iHeartMedia (NASDAQ:IHRT) Posts Quarterly Earnings Results, Misses Estimates By $0.04 EPS

iHeartMedia (NASDAQ:IHRT) issued its quarterly earnings results on Monday. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.04), FiscalAI reports. The business had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.05 billion.

Here are the key takeaways from iHeartMedia’s conference call:

• iHeartMedia reported Q3 revenue of $1.03 billion, up 3.3%, but below guidance; Adjusted EBITDA of $170 million also missed its $180 million–$220 million range. The company lowered full-year Adjusted EBITDA guidance to $550 million–$600 million and expects about $50 million of free cash flow.
• The Multiplatform Group’s revenue fell 4.9% and Adjusted EBITDA dropped to $68 million from $119 million. Management cited weaker-than-expected political advertising, delayed brand spending, a faster shift to programmatic buying than its tools are ready to capture, and macroeconomic uncertainty.
• Podcasting remained a bright spot, with Q3 revenue up 24.6% to $174 million; management expects approximately 20% growth in Q4 and plans to report podcasting as a standalone segment in 2027. Digital Audio revenue excluding podcasts also grew 6.3%.
• Management expects AudioGraph to help capture more programmatic ad spending, projecting total programmatic revenue of about $400 million in 2027, including roughly $100 million of incremental broadcast programmatic revenue. It said the non-cash co-marketing costs supporting the rollout should largely roll off by Q1 or Q2 2027, while noting the forecast depends on continued adoption.
• Net debt was approximately $4.7 billion, and Q3 free cash flow was negative $10 million, though better than the prior-year quarter. The company reported $416 million of liquidity and expects about $130 million of Q4 free cash flow; management said it remains focused on cost efficiencies and capital-structure optimization.

iHeartMedia Stock Performance

NASDAQ:IHRT opened at $0.68 on Tuesday. The firm’s 50-day moving average is $2.13 and its 200-day moving average is $3.34. iHeartMedia has a 52-week low of $0.89 and a 52-week high of $6.56. The company has a market cap of $104.95 million, a price-to-earnings ratio of -0.37 and a beta of 2.47.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Zacks Research cut shares of iHeartMedia from a “hold” rating to a “strong sell” rating in a research report on Friday, October 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of iHeartMedia in a research note on Thursday, October 15th. One analyst has rated the stock with a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Strong Sell” and an average target price of $4.25.

Key iHeartMedia News

Here are the key news stories impacting iHeartMedia this week:

• Positive Sentiment: Q3 revenue increased 3.3% year over year to $1.03 billion, while GAAP operating income improved to $73 million from a $116 million loss a year earlier. iHeartMedia Q3 results
• Negative Sentiment: Results fell short of expectations: EPS was a loss of $0.06 versus the consensus estimate of a $0.02 loss, and revenue of $1.03 billion missed the $1.05 billion forecast. Adjusted EBITDA also declined to $170 million from $205 million a year earlier, indicating weaker underlying earnings. Q3 revenue miss
• Negative Sentiment: Management said radio missed out on the midterm-election advertising spending wave, weighing on political ad revenue. Coverage also points to a shift toward programmatic advertising and a guidance reset, raising concerns about the near-term revenue outlook. Radio missed out on midterm ad spending Q3 analysis of ad shortfall and guidance

iHeartMedia Company Profile

iHeartMedia, Inc is an audio media company that provides broadcast radio, digital streaming, podcasting, audio advertising and live-event services. Its portfolio includes hundreds of radio stations across the United States, the iHeartRadio digital platform, nationally distributed audio programming and a broad range of podcasts.

The company serves audiences through terrestrial radio, websites, mobile applications, smart speakers and other connected devices. Its offerings include music, news, sports, talk and entertainment programming, as well as podcasts and digital audio content.