At quarter end, our net debt was approximately $4.7 billion. Our total liquidity was $457 million, our cash balance was $174 million. Which include $125 million borrowed under the ABL facility. We expect to pay down that balance by the end of 2026 with our free cash flow generation. As noted on our prior call on May 1, we repaid the $51.2 million remaining balances of our 6 and 3/8 notes as well as the term loan and incremental term loan fully retiring those stub facilities. Additionally, are pleased to report that this month, we amended and extended our current ABL facility. We maintain both the current $450 million size of the facility and the pricing of the facility at current interest rates. And we extended the maturity date from May 17, 2027 to January 30, 2029. Let me now turn to our guidance for the third quarter and full year. For the third quarter, we expect to generate adjusted EBITDA between $180 million and $220 million. We expect our consolidated revenue to be up mid single digits compared to the prior year. We are still closing July, but we expect revenue to be up low single digits year over year. Turning to the individual segments. We expect the Digital Audio Group's revenue to be up in the low teens year over year, with podcast revenue expected to be up approximately 20% and digital ex-podcast to be up mid single digits. Expect the multiplatform group's revenue to be approximately flat compared to the prior year. Expect the audio and media services group's revenue to be up approximately 20% year over year. Turning to the full year, we are reaffirming our full year adjusted EBITDA guidance of $800 million and our free cash flow guide of $200 million. Predicated on some improvement in the macroeconomic and advertising environments especially in Q4, and the expected strong performance of political. Embedded in our adjusted EBITDA guidance are the following. Expect to generate approximately $200 million of overall programmatic revenue in 2026 up approximately 50% from $135 million in 2025. And as a reminder, we expect our broadcast programmatic revenue trajectory to be similar to that of the growth we experienced in the podcasting revenue. We expect podcasting revenue to continue its strong momentum. We expect this to be a robust midterm election year in terms of generating political revenue And the vast majority of our political revenue occurs in Q3 and Q4. And our adjusted EBITDA guidance also includes the benefit of our cost savings programs. Let me provide some additional inputs embedded in our free cash flow guidance. Interest expense will be approximately $440 million. Minimal cash taxes this year and for the next few years as long as the current tax laws are in effect. This is a great outcome. Will help us avoid approximately $150 million to $200 million of cash taxes over the next 3 years. Capital expenditures are expected to be approximately $90 million. Cash restructuring expenses to be approximately $50 million. We expect our net leverage ratio at the end of 2026 to be in the mid-5s, which would be more than a full turn improvement year over year. Now we will turn it over to the operator to take your questions. Operator: Thank you. As a reminder, to ask a question, please press star followed by the number 1 on your telephone. Our first question comes from Stephen Laszczyk from Goldman Sachs. Please go ahead. Your line is open. Steven Lasek: Great. Thanks for taking the questions. Bob or Rich, I was curious with just a few months time from now, the midterm elections coming up. I was curious if you could speak a little bit more about your go-to-market strategy. As well as how activity is building on the political front. Going into the November cycle. I think 2 cycles ago, in and around the midterms, we did about $130 million of political revenues. Just curious how you are looking at the outlook for this year? Richard J. Bressler: I think, you know, we think it is shaping up to be a big political year. Some people are saying it may be as big as the presidential year as opposed to midterm yet they has to be seen, although the early indications are it is probably performing at that level. Our go-to-market is, you know, be in touch with everybody from candidates to packs to everyone else associated with the campaigns that can make a decision. And stay on top of it both at a local level and the national level. You know, And the 1 other data point I might just add, if you look at the last couple of days or last week, you saw a lot of TV broadcasters. Come out, and they talked about a very strong political numbers. And that historically and this year should be no different, bodes very well. If the inventory starts to shrink there and they sell off a lot of their inventory, broadcast radio tends to be a big beneficiary of that. Great. Thank you for that. Steven Lasek: And then maybe separately, spoke a good bit about the opportunities in video podcasting. in the prepared remarks. So I was just wondering if you could speak a little bit more about the Disney Hulu podcast partnership from today. Then would be curious how that approach with Disney is maybe either different or similar to the approach that you are taking with Netflix. And then, ultimately, looking out here over the next couple of years, how you see both of these relationships evolving? Robert W. Pittman: Well, look, I think it is, you know, both Netflix and Hulu. We are trying to meet their needs, so we are crafting deals that work for them and their overall program strategy, as you know, Netflix has taken The Breakfast Club, Charlemagne in the morning has turned it into a live daily show. That was kind of unexpected when we went into this, but it is how the relationship evolves as we find opportunities. I suspect with Hulu, we will see the same thing that as we get in with them and they see how it is performing, we will figure out how we craft the right relationship with them. And then, obviously, there are other people that are carrying video podcast as well, and we continue to, you know, have discussions there as well. Steven Lasek: Great. Thank you very much. Operator: Our next question comes from Aaron Watts from Deutsche Bank. Please go ahead. Your line is open. Aaron Watts: Hi. Thanks for having me on. 2 questions for me. On advertising, if we strip away some of the movement, due to trade and barter, can you talk a bit more about the health of the underlying ad environment as we roll from 2Q into the back half of the year? And is there anything you are seeing that gives you confidence that there will be some improvement as we close out the year. Robert W. Pittman: Well, there cannot be any more uncertainty. that is for sure. So we are you know, baking that in. But I actually I have been kind of surprised with all the uncertainty in the market how resilient the ad market has been. You know, there is a body of thought which says, hey. This is the new normal, and everybody's gotta sell their products, and they gotta build their brands. And they cannot let that get in the way of it. And I think we are seeing ample evidence of that. Certainly, there are businesses that are being hit by the high cost of you know, diesel and fuel and other important products for them. But there are also businesses that are immune from it. And they see this as an opportunity. So I think on the whole, we are kind of cautiously optimistic about the second half of the year and talking to advertisers, you know, we kind of sense that. I think if you, you know, see some of the discussions from the agency front that you are kind of seeing the same which is what we are hearing from them directly as well. So I think we, you know, again, we have to give people a reason why if they spend a dollar on advertising, they get more than a dollar back on their bottom line. And it is all about return on investment. So I think if we just kind of stick to that and not be distracted by it, it is probably our best strategy And the 1 we are going with. And I think the other piece of it is really adding the audio graph and the programmatic components for our broadcast radio. Because, again, as I mentioned in our script, it is counterintuitive. That