IHRT Q2 Deep Dive: Digital Audio and Podcasting Lead, Cost Controls Remain Central

August 12, 2025 at 09:11 AM EDT

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Global media and entertainment company iHeartMedia (NASDAQ: IHRT) reported Q2 CY2025 results topping the market’s revenue expectations, but sales were flat year on year at $933.7 million. The company expects next quarter’s revenue to be around $982.9 million, close to analysts’ estimates. Its GAAP loss of $0.54 per share was 98.1% below analysts’ consensus estimates.

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iHeartMedia (IHRT) Q2 CY2025 Highlights:

Revenue: $933.7 million vs analyst estimates of $911.8 million (flat year on year, 2.4% beat)
EPS (GAAP): -$0.54 vs analyst expectations of -$0.27
Adjusted EBITDA: $156.1 million vs analyst estimates of $151.6 million (16.7% margin, 3% beat)
Revenue Guidance for Q3 CY2025 is $982.9 million at the midpoint, roughly in line with what analysts were expecting
EBITDA guidance for Q3 CY2025 is $200 million at the midpoint, below analyst estimates of $207.7 million
Operating Margin: 3.8%, up from -97.9% in the same quarter last year
Market Capitalization: $229.3 million

StockStory’s Take

iHeartMedia’s second quarter was met with a positive market reaction, reflecting the company’s ability to exceed revenue expectations despite flat sales compared to last year. Management pointed to strong performance in the Digital Audio Group, particularly in podcasting, which saw continued growth in both consumer and advertiser demand. CEO Bob Pittman emphasized the “growing flywheel effect” of iHeartMedia’s podcast leadership, adding that the company’s robust local sales force has become a significant driver for podcast ad revenue. Cost-saving initiatives and operational efficiency were also highlighted as contributing factors to maintaining margins amid a still uncertain macroeconomic environment.

Looking forward, iHeartMedia’s guidance is shaped by ongoing momentum in digital audio, especially podcasting, and an emphasis on disciplined cost management. Management cautioned that achieving full-year targets will depend on improvement in the broader advertising marketplace, with President and CFO Rich Bressler stating, “to achieve our full year guidance, we still need to see some positive movement in the macro and an easing of the advertising market’s uncertainty.” The company is also banking on additional savings from its modernization initiatives and continued expansion of its ad tech capabilities to support future growth.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to digital audio and podcasting growth, stable margins from cost controls, and initial benefits from organizational modernization.

Podcasting Momentum: Podcasting revenue grew nearly 29% year-over-year, with management highlighting broad advertiser acceptance and the unique ability of iHeartMedia’s local sales force to drive monetization. CEO Bob Pittman noted, “podcasting is just roaring,” underscoring its central role in digital segment growth.
Digital Audio Expansion: The Digital Audio Group delivered double-digit revenue and EBITDA gains, as both streaming and non-podcast digital assets continued to attract audiences and advertisers. Adjusted EBITDA margin expanded within the segment, reflecting effective scaling and operational leverage.
Multiplatform Group Weakness: Broadcast radio and events, grouped under the Multiplatform segment, continued to see year-over-year revenue declines. However, management observed that top advertisers and agency groups increased their spending within this segment, which they view as a leading indicator of potential stabilization.
Cost-Saving Initiatives: The company realized $40 million in net savings during the quarter, part of a planned $150 million for the year. These savings stem from employee compensation reductions and operational streamlining, which management credits for offsetting rising digital content costs.
Ad Tech and Leadership Addition: iHeartMedia announced the hiring of Lisa Coffey as Chief Business Officer to accelerate its ad tech transformation, aiming to make broadcast radio inventory more accessible through digital buying platforms. This strategic hire is expected to support revenue diversification and integration with advertiser demand-side platforms.

Drivers of Future Performance

Management expects future performance to be driven by digital audio momentum, ongoing cost controls, and cautious optimism regarding advertising market recovery.

Podcast and Digital Audio Growth: Management projects high-single digit digital audio revenue growth, with podcasting expected to maintain growth in the low 20% range. This is underpinned by continued advertiser demand and the scaling of integrated sales and ad tech platforms.
Cost Discipline and Efficiency: The company remains on track to achieve $150 million in annual net cost savings, expecting further benefits from modernization and operational efficiency. This approach is intended to protect margins amid fluctuating revenue streams.
Advertising Market Uncertainty: Leadership cautioned that the outlook is sensitive to macroeconomic and advertising market trends, noting that full-year guidance assumes an easing in marketplace uncertainty and a stabilization in advertiser spending. Potential headwinds include slower recovery in broadcast and event-related categories.

Catalysts in Upcoming Quarters

In the quarters ahead, our team will watch (1) whether podcasting continues to drive digital revenue growth and margin expansion, (2) the pace of cost savings realization under modernization initiatives, and (3) the impact of ad tech investments and new leadership on advertiser engagement. The stabilization of Multiplatform Group trends and improvement in the broader advertising market will also be important markers.

iHeartMedia currently trades at $1.70, up from $1.60 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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