Cumulus Media's Losses Widen Amid Revenue Decline

TL;DR

**Cumulus Media is bleeding cash and revenue, making it a risky bet as losses accelerate and debt piles up.**

AI Summary

CUMULUS MEDIA INC (CMLSQ) reported a significant net loss of $20.4 million for the three months ended September 30, 2025, an increase from the $10.3 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss widened to $65.6 million, compared to $52.2 million in 2024. Revenue declined to $180.3 million for the quarter, down from $203.6 million year-over-year, and to $553.6 million for the nine-month period, a decrease from $608.5 million. Operating expenses for the nine months ended September 30, 2025, totaled $569.0 million, slightly lower than $621.9 million in the prior year, primarily due to reduced content costs and selling, general, and administrative expenses. The company's cash and cash equivalents increased to $90.4 million as of September 30, 2025, from $63.8 million at December 31, 2024, partly due to a $55.0 million draw on its 2020 Revolving Credit Facility. Total assets decreased to $1.078 billion from $1.119 billion, while total liabilities increased to $1.135 billion from $1.112 billion, resulting in a total stockholders' deficit of $56.9 million. The company also recorded a $1.4 million impairment for assets held for sale during the nine months ended September 30, 2025.

Why It Matters

Cumulus Media's continued net losses and declining revenue signal persistent challenges in the competitive audio media landscape, impacting investor confidence and potentially future growth. The increase in total liabilities and a growing stockholders' deficit raise concerns about the company's financial stability and ability to service its long-term debt of $696.2 million. For employees, this financial strain could lead to cost-cutting measures or restructuring. Customers might see reduced investment in content or services if financial pressures continue. In the broader market, Cumulus's struggles reflect the ongoing shift in media consumption and advertising spend, putting pressure on traditional broadcast models.

Risk Assessment

Risk Level: high — The company reported a net loss of $65.6 million for the nine months ended September 30, 2025, an increase from $52.2 million in the prior year, and its total stockholders' deficit grew to $56.9 million from a $6.9 million equity at December 31, 2024. Furthermore, long-term debt stands at $696.2 million, and the company incurred operating losses of $65.6 million and $52.2 million during the nine months ended September 30, 2025 and 2024, respectively, indicating significant financial distress.

Analyst Insight

Investors should exercise extreme caution or consider divesting given the widening losses, declining revenue, and increasing debt. The growing stockholders' deficit suggests fundamental financial instability. Monitor the company's ability to generate positive cash flow from operations and its progress in reducing its substantial long-term debt.

Financial Highlights

debt To Equity

N/A

revenue

$553,621,000

operating Margin

N/A

total Assets

$1,078,217,000

total Debt

$696,204,000

net Income

-$65,600,000

eps

N/A

gross Margin

N/A

cash Position

$90,414,000

revenue Growth

-9.0%

Revenue Breakdown

Key Numbers

• $65.6M — Net Loss (9 months ended Sep 30, 2025) (Increased from $52.2M in 2024, indicating worsening financial performance.)
• $180.3M — Net Revenue (3 months ended Sep 30, 2025) (Decreased from $203.6M in 2024, showing revenue decline.)
• $553.6M — Net Revenue (9 months ended Sep 30, 2025) (Decreased from $608.5M in 2024, highlighting a significant revenue drop.)
• $90.4M — Cash and Cash Equivalents (Sep 30, 2025) (Increased from $63.8M at Dec 31, 2024, partly due to a $55.0M draw on credit facility.)
• $56.9M — Total Stockholders' Deficit (Sep 30, 2025) (Worsened from a $6.9M equity at Dec 31, 2024, indicating negative equity.)
• $696.2M — Long-term Debt (Sep 30, 2025) (Increased from $669.0M at Dec 31, 2024, adding to financial burden.)
• $1.4M — Impairment of assets held for sale (9 months ended Sep 30, 2025) (Reflects a write-down of asset values.)
• $55.0M — Borrowings under 2020 revolving credit facility (9 months ended Sep 30, 2025) (Used to bolster cash position, indicating reliance on debt for liquidity.)

Key Players & Entities

• CUMULUS MEDIA INC (company) — Registrant
• New Mountain Capital, LLC (company) — Shareholder group that acquired BMI
• Vertical Bridge REIT, LLC (company) — Partner in sale leaseback arrangement
• Broadcast Music, Inc. (company) — Company whose sale generated proceeds
• SEC (regulator) — Securities and Exchange Commission
• Bloomberg (company) — Publisher of the analysis

FAQ

Risk Factors

• Substantial Indebtedness [high — financial]: The company has significant long-term debt of $696.2 million as of September 30, 2025, an increase from $669.0 million at December 31, 2024. This high level of debt, coupled with a total stockholders' deficit of $56.9 million, increases financial risk and may limit operational flexibility.
• Net Losses and Negative Equity [high — financial]: CUMULUS MEDIA INC reported a net loss of $20.4 million for the three months ended September 30, 2025, and $65.6 million for the nine months ended September 30, 2025. The company's total stockholders' deficit widened to $56.9 million, indicating a negative equity position.
• Declining Revenue [medium — operational]: Net revenue has declined year-over-year, falling to $180.3 million for the quarter and $553.6 million for the nine-month period. This trend suggests challenges in revenue generation and market demand.
• Reliance on Credit Facilities [medium — financial]: The increase in cash and cash equivalents to $90.4 million as of September 30, 2025, was partly due to a $55.0 million draw on its 2020 Revolving Credit Facility. This highlights a reliance on debt for liquidity.
• Asset Impairment [low — operational]: The company recorded a $1.4 million impairment for assets held for sale during the nine months ended September 30, 2025. This indicates a reduction in the carrying value of certain assets.
• Broadcast License Value [medium — market]: Broadcast licenses represent a significant portion of the company's assets ($516.97 million as of September 30, 2025). Any adverse regulatory changes or market shifts affecting the value or renewability of these licenses could have a material impact.

