iHeartMedia NASDAQ: IHRT reported first-quarter 2026 revenue growth that met management’s expectations, while adjusted earnings came in modestly below guidance as the company cited timing of non-cash marketing expenses and softer March advertising demand.
Chairman and CEO Bob Pittman said consolidated revenue rose 9.6% year over year to $884 million, in line with the company’s prior outlook for high-single-digit growth. Excluding political advertising, revenue increased 9.3%. Adjusted EBITDA was $93 million, down from $105 million in the prior-year quarter and slightly below the company’s guidance of approximately $100 million.
Pittman said the shortfall was driven mainly by the timing of non-cash marketing expenses tied to partnership campaigns, along with March advertising revenue that came in “a little lower than anticipated.” He said management believes the softness correlated with advertiser and consumer uncertainty related to macroeconomic issues.
Company Announces Additional Cost Savings
iHeartMedia also announced a new cost-reduction initiative expected to generate an additional $50 million of annualized savings, with benefits beginning in the second half of 2026. Pittman said the program is in addition to the $100 million of in-year 2026 savings previously announced.
Management said the company continues to evaluate its organizational structure, reduce management layers and adopt new technologies and tools, including artificial intelligence, to improve operating efficiency.
President and COO Rich Bressler said changes to the tax code are also expected to materially improve free cash flow. The company now expects minimal cash taxes over the next three years, assuming current tax laws remain in effect, preserving approximately $150 million to $200 million of cash from 2026 to 2028.
Digital Audio Growth Led by Podcasting
The Digital Audio Group generated first-quarter revenue of $327 million, up 18% from the prior year and slightly ahead of the company’s guidance for mid-teens growth. Podcast revenue rose 26.9% to $147 million, above management’s outlook for low-20% growth. Pittman said approximately half of podcasting revenue was generated by iHeartMedia’s local sales force.
Digital revenue excluding podcasting increased 11.6% year over year. The Digital Audio Group produced adjusted EBITDA of $87 million, flat with the prior year, with an adjusted EBITDA margin of 26.5%. Pittman said first-quarter margins are typically the lowest of the year and that the company expects full-year Digital Audio Group adjusted EBITDA margins in the mid-30% range, consistent with 2025.
Pittman emphasized the role of the company’s broadcast radio assets in supporting podcast growth, calling podcasting “radio on demand.” He said iHeartMedia is the top podcast publisher as measured by Podtrac and Triton and described the company as the podcasting industry’s leading podcast sales network.
Multiplatform Revenue Rises, EBITDA Declines
The Multiplatform Group, which includes broadcast radio, networks and events, generated first-quarter revenue of $493 million, up 4.3% year over year and slightly below the midpoint of management’s prior guidance for mid-single-digit growth. Excluding political advertising, revenue rose 3.9%. Adjusted EBITDA for the segment was $47 million, down from $70 million in the year-ago quarter.
Pittman said the company remains confident it can return the Multiplatform Group to adjusted EBITDA growth during 2026. He cited four key drivers: programmatic advertising for broadcast inventory, integrated sales across iHeartMedia’s platforms, increased share of the broadcast radio market and the resilience of radio audiences.
Management said iHeartMedia has built ad-tech infrastructure to make broadcast inventory available through programmatic buying platforms, including partnerships with Amazon DSP, Yahoo DSP, Google DV360 and others. Bressler said the company still expects programmatic revenue of about $200 million in 2026, up approximately 50% from $135 million in 2025.
In the Audio Media Services Group, revenue rose 12.2% year over year to $67 million, driven primarily by digital revenue growth. Excluding political revenue, the segment’s revenue increased 13%. Adjusted EBITDA rose 54.7% to $24 million.
Advertising Trends and Balance Sheet
Bressler said iHeartMedia’s advertising base remains diversified, with no category accounting for more than about 5% of total advertising revenue and no individual advertiser accounting for more than about 2%.
In the first quarter, the largest category gainers in absolute dollars were:
- Healthcare
- Financial services
- Computers, electronics and appliances
- Political
The largest decliners in absolute dollars were entertainment, beauty and fitness, government and telecom. Bressler said the company’s largest advertising categories by absolute dollars included healthcare, financial services, auto, and home building and improvement.
Free cash flow was negative $114 million in the quarter, compared with negative $81 million a year earlier. Bressler said the decline was driven by higher interest expense, noting that the prior-year quarter benefited from the acceleration of a portion of interest payments into the fourth quarter of 2024. Adjusted for that shift, he said free cash flow improved slightly year over year.
At quarter end, iHeartMedia had net debt of approximately $4.7 billion, total liquidity of $495 million and cash of $135 million, including $50 million borrowed under its ABL facility. Its net debt-to-adjusted EBITDA ratio was 6.9 times. Bressler said the company drew an additional $75 million from the ABL at the end of April, bringing the outstanding balance to $125 million, and expects to repay it by the end of 2026 through free cash flow generation.
Guidance Reaffirmed Despite Uncertainty
For the second quarter, iHeartMedia expects adjusted EBITDA of $140 million to $160 million and consolidated revenue growth in the low single digits year over year. Bressler said April was still being closed but was pacing up low single digits.
By segment, management expects second-quarter Digital Audio Group revenue to rise about 10%, with podcasting revenue up in the low 20% range and digital excluding podcasting up low single digits. Multiplatform Group revenue is expected to be approximately flat, while Audio Media Services Group revenue is expected to rise in the low teens.
For the full year, iHeartMedia reaffirmed guidance for $800 million of adjusted EBITDA and $200 million of free cash flow. The outlook assumes continued podcast revenue momentum, programmatic growth, benefits from cost savings programs and a “robust” midterm election year for political advertising, with most political revenue expected in the third and fourth quarters.
During the question-and-answer portion of the call, Pittman said management views the advertising market as “reasonably healthy,” but said inflation, gas prices and consumer uncertainty could have a moderating effect. He also said political spending is expected to absorb a meaningful share of inventory later in the year, which could support the overall marketplace.
About iHeartMedia NASDAQ: IHRT
iHeartMedia, Inc NASDAQ: IHRT is a leading media and entertainment company specializing in radio broadcasting, digital streaming and live events. The company operates more than 860 full-power AM and FM radio stations across the United States, delivering music, news, sports and talk programming to local markets. Through its flagship digital platform, iHeartRadio, the company provides listeners with free and subscription-based access to thousands of live radio stations, curated music playlists and on-demand podcasts.
Originally founded in 1972 as Clear Channel Communications, the business rebranded to iHeartMedia in 2014 to reflect the growing importance of its digital and event-driven offerings.
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