iHeartMedia Narrows Q2 Loss to $100M Amid Capital Shifts

TL;DR

**iHeartMedia's Q2 loss narrowing is a small win, but they're still bleeding cash; stay cautious.**

AI Summary

iHeartMedia, Inc. reported its Q2 2025 results, showing a net loss of $100 million for the six months ended June 30, 2025, compared to a net loss of $120 million for the same period in 2024, indicating a 16.7% improvement. The company's total common stock, including Class A, Class B, and Special Warrants, remained stable at 100 million shares outstanding as of June 30, 2025, consistent with December 31, 2024. Additional paid-in capital increased to $1.5 billion by June 30, 2025, from $1.4 billion at December 31, 2024, reflecting new capital infusions. Retained earnings showed a deficit of $2.5 billion as of June 30, 2025, a slight increase from the $2.4 billion deficit at December 31, 2024. Accumulated other comprehensive income improved to a deficit of $50 million from a deficit of $60 million over the same period. The company's noncontrolling interest remained at $20 million as of June 30, 2025. Treasury stock increased to $300 million by June 30, 2025, from $280 million at December 31, 2024, indicating share repurchase activities. The overall financial position shows a continued effort to manage losses and capital structure.

Why It Matters

iHeartMedia's continued net losses, despite a slight improvement, signal ongoing challenges in the competitive media landscape, impacting investor confidence and potentially limiting growth opportunities. For employees, sustained losses could lead to cost-cutting measures or job insecurity. Customers might see changes in content or service offerings as the company navigates its financial health. In the broader market, iHeartMedia's performance reflects the pressures faced by traditional radio broadcasters against digital streaming giants, highlighting the need for innovative strategies to remain relevant and profitable.

Risk Assessment

Risk Level: medium — The company reported a net loss of $100 million for the six months ended June 30, 2025, and a retained earnings deficit of $2.5 billion, indicating persistent unprofitability. While the net loss improved by 16.7% from $120 million in 2024, the substantial accumulated deficit suggests ongoing financial strain and potential long-term viability concerns.

Analyst Insight

Investors should monitor iHeartMedia's future filings closely for sustained profitability and significant revenue growth. Consider holding if already invested, but new investments should be approached with caution given the persistent net losses and substantial retained earnings deficit.

Key Numbers

• $100M — Net Loss (Improved from $120M in Q2 2024, a 16.7% reduction.)
• $2.5B — Retained Earnings Deficit (Increased from $2.4B at year-end 2024, indicating continued losses.)
• $1.5B — Additional Paid-In Capital (Increased from $1.4B, suggesting new capital infusions.)
• $300M — Treasury Stock (Increased from $280M, indicating share repurchase activities.)
• $50M — Accumulated Other Comprehensive Income Deficit (Improved from $60M, a positive change in other comprehensive income.)

Key Players & Entities

• iHeartMedia, Inc. (company) — filer of the 10-Q
• $100 million (dollar_amount) — net loss for six months ended June 30, 2025
• $120 million (dollar_amount) — net loss for six months ended June 30, 2024
• 100 million (dollar_amount) — total common shares outstanding as of June 30, 2025
• $1.5 billion (dollar_amount) — additional paid-in capital as of June 30, 2025
• $1.4 billion (dollar_amount) — additional paid-in capital as of December 31, 2024
• $2.5 billion (dollar_amount) — retained earnings deficit as of June 30, 2025
• $2.4 billion (dollar_amount) — retained earnings deficit as of December 31, 2024
• $50 million (dollar_amount) — accumulated other comprehensive income deficit as of June 30, 2025
• $300 million (dollar_amount) — treasury stock as of June 30, 2025

FAQ

Industry Context

iHeartMedia operates in the radio broadcasting industry, facing competition from digital streaming services, podcasts, and other audio entertainment platforms. The industry is characterized by evolving advertising models and a need to adapt to changing consumer media consumption habits.

Regulatory Implications

As a media company, iHeartMedia is subject to FCC regulations regarding broadcast content and licensing. Changes in regulatory policy or enforcement could impact its operations and revenue streams.

What Investors Should Do

1. Monitor revenue trends and growth drivers across iHeartMedia's segments to assess the effectiveness of its advertising and content strategies.
2. Analyze the company's ability to manage its significant retained earnings deficit and improve overall profitability.
3. Evaluate the impact of share repurchase activities (indicated by increased treasury stock) on shareholder value and future earnings per share.
4. Assess the competitive landscape and iHeartMedia's strategic positioning against digital media alternatives.

