iHeartMedia, Inc.

What they do

iHeartMedia operates three reportable segments: Multiplatform Group (broadcast radio, networks, sponsorships, and events), Digital Audio Group (digital streaming and podcasting), and Audio & Media Services Group (Katz Media representation and RCS software). The company generates revenue primarily from selling advertising across these platforms, supported by the largest audio sales force in the U.S. and a multi-platform strategy spanning AM/FM, HD radio, iHeartRadio app, and third-party devices.

Revenue drivers

• Multiplatform Group — Sells local and national advertising on broadcast radio stations, plus revenue from network syndication and events. Q2 2026 revenue was $536 million, down 2% year-over-year.
• Digital Audio Group — Includes digital streaming and podcasting, with revenue from advertising and subscriptions. Q2 2026 revenue was $364 million, up 12% year-over-year, with podcast revenue of $162 million, up 21%.
• Podcasting — The company is the #1 podcast publisher in the U.S. by Podtrac, with the most top-10 shows and presence in all 19 content categories. Podcast revenue grew 21% in Q2 2026, a key growth driver.
• Programmatic advertising — Includes products like AudioGraph, enabling automated buying across radio, streaming, and podcasting. Full-year 2026 programmatic revenue is guided to approximately $200 million, up ~50%.

Recent performance

For Q2 2026, consolidated revenue was $977 million, up 4.7% year-over-year (up 3.5% excluding political revenue, which was down). GAAP operating income was $36 million, roughly flat versus $35 million in Q2 2025. Consolidated Adjusted EBITDA was $152 million, down 2.9% from $156 million, and free cash flow was $46 million versus a negative $13 million in the prior-year quarter. Year-to-date, revenue trends have been mixed with Q1 2026 revenue of $884.2 million down from $997.0 million in Q4 2025, reflecting seasonality and macro advertising softness described in the 10-K.

Strategy

The company is focusing on growing digital and podcast offerings, leveraging its broadcast radio scale to expand into video podcasts, including distribution via streaming services like Netflix and Hulu. Management highlights six consecutive quarters of Digital Audio Group Adjusted EBITDA exceeding Multiplatform Group's. They are investing in ad tech and programmatic capabilities to enhance targeting, measurement, and automation. Cost savings of $125 million are planned for 2026, and the company has extended its ABL facility maturity to January 2029 while maintaining its size and rates.

Risks

• Advertising cyclicality — Revenue depends on advertiser spending, which is cyclical and tied to economic conditions; a slowdown or uncertainty could reduce advertising demand.
• High leverage — Long-term debt of $4.95 billion as of June 30, 2026, exceeds total assets of $4.85 billion, resulting in negative shareholder equity of $2.01 billion, which may limit financial flexibility.
• Impairment risk — The company must regularly test goodwill and indefinite-lived intangibles like FCC licenses; adverse results could lead to significant non-cash charges.
• Local market dependence — A significant portion of revenue comes from local advertisers, so negative regional economic conditions or industry downturns can hurt results in specific markets.

Outlook

For Q3 2026, management expects consolidated revenue to increase mid-single digits and Adjusted EBITDA of approximately $180 million to $220 million. For full-year 2026, the company guides to Adjusted EBITDA of approximately $800 million, free cash flow of approximately $200 million, and minimal cash taxes. Year-end net leverage is expected to be in the mid-fives.