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iHeartMedia (IHRT)
NASDAQ:IHRT
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iHeartMedia
(NASDAQ:IHRT)
42Neutral
Positive Factors
Advertising Revenue
IHRT appears poised to start generating incremental advertising revenue from programmatic, potentially increasing sell-out rates.
Debt Management
The debt exchange plan would ease refinancing risk by extending maturities and keeping a manageable level of those instruments at their current maturities.
Digital Growth
Podcasting continues to lead growth in Digital Audio Group, with total digital revenues up 12.7% and the environment for podcast advertising remains encouraging.
Negative Factors
Advertising Market Challenges
A difficult radio ad market remains a headwind, with macro concerns impacting multiple advertiser categories and causing revenue trends to falter.
Macroeconomic Concerns
Macroeconomic uncertainty is a downside risk to company guidance and forecasts.
Natural Disasters Impact
There is a likelihood of an adverse effect on advertising spending in 2025 due to recent fires in LA, one of the largest markets for IHRT.
iHeartMedia (IHRT) vs. S&P 500 (SPY)
Market Cap
$173.05M
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)―
Beta (1Y)2.41
Revenue Growth2.76%
EPS Growth9.71%
CountryUS
Employees8,080
SectorCommunication Services
Sector Strength73
IndustryBroadcasting
Share Statistics
EPS (TTM)-6.68
Shares Outstanding126,376,380
10 Day Avg. Volume641,664
30 Day Avg. Volume1,076,762
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.07
Price to Cash Flow (P/CF)53.40
P/FCF Ratio53.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.75Price Target Upside212.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
iHeartMedia Business Overview & Revenue Model
Company DescriptioniHeartMedia, Inc. (IHRT) is a leading global media and entertainment company specializing in radio broadcasting, digital streaming, podcasting, and live events. Headquartered in San Antonio, Texas, iHeartMedia operates the largest number of radio stations in the United States and is a prominent player in the audio streaming and podcasting sectors through its iHeartRadio platform. The company offers a diverse range of content, including music, news, talk shows, and sports, catering to a wide array of audiences.
How the Company Makes MoneyiHeartMedia generates revenue primarily through advertising sales across its various platforms, including broadcast radio, digital streaming, and podcasts. The company leverages its extensive network of radio stations and digital platforms to offer advertisers targeted marketing solutions, optimizing reach and engagement. iHeartMedia's digital segment, particularly iHeartRadio, contributes significantly to its revenue through online advertising and subscription services. Additionally, the company earns from organizing and promoting live events and concerts, which further bolsters its income. Strategic partnerships with content creators and advertisers enhance iHeartMedia's ability to monetize its diverse media offerings effectively.
iHeartMedia Financial Statement Overview
Summary
iHeartMedia faces significant financial challenges, with high leverage, negative equity, and ongoing net losses. The company's financial health is under pressure due to declining profitability and cash flow issues. Strategic improvements are necessary to stabilize its financial position and drive sustainable growth.Income Statement
iHeartMedia's income statement reveals a concerning trend with declining revenue and persistent net losses. Despite a slight increase in revenue in 2024, the company reported a significant net loss, resulting in negative net and EBIT margins. The company's gross profit margin improved due to a reduction in cost of goods sold, but the overall profitability remains weak.30
Negative
Balance Sheet
The balance sheet shows a negative equity position, indicating potential financial instability. The debt-to-equity ratio is undefined due to negative equity, highlighting the company's high leverage. Total liabilities surpass total assets, and the company's equity ratio is negative, reflecting an unsustainable financial structure.20
Very Negative
Cash Flow
Cash flow analysis shows a decline in free cash flow in the latest year, which is a concern for liquidity. Although operating cash flow covers net income, indicating some operational efficiency, the negative free cash flow to net income ratio points to challenges in generating cash from operations.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.85B | 3.75B | 3.91B | 3.56B | 2.95B | Gross Profit |
| 2.27B | 2.26B | 2.43B | 2.23B | 1.79B | EBIT |
| -763.11M | -797.31M | 366.04M | 226.68M | 1.75B | EBITDA |
| -378.88M | 601.75M | 837.32M | 708.85M | 411.04M | Net Income Common Stockholders |
| -1.01B | -1.10B | -262.67M | -158.39M | -1.92B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 259.58M | 346.38M | 336.24M | 352.10M | 720.66M | Total Assets |
| 5.57B | 6.95B | 8.34B | 8.88B | 9.20B | Total Debt |
| 5.86B | 6.05B | 6.33B | 6.57B | 6.86B | Net Debt |
| 5.60B | 5.71B | 6.00B | 6.21B | 6.14B | Total Liabilities |
| 6.94B | 7.34B | 7.65B | 7.97B | 8.15B | Stockholders Equity |
| -1.17B | -394.15M | 684.50M | 915.80M | 1.05B |
| Cash Flow | Free Cash Flow | |||
| -26.16M | 110.39M | 259.11M | 147.20M | 130.74M | Operating Cash Flow |
| 71.43M | 213.06M | 420.07M | 330.57M | 215.94M | Investing Cash Flow |
| 508.00K | -51.33M | -129.23M | -346.79M | -147.81M | Financing Cash Flow |
| -158.34M | -152.16M | -306.11M | -352.12M | 241.18M |
iHeartMedia Technical Analysis
Negative
1.20
Price Trends
1.90
Negative
2.06
Negative
1.83
Negative
Market Momentum
-0.08
Negative
38.63
Neutral
31.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IHRT, the sentiment is Negative. The current price of 1.2 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.90, and below the 200-day MA of 1.83, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 38.63 is Neutral, neither overbought nor oversold. The STOCH value of 31.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IHRT.
