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

iHeartMedia (NASDAQ:IHRT) posted its quarterly earnings results on Monday. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.04), FiscalAI reports.

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 remained flat at $1.77 during mid-day trading on Monday. 924,868 shares of the company’s stock traded hands, compared to its average volume of 880,239. The business has a 50-day simple moving average of $2.15 and a 200 day simple moving average of $3.35. iHeartMedia has a 52-week low of $1.38 and a 52-week high of $6.56. The stock has a market capitalization of $273.98 million, a P/E ratio of -0.97 and a beta of 2.47.

Analyst Upgrades and Downgrades

IHRT has been the topic of a number of recent analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of iHeartMedia in a report on Thursday, October 15th. Zacks Research downgraded iHeartMedia from a “hold” rating to a “strong sell” rating in a report on Friday, October 16th. One research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, iHeartMedia has a consensus rating of “Strong Sell” and a consensus target price of $4.25.

About iHeartMedia

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.