iHeartMedia's Q3 Loss Widens Amidst Broadcast Decline, Digital Growth

TL;DR

**iHeartMedia is a mixed bag: digital audio is growing, but traditional radio is shrinking, and they're still bleeding cash, so proceed with caution.**

AI Summary

iHeartMedia, Inc. reported a net loss of $66.26 million for the three months ended September 30, 2025, a significant increase from the $41.26 million net loss in the same period of 2024. Total revenue for the quarter decreased slightly to $997.01 million from $1.008 billion year-over-year. For the nine months ended September 30, 2025, the net loss attributable to the company was $430.96 million, a substantial improvement from the $1.041 billion loss in the prior year, primarily due to lower impairment charges. Revenue for the nine-month period remained relatively flat at $2.737 billion compared to $2.736 billion. The Digital Audio Group showed strong growth, with Podcast revenue increasing to $139.67 million in Q3 2025 from $114.04 million in Q3 2024, and Digital (excluding Podcast) revenue rising to $200.89 million from $185.80 million. Conversely, the Multiplatform Group's Broadcast Radio revenue declined to $427.02 million from $448.80 million, and the Audio & Media Services Group's revenue dropped to $65.24 million from $88.73 million. The company recognized a non-cash impairment charge of $208.5 million on its FCC licenses in Q3 2025, significantly less than the $922.14 million in impairment charges recorded in the nine months ended September 30, 2024. iHeartCommunications borrowed $100.0 million under its ABL Facility for liquidity management, with $317.5 million remaining available.

Why It Matters

iHeartMedia's mixed results highlight the ongoing shift in media consumption, with digital audio segments like podcasting showing resilience and growth while traditional broadcast radio faces headwinds. For investors, the widening Q3 net loss and declining broadcast revenue are concerning, but the significant reduction in nine-month net loss due to lower impairment charges offers a glimmer of hope regarding asset valuation stability. Employees in the digital audio segment may see more opportunities, while those in traditional radio could face continued pressure. Customers are increasingly engaging with iHeartMedia's digital offerings, indicating a successful pivot in content delivery. Competitively, iHeartMedia's digital growth positions it better against streaming giants, but its legacy broadcast business remains a drag.

Risk Assessment

Risk Level: high — The company reported a net loss of $66.26 million for Q3 2025 and an accumulated deficit of $4.77 billion as of September 30, 2025, indicating persistent unprofitability. Total assets decreased from $5.57 billion in December 2024 to $5.08 billion in September 2025, partly due to a $208.5 million impairment charge on FCC licenses, reflecting declining asset values. Furthermore, cash and cash equivalents dropped from $259.58 million to $192.23 million, and the company used $63.67 million in cash from operating activities during the nine months ended September 30, 2025, signaling ongoing liquidity challenges.

Analyst Insight

Investors should closely monitor iHeartMedia's ability to monetize its growing Digital Audio Group and reduce its reliance on the declining Multiplatform Group. Consider a 'hold' position if you believe the digital pivot can eventually offset broadcast losses and improve profitability, but be prepared for continued volatility given the high debt load and ongoing net losses. New investors should wait for clear signs of sustained profitability and positive operating cash flow before considering an investment.

Financial Highlights

debt To Equity

N/A

revenue

$997,010,000

operating Margin

N/A

total Assets

$5,088,564,000

total Debt

$5,046,626,000

net Income

-$66,260,000

eps

N/A

gross Margin

N/A

cash Position

$192,239,000

revenue Growth

-1.1%

Revenue Breakdown

Key Numbers

• $997.01M — Q3 2025 Revenue (Down from $1.008B in Q3 2024, indicating a slight decline.)
• $66.26M — Q3 2025 Net Loss (Increased from $41.26M in Q3 2024, showing worsening quarterly profitability.)
• $430.96M — Nine-Month 2025 Net Loss (Improved significantly from $1.041B in the prior year, primarily due to lower impairment charges.)
• $208.5M — Q3 2025 Impairment Charges (Significantly lower than $922.14M in the nine months ended September 30, 2024, impacting net loss improvement.)
• $139.67M — Q3 2025 Podcast Revenue (Increased from $114.04M in Q3 2024, highlighting growth in digital audio.)
• $427.02M — Q3 2025 Broadcast Radio Revenue (Decreased from $448.80M in Q3 2024, indicating continued decline in traditional segments.)
• $192.23M — Cash and Cash Equivalents (As of September 30, 2025, down from $259.58M at December 31, 2024, reflecting reduced liquidity.)
• $5.04B — Long-term debt (As of September 30, 2025, remaining substantial and a key financial burden.)
• $63.67M — Cash Used in Operating Activities (For the nine months ended September 30, 2025, indicating negative operational cash flow.)
• $509.8M — Total Available Liquidity (As of September 30, 2025, including cash and ABL facility availability.)

