iHeartMedia, Inc. (IHRT) | Investment Case

1. Company Snapshot

1.a. Company Description

iHeartMedia, Inc.operates as a media and entertainment company worldwide.It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group.

The Multiplatform Group segment offers broadcast radio stations, sponsorship, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents approximately 120 syndicated radio programs and services to approximately 6,400 radio station affiliates.It also delivers real-time traffic flow and incident information, and weather updates, sports, and news through approximately 2,100 radio stations and 170 television affiliates, and Internet and mobile partnerships.As of December 31, 2021, this segment owned 863 radio stations, which included 249 AM and 614 FM radio stations.

The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web-based service for radio stations, digital-only stations, custom artist stations, and podcasts.The Audio and Media Services Group segment engages in the media representation business.This segment also provides cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to approximately 10,000 radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services.

The company was formerly known as CC Media Holdings, Inc.and changed its name to iHeartMedia, Inc.in September 2014.

iHeartMedia, Inc.is headquartered in San Antonio, Texas.

Show Full description

1.b. Last Insights on IHRT

iHeartMedia's recent performance was driven by its Q3 2024 earnings release, which topped revenue estimates despite a quarterly loss of $0.16 per share. The company's digital diversification efforts show promise, and its recent debt exchange and partial restructuring significantly increased equity value, presenting an undervalued "call option" with a potential upside of 30-50%. Additionally, the company entered into a Transaction Support Agreement to strengthen its balance sheet, reducing debt by $500 million and buying 2-3 more years for equity.

1.c. Company Highlights

Last Price	4.3
Change Percentage	-5.91%
Open	4.35
Previous Close	4.57
Market Cap ( Millions)	555
Volume	1756244
Year High	4.77
Year Low	0.95
M A 50	2.98
M A 200	2.03

FCF Yield	1.70%
Dividend Yield	0.00%
ROE	24.26%
Debt / Equity	-340.82%
Net Debt / EBIDTA	1294.11%
Price To Book	-0.38
Price Earnings Ratio	-1.77
Price To FCF	58.93
Price To sales	0.14
EV / EBITDA	14.21

2. iHeartMedia's Q2 2025 Earnings: Mixed Performance

iHeartMedia reported Q2 2025 adjusted EBITDA of $156 million, a 4% increase from the prior year, and at the high end of guidance ($140–$160 million). The company's consolidated revenue rose 0.5% YoY excluding political advertising. The actual EPS came out at '-0.54', relative to estimates at '-0.28'. DAG revenue grew 13.4% YoY, driven by a 28.5% surge in podcast revenue to $134 million. DAG adjusted EBITDA rose 17.1% to $108 million, with margins expanding to 33.2%. In contrast, Multiplatform Group revenue fell 5.4% YoY, with adjusted EBITDA declining 7.6% to $96 million.

Publication Date: Sep -15

                                    📋 Highlights
                                    Adjusted EBITDA Growth:
                                                Q2 adjusted EBITDA rose 4% to $156M, hitting the upper end of guidance ($140–$160M).
DAG Revenue Surge:
                                                Digital Audio Group revenue jumped 13.4% YoY, driven by 28.5% podcasting revenue growth to $134M and 4.7% non-podcast digital growth.
Ebitda Margin Expansion:
                                                DAG EBITDA margin expanded to 33.2% (from 32.2%), with adjusted EBITDA up 17.1% to $108M.
Cost Savings Progress:
                                                $40M in 2025 cost savings achieved in Q2, with $150M total target on track; SG&A expenses down 4.3%.
Full-Year Guidance Hinges on Macro:
                                                Q3 EBITDA guidance at $180–$220M (vs. $205M in 2024), with revenue expected down low single digits; net debt at $4.6B, liquidity at $527M.

                                

Segment Performance

The Digital Audio Group (DAG) was a key strength, with podcasting revenue up 28.5% to $134 million. Non-podcast digital revenue grew 4.7%. The Multiplatform Group saw revenue decline 5.4% YoY, with top 50 advertisers and four largest agency groups growing 4% and 7% YoY, respectively. The company remains on track for $150 million in 2025 cost savings, with $40 million saved in Q2.

Guidance and Outlook

Q3 adjusted EBITDA guidance is $180–$220 million, with revenue expected down low single digits. Full-year guidance hinges on macroeconomic stabilization. Net debt stood at $4.6 billion, liquidity at $527 million. Free cash flow was -$13 million in Q2, with Q4 positioned as critical for annual results.

Valuation Metrics

iHeartMedia's current valuation metrics are as follows: P/E Ratio at -1.18, P/B Ratio at -0.26, P/S Ratio at 0.1, EV/EBITDA at 13.79, and Net Debt / EBITDA at 12.94. These metrics indicate that the market is pricing in a challenging financial situation, with high debt levels and negative earnings. Analysts estimate next year's revenue growth at 5.9%.