broadcast radio is so incredibly strong with the consumer And by the way, in all measurements, delivers extraordinarily strong results for advertisers. And that is the slowest revenue stream we have. Again, we think that is because the advertisers are wanting everything to fit kind of within that digital buying construct, so I think the audio graph and programmatic will give us that. And we are rolling it out to DSPs, but there, as you know,, there are other buying platforms emerging as well. And we fully intend to service those as well. Richard J. Bressler: You know, And the 1 piece I may just add excuse me, Aaron, to what Bob just said, is, you know, the 1 thing you do see in these environments you know, is advertisers, which we have been the beneficiary of beneficiary of, excuse me, looking to, you know, maybe reduce the number of their go to partners and overall partners that they have out there. And because of our ability on a multi-platform, between, you know, our broadcast and podcasting, and streaming and events, they can meet a lot of their needs coming to us. And also, the aspects of measurability become critically important to be able to deliver measurable results. As Bob, you know, talked about getting the right ROI And now that we can do that with broadcast and our digital assets, You know, we are just very well suited to navigate this environment the best we have ever been. Aaron Watts: Okay. that is that is really helpful context. Thank you for that. If I could ask just 1 more question, and maybe this is pointed at you, Richard. But based on your third quarter guidance, it implies a very robust fourth quarter in order to achieve the $800 million full-year target. If I think all the way back to the fourth quarter of 22, the last midterm election, I think you guys did $315 million of EBITDA. This year, you are suggesting it will be better. Can you just talk a little bit more about some of the components that go into that, be it core advertising, the political you had just discussed, barter impact easing, cost savings, just the various elements that you see going into helping us bridge that $800 million target for the year. Richard J. Bressler: Well, there is a lot in that question. I will start, and then Bob could jump in. And also, by the way, 1 of the reasons we go through in what I mentioned during my remarks is, you know, kind of what is embedded in there. You know, first of all, we have talked about political. You know, remember, this is you know, we are about where we were in 2024 on political terms of revenue. And as we all know, this is a non presidential political year. And, again, you heard the, I mentioned this just briefly a second ago, looking at what all the TV companies said and the strength that they are seeing from political and we expect to be a beneficiary of that in that historically proven out to be true. So strong political. The second thing is that, you know, if you look at our cost estimates, estimates at all of our cost programs, that have rolled in, they are all in place now. You get the full benefit of all those cost programs there. And then it is you know, we just talked a little bit about in terms of the advertising environment, Yes. there is a lot of macro, macroeconomic, you know, areas that we are all dealing with. Out there. that is why 1 of the things we said embedded in our guidance is that we get some more stability down there. But just remember, we, 1 of the things we have is less than no advertising categories greater than 5%. Of our advertising, no advertising, individual advertiser, is greater than 2% So that diversity really plays into our hands And then you talk about we spent a fair amount of time talking about audio graph. And the ability now that we are bringing to the marketplace the ability to put our broad differ buyers and to buy our broadcast inventory the way they buy our digital inventory. Bob mentioned being in DSPs and working directly with the agencies, As a reminder, we are gonna be in the Amazon DSP. At the beginning of this year in the fourth quarter. Amazon is also 1 of our biggest advertisers. As a company. We just talked about you know, you asked Bob was asked, and we have some questions talking about the opportunity on video podcasting. Out there. Yes. We have Netflix. We have the Disney Hulu. Announcement. And those were all incremental. Opportunities. Because if you look at those, opportunities that are there, we just reported 20.7% of revenue growth for podcasting. So that shows on the just the audio side. So that shows no sign of abating. So I think when you look at all those pieces in there, yes, you kind of do the math and you look at that side, okay. You will come to this number for Q4. Compared to other Q4s that we have. But what I will do is just take a step back and we are not the same company. In terms of the assets we have, the ad technology we have, and how we are going to market and execute. Robert W. Pittman: Look, if I could just add a couple of things. You can tell this is an area we have had a lot of internal discussion about, and we spend a lot of time analyzing. But Rich talked about the TV in a big political year pushes out or get sold out. They gotta go to radio. But it also pushes out other advertisers. And there is no room for them. As a matter of fact, toward the end of that cycle is almost all the advertising on TV is political advertising. it is gotta go somewhere, and people still have to sell their products. Radio has historically benefited from that, and actually in 2022, which is a very strong political year, we did see indeed that happening, and we were the beneficiary. So that is embedded here. I think the other thing you see is in a year like this with uncertainty, certainly, we are seeing advertisers saving some money, holding some money back. If at the end of the year, the economy is looking like the uncertainty is leaving, it is getting a little more stable, You will generally see that express itself in December. So our hope is that, you know, some of the money that we have missed the first part of year because of the uncertainty shows up at the back end And then the final thing is, I think once you get past the midterm, I think it is gonna be a very positive impact for kind of the economy, if you will, in terms of the uncertainty leaving it. that is extremely helpful. Aaron Watts: that is extremely helpful. Thank you both. Operator: Thank you. Our next question comes from Patrick Sholl from Barrington Research. Please go ahead. Your line is open. Patrick Sholl: Hi. Thanks for taking the question. On podcast, as you have delivered more of these podcasts to or partnered with more video distributors, to distribute your podcast just kind of curious on any kind of impact that is had on, like, the advertiser interest on the audio side or what you are seeing in just terms of the overall listenership? Robert W. Pittman: Yeah, I think it is additive. We find that probably less than 5% of the people are video podcast consumers only. And the biggest category, obviously, is audio only. They go, what is the picture on podcasting? But I think when people are in a video environment, and can look at something, they often will. Sometimes they will do both. They are basically listing When somebody says, look at this thing, they will look up at the screen or look at their screen to see what it is. So we think the 2 work very well together. What we think video is doing for us is it is putting podcasting into a video environment. Which at first, we said, hey. The story of podcasting is we are filling up those spots where you cannot look at video. And now podcasting strong enough that actually can compete with video and that we can put it in that environment too, that not only helps audience, but it also helps revenue. And as you know, video comes with a really nice CPM premium pricing. So nothing bad about it. And the good news about video today as we do video podcasts is the costs are not very much. Compared to doing kind of full on TV production. So, again, all those things work in our favor. And, again, we think this is opening up a new marketplace it is not a transformation