Key Players & Entities

• iHeartMedia, Inc. (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• iHeartCommunications (company) — Subsidiary that borrowed $100.0 million
• Katz Media Group (company) — Full-service media representation business
• RCS Sound Software (company) — Provider of scheduling and broadcast software and services
• $66.26 million (dollar_amount) — Net loss attributable to the Company for Q3 2025
• $430.96 million (dollar_amount) — Net loss attributable to the Company for the nine months ended September 30, 2025
• $997.01 million (dollar_amount) — Total revenue for Q3 2025
• $208.5 million (dollar_amount) — Non-cash impairment charge on FCC licenses in Q3 2025
• $100.0 million (dollar_amount) — Amount borrowed under the ABL Facility

FAQ

Risk Factors

• Substantial Debt Burden [high — financial]: The company carries a significant amount of long-term debt, totaling $5.04 billion as of September 30, 2025. This high leverage can limit financial flexibility, increase interest expenses, and pose a risk during economic downturns or periods of rising interest rates.
• Advertising Market Volatility [high — market]: Revenue is heavily reliant on advertising, which is sensitive to economic conditions. A challenging macroeconomic environment, characterized by higher interest rates and inflation, has impacted revenues and cash flows, creating uncertainty. A recession could further depress advertising spending.
• Digital Transformation and Competition [medium — operational]: While digital segments like podcasting show growth, the company faces intense competition in the digital audio space. The shift in advertising spend towards digital platforms requires continuous innovation and investment to maintain market share against established tech giants and emerging players.
• FCC License Impairment [medium — regulatory]: The company recognized a non-cash impairment charge of $208.5 million on FCC licenses in Q3 2025. While lower than prior periods, such charges highlight the potential for significant write-downs of intangible assets, impacting profitability and reflecting changes in the value of these assets.
• Liquidity Management [medium — financial]: The company borrowed $100.0 million under its ABL Facility for liquidity management, with $317.5 million remaining available. While liquidity appears sufficient for now, reliance on credit facilities and a decrease in cash and cash equivalents from $259.58 million to $192.24 million warrants monitoring.
• Declining Traditional Revenue Streams [medium — operational]: Broadcast Radio revenue declined to $427.02 million in Q3 2025 from $448.80 million in Q3 2024. This ongoing trend in traditional media segments necessitates a successful pivot to higher-growth digital areas to offset these declines.

Industry Context

The audio entertainment industry is undergoing a significant transformation, with a pronounced shift from traditional broadcast radio to digital platforms like streaming and podcasts. iHeartMedia operates in this dynamic landscape, facing competition from established media companies, digital-native platforms, and technology giants. Growth in digital advertising spend, particularly in areas like podcasting, presents opportunities, but requires adaptation to evolving consumer habits and advertiser preferences.

Regulatory Implications

The company's operations are subject to regulations from bodies like the FCC, particularly concerning broadcast licenses. The recognition of significant impairment charges on FCC licenses, such as the $208.5 million in Q3 2025, underscores the potential financial impact of regulatory or market-driven changes affecting the value of these assets. Compliance with advertising and data privacy regulations across its digital platforms is also critical.

What Investors Should Do

1. Monitor Digital Growth Trajectory
2. Analyze Debt Reduction Strategy
3. Evaluate Operational Efficiency
4. Assess Impact of Macroeconomic Conditions

Key Dates

• 2025-09-30: End of Q3 2025 — Reported a net loss of $66.26 million on revenue of $997.01 million. Digital Audio Group, particularly podcasting, showed strong growth, while traditional broadcast radio revenue declined.
• 2025-09-30: Balance Sheet Date — Total assets stood at $5.09 billion, with long-term debt at $5.05 billion. Cash and cash equivalents were $192.24 million.
• 2024-09-30: End of Q3 2024 — Reported a net loss of $41.26 million on revenue of $1.008 billion. This provides a comparison point for the current quarter's performance.
• 2024-12-31: End of Fiscal Year 2024 — Cash and cash equivalents were $259.58 million, and total assets were $5.57 billion. This serves as a baseline for year-over-year changes in financial position.

Glossary

Impairment Charge

A non-cash accounting charge that reduces the book value of an asset when its fair value falls below its carrying amount on the balance sheet. For iHeartMedia, this relates to assets like FCC licenses. (Significant impairment charges, such as the $208.5 million in Q3 2025, heavily impact net income and can indicate a decline in the value of long-lived assets.)

ABL Facility

Asset-Based Lending Facility. A type of revolving credit facility where the borrowing base is determined by the value of specific assets, such as accounts receivable and inventory. (iHeartMedia utilized its ABL Facility for liquidity, borrowing $100.0 million, indicating its importance for managing short-term cash needs.)

Digital Audio Group

One of iHeartMedia's reportable segments, encompassing all of the company's digital businesses, including its podcasting operations. (This segment is a key growth driver, with podcast revenue increasing to $139.67 million in Q3 2025, showing its strategic importance.)

Multiplatform Group

A reportable segment of iHeartMedia that includes its Broadcast Radio, Networks, and Sponsorships and Events businesses. (This segment's Broadcast Radio revenue declined to $427.02 million in Q3 2025, highlighting the challenges in traditional media.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. It represents a negative balance in retained earnings. (iHeartMedia has a substantial accumulated deficit of $4.77 billion as of September 30, 2025, reflecting its history of net losses.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, iHeartMedia has significantly improved its net loss from $1.041 billion to $430.96 million, largely due to a substantial reduction in impairment charges from $922.14 million to $208.5 million (though this charge was recognized in Q3 2025, the prior year's nine-month figure was much higher). Total revenue for the nine months remained flat at approximately $2.73 billion. While quarterly revenue saw a slight dip in Q3 2025, the digital segments, particularly podcasting, demonstrated robust growth, contrasting with the continued decline in broadcast radio revenue.

Key Financial Figures

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

Filing Documents

• ihrt-20250930.htm (10-Q) — 1656KB
• exhibit311-ihmedia2025q3.htm (EX-31.1) — 9KB
• exhibit312-ihmedia2025q3.htm (EX-31.2) — 9KB
• exhibit321-ihmedia2025q3.htm (EX-32.1) — 4KB
• exhibit322-ihmedia2025q3.htm (EX-32.2) — 4KB
• 0001628280-25-051036.txt ( ) — 7614KB
• ihrt-20250930.xsd (EX-101.SCH) — 34KB
• ihrt-20250930_cal.xml (EX-101.CAL) — 62KB
• ihrt-20250930_def.xml (EX-101.DEF) — 193KB
• ihrt-20250930_lab.xml (EX-101.LAB) — 506KB
• ihrt-20250930_pre.xml (EX-101.PRE) — 346KB
• ihrt-20250930_htm.xml (XML) — 1467KB

– 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 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 39

Controls and Procedures

Item 4. Controls and Procedures 40

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 41

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 41

Other Information

Item 5. Other Information 42

Exhibits

Item 6. Exhibits 42

– 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) September 30, 2025 December 31, 2024 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 192,239 $ 259,580 Accounts receivable, net of allowance of $ 31,644 in 2025 and $ 36,552 in 2024 845,827 993,328 Prepaid expenses 216,229 97,332 Other current assets 100,105 11,602 Total Current Assets 1,354,400 1,361,842 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net 436,514 489,843 INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangibles - licenses 601,440 809,928 Other intangibles, net 766,492 927,582 Goodwill 1,105,493 1,105,156 OTHER ASSETS Operating lease right-of-use assets 634,329 668,165 Other assets 189,896 209,180 Total Assets $ 5,088,564 $ 5,571,696 CURRENT LIABILITIES Accounts payable $ 218,516 $ 253,264 Current operating lease liabilities 67,177 69,516 Accrued expenses 281,138 348,119 Accrued interest 57,696 22,535 Deferred revenue 154,052 154,345 Current portion of long-term debt 73,708 22,501 Total Current Liabilities 852,287 870,280 Long-term debt 5,046,626 5,048,968 Noncurrent operating lease liabilities 682,797 716,586 Deferred income taxes 83,899 102,898 Other long-term liabilities 211,662 204,744 Commitments and contingent liabilities (Note 6) STOCKHOLDERS' DEFICIT Noncontrolling interest 4,373 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 131,322,727 and 127,474,033 shares in 2025 and 2024, respectively 132 128 Class B Common Stock, par value $ 0.001 per share, authorized 1,000,000,000 shares, issued and outstanding 21,187,332 and 21,285,914 shares in 2025 and 2024, respectively 21 21 Special Warrants, 5,039,301 and 5,039,323 issued and outstanding in each of 2025 and 2024,