3. NewsRoom

iHeartMedia, Inc. (IHRT) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

Compared to Estimates, iHeartMedia (IHRT) Q3 Earnings: A Look at Key Metrics

Nov -11

Source: zacks.com

iHeartMedia, Inc. Reports Results for 2025 Third Quarter

Nov -10

Source: businesswire.com

iHeartMedia and TikTok Partner to Launch First-of-Its-Kind, Multiplatform Partnership

Nov -10

Source: businesswire.com

StackAdapt and iHeartMedia Bring Broadcast Radio to Programmatic Advertising

Nov -10

Source: businesswire.com

T.D. Jakes Teams Up With iHeartMedia to Launch "NXT Chapter," A Weekly Podcast Helping to Co-Author New Pages of America's Collective Story

Nov -07

Source: prnewswire.com

Amazon Ads and iHeartMedia Expand Partnership with New Programmatic Audio Offering Through Amazon DSP

Nov -06

Source: businesswire.com

Netflix in talks to license video podcasts from iHeartMedia, report says

Nov -04

Source: techcrunch.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.91%)

6. Segments

Multiplatform Group

Expected Growth: 2%

iHeartMedia's Multiplatform Group growth is driven by increasing demand for digital audio advertising, expansion of podcasting and online radio platforms, and strategic partnerships with major brands. Additionally, the group's focus on data-driven advertising solutions and targeted audience engagement has contributed to its growth.

Digital Audio Group

Expected Growth: 1.8%

iHeartMedia's Digital Audio Group growth is driven by increasing demand for podcast advertising, expansion of its digital audio platform, and strategic partnerships. The rise of smart speakers and voice-activated devices also boosts audio consumption, while the company's investments in original content and analytics capabilities enhance its competitive edge.

Audio & Media Service Group

Expected Growth: 1.5%

The 1.5% growth of Audio & Media Service Group from iHeartMedia, Inc. is driven by increasing demand for digital audio advertising, expansion of podcasting business, and growth in live events and experiential revenue. Additionally, the company's focus on data analytics and attribution, as well as its investments in digital product development, are contributing to the segment's growth.

Eliminations

Expected Growth: 0.5%

iHeartMedia's 0.5% growth is driven by increasing audio engagement, podcasting growth, and digital advertising revenue. The company's strategic acquisitions, such as Katz Media Group, have expanded its reach and diversified its revenue streams. Additionally, iHeartMedia's focus on live events and experiential marketing has contributed to its growth.

7. Detailed Products

Broadcast Radio

iHeartMedia, Inc. owns and operates over 850 AM and FM radio stations across the United States, offering a wide range of music, news, talk, and sports programming.

Digital Radio

iHeartRadio is a digital radio service that provides access to live radio stations, podcasts, and personalized music streaming.

Podcasting

iHeartMedia, Inc. is a leading podcast publisher, producing and distributing popular podcasts across various genres, including true crime, comedy, and news.

Live Events

iHeartMedia, Inc. produces and promotes large-scale live events, including concerts, festivals, and award shows.

Audio and Podcast Advertising

iHeartMedia, Inc. offers targeted audio and podcast advertising solutions for brands, helping them reach their desired audiences.

Data and Analytics

iHeartMedia, Inc. provides data and analytics solutions to help brands and advertisers understand their audiences and optimize their marketing strategies.

8. iHeartMedia, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

iHeartMedia, Inc. operates in a highly competitive industry with many substitutes available, including streaming services, satellite radio, and podcasts. However, the company's strong brand recognition and large listener base mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

iHeartMedia, Inc.'s customers, primarily advertisers, have limited bargaining power due to the company's large market share and diversified revenue streams.

Bargaining Power Of Suppliers

iHeartMedia, Inc. relies on a diverse range of suppliers, including music labels, artists, and content providers. While some suppliers may have significant bargaining power, the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The threat of new entrants is high in the media and entertainment industry, with low barriers to entry and rapid technological advancements. However, iHeartMedia, Inc.'s established brand and large listener base provide some protection against new entrants.

Intensity Of Rivalry

The media and entertainment industry is highly competitive, with many established players and new entrants vying for market share. iHeartMedia, Inc. faces intense competition from rivals such as SiriusXM, Spotify, and Apple Music.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	108.05%
Debt Cost	6.81%
Equity Weight	-8.05%
Equity Cost	12.83%
WACC	6.32%
Leverage	-1341.85%

11. Quality Control: iHeartMedia, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Scripps

A-Score: 4.8/10

Value: 9.8

Growth: 7.1

Quality: 6.8

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

fuboTV

A-Score: 4.5/10

Value: 6.0

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

iHeartMedia

A-Score: 3.7/10

Value: 7.0

Growth: 1.2

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

1-Year Total Return ->

Urban One

A-Score: 3.6/10

Value: 9.6

Growth: 1.6

Quality: 3.2

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

MediaCo Holding

A-Score: 3.2/10

Value: 7.5

Growth: 2.8

Quality: 4.9

Yield: 0.0

Momentum: 3.5

Volatility: 0.7

1-Year Total Return ->

Cumulus Media

A-Score: 2.0/10

Value: 9.0

Growth: 1.0

Quality: 2.2

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

31.89%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.32%

iHeartMedia, Inc. - US45174J5092

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on IHRT

1.c. Company Highlights

Cheaper

More Volatile

Lower Growth

Earnings Beats

Weak Momentum

Revenues Beats

Earnings Miss

Revenues Miss

Average Growth

Strong Momentum

Stable Momentum

Average Yield

2. iHeartMedia's Q2 2025 Earnings: Mixed Performance

Segment Performance

Guidance and Outlook

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.91%)

6. Segments

Multiplatform Group

Expected Growth: 2%

Digital Audio Group

Expected Growth: 1.8%

Audio & Media Service Group

Expected Growth: 1.5%

Eliminations

Expected Growth: 0.5%

7. Detailed Products

Broadcast Radio

Digital Radio

Podcasting

Live Events

Audio and Podcast Advertising

Data and Analytics

8. iHeartMedia, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: iHeartMedia, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.3$

Current Price

4.3$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA