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    IHRT
    Earnings call· Jun 2026(Q2 FY26)

    iHeartMedia Q2 FY26 earnings call IHRT

    Aug 10, 2026 Source

    Executive summary

    iHeartMedia Q2 FY26 — Digital Audio Drives Growth, Strong Political Outlook

    iHeartMedia delivered a strong second quarter, with consolidated revenue and adjusted EBITDA exceeding expectations, primarily fueled by robust performance in its Digital Audio Group. The company is strategically addressing the Multi-Platform Group's monetization challenges by integrating broadcast inventory into digital buying platforms, while expanding its profitable video podcasting initiatives. Management reaffirmed full-year guidance, anticipating a significant boost from political advertising and ongoing cost efficiencies in the second half of the year.

    Highlights

    5

    • Consolidated revenue of $977 million, up 4.7% year-over-year, exceeding guidance.

    • Digital Audio Group revenue grew 12.4% to $364 million, beating guidance and driving segment adjusted EBITDA up 14.5%.

    • Podcasting revenue surged 20.7% to $162 million, maintaining strong momentum and profitability.

    • Free cash flow improved significantly to $46 million, compared to negative $13 million in the prior year quarter.

    • Amended and extended ABL facility, maintaining $450 million size and current pricing, extending maturity to January 2029.

    Concerns

    3

    • Multi-Platform Group revenue declined 1.6% to $536 million, slightly below guidance, impacted by macroeconomic uncertainty and non-cash marketing expenses.

    • Multi-Platform Group adjusted EBITDA decreased from $96 million to $59 million year-over-year, primarily due to non-cash marketing expenses.

    • Four advertising categories (telecom, financial services, auto, food and beverage) saw the largest declines in Q2.

    Guidance & targets

    15
    CategoryTargetConfidence
    Consolidated Adjusted EBITDA
    $180M-$220M
    high materiality
    High
    Consolidated Revenue Growth
    up mid-single digits
    high materiality
    High
    Digital Audio Group Revenue Growth
    up low teens
    medium materiality
    High
    Podcasting Revenue Growth
    up approximately 20%
    medium materiality
    High
    Digital X Podcast Revenue Growth
    up mid-single digits
    medium materiality
    High
    Multi-Platform Group Revenue Growth
    approximately flat
    medium materiality
    High
    Audio and Media Services Group Revenue Growth
    up approximately 20%
    medium materiality
    High
    Full Year Adjusted EBITDA
    $800M
    high materiality
    High
    Full Year Free Cash Flow
    $200M
    high materiality
    High
    Full Year Programmatic Revenue
    $200M
    medium materiality
    High
    Full Year Interest Expense
    $440M
    medium materiality
    High
    Full Year Cash Taxes
    $0
    high materiality
    High
    Full Year Capital Expenditures
    $90M
    medium materiality
    High
    Full Year Cash Restructuring Expenses
    $50M
    medium materiality
    High
    Net Leverage Ratio
    mid-fives
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Digital Audio Group
    Exceeded revenue guidance of approximately 10%; sixth consecutive quarter with higher adjusted EBITDA than Multi-Platform Group; podcasting revenue is 50% from local salesforce.
    Podcasting Revenue: $162MPodcasting Revenue Growth YoY: 20.7%Digital X Podcasting Revenue Growth YoY: 6.6%
    		$364M12.4%—$123M (Adjusted EBITDA), 33.8% (Adjusted EBITDA margin)
    Multi-Platform Group
    Slightly below guidance of approximately flat; revenue down 2.8% excluding political advertising; adjusted EBITDA impacted by non-cash marketing expenses; addressing monetization challenge by adding broadcast inventory to DSPs.
    		$536M-1.6%—$59M (Adjusted EBITDA)
    Audio and Media Services Group
    Revenue up 10.6% excluding political advertising; continued growth in adjusted EBITDA with focus on digital business and operating efficiencies.
    		$80M18.8%—$37M (Adjusted EBITDA)

    Operational metrics

    7
    Consolidated Revenue Growth excluding Political
    3.5%YoY
    Q2 FY26

    Consolidated revenue growth excluding the impact of political advertising.

    Consolidated Direct Operating Expenses Growth
    2.4%increase
    Q2 FY26

    Increase primarily driven by variable content costs.

    Consolidated SG&A Expenses Growth
    11.8%increase
    Q2 FY26

    Increase primarily driven by non-cash co-marketing partnerships.

    Net Debt
    $4.7B
    Q2 FY26 end

    Net debt balance at the end of the quarter.

    Total Liquidity
    $457M
    Q2 FY26 end

    Total liquidity at quarter end.

    ABL Facility Maturity Extension
    January 30, 2029from May 17, 2027
    as of August 2026

    Amended and extended current ABL facility, maintaining size and pricing.

    July Revenue Growth
    low single digitsYoY
    July 2026

    Preliminary revenue growth for July, part of Q3 guidance.

    Industry KPIs

    9
    MetricValueDetails
    Total revenue$977MUSD
    Net income EPS$35.5MUSD
    Adjusted EBITDA$152MUSD
    CAPEX capital program$90MUSD
    Operating income margin$35.5MUSD
    Total operating expenses2.4%%
    Content title performanceThe Breakfast Club, Hey Jonas, Pod Meets World, Kate Hudson, Oliver Hudson, Lily Pons, Martha Stewart podcasts
    Cash marketable securities$174MUSD
    Free cash flow operating cash flow$46MUSD

    Product announcements

    2
    ProductTypeDetails
    Video Podcasts on Netflixexpansion
    Video Podcasts on Disney's Hululaunch

    Deals & partnerships

    3
    NetflixExpansion of video podcast distribution and content licensing, including 'The Breakfast Club' as a live daily show.