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Reclassifications Certain prior period amounts have been reclassified to conform to the 2025 presentation. Restricted Cash As of September 30, 2025 and December 31, 2024, the Company did no t have any restricted cash balances on the Consolidated Balance Sheets. Certain Relationships and Related Party Transactions From time to time, certain companies in which the Company holds minority equity interests, purchase advertising in the ordinary course. None of these ordinary course transactions have had a material impact on the Company. 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 will adopt this standard beginning with the 2025 annual period on a retrospective basis and is currently evaluating the impact of this standard on our annual disclosures. 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. In September 2025, the FASB issued Update 2025-06, Intangibles - Goodwill and Ot

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 nine months ended September 30, 2025 and 2024 : (In thousands) Multiplatform Group Digital Audio Group Audio & Media Services Group Eliminations Consolidated Three Months Ended September 30, 2025 Revenue from contracts with customers: Broadcast Radio (1) $ 427,024 $ — $ — $ — $ 427,024 Networks (2) 114,273 — — — 114,273 Sponsorship and Events (3) 45,504 — — — 45,504 Digital, excluding Podcast (4) — 202,018 — ( 1,128 ) 200,890 Podcast (5) — 139,673 — — 139,673 Audio & Media Services (6) — — 66,605 ( 1,365 ) 65,240 Other (7) 4,140 — — — 4,140 Total 590,941 341,691 66,605 ( 2,493 ) 996,744 Revenue from leases (8) 266 — — — 266 Revenue, total $ 591,207 $ 341,691 $ 66,605 $ ( 2,493 ) $ 997,010 Three Months Ended September 30, 2024 Revenue from contracts with customers: Broadcast Radio (1) $ 448,808 $ — $ — $ — $ 448,808 Networks (2) 115,310 — — — 115,310 Sponsorship and Events (3) 50,329 — — — 50,329 Digital, excluding Podcast (4) — 186,996 — ( 1,189 ) 185,807 Podcast (5) — 114,045 — — 114,045 Audio & Media Services (6) — — 90,050 ( 1,313 ) 88,737 Other (7) 4,978 — — — 4,978 Total 619,425 301,041 90,050 ( 2,502 ) 1,008,014 Revenue from leases (8) 119 — — — 119 Revenue, total $ 619,544 $ 301,041 $ 90,050 $ ( 2,502 ) $ 1,008,133 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 Nine Months Ended September 30, 2025 Revenue from contracts with customers: Broadcast Radio (1) $ 1,163,549 $ — $ — $ — $ 1,163,549 Networks (2) 321,549 — — — 321,549 Sponsorship and Events (3) 110,610 — — — 110,610 Digital, excluding Podcast (4) — 552,829 — ( 3,412 ) 549,417 Podcast (5) — 390,005 — — 390,005 Audio & Media Services (6) — — 193,664 ( 4,105 ) 189,559 Other (7) 12,627 — — — 12,627 Total 1,608,335 942,834 193,664 ( 7,517 ) 2,737,316 Revenue from leases (8) 448 — — — 448 Revenue, total $ 1,608,783 $ 942,834 $ 193,664 $ ( 7,517 ) $ 2,737,764 Nine Months Ended September 30, 2024 Revenue from contracts with customers: Broadcast Radio (1) $ 1,233,636 $ — $ — $ — $ 1,233,636 Networks (2) 323,952 — — — 323,952 Sponsorship and Events (3) 117,279 — — — 117,279 Digital, excluding Podcast (4) — 516,433 — ( 3,549 ) 512,884 Podcast (5) — 309,190 — — 309,190 Audio & Media Services (6) — — 229,300 ( 4,025 ) 225,275 Other (7) 13,503 — — — 13,503 Total 1,688,370 825,623 229,300 ( 7,574 ) 2,735,719 Revenue from leases (8) 544 — — — 544 Revenue, total $ 1,688,914 $ 825,623 $ 229,300 $ ( 7,574 ) $ 2,736,263 (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 t

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 September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Trade and barter revenues $ 131,528 $ 87,768 $ 256,888 $ 198,350 Trade and barter expenses 68,215 67,243 166,778 159,210 In addition to the trade and barter revenue in the table above, the Company recognized $ 13.7 million and $ 13.3 million during the three months ended September 30, 2025 and 2024, respectively, and $ 31.5 million and $ 28.8 million during the nine months ended September 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 September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Deferred revenue from contracts with customers: Beginning balance (1) $ 195,763 $ 181,883 $ 173,766 $ 181,899 Revenue recognized, included in beginning balance ( 70,328 ) ( 63,013 ) ( 117,940 ) ( 115,463 ) Additions, net of revenue recognized during period, and

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