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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.

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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

2. iHeartMedia's Q3 2025 Earnings: A Mixed Bag with Podcasting Bright Spot

iHeartMedia, Inc.'s third-quarter 2025 adjusted EBITDA was $205 million, slightly above the midpoint of its guidance range and flat compared to the prior year. Consolidated revenue for the quarter was down 1.1% year-over-year, at the high end of its guidance of down low single digits. The company's EPS came out at $0.63, beating estimates of -$0.01. Excluding political advertising, consolidated revenue was up 2.8%. The Digital Audio Group's revenue was $342 million, up 13.5% year-over-year, with adjusted EBITDA of $130 million, up 30.3% year-over-year. Podcasting revenue grew 22.5% year-over-year, with 50% of it generated by the local sales force.

Publication Date: Nov -24

📋 Highlights
  • EBITDA Alignment with Guidance:: Q3 2025 adjusted EBITDA of $205M matched midpoint guidance ($180M-$220M) and was flat YoY.
  • Podcasting Growth Acceleration:: Revenue surged 22.5% YoY (50% from local sales), with Q4 guidance of $30M sequential growth.
  • Digital Audio Outperformance:: Revenue rose 13.5% YoY ($342M) and adjusted EBITDA jumped 30.3% ($130M).
  • Cost-Cutting Progress:: $150M in 2025 savings secured, with an additional $50M in 2026, 61% of which benefits Multiplatform Group.
  • Multiplatform Margin Challenges:: Revenue fell 4.6% YoY ($591M) with 90% decremental margin, but executives cite progress on cost reductions.

Segment Performance

The Multiplatform Group's revenue was $591 million, down 4.6% year-over-year, with adjusted EBITDA of $119 million, down 8.3% year-over-year. The decline in MPG revenue was a drag on the company's overall performance. However, the Digital Audio Group's strong growth, driven by podcasting, was a bright spot. The company's executives highlighted the growing importance of podcasting, with revenue expected to continue growing, albeit at a slower rate in Q4 due to a higher base.

Cost-Cutting and Future Prospects

iHeartMedia remains on track to generate $150 million in net savings in 2025 and has taken actions to generate an additional $50 million of incremental annual savings beginning in 2026. The company's executives are focused on generating new revenue streams, including video podcasting and programmatic advertising. With a current EV/EBITDA ratio of 14.08, the market is pricing in some growth expectations. However, with analysts estimating revenue growth at 6.1% next year, the stock may be reasonably valued.

Valuation and Outlook

Given the company's current valuation metrics, including a P/S Ratio of 0.13 and a ROE of 24.26%, the stock appears to be undervalued. The company's efforts to drive growth in podcasting and improve its margins are positive steps. As the company continues to execute on its strategy, investors may want to keep a close eye on iHeartMedia's progress, particularly in the Digital Audio Group. With a Net Debt / EBITDA ratio of 12.94, the company's leverage is a concern, but its focus on cost-cutting and revenue growth may help mitigate this risk.

3. NewsRoom

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iHeartMedia Los Angeles' Ellen K Morning Show on KOST 103.5 and KTLA Join Children's Hospital Los Angeles to Launch 10th Annual Season of Giving Fundraising Campaign on Tuesday, Dec. 2

Dec -02

Source: businesswire.com

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iHeartMedia Celebrates the Holiday Season with Annual Holiday Music Flip Across Broadcast Stations Nationwide and the Return of the “iHeartRadio Holiday Special”

Nov -14

Source: businesswire.com

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iHeartMedia, Inc. $IHRT Stake Raised by Acadian Asset Management LLC

Nov -14

Source: defenseworld.net

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

Nov -11

Source: seekingalpha.com

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

Nov -11

Source: zacks.com

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iHeartMedia, Inc. Reports Results for 2025 Third Quarter

Nov -10

Source: businesswire.com

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

Nov -10

Source: businesswire.com

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StackAdapt and iHeartMedia Bring Broadcast Radio to Programmatic Advertising

Nov -10

Source: businesswire.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Scripps

A-Score: 4.8/10

Value: 9.8

Growth: 7.1

Quality: 6.8

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

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fuboTV

A-Score: 4.5/10

Value: 6.0

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

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iHeartMedia

A-Score: 3.7/10

Value: 7.0

Growth: 1.2

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

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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

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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

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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 ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.71$

Current Price

3.71$

Potential

-0.00%

Expected Cash-Flows