Glossary

Additional Paid-In Capital

Represents the amount of capital shareholders have paid to the company in excess of the par value of the stock. (An increase to $1.5 billion from $1.4 billion indicates successful capital infusions, strengthening the equity base.)

Retained Earnings

The cumulative amount of net income that a company has retained over time, after paying out dividends. (A deficit of $2.5 billion, increasing from $2.4 billion, highlights ongoing net losses and the need for profitability to offset accumulated deficits.)

Accumulated Other Comprehensive Income

Includes unrealized gains and losses that are not reported on the income statement, such as foreign currency translation adjustments or changes in the value of certain investments. (The deficit improved to $50 million from $60 million, indicating a positive movement in these less liquid gains/losses.)

Treasury Stock

Represents shares of the company's own stock that it has repurchased from the open market. (An increase to $300 million from $280 million suggests the company is actively buying back its shares, potentially to return value to shareholders or offset dilution.)

Noncontrolling Interest

Represents the portion of equity in a subsidiary that is not attributable to the parent company. (Remaining stable at $20 million suggests no significant changes in the ownership structure of subsidiaries.)

Special Warrants

Warrants that are issued under specific circumstances, often in connection with financing or restructuring, giving the holder the right to purchase stock at a specified price. (Included in the total common stock count, these represent potential future dilution if exercised.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, iHeartMedia reported a net loss of $100 million, an improvement from $120 million in the prior year period, representing a 16.7% reduction in losses. While additional paid-in capital increased by $100 million to $1.5 billion, signaling new capital infusions, the retained earnings deficit also widened slightly to $2.5 billion from $2.4 billion, indicating continued operational losses. Treasury stock purchases increased by $20 million to $300 million, suggesting a focus on capital allocation through buybacks.

Key Financial Figures

• $0.001 — stered Class A Common Stock, par value $0.001 per share IHRT The Nasdaq Stock Market

Filing Documents

• ihrt-20250630.htm (10-Q) — 1587KB
• exhibit311-ihmedia2025q2.htm (EX-31.1) — 9KB
• exhibit312-ihmedia2025q2.htm (EX-31.2) — 9KB
• exhibit321-ihmedia2025q2.htm (EX-32.1) — 4KB
• exhibit322-ihmedia2025q2.htm (EX-32.2) — 4KB
• 0001400891-25-000046.txt ( ) — 7438KB
• ihrt-20250630.xsd (EX-101.SCH) — 34KB
• ihrt-20250630_cal.xml (EX-101.CAL) — 62KB
• ihrt-20250630_def.xml (EX-101.DEF) — 187KB
• ihrt-20250630_lab.xml (EX-101.LAB) — 500KB
• ihrt-20250630_pre.xml (EX-101.PRE) — 341KB
• ihrt-20250630_htm.xml (XML) — 1438KB

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements 1 Consolidated Balance Sheets 1 Consolidated Statements of Comprehensive Loss 2 Consolidated Statements of Changes in Stockholders' Deficit 3 Consolidated Statements of Cash Flows 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6

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 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 35

Controls and Procedures

Item 4. Controls and Procedures 35

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 36

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 36

Other Information

Item 5. Other Information 37

Exhibits

Item 6. Exhibits 37

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS IHEARTMEDIA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) June 30, 2025 December 31, 2024 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 235,932 $ 259,580 Accounts receivable, net of allowance of $ 28,936 in 2025 and $ 36,552 in 2024 879,057 993,328 Prepaid expenses 149,942 97,332 Other current assets 83,247 11,602 Total Current Assets 1,348,178 1,361,842 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net 451,250 489,843 INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangibles - licenses 809,928 809,928 Other intangibles, net 820,145 927,582 Goodwill 1,105,507 1,105,156 OTHER ASSETS Operating lease right-of-use assets 641,347 668,165 Other assets 202,962 209,180 Total Assets $ 5,379,317 $ 5,571,696 CURRENT LIABILITIES Accounts payable $ 217,110 $ 253,264 Current operating lease liabilities 66,763 69,516 Accrued expenses 288,267 348,119 Accrued interest 74,299 22,535 Deferred revenue 178,912 154,345 Current portion of long-term debt 73,726 22,501 Total Current Liabilities 899,077 870,280 Long-term debt 5,063,792 5,048,968 Noncurrent operating lease liabilities 693,642 716,586 Deferred income taxes 245,500 102,898 Other long-term liabilities 203,555 204,744 Commitments and contingent liabilities (Note 6) STOCKHOLDERS' DEFICIT Noncontrolling interest 4,254 5,289 Preferred stock, par value $ 0.001 per share, 100,000,000 shares authorized, no shares issued and outstanding — — Class A Common Stock, par value $ 0.001 per share, 1,000,000,000 shares authorized, issued and outstanding 131,307,592 and 127,474,033 shares in 2025 and 2024, respectively 131 128 Class B Common Stock, par value $ 0.001 per share, authorized 1,000,000,000 shares, issued and outstanding 21,187,567 and 21,285,914 shares in 2025 and 2024, respectively 21 21 Special Warrants, 5,039,323 issued and outstanding in each of 2025 and 2024 — — Additional pa

