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1. Company Snapshot

1.a. Company Description

Cumulus Media Inc., an audio-first media company, owns and operates radio stations in the United States.It owns and operates 406 stations in 86 markets, as well as approximately 9,500 affiliated stations through Westwood One.The company's content portfolio includes sports, news, talk, and entertainment programming from various brands, including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and other partners.


It also provides digital marketing services, such as email marketing, geo-targeted display and video solutions, website and microsite building, hosting, social media management, reputation management, and search engine marketing and optimization.The company serves advertisers through broadcast and on-demand digital, mobile, social, and voice-activated platforms.Cumulus Media Inc.


was incorporated in 2002 and is based in Atlanta, Georgia.

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1.b. Last Insights on CMLS

Cumulus Media's recent performance was negatively driven by a Q4 loss of $0.39 per share, missing revenue estimates. The company's high operating expenses and declining revenue in its radio broadcasting segment likely contributed to the loss. Additionally, the company's dependence on a few large advertisers and the highly competitive radio broadcasting industry may continue to pressure its top-line growth.

1.c. Company Highlights

2. Resilience Amidst Macroeconomic Headwinds: A Mixed Q1 for the Company

The company reported a mixed Q1 2025 performance, with total revenue declining 6.4% year-over-year to $3.5 million, reflecting broader macroeconomic challenges. Excluding the impact of political advertising and the loss of the Daily Wire, revenue dipped a more modest 3.7%. EBITDA for the quarter came in at $3.5 million, reflecting tight cost controls. The company also reported a net loss per share of $1.88, missing analyst estimates of $1.29. CEO Mary Berner noted, "Despite macroeconomic headwinds, our revenue aligned with pacing guidance, and we continue to see strong growth in our digital marketing services business." The stock currently trades at a P/S ratio of 0.0 and an EV/EBITDA of -3.47, reflecting investor uncertainty about near-term profitability.

Publication Date: May -03

📋 Highlights
  • Digital Marketing Services (DMS) Growth: - 30% year-over-year growth, driven by a 41% increase in customers and a 16% rise in average campaign size.
  • Podcasting Revenue: - 40% growth excluding the Daily Wire, but overall podcast revenue declined 13% due to the Daily Wire loss.
  • Streaming Revenue: - 4% growth, benefiting from bringing sales in-house.
  • Cost Efficiencies: - $7.5 million in annualized fixed cost reductions, totaling $163 million since 2019.
  • DMS Future Outlook: - Expected to reach a $100 million+ run rate by late 2026, making it the fastest-growing segment.

Key Growth Drivers and Challenges

Digital marketing services (DMS) emerged as a bright spot, delivering 30% year-over-year growth, driven by a 41% increase in customers and a 16% rise in average campaign size. Podcasting, excluding the Daily Wire, grew nearly 40%, though overall podcast revenue declined 13% due to the loss of the Daily Wire. Streaming revenue rose 4%, benefiting from the decision to bring sales in-house. However, broadcast revenue faced significant headwinds, with pullbacks in automotive, retail, and CPG categories, though strength in insurance and financial services provided some offset.

Cost Efficiency and Strategic Execution

Management highlighted $7.5 million in annualized fixed cost reductions, bringing total reductions since 2019 to $163 million. The company is also leveraging AI for sales optimization and customer service improvements. CFO Frank Lopez-Balboa emphasized the company's focus on debt reduction, with net debt standing at $589 million and a Net Debt/EBITDA ratio of -3.46. The company ended the quarter with $53 million in cash and unchanged capital expenditure guidance of $22.5 million for the full year.

Outlook and Valuation

Looking ahead, pacing for Q2 is down 10% (or 5% excluding political, Daily Wire, and Bongino impacts), reflecting ongoing macroeconomic uncertainty. Analysts expect modest revenue growth of 1.9% for the next year. Management remains optimistic about potential FCC deregulation and asset sale prospects, including a valuable property in Nashville. However, with a P/B ratio of -0.13 and a ROE of -259.36, the stock appears challenged in terms of traditional valuation metrics, reflecting investor skepticism about the company's ability to return to sustained profitability.

