Q2 2026 iHeartMedia Inc Earnings Call Transcript
Key Points
- Consolidated revenue grew 4.7% year-over-year to $977 million, exceeding guidance of low single-digit growth.
- Digital Audio Group revenue increased 12.4% to $364 million, with podcast revenue up 20.7% to $162 million, driven by strong audience and monetization.
- Adjusted EBITDA of $152 million came in above the midpoint of guidance, and free cash flow improved significantly to $46 million from negative $13 million in the prior year.
- Digital Audio Group adjusted EBITDA exceeded Multiplatform Group for the sixth consecutive quarter, highlighting the success of digital transformation.
- Expanded video podcast distribution through partnerships with Netflix and Hulu, creating new revenue opportunities and premium pricing.
- Programmatic revenue is expected to grow approximately 50% in 2026, with broadcast inventory now available on DSPs like Amazon, Google, and Yahoo.
- Political advertising is expected to be robust in the back half of the year, with early indications suggesting it could match presidential-year levels.
- The company amended and extended its ABL facility to January 2029, maintaining size and pricing, improving financial flexibility.
- Cost savings programs and AI-driven efficiencies are expected to benefit full-year adjusted EBITDA and free cash flow.
- Audio and Media Services Group revenue grew 18.8% year-over-year, with adjusted EBITDA up 54.6%, driven by digital growth.
- Multiplatform Group revenue declined 1.6% year-over-year, slightly below guidance, impacted by macroeconomic uncertainty and high gas/diesel prices.
- Multiplatform Group adjusted EBITDA fell to $59 million from $96 million, largely due to non-cash co-marketing expenses.
- The company faces a broadcast radio monetization challenge, as advertisers prefer digital buying platforms, despite strong audience reach.
- Full-year guidance relies on a robust Q4, with significant improvement in the macroeconomic environment and strong political revenue, which may be uncertain.
- Net debt remains high at approximately $4.7 billion, with total liquidity of $457 million and $125 million borrowed under the ABL facility.
- SG&A expenses increased 11.8% due to non-cash co-marketing partnerships, which will continue to impact the Multiplatform Group in the near term.
- The company expects to pay down the ABL balance by end of 2026, but this depends on free cash flow generation and political revenue timing.
- Podcast revenue growth is expected to slow to approximately 20% in Q3, down from 20.7% in Q2, indicating potential deceleration.
- The company's leverage ratio is expected to remain in the mid-5s at end of 2026, which is still elevated despite improvement.
- Macroeconomic uncertainty, including the Middle East conflict, could continue to impact advertising spending and revenue performance.
Good afternoon, and welcome to iHeartMedia's second-quarter 2026 earnings call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Andrey Hart, Senior Vice President of Investor Relations. Thank you. Please go ahead.
Good afternoon, everyone, and thank you for taking the time to join us for our second quarter 2026 earnings call. Joining me for today's discussion are Bob Pittman, our Chairman and CEO; Rich Bressler, our President and COO; and Mike McGinnis, our CFO.
At the conclusion of our prepared remarks, management will take your questions. In addition to our press release, we have an earnings presentation available on our website that you can use to follow along with our remarks.
Please note that this call may include forward-looking statements regarding our financial performance and operating results. These statements are based on management's current expectations and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