marketplace at all. Patrick Sholl: Okay. Thank you. And then just on the ad category trends, is there any kind of, like, breakout between advertiser categories that were I guess, more likely to adopt some of the programmatic buying efforts that you guys have been working on? Richard J. Bressler: I do not think I do not think it is really about Advertising categories per se. Again, remember, you know, just to take a step back, why did we build out a programmatic and audio graph efforts in terms of putting our broadcast inventory into those systems. Know, as Bob mentioned in his remarks, you know, overwhelmingly you look at, you know, the resiliency of our medium. And, you know, we said we have got the highest listening in 20 years. You look at the engagement that we have, we do not have a challenge in terms of our listeners. At the same time, we had to meet the advertising world the way they wanna transact, and that they could you know, plan out monitor, and measure campaigns. And we need to come and say, okay. You could do that with our broadcast Of inventory also. So I do not think it is about category specific. it is about the way the advertising industry wants to engage on business. Robert W. Pittman: And I think you find some advertisers are more apt to go to programmatic, right? there is some advertisers that are going direct to programmatic, not going through agencies. So there is kind of a real diversification of how people are using it. We are prepared to deal with all of those. Patrick Sholl: Okay. Thank you. Richard J. Bressler: Great. Well, if there is no other questions, you know, Bob, myself, Mike, and the rest of the iHeart team want to thank everybody for listening to the iHeart story today. And as always, we are available for anything to follow up, any questions to follow up. Thank you all. Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. iHeartMedia (IHRT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

iHeartMedia’s second quarter results modestly surpassed Wall Street’s revenue expectations, continuing the company’s multi-quarter trend of growth led by its digital audio and podcasting segments. Management emphasized that digital audio group revenues climbed by double digits, with podcasting up over 20% year-on-year, reflecting ongoing advertiser interest in both audio and new video podcast formats. CEO Bob Pittman credited the company’s “unparalleled audience reach in broadcast radio” as a key factor in building podcast audiences and highlighted the expansion of video podcast partnerships, such as the recent Hulu deal. Is now the time to buy IHRT? Find out in our full research report (it’s free). Revenue: $977.2 million vs analyst estimates of $968.9 million (4.7% year-on-year growth, 0.9% beat) EPS (GAAP): -$0.52 vs analyst expectations of -$0.33 (59.6% miss) Adjusted EBITDA: $151.5 million vs analyst estimates of $151.2 million (15.5% margin, in line) EBITDA guidance for the full year is $800 million at the midpoint, in line with analyst expectations Operating Margin: 3.6%, in line with the same quarter last year Market Capitalization: $489.7 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Steven Lasek (Goldman Sachs) asked about the outlook for political ad revenue versus previous cycles. CFO Richard Bressler said early activity suggests this midterm could rival a presidential year, with radio likely benefiting as TV inventory sells out. Steven Lasek (Goldman Sachs) questioned the video podcasting strategy and new partnerships. CEO Bob Pittman explained that iHeartMedia is customizing deals for each platform, seeing the Hulu and Netflix relationships as distinct but both additive for audience and revenue. Aaron Watts (Deutsche Bank) pressed for details on the health of the core advertising market excluding barter. Pittman responded that despite macro uncertainty, the ad market has remained resilient, and advertisers are focusing on measurable ROI. Aaron Watts (Deutsche Bank) asked how the company would bridge the gap to its full-year $800 million adjusted EBITDA target. Bressler cited political ad timing, cost savings, and the ramp of programmatic revenue as critical drivers. Patrick Sholl (Barrington Research) inquired about the impact of video podcast distribution on audio advertising and listenership. Pittman said video podcasting is “additive” and helps attract premium ad pricing without cannibalizing audio audiences. In the coming quarters, the StockStory team will watch (1) the scale and timing of political ad spending as the election cycle accelerates, (2) adoption and monetization rates for programmatic radio buying across major DSP platforms, and (3) the performance of new video podcasting partnerships with Netflix and Hulu. Execution on cost control programs and continued digital audio growth will also be key markers of iHeartMedia’s operational progress. iHeartMedia currently trades at $2.95, down from $3.71 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Digital Audio Group adjusted EBITDA exceeded Multiplatform Group for the sixth consecutive quarter, signaling a permanent structural shift in the company's profit composition. Management attributes Multiplatform revenue softness to macroeconomic uncertainty, specifically citing the impact of high gas and diesel prices on the broader economy. The company is addressing a broadcast radio 'monetization challenge' by integrating inventory into digital buying platforms like Amazon, Google, and Yahoo to meet advertiser demand for digital-style transacting. Podcasting growth is being driven by a unique 'local market sales force' strategy, which currently generates approximately 50% of total podcast revenue. Video podcasting has emerged as a high-margin growth vector, with management utilizing existing radio reach to secure distribution deals with Netflix and Disney's Hulu. Operational efficiencies are being realized through the aggressive implementation of AI and technology tools across all business areas to maintain margins. Full-year guidance assumes a robust midterm election cycle, with the vast majority of political revenue is expected to occur in the third and fourth quarters. Management expects broadcast programmatic revenue to follow a growth trajectory similar to the historical expansion of the podcasting business. The company anticipates approximately $150 million to $200 million in cash tax savings over the next three years due to current tax laws. Financial targets for the second half of 2026 are predicated on a stabilization of the macroeconomic environment and the easing of non-cash marketing expenses. Net leverage is projected to improve by more than a full turn by year-end 2026, supported by upfront payments from political advertisers. Non-cash co-marketing partnerships drove a significant increase in SG&A expenses but are expected to decrease in the second half of the year. Management noted revenue softness in Q2 that appeared to correlate with the conflict in the Middle East and its associated economic impacts. The company successfully extended its $450 million ABL facility maturity to 2029 while maintaining current interest rate pricing. A $50 million cash restructuring expense is embedded in the full-year free cash flow guidance as part of ongoing efficiency initiatives. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management indicated that early indicators suggest this midterm cycle could perform at levels comparable to a presidential election year. Radio is expected to be a primary beneficiary as TV inventory sells out, forcing traditional advertisers to migrate their spend to audio platforms. Video is viewed as an additive marketplace rather than a replacement, with less than 5% of consumers being video-only podcast listeners. The strategy leverages high CPM premium pricing for video while maintaining low production costs compared to traditional television. Management expressed surprise at the market's resilience despite uncertainty, noting that advertisers are increasingly focused on measurable ROI. A 'new normal' is emerging where advertisers consolidate partners, favoring iHeartMedia's multi-platform scale and programmatic capabilities.

