iHeartMedia's third quarter results were marked by a mixed performance, as revenue modestly exceeded analyst expectations but profitability fell short, leading to a significant decline in the company’s share price. Management attributed the quarter’s results to continued strength in the Digital Audio Group, particularly podcasting and non-podcast digital sales, offset by declines in the Multiplatform Group, which includes broadcast radio and events. CEO Robert Pittman described the company’s challenge as one of monetization rather than audience, emphasizing, “We have more broadcast radio listeners today than we had ten years ago and even twenty years ago. Our challenge is one of monetization.”
Is now the time to buy IHRT? Find out in our full research report (it’s free for active Edge members).
iHeartMedia (IHRT) Q3 CY2025 Highlights:
- Revenue: $997 million vs analyst estimates of $978.7 million (1.1% year-on-year decline, 1.9% beat)
- EPS (GAAP): -$0.43 vs analyst estimates of -$0.01 (significant miss)
- Adjusted EBITDA: $204.8 million vs analyst estimates of $203.3 million (20.5% margin, 0.7% beat)
- Operating Margin: -11.7%, down from 7.6% in the same quarter last year
- Market Capitalization: $577.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From iHeartMedia’s Q3 Earnings Call
- Aaron Watts (Deutsche Bank) pressed CFO Richard Bressler about the negative free cash flow and future capital allocation. Bressler said meaningful cash flow is expected in Q4 and reiterated a focus on reducing capital costs and repaying short-term borrowings.
- Aaron Watts (Deutsche Bank) asked about the advertising environment and whether momentum from large advertisers would persist. CEO Robert Pittman emphasized strength among the top 50 advertisers but noted uncertainty from potential government shutdowns.
- Sebastiano Petti (JPMorgan) questioned the sustainability of high podcasting growth rates and the rationale for slower projected growth. Bressler explained that absolute dollar growth remains strong, even as percentage growth moderates due to a larger revenue base.
- Stephen Laszczyk (Goldman Sachs) inquired about the competitive landscape and risks from digital and AVOD inventory. Pittman argued radio is experiencing renewed interest from advertisers and is well positioned if broadcast inventory is made easier to buy programmatically.
- Ken Silver (Stifel) probed declining sponsorship and events revenue and asked about margin improvement in the Multiplatform Group. Bressler described the events decline as due to small timing issues and stressed that cost reductions and revenue growth are key to margin improvement.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will focus on (1) the pace at which digital audio and programmatic ad initiatives scale and generate incremental revenue, (2) the impact of new partnerships with platforms like TikTok and Amazon on both content reach and monetization, and (3) the effectiveness of ongoing cost reduction efforts—particularly in the Multiplatform Group. Additional attention will be given to macroeconomic trends and shifts in advertiser sentiment that could affect overall demand.
iHeartMedia currently trades at $4.14, down from $4.44 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
Our Favorite Stocks Right Now
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