    Expanding relationship to include podcasts from Kate Hudson and Oliver Hudson, Lily Pons and Martha Stewart, as well as The Breakfast Club with Charlemagne becoming the only live daily show on Netflix.

    Disney's HuluNew distribution agreement for iHeart's video podcast content.

    Bringing six iHeart titles, including video episodes of Hey Jonas and Pod Meets World, to Disney's Hulu streaming video service.

    ABL Facility LendersAmendment and extension of the existing Asset-Based Lending (ABL) facility.$450Mextended to January 30, 2029

    Amended and extended the current ABL facility, maintaining the $450 million size and current pricing, and extending the maturity date from May 17, 2027 to January 30, 2029.

    Risks & headwinds

    4
    Macroeconomic UncertaintyQ2 FY26, ongoing

    Impacted Q2 consolidated revenue and Multi-Platform Group revenue; gas and diesel prices specifically mentioned.

    Mitigation: Diversified advertising revenues (no category >5%, no advertiser >2%); cautious optimism for H2; focus on ROI for advertisers.

    Non-cash Co-Marketing Partnerships Impact on MPG EBITDAQ2 FY26, decreasing in H2 FY26

    Drove the majority of lower Multi-Platform Group adjusted EBITDA in Q2; SG&A expenses increased 11.8% primarily due to these.

    Mitigation: These partnerships are critical for audiograph and broadcast programmatic initiatives; expected to decrease in H2; zero impact on adjusted EBITDA over time.

    Broadcast Radio Monetization ChallengeOngoing

    Broadcast radio is the slowest revenue stream despite strong consumer reach and advertiser results.

    Mitigation: Adding broadcast radio inventory to DSPs (Amazon, Google, Yahoo); developing offerings for other digital planning and buying platforms (audiograph, programmatic) to meet digital buying construct.

    Specific Advertising Category DeclinesQ2 FY26

    Telecom, financial services, auto, and food and beverage declined the most in absolute dollars in Q2.

    Mitigation: Diversified advertising base; ability to offer multi-platform solutions (broadcast, podcasting, streaming, events) to meet advertiser needs and deliver measurable results.

    What to watch in Q3 FY26

    5

    Political Advertising Revenue

    Q3 FY26, Q4 FY26
    CurrentExpected to be robust in H2, potentially matching presidential year levels
    TargetStrong performance in Q3 and Q4, contributing significantly to full-year guidance

    Why it matters

    Political advertising is a major driver of adjusted EBITDA and free cash flow in the second half, crucial for achieving full-year targets.

    We continue to believe that this will be a robust midterm election year in terms of generating political revenue. And with that, I'll turn it over to Rich.

    Q&A highlights

    5

    How is the political front building up for the November cycle, especially compared to prior midterms, and what is iHeart's strategy?

    Management expects a "pretty big political year," potentially as large as a presidential year. Their strategy involves engaging with candidates, PACs, and campaigns at both local and national levels. They anticipate benefiting from TV inventory selling out, pushing advertisers to radio, similar to past strong political years.

    “People are saying it may be as big as the presidential year as opposed to midterm. Yet, debt to be seen, although the early indications are it's probably performing at that level.”

    asked by Steven Lasik from Goldman Sachs · answered by Bob Pittman

    2 min read5 chapters

    Detailed Narrative

    01

    Digital Audio Group's Continued Strength

    The Digital Audio Group (DAG) continues to be a primary growth engine, with its adjusted EBITDA surpassing the Multi-Platform Group for the sixth consecutive quarter. This trend is expected to persist, driven by strong podcasting revenue growth and expanding digital offerings. The segment's adjusted EBITDA margins reached 33.8% in Q2, with full-year margins projected to be in the mid-30s, highlighting its profitability and operational efficiency.

    02

    Strategic Shift for Broadcast Radio Monetization

    Despite strong consumer engagement with broadcast radio, the Multi-Platform Group faces monetization challenges due to advertisers' preference for digital buying platforms. iHeartMedia is actively addressing this by integrating its broadcast radio inventory into major DSPs like Amazon, Google, and Yahoo, and developing programmatic offerings. This strategic move aims to significantly improve radio revenue performance by making broadcast inventory as easily transactable as digital.

    03

    Expansion into Video Podcasting

    iHeartMedia is leveraging its leading podcast position to expand into video podcasting, a new and meaningful growth opportunity. The company is producing video versions of its podcasts for distribution on iHeartRadio and other platforms, including streaming services like Netflix and Hulu. This strategy aims to capture new audiences and revenue streams, benefiting from higher CPMs associated with video content while maintaining low production costs.

    04

    Political Advertising as a Key Driver

    Political advertising is anticipated to be a major driver of adjusted EBITDA and free cash flow in the second half of FY26, particularly in Q4. Management expects a robust midterm election year, potentially rivaling presidential election years in terms of revenue generation. The company's diversified advertising base and the historical tendency for political spend to shift to radio as TV inventory sells out are expected to contribute significantly.

    05

    Financial Discipline and Capital Structure

    The company demonstrated strong financial management, improving free cash flow to $46 million in Q2 from a negative $13 million in the prior year. It also successfully amended and extended its ABL facility, pushing its maturity to January 2029 while maintaining favorable terms. These actions, combined with expected zero cash taxes for several years and cost savings programs, are projected to drive significant deleveraging, with net leverage expected to be in the mid-fives by year-end.

    AI-generated summary of the company’s earnings call. Not investment advice.