This article first appeared on GuruFocus. Consolidated Revenue: $977 million, up 4.7% year-over-year; up 3.5% excluding political advertising. Adjusted EBITDA: $152 million, slightly above the midpoint of guidance ($140 million to $160 million). Free Cash Flow: $46 million, compared to negative $13 million in the prior year quarter. Digital Audio Group Revenue: $364 million, up 12.4% year-over-year. Digital Audio Group Adjusted EBITDA: $123 million, up 14.5% year-over-year; adjusted EBITDA margin of 33.8%. Podcast Revenue: $162 million, up 20.7% year-over-year. Digital Ex-Podcast Revenue: $202 million, up 6.6% year-over-year. Multiplatform Group Revenue: $536 million, down 1.6% year-over-year; down 2.8% excluding political advertising. Multiplatform Group Adjusted EBITDA: $59 million, down from $96 million in the prior year quarter. Audio and Media Services Group Revenue: $80 million, up 18.8% year-over-year; up 10.6% excluding political advertising. Audio and Media Services Group Adjusted EBITDA: $37 million, up 54.6% year-over-year. GAAP Operating Income: $35.5 million, compared to $35.4 million in the prior year quarter. Consolidated Direct Operating Expenses: Increased 2.4% for the quarter. Consolidated SG&A Expenses: Increased 11.8% for the quarter. Net Debt: Approximately $4.7 billion at quarter end. Total Liquidity: $457 million; cash balance of $174 million. Warning! GuruFocus has detected 6 Warning Signs with IHRT. Is IHRT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated revenue grew 4.7% year-over-year to $977 million, exceeding guidance of low single-digit growth. Digital Audio Group revenue increased 12.4% to $364 million, with podcast revenue up 20.7% to $162 million, driven by strong audience and monetization. Adjusted EBITDA of $152 million came in above the midpoint of guidance, and free cash flow improved significantly to $46 million from negative $13 million in the prior year. Digital Audio Group adjusted EBITDA exceeded Multiplatform Group for the sixth consecutive quarter, highlighting the success of digital transformation. Expanded video podcast distribution through partnerships with Netflix and Hulu, creating new revenue opportunities and premium pricing. Programmatic revenue is expected to grow approximately 50% in 2026, with broadcast inventory now available on DSPs like Amazon, Google, and Yahoo. Political advertising is expected to be robust in the back half of the year, with early indications suggesting it could match presidential-year levels. The company amended and extended its ABL facility to January 2029, maintaining size and pricing, improving financial flexibility. Cost savings programs and AI-driven efficiencies are expected to benefit full-year adjusted EBITDA and free cash flow. Audio and Media Services Group revenue grew 18.8% year-over-year, with adjusted EBITDA up 54.6%, driven by digital growth. Multiplatform Group revenue declined 1.6% year-over-year, slightly below guidance, impacted by macroeconomic uncertainty and high gas/diesel prices. Multiplatform Group adjusted EBITDA fell to $59 million from $96 million, largely due to non-cash co-marketing expenses. The company faces a broadcast radio monetization challenge, as advertisers prefer digital buying platforms, despite strong audience reach. Full-year guidance relies on a robust Q4, with significant improvement in the macroeconomic environment and strong political revenue, which may be uncertain. Net debt remains high at approximately $4.7 billion, with total liquidity of $457 million and $125 million borrowed under the ABL facility. SG&A expenses increased 11.8% due to non-cash co-marketing partnerships, which will continue to impact the Multiplatform Group in the near term. The company expects to pay down the ABL balance by end of 2026, but this depends on free cash flow generation and political revenue timing. Podcast revenue growth is expected to slow to approximately 20% in Q3, down from 20.7% in Q2, indicating potential deceleration. The company's leverage ratio is expected to remain in the mid-5s at end of 2026, which is still elevated despite improvement. Macroeconomic uncertainty, including the Middle East conflict, could continue to impact advertising spending and revenue performance. Q: Can you provide more detail on the go-to-market strategy for the upcoming midterm elections and how activity is building on the political front? A: Bob Pittman (CEO) stated that it is shaping up to be a very large political year, with some predicting it could rival a Presidential year in revenue. The strategy involves engaging with candidates, PACs, and other decision-makers at both local and national levels. Rich Bressler (President & COO) added that recent strong political numbers from TV broadcasters bode well, as radio typically benefits when TV inventory becomes scarce and advertisers need alternative platforms. Q: Can you discuss the opportunities in video podcasting, specifically the new Disney-Hulu partnership and how it compares to the approach with Netflix? A: Bob Pittman (CEO) explained that the deals with Netflix and Hulu are crafted to meet each platform's specific needs. The Netflix relationship evolved to include The Breakfast Club as a live daily show, and he expects the Hulu relationship to develop similarly as they see performance data. He noted that video podcasting is an additive, new marketplace with premium pricing and relatively low production costs compared to traditional TV, and they are in discussions with other platforms as well. Q: Excluding trade and barter movements, how healthy is the underlying advertising environment as we move into the back half of the year? A: Bob Pittman (CEO) expressed cautious optimism, noting the ad market has been resilient despite macroeconomic uncertainty. He highlighted that advertisers still need to sell products and build brands, and the company is focused on demonstrating ROI. Rich Bressler (President & COO) added that in uncertain environments, advertisers tend to consolidate their partners, and iHeart's multi-platform offering (broadcast, podcasting, streaming, events) makes them well-suited to benefit from this trend. Q: Based on Q3 guidance, a very robust Q4 is implied to hit the $800 million full-year EBITDA target. Can you bridge the gap and discuss the components that will drive that performance? A: Rich Bressler (President & COO) outlined several key drivers: strong political revenue expected to be comparable to 2024 levels, full-year benefits of cost savings programs now in place, and the rollout of programmatic and audiograph offerings (including the Amazon DSP integration). He also highlighted the diversity of the advertiser base and the incremental growth from video podcasting. Bob Pittman (CEO) added that political advertising typically pushes out other advertisers from TV, benefiting radio, and that any money held back due to uncertainty often gets released in December if the economy stabilizes. Q: How has distributing podcasts through video partners like Netflix and Hulu impacted advertiser interest and overall listenership on the audio side? A: Bob Pittman (CEO) stated that the impact is additive. Less than 5% of consumers are video-only podcast listeners, with the majority still audio-only. Video helps put podcasting in a new environment where it can compete with video content, which not only helps grow the audience but also commands premium pricing. He emphasized that video podcast production costs are relatively low, making it a favorable new marketplace rather than a transformation of the existing one. Q: Are there specific advertiser categories that are more likely to adopt the programmatic buying efforts you've been developing? A: Rich Bressler (President & COO) clarified that the programmatic and audiograph efforts are not about specific categories but about meeting the advertising industry's preferred way of transacting. The goal is to allow advertisers to plan, monitor, and measure broadcast inventory the same way they do digital. Bob Pittman (CEO) added that some advertisers are going direct-to-programmatic without agencies, creating a diversification of usage that the company is prepared to handle. Q: Can you elaborate on the financial performance of the Digital Audio Group and the podcasting segment specifically? A: Rich Bressler (President & COO) reported that the Digital Audio Group's Q2 revenue was $364 million, up 12.4% year-over-year, with adjusted EBITDA of $123 million, up 14.5%. Podcasting revenue was $162 million, up 20.7% year-over-year. This marks the sixth consecutive quarter where the Digital Audio Group's adjusted EBITDA exceeded that of the Multi-Platform Group, and podcasting margins remain accretive to the company's overall margins. Q: What is the outlook for the Multi-Platform Group, and what is driving the decline in its adjusted EBITDA? A: Bob Pittman (CEO) acknowledged that the Multi-Platform Group faces a monetization challenge despite strong consumer engagement, as advertisers prefer digital buying platforms. The company is addressing this by adding broadcast inventory to DSPs like Amazon, Google, and Yahoo. Rich Bressler (President & COO) noted that Q2 adjusted EBITDA of $59 million was down from $96 million, primarily due to non-cash co-marketing expenses related to the audiograph and programmatic initiatives, which will decrease in the second half of the year. Q: Can you provide details on the company's free cash flow and balance sheet position? A: Rich Bressler (President & COO) reported Q2 free cash flow of $46 million, a significant improvement from negative $13 million in the prior year. Net debt was approximately $4.7 billion, with total liquidity of $457 million. The company amended and extended its ABL facility, maintaining the $450 million size and extending the maturity to January 2029. They expect to pay down the $125 million borrowed under the ABL by the end of 2026. Q: What are the key assumptions embedded in the full-year guidance for adjusted EBITDA and free cash flow? A: Rich Bressler (President & COO) reaffirmed full-year adjusted EBITDA guidance of $800 million and free cash flow of $200 million. Key assumptions include approximately $200 million in programmatic revenue (up 50% from 2025), continued strong podcasting growth, a robust midterm election year, and the full benefit of cost savings programs. Interest expense is expected to be approximately $440 million, with minimal cash taxes for the next few years, and capital expenditures of approximately $90 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in iHeartMedia, Inc.? Here are five stocks we like better. iHeartMedia exceeded its Q2 outlook: Revenue rose 4.7% year over year to $977 million, adjusted EBITDA reached $152 million, and free cash flow improved to $46 million from negative $13 million a year earlier. Digital audio and podcasting drove growth: Digital Audio Group revenue increased 12.4%, while podcasting revenue climbed 20.7% to $162 million. The company is expanding video podcast distribution through partnerships with Netflix, Hulu and other platforms. Broadcast operations remained pressured, with Multiplatform Group revenue down 1.6% and adjusted EBITDA falling to $59 million amid macroeconomic uncertainty and non-cash marketing expenses. Management maintained its full-year targets of $800 million in adjusted EBITDA and $200 million in free cash flow, supported by expected political advertising strength. SiriusXM Stock: 4 Reasons to Buy This Monopoly iHeartMedia (NASDAQ:IHRT) reported second-quarter revenue growth that exceeded its prior outlook, led by continued expansion in digital audio and podcasting, while its broadcast-focused Multiplatform Group remained under pressure from macroeconomic uncertainty and non-cash marketing expenses. Consolidated revenue totaled $977 million in the second quarter, up 4.7% from a year earlier and above the company’s guidance for low-single-digit growth. Excluding political advertising, revenue increased 3.5%. Adjusted EBITDA was $152 million, slightly above the midpoint of iHeartMedia’s $140 million to $160 million guidance range, while free cash flow improved to $46 million from negative $13 million in the prior-year quarter. → MarketBeat Week in Review – 08/03 - 08/07 Spotify electrifies on its metrics. Time to buy? Chairman and Chief Executive Officer Bob Pittman said the company’s digital investments continued to reshape its earnings mix. For the sixth consecutive quarter, adjusted EBITDA from the Digital Audio Group exceeded that of the Multiplatform Group, which includes broadcast radio networks and events. The Digital Audio Group generated $364 million in second-quarter revenue, up 12.4% year over year and ahead of management’s approximately 10% growth forecast. Segment adjusted EBITDA increased 14.5% to $123 million, producing a 33.8% margin. Management reiterated its expectation for full-year Digital Audio Group EBITDA margins in the mid-30% range. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Podcasting revenue rose 20.7% to $162 million, compared with $134 million a year earlier. Pittman said approximately half of podcasting revenue at the end of the quarter was generated through iHeartMedia’s local-market sales force. The company also highlighted its efforts to expand video podcast distribution. Pittman said iHeartMedia is producing video versions of many podcasts for its iHeartRadio service and selected podcast platforms, while also expanding distribution to streaming video services. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War He said the company has expanded its Netflix relationship to include podcasts from Kate Hudson and Oliver Hudson, Lele Pons and Martha Stewart. Netflix is also making The Breakfast Club with Charlamagne its only live daily show, according to Pittman. iHeartMedia also announced that six titles would be brought to Disney’s Hulu service, including video episodes of Hey Jonas! and Pod Meets World. Digital Audio Group revenue excluding podcasting increased 6.6% to $202 million. In response to an analyst question, Pittman said video podcasting is additive to the core audio business, helping expand audiences and creating potential for premium video advertising pricing while requiring lower production costs than traditional television production. The Multiplatform Group recorded revenue of $536 million, down 1.6% from the prior year and slightly below guidance for approximately flat revenue. Excluding political advertising, revenue declined 2.8%. Segment adjusted EBITDA fell to $59 million from $96 million a year earlier. Pittman attributed revenue pressure in part to macroeconomic uncertainty, particularly the effect of gas and diesel prices across the economy. He also said non-cash marketing expenses accounted for most of the segment’s EBITDA decline. President and Chief Operating Officer Rich Bressler said consolidated direct operating expenses rose 2.4%, primarily because of higher variable content costs and third-party digital costs associated with digital revenue growth. Selling, general and administrative expenses increased 11.8%, driven mainly by non-cash co-marketing partnerships designed to increase engagement with the iHeartRadio digital service. Management said those partnerships support the company’s proprietary audience database and its AudioGraph, broadcast programmatic and programmatic advertising offerings. Bressler said the partnerships will begin to decrease in the second half of the year and that the associated revenue and expenses have zero impact on adjusted EBITDA over time. Pittman said iHeartMedia’s broadcast radio business has a monetization challenge rather than an audience challenge. The company is adding broadcast inventory to demand-side platforms including Amazon, Google and Yahoo, while developing offerings for other digital planning and buying platforms through AudioGraph and programmatic tools. “We think the AudioGraph and programmatic will give us that,” Pittman said, referring to advertisers’ preference for digital buying systems. The Audio & Media Services Group, which includes Katz TV, Katz Radio and RCS, posted revenue of $80 million, up 18.8% from a year earlier. Excluding political revenue, segment revenue rose 10.6%. Adjusted EBITDA increased 54.6% to $37 million, supported primarily by digital audio and video revenue growth. Management expects political advertising to be a major contributor to EBITDA and free cash flow in the second half, particularly in the fourth quarter. Pittman said early indications suggest the midterm election cycle could be substantial, with some