iHeartMedia Risk Analysis
iHeartMedia disclosed 28 risk factors in its most recent earnings report. iHeartMedia reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
iHeartMedia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $405.68M | 6.42 | 16.74% | ― | -33.07% | -43.07% | |
63 Neutral | $473.02M | ― | -1.66% | 1.82% | 0.82% | -152.64% | |
58 Neutral | $25.04B | 3.23 | -10.53% | 4.39% | 2.30% | -43.13% | |
56 Neutral | $915.95M | 2.94 | 71.43% | 7.26% | 13.21% | ― | |
52 Neutral | $477.52M | ― | -42.46% | ― | -10.12% | 72.31% | |
46 Neutral | $60.76M | ― | -14.44% | ― | -3.58% | 50.73% | |
42 Neutral | $173.05M | ― | 86.54% | ― | 2.76% | 9.71% |
* Communication Services Sector Average
Performance Comparison
IHRT
iHeartMedia
1.15
-1.18
-50.64%
GRVY
Gravity Co
55.41
-18.77
-25.30%
MCHX
Marchex
1.37
-0.03
-2.14%
MCS
Marcus
15.19
1.67
12.35%
SBGI
Sinclair Broadcast
13.37
1.62
13.79%
THRY
Thryv Holdings
10.25
-13.22
-56.33%
iHeartMedia Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -42.58% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
iHeartMedia showed strong performance in its Digital Audio and Podcasting divisions, successfully managing its financial structure through debt exchange and expanding its programmatic capabilities. However, these achievements were offset by a challenging advertising environment, lower than expected political ad revenues, and disruptions from the Los Angeles wildfires.Highlights
Successful Debt Exchange
iHeartMedia completed a comprehensive exchange transaction, extending debt maturities by three years, maintaining flat annual cash interest expenses, and reducing overall debt.
Digital Audio Group Performance
The Digital Audio Group generated fourth-quarter revenues of $339 million, up 6.7% year-over-year, marking its best full-year performance with over $1.1 billion in revenue and approximately $380 million in adjusted EBITDA.
Podcasting Growth and Leadership
Podcast revenues grew 5.7% compared to the prior year. iHeart was ranked the number one podcast publisher in the U.S. and announced a partnership with Qatar to expand the podcasting industry in the Middle East and North Africa.
Audio and Media Services Group Growth
Revenues for the Audio and Media Services Group were $98 million, up 44.7% year-over-year, with adjusted EBITDA increasing by 136% from the prior year.
Expansion of Programmatic Advertising
iHeart's broadcast radio inventory will be available via Yahoo! DSP and Google's DV360, aligning broadcast assets with digital buying behavior.
Lowlights
Revenue Impact from Political Advertising
Consolidated revenues were up 4.8% year-over-year but below guidance due to lower political advertising revenue than expected.
Uncertain Advertising Market
The company saw a slowdown in non-political advertising revenue post-election, with February pacing down approximately 7%.
Impact of Los Angeles Wildfires
The wildfires in Los Angeles disrupted iHeartMedia’s largest revenue market, affecting both local and national sales teams.
Challenges in Multiplatform Group
The Multiplatform Group's revenues were flat compared to the prior year, with a decrease of 5% excluding political revenues.
Company Guidance
During the iHeartMedia Q4 2024 earnings call, the company provided guidance for the upcoming fiscal year, highlighting several key metrics. They expect full-year 2025 revenues to remain approximately flat compared to 2024, with adjusted EBITDA projected at around $770 million. Free cash flow is anticipated to reach approximately $200 million. The company aims to reduce its net debt to adjusted EBITDA ratio to approximately 5.5x by the end of 2025, maintaining a trajectory towards a 3.2x ratio by the end of 2028. For Q1 2025, consolidated revenues are expected to decline by low single digits year-over-year, with adjusted EBITDA ranging between $100 million and $110 million. The Digital Audio Group's revenues are forecasted to grow by low double digits, while the Multiplatform Group's revenues may decline by mid-single digits. Additionally, the Audio and Media Services Group's revenue is projected to decrease by about 15% due to the previous year's political advertising spend.iHeartMedia Corporate Events
Executive/Board ChangesShareholder Meetings
iHeartMedia Nominates Robert Millard to Board of Directors
Neutral
Apr 1, 2025
On April 1, 2025, iHeartMedia announced that Brad Gerstner will not seek re-election to its Board of Directors, ending his tenure to focus on other commitments. Gerstner, who joined the board in 2019, has been influential in guiding iHeartMedia’s technology transitions and growth in the audio industry. Concurrently, iHeartMedia nominated Robert Millard, a seasoned executive with extensive experience in business and finance, to stand for election at the 2025 Annual Meeting. Millard’s potential appointment is expected to bring strategic insights and bolster iHeartMedia’s growth trajectory.
Executive/Board Changes
iHeartMedia Announces Resignation of Chief Legal Officer
Neutral
Mar 5, 2025
On March 3, 2025, iHeartMedia announced the resignation of Jordan R. Fasbender, the Executive Vice President, Chief Legal Officer, and Secretary, effective on or around April 1, 2025. Her departure is to pursue another opportunity outside the company and is not due to any disagreements regarding company operations, policies, or practices.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.