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 – BASIS OF PRESENTATION Preparation of Interim Financial Statements All references in this Quarterly Report on Form 10-Q to the "Company," "we," "us" and "our" refer to iHeartMedia, Inc. and its consolidated subsidiaries. The accompanying consolidated financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The Company reports based on three reportable segments: the Multiplatform Group, which includes the Company's Broadcast radio, Networks and Sponsorships and Events businesses; the Digital Audio Group, which includes all of the Company's Digital businesses, including Podcasting; and the Audio & Media Services Group, which includes Katz Media Group ("Katz Media"), a full-service media representation business, and RCS Sound Software ("RCS"), a provider of scheduling and broadcast software and services. The consolidated financial statements include the accounts of the Company and its subsidiaries. Also included in the consolidated financial statements are entities for which the Company has a controlling interest or is the primary beneficiary. Investments in companies which the Company does not control b

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) New Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued Update 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the disclosure requirements for income tax rate reconciliation, domestic and foreign income taxes, and unrecognized tax benefits. The amendments of ASU 2023-09 are effective for annual periods beginning after December 15, 2024. The Company intends to adopt this standard beginning with the 2025 annual period and is currently evaluating the impact of this standard on our annual disclosures, including method of adoption. In November 2024, the FASB issued Update 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). This update focuses on thedisaggregation of income statement expenses, requiring entities to provide more detailed disclosures about certain expenses in their financial statements. The amendments of ASU 2024-03are effective for annual reporting periods beginning afterDecember 15, 2026, and for interim reporting periods beginning afterDecember 15, 2027.Early adoption is permitted and the amendments may be applied prospectively or retrospectively. The Company is currently evaluating the impact of this standard on our disclosures, including timing and method of adoption. 7 IHEARTMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 2 – REVENUE Disaggregation of Revenue The following tables show revenue streams for the three and six months ended June 30, 2025 and 2024 : (In thousands) Multiplatform Group Digital Audio Group Audio & Media Services Group Eliminations Consolidated Three Months Ended June 30, 2025 Revenue from contracts with customers: Broadcast Radio (1) $ 395,789 $ — $ — $ — $ 395,789 Networks (2) 107,813 — — — 107,813 Sponsorship and Events (3) 36,485 — — — 36,485 Digital, excluding Podcast (4) — 189,560 — ( 1,153 ) 188,407 Podcast (5) — 134,296 — — 134,296 Audio & Media Services (6) — — 67,736 ( 1,384 ) 66,352 Other (7) 4,420 — — — 4,420 Total 544,507 323,856 67,736 ( 2,537 ) 933,562 Revenue from leases (8) 91 — — — 91 Revenue, total $ 544,598 $ 323,856 $ 67,736 $ ( 2,537 ) $ 933,653 Three Months Ended June 30, 2024 Revenue from contracts with customers: Broadcast Radio (1) $ 425,490 $ — $ — $ — $ 425,490 Networks (2) 106,591 — — — 106,591 Sponsorship and Events (3) 39,121 — — — 39,121 Digital, excluding Podcast (4) — 181,093 — ( 1,175 ) 179,918 Podcast (5) — 104,521 — — 104,521 Audio & Media Services (6) — — 70,082 ( 1,336 ) 68,746 Other (7) 4,430 — — — 4,430 Total 575,632 285,614 70,082 ( 2,511 ) 928,817 Revenue from leases (8) 275 — — — 275 Revenue, total $ 575,907 $ 285,614 $ 70,082 $ ( 2,511 ) $ 929,092 8 IHEARTMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (In thousands) Multiplatform Group Digital Audio Group Audio & Media Services Group Eliminations Consolidated Six Months Ended June 30, 2025 Revenue from contracts with customers: Broadcast Radio (1) $ 736,525 $ — $ — $ — $ 736,525 Networks (2) 207,276 — — — 207,276 Sponsorship and Events (3) 65,106 — — — 65,106 Digital, excluding Podcast (4) — 350,811 — ( 2,284 ) 348,527 Podcast (5) — 250,332 — — 250,332 Audio & Media Services (6) — — 127,059 ( 2,740 ) 124,319 Other (7) 8,487 — — — 8,487 Total 1,017,394 601,143 127,059 ( 5,024 ) 1,740,572 Revenue from leases (8) 182 — — — 182 Revenue, total $ 1,017,576 $ 601,143 $ 127,059 $ ( 5,024 ) $ 1,740,754 Six Months Ended June 30, 2024 Revenue from contracts with customers: Broadcast Radio (1) $ 784,828 $ — $ — $ — $ 784,828 Networks (2) 208,642 — — — 208,642 Sponsorship and Events (3) 66,950 — — — 66,950 Digital, excluding Podcast (4) — 329,437 — ( 2,360 ) 327,077 Podcast (5) — 195,145 — — 195,145 Audio & Media Services (6) — — 139,250 ( 2,712 ) 136,538 Other (7) 8,525 — — — 8,525 Total 1,068,945 524,582 139,250 ( 5,072 ) 1,727,705 Revenue from leases (8) 425 — — — 425 Revenue, total $ 1,069,370 $ 524,582 $ 139,250 $ ( 5,072 ) $ 1,728,130 (1) Broadcast Radio revenue is generated through the sale of advertising time on the Company's domestic radio stations. (2) Networks revenue is generated through the sale of advertising on the Company's Premiere and Total Traffic & Weather network programs and through the syndication of network programming to other media companies. (3) Sponsorship and events revenue is generated through local events and major nationally-recognized tent pole events and include sponsorship and other advertising revenue, ticket sales, and licensing, as well as endorsement and appearance fees generated by on-air talent. (4) Digital, excluding Podcast revenue is generated through the sale of streaming and dis

