2026 Second Quarter
Filed Aug 10, 2026iHeartMedia reported Q2 revenue growth led by Digital Audio and Audio & Media Services, while consolidated Adjusted EBITDA declined and Multiplatform Group profitability weakened.
Revenue increased 4.7% and Free Cash Flow improved to $46.0 million, but consolidated Adjusted EBITDA decreased to $151.5 million and Multiplatform Group Segment Adjusted EBITDA declined 39.2%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $977,239 | – | 4.7% |
| Operating incomeGAAP | $35,504 | – | 0.4% |
| Adjusted EBITDAnon-GAAP | $151,523 | – | (2.9)% |
| Net lossGAAP | (82,536) | – | – |
| Cash provided by operating activitiesGAAP | $64,883 | – | – |
| Free cash flownon-GAAP | $45,954 | – | – |
| Consolidated direct operating expenses increaseGAAP | $9.4 million | – | 2.4% |
| Consolidated SG&A expenses increaseGAAP | $48.5 million | – | 11.8% |
| Multiplatform Group operating expensesother | $477,058 | – | 6.4% |
| Multiplatform Group Segment Adjusted EBITDAnon-GAAP | $58,609 | – | (39.2)% |
| Multiplatform Group Segment Adjusted EBITDA marginnon-GAAP | 10.9% | – | – |
| Digital Audio Group operating expensesother | $240,904 | – | 11.4% |
| Digital Audio Group Segment Adjusted EBITDAnon-GAAP | $123,176 | – | 14.5% |
| Digital Audio Group Segment Adjusted EBITDA marginnon-GAAP | 33.8% | – | – |
| Podcast revenueother | $162.1 million | – | 20.7% |
| Digital revenue excluding Podcastother | $202.0 million | – | 6.6% |
| Audio & Media Services Group operating expensesother | $43,802 | – | (0.5)% |
| Audio & Media Services Group Segment Adjusted EBITDAnon-GAAP | $36,663 | – | 54.6% |
| Audio & Media Services Group Segment Adjusted EBITDA marginnon-GAAP | 45.6% | – | – |
| Broadcast revenue increaseother | $1.8 million | – | 0.5% |
| Networks revenue decreaseother | $4.1 million | – | (3.8)% |
| Sponsorship and Events revenue decreaseother | $6.0 million | – | (16.3)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Multiplatform GroupRevenue decreased primarily due to lower broadcast, networks, and sponsorship revenues reflecting uncertainty on the part of advertisers regarding consumer spending, partially offset by increased trade and barter revenue and increased political revenues. | $535,667 | – | (1.6)% |
| Digital Audio GroupRevenue increased due to continuing demand for digital and podcast advertising and increased non-cash trade and barter revenue resulting from strategic marketing initiatives. | $364,080 | – | 12.4% |
| Audio & Media Services GroupRevenue increased primarily due to an increase in digital and political revenues. | $80,465 | – | 18.8% |
Q3 2026 and Full Year 2026 outlook
- RevenueQ3 2026 Consolidated Revenue expected to increase mid-single digits
- NoteQ3 2026 Consolidated Adjusted EBITDA expected to be approximately $180 million to $220 million
- NoteFull Year 2026 Consolidated Adjusted EBITDA expected to be approximately $800 million
- NoteFull Year 2026 Free Cash Flow of approximately $200 million
- NoteMinimal cash taxes in 2026
- NoteIn-year 2026 cost savings of $125 million
- NoteTotal Programmatic Revenue of approximately $200 million, up approximately 50%
- NoteYear End 2026 Net Debt to Adjusted EBITDA ("net leverage") to be in mid-fives
What drove it
- Digital Audio revenue increased $40.2 million, or 12.4%, driven by continuing increases in demand for digital and podcast advertising and increased non-cash trade and barter revenue.
- Podcast revenue increased $27.8 million, or 20.7%, primarily due to continued advertiser demand for podcasting.
- Digital revenue excluding Podcast increased $12.5 million, or 6.6%, due to demand for digital advertising and increased non-cash trade and barter revenue.
- Audio & Media Services revenue increased $12.7 million, or 18.8%, due to increased digital and political revenues.
- Audio & Media Services operating expenses decreased due to lower employee compensation costs from modernization initiatives and programming costs related to lower negotiated rates.
- Cash provided by operating activities increased primarily due to the timing of receivable collections during the quarter.
Concerns
- Consolidated Adjusted EBITDA decreased to $151.5 million from $156.1 million in the second quarter of 2025.
- Multiplatform Group revenue decreased $8.9 million, or 1.6%, and Segment Adjusted EBITDA decreased $37.8 million, or 39.2%.
- Multiplatform Group Segment Adjusted EBITDA margin decreased to 10.9% from 17.7%.
- Management cited advertiser uncertainty regarding consumer spending as a factor in lower broadcast, networks, and sponsorship revenues.
- Consolidated SG&A expenses increased $48.5 million, or 11.8%, driven primarily by non-cash trade and barter expense and cash-settled share-based compensation expense.
What to watch
- Whether Q3 2026 consolidated revenue increases mid-single digits as guided.
- Delivery against Q3 2026 Consolidated Adjusted EBITDA guidance of approximately $180 million to $220 million.