Industry Context

Cumulus Media operates in the highly competitive radio broadcasting industry, facing challenges from digital media, streaming services, and changing advertising spending. The industry is characterized by significant capital investment in licenses and infrastructure, and is subject to regulatory oversight.

Regulatory Implications

The company's broadcast licenses are subject to renewal and regulatory compliance. Changes in FCC regulations or spectrum allocation policies could impact operations and revenue streams. The company must adhere to all broadcasting and advertising regulations.

What Investors Should Do

1. Monitor debt levels and repayment capacity.
2. Analyze revenue trends and diversification efforts.
3. Evaluate the impact of operating expense management.
4. Assess liquidity and reliance on credit facilities.

Glossary

Stockholders' (deficit) equity

Represents the net worth of a company, calculated as total assets minus total liabilities. A deficit indicates that liabilities exceed assets. (The company has a total stockholders' deficit of $56.9 million as of September 30, 2025, indicating negative equity.)

Accumulated deficit

The cumulative net losses of a company over its lifetime that have not been offset by net income. (The accumulated deficit was $370.3 million as of September 30, 2025, reflecting significant historical losses.)

Impairment of assets held for sale

A reduction in the carrying value of an asset that is classified as held for sale when its fair value is less than its carrying amount. (The company recorded a $1.4 million impairment for assets held for sale in the nine months ended September 30, 2025.)

Broadcast licenses

Authorizations granted by regulatory bodies that permit a company to operate a radio or television broadcast station. (These are significant intangible assets for Cumulus Media, totaling $516.97 million as of September 30, 2025.)

Operating lease right-of-use assets

Assets recognized under accounting standards for leases, representing the right to use an underlying asset for the lease term. (These assets amounted to $102.1 million as of September 30, 2025, reflecting long-term rental commitments.)

Year-Over-Year Comparison

Compared to December 31, 2024, CUMULUS MEDIA INC's financial position has weakened. Total assets decreased from $1.119 billion to $1.078 billion, while total liabilities increased from $1.112 billion to $1.135 billion. This has resulted in a significant deterioration of stockholders' equity, moving from a positive $6.95 million to a deficit of $56.9 million. Long-term debt also increased by $27.2 million to $696.2 million, further straining the balance sheet.

Filing Documents

• cmls-20250930.htm (10-Q) — 1019KB
• cmls9302025ex-311.htm (EX-31.1) — 10KB
• cmls9302025ex-312.htm (EX-31.2) — 9KB
• cmls9302025ex-321.htm (EX-32.1) — 8KB
• cmls-20250930_g1.jpg (GRAPHIC) — 47KB
• 0001058623-25-000068.txt ( ) — 5763KB
• cmls-20250930.xsd (EX-101.SCH) — 36KB
• cmls-20250930_cal.xml (EX-101.CAL) — 62KB
• cmls-20250930_def.xml (EX-101.DEF) — 212KB
• cmls-20250930_lab.xml (EX-101.LAB) — 498KB
• cmls-20250930_pre.xml (EX-101.PRE) — 371KB
• cmls-20250930_htm.xml (XML) — 716KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 3 Condensed Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Stockholders' (Deficit) Equity For the Nine Months Ended September 30, 2025 and 2024 5 Condensed Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2025 and 2024 6 Notes to Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 29

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 30

Signatures

Signatures 30 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Cumulus Media Inc. Condensed Consolidated Balance Sheets (Unaudited) Dollars in thousands (except for share data) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 90,414 $ 63,836 Accounts receivable, less allowance for doubtful accounts of $ 3,693 and $ 4,540 at September 30, 2025 and December 31, 2024, respectively 134,182 161,986 Trade receivable 4,590 2,854 Assets held for sale 10,531 872 Prepaid expenses and other current assets 25,646 18,503 Total current assets 265,363 248,051 Property and equipment, net 121,912 161,271 Operating lease right-of-use assets 102,082 102,183 Broadcast licenses 516,970 518,165 Other intangible assets, net 64,684 76,957 Other assets 7,206 12,022 Total assets $ 1,078,217 $ 1,118,649 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 97,179 $ 105,025 Current portion of operating lease liabilities 27,660 26,323 Trade payable 3,614 2,430 Current portion of debt 23,856 — Total current liabilities 152,309 133,778 Long-term debt 696,204 669,041 Operating lease liabilities 96,250 99,343 Financing liabilities, net 178,616 199,691 Other liabilities 7,939 7,520 Deferred income tax liabilities 3,817 2,325 Total liabilities 1,135,135 1,111,698 Commitments and contingencies (Note 10) Stockholders' (deficit) equity: Class A common stock, par value $ 0.0000001 per share; 100,000,000 shares authorized; 22,943,154 and 22,204,290 shares issued; 17,128,043 and 16,723,074 shares outstanding at September 30, 2025 and December 31, 2024, respectively — — Convertible Class B common stock, par value $ 0.0000001 per share; 100,000,000 shares authorized; 312,041 shares issued and outstanding at September 30, 2025 and December 31, 2024 — — Treasury stock, at cost, 5,815,111 and 5,481,216 shares at September 30, 2025 and December 31, 2024, respectively ( 47,107 ) ( 46,833 ) Additional paid-in-capital 360,

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