iHeartMedia, Inc. Class A Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- iHeartMedia reported second quarter 2026 consolidated revenue of $977 million, up 4.7% year over year and above guidance of low single-digit growth.
- Excluding political impact, consolidated revenue increased 3.5%.
- Adjusted EBITDA was $152 million, slightly above the midpoint of guidance ($140 million to $160 million).
- Free cash flow was $46 million, compared to negative $13 million in the prior year quarter.
- Digital Audio group revenue grew 12.4% to $364 million, with adjusted EBITDA up 14.5% to $123 million and margins of 33.8%.
- Podcast revenue was $162 million, up 20.7%, with about 50% generated by local market sales forces.
- Digital X podcast revenue grew 6.6% to $202 million.
- Multi-platform group revenue was $536 million, down 1.6%, slightly below guidance, with adjusted EBITDA declining to $59 million from $96 million prior year.
- Audio and Media Services group revenue was $80 million, up 18.8%, with adjusted EBITDA up 54.6% to $37 million.
- GAAP operating income was $35.5 million, essentially flat year over year.
- Net debt was approximately $4.7 billion, liquidity was $457 million, and cash balance was $174 million, including $125 million borrowed under the ABL facility.
- ABL facility was amended and extended to January 30, 2029, maintaining size and pricing.
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Transcript
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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 McGuinness, 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 actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings, including our recent 8-K filing. Additionally, during this call, we will refer to certain non-GAAP financial measures.
Reconciliations between GAAP and non-GAAP financial measures are included in our earnings release, earnings presentation, and our SEC filings, which are available in the investor relations section of our website. Now I'll turn the call over to Bob.
Thanks, Andrey, and good afternoon, everyone. In the second quarter, our consolidated revenue was $977 million, up 4.7% compared to the prior year quarter and above our guidance of up low single digits. Excluding the impact of political, our consolidated revenue was up 3.5%. We generated adjusted EBITDA of $152 million in the second quarter, slightly above the midpoint of our previously provided guidance range of $140 million-$160 million. We generated $46 million of free cash flow in the quarter compared to a negative $13 million free cash flow in the prior year quarter. Significantly, our work in building our digital assets, including podcasting, continues to pay off. This will be the sixth quarter in a row in which the Digital Audio Group adjusted EBITDA is larger than the Multiplatform Group adjusted EBITDA.
Even when we get the Multiplatform Group back to growth, we expect this trend to continue. Additionally, we continue our drive for efficiencies in all areas of the company using AI and other technology tools. Turning to our individual operating segments, the Digital Audio Group generated second quarter revenue of $364 million, up 12.4% versus prior year, and ahead of our previously provided guidance of up approximately 10%. The Digital Audio Group generated second quarter adjusted EBITDA of $123 million, up 14.5% versus prior year. The adjusted EBITDA margins were 33.8%, and as a reminder, we expect to see the Digital Audio Group's full-year adjusted EBITDA margins to be in the mid-30s. Within the Digital Audio Group, our podcast revenue momentum continues and was $162 million for the quarter, up 20.7% compared to prior year of $134 million and in line with our guidance of up low 20s.
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