- Whether Digital Audio demand, including podcast advertising demand, continues to offset pressure in the Multiplatform Group.
- Progress toward full-year Consolidated Adjusted EBITDA of approximately $800 million and Free Cash Flow of approximately $200 million.
- Progress toward in-year 2026 cost savings of $125 million and year-end net leverage in mid-fives.
- Total Programmatic Revenue progress toward approximately $200 million, up approximately 50%.
Balance sheet and cash flow
- Cash provided by operating activities was $64.9 million, compared to cash provided by operating activities of $6.8 million in the prior year period.
- Free Cash Flow was $46.0 million, compared to ($13.2) million in the prior year period.
- Cash balance was $174 million as of June 30, 2026.
- Total available liquidity was $457 million as of June 30, 2026.
- The existing $450 million Asset-based Revolving Credit Facility maturity date was extended from May 17, 2027 until January 30, 2029.
- The Asset-based Revolving Credit Facility transaction closed on August 7, 2026.
Analysis
iHeartMedia delivered consolidated revenue of $977,239 in the second quarter of 2026, up 4.7% from $933,653 in the prior-year period. Growth was led by the Digital Audio Group, where revenue increased 12.4% to $364,080, and the Audio & Media Services Group, where revenue increased 18.8% to $80,465. Podcast revenue rose 20.7% to $162.1 million, while Digital revenue excluding Podcast increased 6.6% to $202.0 million. Management attributed these gains to continued advertiser demand for podcasting and digital advertising, as well as increased non-cash trade and barter revenue from strategic marketing initiatives.
The Multiplatform Group remained the principal weak point. Revenue declined 1.6% to $535,667, reflecting lower broadcast, networks, and sponsorship revenues amid advertiser uncertainty regarding consumer spending. Sponsorship and Events revenue decreased 16.3%, Networks declined 3.8%, and broadcast revenue increased 0.5% only because increased non-cash trade and barter revenue more than offset lower broadcast spot revenue. Political revenue provided a partial offset, as 2026 is a midterm election year.
Profitability was mixed. GAAP operating income was essentially unchanged at $35,504 versus $35,370, while consolidated Adjusted EBITDA declined 2.9% to $151,523. Digital Audio Group Segment Adjusted EBITDA increased 14.5% to $123,176 and its margin rose to 33.8% from 33.2%. Audio & Media Services Group Segment Adjusted EBITDA increased 54.6% to $36,663 and its margin rose to 45.6% from 35.0%. In contrast, Multiplatform Group Segment Adjusted EBITDA declined 39.2% to $58,609 and its margin contracted to 10.9% from 17.7%, as operating expenses increased 6.4% despite declining revenue.
Cash generation improved materially. Cash provided by operating activities was $64,883, compared with $6,821 in the prior-year period, primarily due to the timing of receivable collections. Free cash flow was $45,954, compared with negative $13,176 in the prior-year period. The company reported a cash balance of $174 million and total available liquidity of $457 million as of June 30, 2026. It also extended the maturity of its existing $450 million Asset-based Revolving Credit Facility to January 30, 2029.
For Q3 2026, management expects consolidated revenue to increase mid-single digits and Consolidated Adjusted EBITDA of approximately $180 million to $220 million. Full-year guidance calls for Consolidated Adjusted EBITDA of approximately $800 million, Free Cash Flow of approximately $200 million, $125 million of in-year cost savings, total programmatic revenue of approximately $200 million, and year-end net leverage in mid-fives. The central operational question is whether Digital Audio and Audio & Media Services growth, along with modernization-related expense reductions, can offset ongoing Multiplatform revenue and margin pressure.
Management, verbatim
We’re pleased with our second quarter results, generating Adjusted EBITDA of $152 million, slightly above the midpoint of our previously provided guidance range. Our consolidated revenue was $977 million, up 4.7% compared to the prior year quarter and above our guidance,
Bob Pittman, Chairman and CEO of iHeartMedia, Inc.
Our podcast revenue momentum continues, up 20.7% compared to prior year, and in addition to helping propel our growth as the #1 podcast publisher, our broadcast radio assets have also allowed us to develop and drive the new video podcast marketplace – an incremental growth opportunity for us, including on streaming video services including Netflix and Disney's Hulu, which we announced today.
Bob Pittman, Chairman and CEO of iHeartMedia, Inc.
In the second quarter, the Digital Audio Group’s revenue was $364 million, up 12.4% year over year and above our guidance, and our Q2 Adjusted EBITDA margins were 33.8%
Rich Bressler, President and COO of iHeartMedia, Inc.
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- Non-GAAP gross profit and gross margin
- GAAP diluted EPS
- Non-GAAP diluted EPS
- Income tax expense or benefit and tax rate
- Total debt balance
- Net debt amount
- Capital expenditures
- Share repurchases
- Dividends
- Prior-quarter revenue, operating income, net loss, Adjusted EBITDA, cash flow, and segment metrics
- Absolute consolidated direct operating expenses
- Absolute consolidated SG&A expenses
- Prior-year absolute revenue amounts for Podcast revenue and Digital revenue excluding Podcast
- Prior quarterly outlook release for comparison with reported results
- Q3 2026 gross margin, operating expense, tax-rate, and EPS guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.