3. NewsRoom

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Westwood One Scores Savanah Bananas' Broadcast Entertainer Drake C. Toll to Host Mornings on New 24/7 Sports Talk Lineup

Dec -03

Source: globenewswire.com

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McGraw Milhaven to Host Nationally Syndicated America at Night

Nov -14

Source: globenewswire.com

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Shots Podcast Network Joins Cumulus Podcast Network, Bringing Unfiltered Entertainment to Millions of Listeners

Nov -12

Source: globenewswire.com

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Chris Van Vliet Joins Cumulus Podcast Network

Nov -06

Source: globenewswire.com

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Cumulus Media Inc. (CMLS) Q3 2025 Earnings Call Prepared Remarks Transcript

Oct -30

Source: seekingalpha.com

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Cumulus Media (CMLS) Reports Q3 Loss, Beats Revenue Estimates

Oct -30

Source: zacks.com

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Cumulus Media Reports Operating Results for the Third Quarter 2025

Oct -30

Source: globenewswire.com

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Westwood One Names Armen Williams Executive Director of 24/7 Sports Programming

Oct -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.08%)

6. Segments

Spot

Expected Growth: 1.2%

Cumulus Media's Spot segment growth of 1.2% is driven by increasing demand for audio advertising, expansion of digital marketing solutions, and strategic acquisitions. Additionally, the company's focus on podcasting and digital content creation, as well as its strong relationships with advertisers, contribute to its growth momentum.

Network

Expected Growth: 0.8%

Cumulus Media Inc.'s Network segment growth is driven by increasing demand for audio advertising, expansion of digital marketing solutions, and strategic acquisitions. Additionally, the company's focus on podcasting and digital content creation, as well as its strong relationships with advertisers and radio stations, contribute to its growth.

Digital

Expected Growth: 1.5%

Cumulus Media's Digital segment growth of 1.5% is driven by increasing demand for digital advertising, expansion of podcasting and streaming services, and strategic investments in digital marketing solutions. Additionally, the company's focus on targeted advertising and analytics capabilities has improved its digital offerings, attracting more advertisers and listeners.

Other

Expected Growth: 0.5%

Cumulus Media Inc.'s 'Other' segment growth is driven by increasing demand for digital marketing services, expansion of podcasting business, and strategic partnerships. Additionally, the company's focus on cost savings initiatives and debt reduction efforts have improved profitability, contributing to the 0.5% growth.

7. Detailed Products

Radio Broadcasting

Cumulus Media operates a large network of radio stations across the United States, offering a diverse range of programming, including music, news, sports, and entertainment.

Digital Media

Cumulus Media offers a suite of digital media products, including streaming, podcasts, and online advertising solutions, to help businesses reach their target audiences.

Westwood One

Westwood One is a leading provider of national radio programming, including sports, news, and entertainment content, to radio stations across the United States.

Cumulus Podcast Network

The Cumulus Podcast Network offers a diverse range of podcasts, covering topics such as news, sports, and entertainment, to listeners across the United States.

8. Cumulus Media Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cumulus Media Inc. faces moderate threat from substitutes due to the availability of alternative media platforms and formats, such as streaming services and social media.

Bargaining Power Of Customers

Cumulus Media Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Cumulus Media Inc. relies on a few major suppliers for content and broadcasting equipment, giving them some bargaining power, but the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The high barriers to entry in the broadcasting industry, including regulatory hurdles and significant capital requirements, make it difficult for new entrants to challenge Cumulus Media Inc.'s position.

Intensity Of Rivalry

The broadcasting industry is highly competitive, with many established players vying for market share, advertising revenue, and audience attention, making the intensity of rivalry high for Cumulus Media Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.23%
Debt Cost 5.91%
Equity Weight 28.77%
Equity Cost 11.72%
WACC 7.58%
Leverage 247.61%

11. Quality Control: Cumulus Media Inc. passed 2 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

Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.1$

Current Price

0.1$

Potential

-0.00%

Expected Cash-Flows