iHeartMedia (NASDAQ:IHRT) Announces Quarterly Earnings Results

iHeartMedia (NASDAQ:IHRT) announced its quarterly earnings data on Monday. The company reported $0.04 EPS for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.06), Zacks reports. The firm had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.10 billion. iHeartMedia had a negative net margin of 12.24% and a negative return on equity of 1.63%.

Here are the key takeaways from iHeartMedia’s conference call:

• Digital Audio Group momentum continued in Q4 with revenue of $387M (+14.1%) and podcast revenue of $174M (+24.5%), driving DAG adjusted EBITDA of $132M and full‑year margins of ~34.4% as management targets further margin upside.
• The Multiplatform Group faces Q4 EBITDA pressure (Q4 adjusted EBITDA $129M, down 14.2%) due to lapping prior political revenue, but management expects MPG to return to EBITDA growth in 2026 driven by programmatic rollout, integrated sales, audience scale and partnerships (Amazon DSP, Yahoo, Netflix, TikTok).
• iHeart reiterated financial targets for 2026, including roughly $800M of adjusted EBITDA and ~$200M of free cash flow, supported by $100M of in‑year cost reductions (on top of $150M saved in 2025) and continued investment in programmatic capabilities.
• Cash generation improved materially — Q4 free cash flow was $138M ($158M including certain real estate proceeds) with ~70% EBITDA-to-FCF conversion, and management expects working capital to be a source of cash in 2026 due to upfront political payments.
• The balance sheet remains leveraged with year‑end net debt of ~$4.5B, net debt/adjusted EBITDA of 6.6x, total liquidity of $640M and cash of $271M (including $50M drawn on the ABL), leaving leverage reduction a key execution risk despite guidance to reach mid‑fives by year‑end 2026.

iHeartMedia Price Performance

Shares of NASDAQ:IHRT opened at $2.94 on Wednesday. The firm’s 50 day simple moving average is $3.64 and its 200 day simple moving average is $3.40. iHeartMedia has a fifty-two week low of $0.95 and a fifty-two week high of $5.44. The company has a market capitalization of $441.47 million, a price-to-earnings ratio of -0.96, a P/E/G ratio of 0.26 and a beta of 1.70.

Hedge Funds Weigh In On iHeartMedia

Hedge funds and other institutional investors have recently made changes to their positions in the company. Virtu Financial LLC acquired a new stake in shares of iHeartMedia during the fourth quarter worth about $78,000. The Manufacturers Life Insurance Company lifted its position in shares of iHeartMedia by 15.0% in the second quarter. The Manufacturers Life Insurance Company now owns 43,613 shares of the company’s stock worth $77,000 after purchasing an additional 5,684 shares in the last quarter. State of Wyoming acquired a new position in iHeartMedia during the fourth quarter worth $72,000. Mangrove Partners IM LLC acquired a new position in iHeartMedia during the fourth quarter worth $69,000. Finally, Dimensional Fund Advisors LP bought a new stake in iHeartMedia during the 3rd quarter worth about $58,000. 93.89% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on IHRT. The Goldman Sachs Group cut iHeartMedia from a “neutral” rating to a “sell” rating and decreased their price target for the company from $4.00 to $3.50 in a report on Friday, January 9th. Bank of America upped their target price on shares of iHeartMedia from $3.00 to $5.00 and gave the company a “neutral” rating in a research report on Thursday, November 13th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of iHeartMedia in a research report on Thursday, January 22nd. One analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus target price of $4.33.

iHeartMedia Company Profile

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.