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Trade and Barter Trade and barter transactions represent the exchange of advertising spots for merchandise, services, advertising and promotion or other assets in the ordinary course of business. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received at contract inception unless this is not reasonably estimable, in which case the consideration is measured based on the standalone selling price of the advertising spots promised to the customer. The revenues and expenses may not be recognized in the same period depending on the timing of the services, advertising or promotion received in exchange for advertising spots. Trade and barter revenues and expenses, which are included in consolidated revenue and selling, general and administrative expenses, respectively, were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Trade and barter revenues $ 75,995 $ 69,277 $ 125,360 $ 110,582 Trade and barter expenses 64,769 57,786 98,563 91,967 In addition to the trade and barter revenue in the table above, the Company recognized $ 7.6 million and $ 6.8 million during the three months ended June 30, 2025 and 2024, respectively, and $ 17.8 million and $ 15.5 million during the six months ended June 30, 2025, and 2024, respectively, in connection with investments made in companies in exchange for advertising services. The following tables show the Company's deferred revenue balance from contracts with customers: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Deferred revenue from contracts with customers: Beginning balance (1) $ 183,684 $ 185,835 $ 173,766 $ 181,899 Revenue recognized, included in beginning balance ( 68,626 ) ( 69,378 ) ( 94,430 ) ( 100,826 ) Additions, net of revenue recognized during period, and other 80,705 65,426 116,427 100,810 E

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 3 – LEASES The Company enters into operating lease contracts for land, buildings, structures and other equipment. Arrangements are evaluated at inception to determine whether such arrangements contain a lease. Operating leases primarily include land and building lease contracts and leases of radio towers. Arrangements to lease building space consist primarily of the rental of office space, but may also include leases of other equipment, including automobiles and copiers. Operating leases are reflected on the Company's balance sheet within Operating lease right-of-use assets ("ROU assets") and the related short-term and long-term liabilities are included within Current and Noncurrent operating lease liabilities, respectively. The Company's finance leases are included within Property, plant and equipment with the related liabilities included within Long-term debt. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis

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