observers expecting activity comparable to a presidential-election year. Bressler said the company’s largest advertising-category gains in absolute dollars during the quarter were political, gambling, computers, electronics and appliances, and professional services. The largest declines were in telecom, financial services, auto, and food and beverage. For the third quarter, iHeartMedia expects consolidated revenue to rise in the mid-single digits year over year and adjusted EBITDA to range from $180 million to $220 million. Digital Audio Group revenue is expected to grow in the low teens, including approximately 20% podcasting revenue growth. Multiplatform Group revenue is expected to be approximately flat, while Audio & Media Services Group revenue is expected to rise about 20%. The company reaffirmed its full-year adjusted EBITDA target of $800 million and free-cash-flow target of $200 million. Bressler said the outlook assumes some improvement in macroeconomic and advertising conditions, especially in the fourth quarter, alongside strong political advertising performance. At quarter end, net debt was approximately $4.7 billion, liquidity was $457 million and cash totaled $174 million, including $125 million borrowed under the asset-based lending facility. The company expects to repay that ABL borrowing by the end of 2026 using free cash flow. iHeartMedia also said it amended and extended its $450 million ABL facility to Jan. 30, 2029, from May 17, 2027. iHeartMedia, Inc (NASDAQ: IHRT) is a leading media and entertainment company specializing in radio broadcasting, digital streaming and live events. The company operates more than 860 full-power AM and FM radio stations across the United States, delivering music, news, sports and talk programming to local markets. Through its flagship digital platform, iHeartRadio, the company provides listeners with free and subscription-based access to thousands of live radio stations, curated music playlists and on-demand podcasts. Originally founded in 1972 as Clear Channel Communications, the business rebranded to iHeartMedia in 2014 to reflect the growing importance of its digital and event-driven offerings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "iHeartMedia Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

NEW YORK, August 10, 2026--(BUSINESS WIRE)--iHeartMedia, Inc. (Nasdaq: IHRT) today reported financial results for the quarter ended June 30, 2026. Financial Highlights:1 Q2 2026 Consolidated Results Q2 Revenue of $977 million, up 4.7% (Excluding Q2 Political Revenue, Q2 Revenue up 3.5%) GAAP Operating income of $36 million, compared to a GAAP Operating income of $35 million in Q2 2025, improvement of 0.4% Consolidated Adjusted EBITDA of $152 million, compared to $156 million in Q2 2025, down 2.9% Cash provided by operating activities of $65 million Free Cash Flow of $46 million, compared to ($13) million in Q2 2025 Cash balance and total available liquidity2 of $174 million and $457 million, respectively, as of June 30, 2026 Extended maturity date of existing $450 million Asset-based Revolving Credit Facility from May 17, 2027 until January 30, 20293 Q2 2026 Digital Audio Group Results Digital Audio Group Revenue of $364 million up 12% Segment Adjusted EBITDA of $123 million up 14% Q2 2026 Multiplatform Group Results Multiplatform Group Revenue of $536 million down 2% Segment Adjusted EBITDA of $59 million down 39% Q3 2026 Guidance Consolidated Revenue expected to increase mid-single digits Consolidated Adjusted EBITDA4 expected to be approximately $180 million to $220 million Full Year 2026 Guidance Consolidated Adjusted EBITDA4 expected to be approximately $800 million Free Cash Flow of approximately $200 million Minimal cash taxes in 2026 In-year 2026 cost savings of $125 million Total Programmatic Revenue of approximately $200 million, up approximately 50% Year End 2026 Net Debt to Adjusted EBITDA ("net leverage")5 to be in mid-fives Statement from Senior Management "We’re pleased with our second quarter results, generating Adjusted EBITDA of $152 million, slightly above the midpoint of our previously provided guidance range. Our consolidated revenue was $977 million, up 4.7% compared to the prior year quarter and above our guidance," said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. "Our podcast revenue momentum continues, up 20.7% compared to prior year, and in addition to helping propel our growth as the #1 podcast publisher, our broadcast radio assets have also allowed us to develop and drive the new video podcast marketplace – an incremental growth opportunity for us, including on streaming video services including Netflix and Disney's Hulu, which we announced today. And our work in building our digital assets continues to pay off; this is the sixth consecutive quarter in which the Digital Audio Group Adjusted EBITDA is larger than the Multiplatform Group Adjusted EBITDA." "In the second quarter, the Digital Audio Group’s revenue was $364 million, up 12.4% year over year and above our guidance, and our Q2 Adjusted EBITDA margins were 33.8%," said Rich Bressler, President and COO of iHeartMedia, Inc. "In this quarter we generated $46 million of Free Cash Flow, and this strong performance gives us additional confidence in the second half of the year. Additionally, we are pleased to report that this month we extended the maturity date of our ABL facility to January 30, 2029, while maintaining the facility’s current size and interest rates." Consolidated Results of Operations Second Quarter 2026 Consolidated Results Our consolidated revenue increased $43.6 million, or 4.7%, during the three months ended June 30, 2026 compared to the same period of 2025. Digital Audio revenue increased $40.2 million, or 12.4%, driven primarily by continuing increases in demand for digital and podcast advertising, as well as increased non-cash trade and barter revenue resulting from strategic marketing initiatives. Multiplatform Group revenue decreased $8.9 million, or 1.6%, primarily resulting from a decrease in our broadcast, networks, and sponsorship revenues reflecting uncertainty on the part of advertisers regarding consumer spending, partially offset by an increase in trade and barter revenue related to strategic marketing initiatives, and an increase in political revenues as 2026 is a midterm election year. Audio & Media Services revenue increased $12.7 million, or 18.8%, primarily as a result of strong demand for digital advertising, as well as an increase in political advertising revenue. Consolidated direct operating expenses increased $9.4 million, or 2.4%, during the three months ended June 30, 2026 compared to the same period of 2025. The increase was primarily driven by higher variable content costs, including higher third-party digital costs related to the increase in digital revenues, partially offset by a decrease in employee compensation cost related to our modernization initiatives, as well as a decrease in variable content costs related to the decrease in broadcast revenues. Consolidated Selling, General & Administrative ("SG&A") expenses increased $48.5 million, or 11.8%, during the three months ended June 30, 2026 compared to the same period of 2025. The increase was driven primarily by an increase in non-cash trade and barter expense associated with revenues generated by strategic marketing initiatives, and an increase in cash-settled share-based compensation expense driven by changes in our stock price, partially offset by a decrease in employee compensation cost related to our modernization initiatives and a decrease in bonus expense based on results. Our consolidated GAAP Operating income was $35.5 million compared to GAAP Operating income of $35.4 million in the second quarter of 2025. Adjusted EBITDA decreased to $151.5 million from $156.1 million in the second quarter of 2025. Cash provided by operating activities was $64.9 million, compared to cash provided by operating activities of $6.8 million in the prior year period. This increase was primarily driven by the timing of receivable collections during the quarter. Free Cash Flow was $46.0 million, compared to ($13.2) million in the prior year period. Business Segments: Results of Operations Second Quarter 2026 Multiplatform Group Results Revenue from our Multiplatform