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iHeartMedia Q2 revenue slightly beats estimates on higher political advertising

iHeartMedia Q2 revenue slightly beats estimates on higher political advertising


Overview

  • U.S. audio broadcaster's Q2 revenue rose 4.7%, slightly beating analyst expectations

  • Adjusted EBITDA for Q2 was $152 mln, slightly beating analyst expectations

  • Free cash flow improved to $46 mln from negative in prior year period


Outlook

  • iHeartMedia sees Q3 revenue rising mid-single digits

  • Company expects Q3 Adjusted EBITDA of $180 mln to $220 mln

  • iHeartMedia forecasts 2026 Adjusted EBITDA of about $800 mln and free cash flow of $200 mln


Result Drivers

  • DIGITAL AUDIO GROWTH - Digital Audio Group revenue rose 12% YoY, driven by increased demand for digital and podcast advertising

  • MULTIPLATFORM WEAKNESS - Multiplatform Group revenue fell 2% YoY, mainly due to lower broadcast, networks, and sponsorship revenues amid advertiser uncertainty on consumer spending

  • POLITICAL ADVERTISING - Higher political advertising revenue contributed to growth, reflecting the impact of the 2026 midterm election cycle


Company press release: ID:nBw2s0BMya


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Slight Beat*

$977.23 mln

$970.15 mln (4 Analysts)

Q2 Adjusted EBITDA

Slight Beat*

$151.52 mln

$151.24 mln (4 Analysts)

Q2 Free Cash Flow

$46 mln

Q2 Operating Income

$36 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the broadcasting peer group is "buy."

  • Wall Street's median 12-month price target for iHeartMedia, Inc. is $3.63, about 6.1% below its August 7 closing price of $3.86


Reuters Recommended Reads

  • Aug 10 - Canada's Stingray Q1 revenue beats estimates but margins weigh on profit

  • Aug 10 - India's Zee Entertainment posts quarterly profit drop on weak ad sales, rising costs

  • Aug 10 - US communications agency is the unlikely spearhead of Trump's China policy


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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