iHeartMedia, Inc. operates as an audio media company in the United States. It operates in three segments: Multiplatform Group, Digital Audio Group, ...
iHeartMedia, Inc., formerly known as CC Media Holdings, Inc., is headquartered in San Antonio, Texas, and was incorporated in 1974, with origins dating back to 1972 when it was founded as Clear Channel Communications. The company operates through three primary segments: Multiplatform Group, which includes its extensive network of 855 ...iHeartMedia, Inc., formerly known as CC Media Holdings, Inc., is headquartered in San Antonio, Texas, and was incorporated in 1974, with origins dating back to 1972 when it was founded as Clear Channel Communications. The company operates through three primary segments: Multiplatform Group, which includes its extensive network of 855 broadcast radio stations along with sponsorship, live events, and advertising solutions like SmartAudio; Digital Audio Group, which encompasses podcasting, iHeartRadio streaming services, digital advertising, and other online content distribution; and Audio & Media Services Group, providing media representation, broadcast software (RCS), traffic and weather networks, and audio recognition technology. With over 9,500 employees, iHeartMedia serves as a major player in the communication services sector, generating revenue through advertising, subscriptions, and partnerships. The company has faced financial challenges, evidenced by significant debt and negative profitability metrics, but remains the dominant radio broadcaster with a vast reach. Its leadership, under CEO and Chairman Bob Pittman, has focused on leveraging data and technology to connect advertisers with audiences, while also supporting social causes through community initiatives. The company continues to adapt to the evolving media landscape, investing in digital growth and podcasting to complement its traditional radio strengths.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.9B
+0.3%
+10.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-472.9M
+53.2%
+13.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+58.3%
-0.9%
+22.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+5.0%
+125.3%
+194.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-12.2%
+53.3%
+21.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$10.9M
+141.7%
+140.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+0.3%
+141.6%
+136.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-316.0%
+25.7%
+4.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.51x
-3.6%
-5.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
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 …