Group was down $8.9 million, or 1.6% YoY, primarily resulting from a decrease in our broadcast, networks, and sponsorship revenues reflecting uncertainty on the part of advertisers regarding consumer spending, partially offset by an increase in trade and barter revenue related to strategic marketing initiatives, and an increase in political revenues as 2026 is a midterm election year. Broadcast revenue increased $1.8 million, or 0.5% YoY, driven by an increase in non-cash trade and barter revenue resulting from strategic marketing initiatives, partially offset by lower broadcast spot revenue. Networks decreased $4.1 million, or 3.8% YoY. Revenue from Sponsorship and Events decreased $6.0 million, or 16.3% YoY. Operating expenses increased $28.8 million, or 6.4% YoY, driven primarily by higher trade and barter expenses resulting from strategic marketing initiatives, partially offset by a decrease in variable content costs related to the decrease in broadcast revenues. Segment Adjusted EBITDA Margin decreased YoY to 10.9% from 17.7%. Second Quarter 2026 Digital Audio Group Results Revenue from our Digital Audio Group increased $40.2 million, or 12.4% YoY, driven by Podcast revenue, which increased $27.8 million, or 20.7% YoY, to $162.1 million, primarily due to a continued increase in demand for podcasting from advertisers, and Digital, excluding Podcast revenue, which increased $12.5 million, or 6.6% YoY, to $202.0 million, primarily due to an increase in demand for digital advertising, as well as increased non-cash trade and barter revenue resulting from strategic marketing initiatives. Operating expenses increased $24.7 million, or 11.4% YoY, primarily driven by higher variable content costs, including third-party digital costs related to the increase in revenues, and higher non-cash trade and barter expense resulting from strategic marketing initiatives, partially offset by a decrease in commission expense. Segment Adjusted EBITDA Margin increased YoY to 33.8% from 33.2%. Second Quarter 2026 Audio & Media Services Group Results Revenue from our Audio & Media Services Group increased $12.7 million, or 18.8% YoY, primarily due to an increase in digital and political revenues. Operating expenses decreased $0.2 million, or 0.5% YoY, due to a decrease in employee compensation cost due to our modernization initiatives and programming costs related to lower negotiated rates. Segment Adjusted EBITDA Margin increased YoY to 45.6% from 35.0%. GAAP and Non-GAAP Measures: Consolidated Certain prior period amounts have been reclassified to conform to the 2026 presentation of financial information throughout the press release. Liquidity and Financial Position As of June 30, 2026, we had $174.4 million of cash on our balance sheet. For the three months ended June 30, 2026, cash provided by operating activities was $64.9 million, cash used for investing activities was $21.1 million and cash used for financing activities was $4.4 million. Capital expenditures for the three months ended June 30, 2026 were $18.9 million compared to $20.0 million for the three months ended June 30, 2025. As of June 30, 2026, the Company had $5,043.0 million of total debt and $4,651.3 million of Net Debt.1 Cash balance and total available liquidity2 were $174.4 million and $457.2 million, respectively, as of June 30, 2026 which reflects $125.0 million of outstanding borrowings under our ABL facility. Revenue Streams The table below presents our historical revenue streams (including political revenue) for the periods presented: Conference Call iHeartMedia, Inc. will host a conference call to discuss results and business outlook on August 10, 2026, at 4:30 p.m. Eastern Time. The conference call number is (888) 596-4144 (U.S. callers) and +1 (646) 968-2525 (International callers) and the passcode for both is 8885116. A live audio webcast of the conference call will also be available on the Investors homepage of iHeartMedia's website investors.iheartmedia.com. After the live conference call, a replay will be available for a period of thirty days. The replay numbers are (800) 770-2030 (U.S. callers) and +1 (609) 800-9909 (International callers) and the passcode for both is 8885116. An archive of the webcast will be available beginning 24 hours after the call for a period of thirty days. About iHeartMedia, Inc. iHeartMedia (Nasdaq: IHRT) is the number one audio company in the United States, reaching nine out of 10 Americans every month. It consists of three business groups. With its quarter of a billion monthly listeners, the iHeartMedia Multiplatform Group has a greater reach than any other media company in the U.S. Its leadership position in audio extends across multiple platforms, including more than 860 live broadcast stations in over 160 markets nationwide; its National Sales organization; and the Company’s live and virtual events business. It also includes Premiere Networks, the industry’s largest Networks business, with its Total Traffic and Weather Network; and BIN: Black Information Network, the first and only 24/7 national and local all news audio service for the Black community. iHeartMedia also leads the audio industry in analytics, targeting and attribution for its marketing partners with its SmartAudio suite of data targeting and attribution products using data from its massive consumer base. The iHeartMedia Digital Audio Group includes the Company’s growing podcasting business -- iHeartMedia is the number one podcast publisher in downloads, unique listeners, revenue and earnings -- as well as its industry-leading iHeartRadio digital service, available across more than 500+ platforms and thousands of devices; the Company’s digital sites, newsletters, digital services and programs; its digital advertising technology companies; and its audio industry-leading social media footprint. The Company’s Audio & Media Services reportable segment includes Katz Media Group, the nation’s largest media representation company, and RCS, the world's leading provider of broadcast and webcast software. Certain statements herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors which may cause the actual results, performance or achievements of iHeartMedia, Inc. and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases "guidance," "believe," "expect," "anticipate," "estimates," "forecast" and similar words or expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the Company’s anticipated growth and continued investments; our expected costs savings; utilization of new technologies, programmatic platforms, and revenue opportunities; the expected benefits of our modernization and cost-savings initiatives; improving operational efficiency; future advertising demand; trends in the advertising industry; strategies, goals and initiatives; our anticipated financial condition and performance, including our outlook as to third quarter and full year 2026 consolidated results of operations; our cash tax expectations; the impact of the mid-term election cycle on our future results; and our future liquidity and net leverage. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other important factors, some of which are beyond our control and are difficult to predict. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this press release include, but are not limited to: risks related to global economic or political uncertainty and our dependence on advertising revenues; competition, including increased competition from alternative media platforms and technologies; dependence upon our brand and the performance of on-air talent, program hosts and management; fluctuations in operating costs; technological and industry changes and innovations; shifts in population and other demographics; risks related to our use of artificial intelligence, impact of acquisitions, dispositions and other strategic transactions; risks related to our indebtedness; legislative or regulatory requirements; impact of legislation, and royalty audits on music licensing and royalties; regulations and concerns regarding privacy and data protection and breaches of information security measures; risks related to scrutiny and regulation of environmental, social and governance matters, risks related to our Class A common stock; regulations impacting our business and the ownership of our securities; and risks related to adverse political effects, acts or threats of terrorism or military conflicts. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date hereof. Additional risks that could cause future results to differ from those expressed by any forward-looking statement are described in the Company’s reports filed with the U.S. Securities and Exchange Commission (SEC), including in the section entitled "Part I, Item 1A. Risk Factors" of iHeartMedia, Inc.’s Annual Reports on Form 10-K and "Part II, Item 1A. Risk Factors" of iHeartMedia, Inc.’s Quarterly Reports on Form 10-Q. The Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise. APPENDIX Supplemental Disclosure Regarding Non-GAAP Financial Information The following tables set forth the Company’s Adjusted EBITDA, Adjusted EBITDA margin, revenues excluding political advertising revenue, Free Cash Flow for the three months ended June 30, 2026 and 2025, and Net Debt as of June 30, 2026. Adjusted EBITDA is defined as consolidated Operating income adjusted to exclude restructuring expenses included within Direct operating expenses and SG&A expenses, and share-based compensation expenses included within SG&A expenses, as well as the following line items presented in our Statements of Operations: Depreciation and amortization, Impairment charges, and Other operating expense. Alternatively, Adjusted EBITDA is calculated as Net loss, adjusted to exclude Income tax expense, Interest expense, net, Depreciation and amortization, Loss on investments, net, Other (income) expense, net, Equity in loss of nonconsolidated affiliates, Impairment charges, Other operating expense, Share-based compensation expense, and Restructuring expenses. Restructuring expenses primarily include expenses incurred in connection with cost-saving initiatives, as well as certain expenses, which, in the view of management, are outside the ordinary course of business or otherwise not representative of the Company's operations during a normal business cycle. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue. The Company uses Adjusted EBITDA and Adjusted EBITDA margin, among other measures, to evaluate the Company’s operating performance. Adjusted EBITDA is among the primary measures used by management for the planning and forecasting of future periods, as well as for measuring performance for compensation of executives and other members of management. We believe this measure is an important indicator of the Company’s operational strength and performance of its business because it provides a link between operational performance and operating income. The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company’s management. The Company believes it helps improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that have different capital structures or tax rates. In addition, the Company believes this measure is also among the primary measures used externally by the Company’s investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry. Since Adjusted EBITDA is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Operating income as an indicator of operating performance and may not be comparable to similarly titled measures employed by other companies. Adjusted EBITDA is not necessarily a measure of the Company’s ability to fund its cash needs. As it excludes certain financial information compared with Operating income, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded. We define Free Cash Flow as Cash provided by operating activities less capital expenditures, which is disclosed as Purchases of property, plant and equipment in the Company’s Consolidated Statements of Cash Flows. We use Free Cash Flow, among other measures, to evaluate the Company’s liquidity and its ability to generate cash flow. We believe that Free Cash Flow is meaningful to investors because it provides them with a view of the Company’s liquidity after deducting capital expenditures, which are considered to be a necessary component of ongoing operations. In addition, we believe that Free Cash Flow helps improve investors' ability to compare our liquidity with that of other companies. Since Free Cash Flow is not a measure calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Cash provided by operating activities and may not be comparable to similarly titled measures employed by other companies. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs. The Company presents revenue, excluding the effects of political revenue. Due to the cyclical nature of the electoral system and the seasonality of the related political revenue, management believes presenting revenue, excluding the effects of political revenue, provides additional information to investors about the Company’s revenue growth from period to period. We define Net Debt as Total Debt less Cash and cash equivalents and Debt Premium. The Company uses Net Debt to evaluate the Company's liquidity. We believe this measure is an important indicator of the Company's ability to service its long-term debt obligations. Since these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance or liquidity. As required by the SEC rules, the Company provides reconciliations below to the most directly comparable measures reported under GAAP, including (i) Adjusted EBITDA to Operating income, (ii) Adjusted EBITDA to Net loss, (iii) Free Cash Flow to Cash provided by (used for) operating activities, (iv) revenue, excluding political advertising revenue, to revenue, and (v) Net Debt to Total Debt. We have provided forecasted Consolidated Revenue and Adjusted EBITDA guidance for the quarter ending September 30, 2026, which reflects targets for revenue and Adjusted EBITDA. Our Earnings Call on August 10, 2026 may present additional guidance that includes Adjusted EBITDA. A full reconciliation of the forecasted Adjusted EBITDA to the respective most-directly comparable GAAP metrics cannot be provided without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliations, including gains or losses on investments, extinguishment of debt, equity in nonconsolidated affiliates, impairment charges, stock based compensation, and restructuring as well as the Company's cash and cash equivalent balance. Segment Results View source version on businesswire.com: https://www.businesswire.com/news/home/20260810376930/en/ Contacts For further information, please contact: Media Wendy GoldbergChief Communications Officer(212) [email protected] Investors Andrey HartSVP of Investor Relations(703) [email protected]

iHeartMedia trades at $4.44 and has moved in lockstep with the market. Its shares have returned 6.9% over the last six months while the S&P 500 has gained 8.5%. Is now the time to buy iHeartMedia, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free. We’re sitting this one out for now. Here are three reasons you should be careful with IHRT, plus one stock we’d rather own. A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, iHeartMedia’s sales grew at a weak 6.5% compounded annual growth rate over the last five years. This fell short of our benchmark for the consumer discretionary sector. We like to invest in businesses with high returns, but the trend in a company’s ROIC can also be an early indicator of future business quality. Unfortunately, iHeartMedia’s ROIC has decreased over the last few years. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. Debt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency. iHeartMedia’s $5.77 billion of debt exceeds the $135.1 million of cash on its balance sheet. Furthermore, its 8× net-debt-to-EBITDA ratio (based on its EBITDA of $673.8 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company’s rating if profitability falls. iHeartMedia could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope iHeartMedia can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. We cheer for all companies serving everyday consumers, but in the case of iHeartMedia, we’ll be cheering from the sidelines. That said, the stock currently trades at 7.9× forward EV-to-EBITDA (or $4.44 per share). While this valuation is reasonable, we don’t see a big opportunity at the moment. There are better stocks to buy right now. We’d suggest looking at one of our top software and edge computing picks. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.